A class-D audio amplifier incorporates an overcurrent protection scheme implementing two overcurrent thresholds to avoid a dynamic impedance drop. When output current reaches the first threshold as a result of an impedance drop across the speaker, the overcurrent protection circuitry limits the output current to the value of the first threshold, but does not shut down the circuit. The second threshold is used to detect an overcurrent condition to shut down the circuit. Current limiting logic of a first channel monitors the overcurrent condition of a second channel and controls the first channel output in response thereto. This permits the second channel output current to reach the second threshold if the circuit is experiencing a short-circuit condition. This scheme also allows the output current to drop below the first threshold if the overcurrent condition of the second channel is caused by an impedance drop across the output speaker.