diff --git a/README.md b/README.md
index ba2bf5b4f..1ae751434 100755
--- a/README.md
+++ b/README.md
@@ -337,6 +337,7 @@ Remark:
 
 ## History
 
+* v2.0, 2015-12-15, default hls_on_error to continue. 2.0.201
 * v2.0, 2015-11-16, for [#518][bug #518] fix fd leak bug when fork. 2.0.200
 * v2.0, 2015-11-05, for [#511][bug #511] fix bug for restart thread. 2.0.199
 * v2.0, 2015-11-02, for [#515][bug #515] use srs_freepa and SrsAutoFreeA for array. 2.0.198
diff --git a/trunk/conf/full.conf b/trunk/conf/full.conf
index e9e5789dd..0730a9ace 100644
--- a/trunk/conf/full.conf
+++ b/trunk/conf/full.conf
@@ -539,12 +539,12 @@ vhost with-hls.srs.com {
         # default: 60
         hls_window      60;
         # the error strategy. canbe:
-        #       ignore, when error ignore and disable hls.
-        #       disconnect, when error disconnect the publish connection.
-        #       continue, when error ignore and continue output hls.
+        #       ignore, disable the hls.
+        #       disconnect, require encoder republish.
+        #       continue, ignore failed try to continue output hls.
         # @see https://github.com/ossrs/srs/issues/264
-        # default: ignore
-        hls_on_error    ignore;
+        # default: continue
+        hls_on_error    continue;
         # the hls storage: disk, ram or both.
         #       disk, to write hls m3u8/ts to disk.
         #       ram, serve m3u8/ts in memory, which use embeded http server to delivery.
diff --git a/trunk/src/app/srs_app_config.cpp b/trunk/src/app/srs_app_config.cpp
index 9257b0869..f109c9fba 100644
--- a/trunk/src/app/srs_app_config.cpp
+++ b/trunk/src/app/srs_app_config.cpp
@@ -75,7 +75,7 @@ using namespace _srs_internal;
 #define SRS_CONF_DEFAULT_HLS_TD_RATIO 1.5
 #define SRS_CONF_DEFAULT_HLS_AOF_RATIO 2.0
 #define SRS_CONF_DEFAULT_HLS_WINDOW 60
-#define SRS_CONF_DEFAULT_HLS_ON_ERROR_IGNORE "ignore"
+#define SRS_CONF_DEFAULT_HLS_ON_ERROR_IGNORE "continue"
 #define SRS_CONF_DEFAULT_HLS_ON_ERROR_DISCONNECT "disconnect"
 #define SRS_CONF_DEFAULT_HLS_ON_ERROR_CONTINUE "continue"
 #define SRS_CONF_DEFAULT_HLS_ON_ERROR SRS_CONF_DEFAULT_HLS_ON_ERROR_IGNORE
diff --git a/trunk/src/app/srs_app_source.cpp b/trunk/src/app/srs_app_source.cpp
old mode 100755
new mode 100644
index ca133d1b0..fa64ffcfb
--- a/trunk/src/app/srs_app_source.cpp
+++ b/trunk/src/app/srs_app_source.cpp
@@ -1763,6 +1763,23 @@ int SrsSource::on_video(SrsCommonMessage* shared_video)
     return ret;
 }
 
+bool srs_hls_can_continue(int ret, SrsSharedPtrMessage* sh, SrsSharedPtrMessage* video)
+{
+    // only continue for decode error.
+    if (ret != ERROR_HLS_DECODE_ERROR) {
+        return false;
+    }
+    
+    // when video size equals to sequence header,
+    // the video actually maybe a sequence header,
+    // continue to make ffmpeg happy.
+    if (sh && sh->size == video->size) {
+        return true;
+    }
+    
+    return false;
+}
+
 int SrsSource::on_video_imp(SrsSharedPtrMessage* msg)
 {
     int ret = ERROR_SUCCESS;
@@ -1827,7 +1844,7 @@ int SrsSource::on_video_imp(SrsSharedPtrMessage* msg)
             ret = ERROR_SUCCESS;
         } else if (srs_config_hls_is_on_error_continue(hls_error_strategy)) {
             // compare the sequence header with video, continue when it's actually an sequence header.
-            if (ret == ERROR_HLS_DECODE_ERROR && cache_sh_video && cache_sh_video->size == msg->size) {
+            if (srs_hls_can_continue(ret, cache_sh_video, msg)) {
                 srs_warn("the video is actually a sequence header, ignore this packet.");
                 ret = ERROR_SUCCESS;
             } else {
diff --git a/trunk/src/core/srs_core.hpp b/trunk/src/core/srs_core.hpp
index c173b329c..1c16f7f9d 100644
--- a/trunk/src/core/srs_core.hpp
+++ b/trunk/src/core/srs_core.hpp
@@ -31,7 +31,7 @@ CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
 // current release version
 #define VERSION_MAJOR       2
 #define VERSION_MINOR       0
-#define VERSION_REVISION    200
+#define VERSION_REVISION    201
 
 // server info.
 #define RTMP_SIG_SRS_KEY "SRS"