diff --git a/Source/UnitTest/test_simd.cpp b/Source/UnitTest/test_simd.cpp
index b72563d1..913cc1f7 100644
--- a/Source/UnitTest/test_simd.cpp
+++ b/Source/UnitTest/test_simd.cpp
@@ -1154,6 +1154,16 @@ TEST(SuiteVfloat4, float16_to_float)
 
 	// NaNs must be preserved
 	EXPECT_NE(std::isnan(r.lane<3>()), 0);
+
+	// Negative numbers must keep their sign
+	vint4 b(0xBE00, 0xDB54, 0xFC00, 0x8000);
+	vfloat4 s = float16_to_float(b);
+
+	EXPECT_EQ(s.lane<0>(), -1.5);
+	EXPECT_EQ(s.lane<1>(), -234.5);
+	EXPECT_NE(std::isinf(s.lane<2>()), 0);
+	EXPECT_LT(s.lane<2>(), 0.0f);
+	EXPECT_NE(std::signbit(s.lane<3>()), 0);
 }
 
 /** @brief Test fp16 to float conversion. */
diff --git a/Source/astcenc_vecmathlib_sse_4.h b/Source/astcenc_vecmathlib_sse_4.h
index c0eb6553..8aa9cc97 100644
--- a/Source/astcenc_vecmathlib_sse_4.h
+++ b/Source/astcenc_vecmathlib_sse_4.h
@@ -998,7 +998,7 @@ static inline uint16_t float_to_float16(float a)
 ASTCENC_SIMD_INLINE vfloat4 float16_to_float(vint4 a)
 {
 #if ASTCENC_F16C >= 1
-	__m128i packed = _mm_packs_epi32(a.m, a.m);
+	__m128i packed = _mm_packus_epi32(a.m, a.m);
 	__m128 f32 = _mm_cvtph_ps(packed);
 	return vfloat4(f32);
 #else