Provided are a method, system and article of manufacture for bidirectional data transfer. In certain embodiments a link layer login is sent from a first port to a second port. Subsequently, an application layer login is sent from the first port to the second port to establish a first data path, wherein the first data path is from the first port to the second port. Subsequently, another application layer login is sent from the second port to the first port to establish a second data path, wherein the second data path is from the second port to the first port. In certain other embodiments, a first data path is established from a first port to a second port. A determination is made at the first port, whether the second port has a second data path established from the second port to the first port. An application layer logout is sent from the first port to the second port, in response to determining that the second port has the second data path established from the second port to the first port. The first data path is terminated from the first port to the second port in response to receiving the application layer logout at the second port.