diff --git a/stream-android-core/src/main/java/io/getstream/android/core/internal/socket/StreamSocketSession.kt b/stream-android-core/src/main/java/io/getstream/android/core/internal/socket/StreamSocketSession.kt
index 11c1f78..3811c5a 100644
--- a/stream-android-core/src/main/java/io/getstream/android/core/internal/socket/StreamSocketSession.kt
+++ b/stream-android-core/src/main/java/io/getstream/android/core/internal/socket/StreamSocketSession.kt
@@ -368,6 +368,16 @@ internal class StreamSocketSession<T>(
                                 failure(it)
                             }
                     }
+
+                    override fun onFailure(t: Throwable, response: Response?) {
+                        logger.e(t) { "[onFailure] Socket failure. ${t.message}" }
+                        failure(t)
+                    }
+
+                    override fun onClosed(code: Int, reason: String) {
+                        logger.e { "[onClosed] Socket closed. Code: $code, Reason: $reason" }
+                        failure(IOException("Socket closed. Code: $code, Reason: $reason"))
+                    }
                 }
 
             val hsRes =
diff --git a/stream-android-core/src/test/java/io/getstream/android/core/internal/socket/StreamSocketSessionTest.kt b/stream-android-core/src/test/java/io/getstream/android/core/internal/socket/StreamSocketSessionTest.kt
index d9cc7cc..146c6fe 100644
--- a/stream-android-core/src/test/java/io/getstream/android/core/internal/socket/StreamSocketSessionTest.kt
+++ b/stream-android-core/src/test/java/io/getstream/android/core/internal/socket/StreamSocketSessionTest.kt
@@ -36,8 +36,16 @@ import io.getstream.android.core.internal.model.events.StreamHealthCheckEvent
 import io.getstream.android.core.internal.serialization.StreamCompositeEventSerializationImpl
 import io.getstream.android.core.internal.serialization.StreamCompositeSerializationEvent
 import io.getstream.android.core.internal.socket.model.ConnectUserData
-import io.mockk.*
+import io.mockk.MockKAnnotations
+import io.mockk.Runs
+import io.mockk.every
+import io.mockk.just
+import io.mockk.mockk
+import io.mockk.slot
+import io.mockk.verify
+import java.io.IOException
 import junit.framework.Assert.assertEquals
+import kotlin.time.Duration.Companion.seconds
 import kotlinx.coroutines.async
 import kotlinx.coroutines.cancelAndJoin
 import kotlinx.coroutines.test.advanceUntilIdle
@@ -1208,6 +1216,88 @@ class StreamSocketSessionTest {
         job.cancel()
     }
 
+    @Test
+    fun `handshake onFailure triggers connect failure`() =
+        runTest(timeout = 1.seconds) {
+            testHandshakeFailure { hsListener, _ ->
+                val socketFailure = RuntimeException("WebSocket connection failed")
+                val mockResponse = mockk<Response>(relaxed = true)
+                hsListener.onFailure(socketFailure, mockResponse)
+            }
+        }
+
+    @Test
+    fun `handshake onClosed triggers connect failure with IOException`() =
+        runTest(timeout = 1.seconds) {
+            val result = testHandshakeFailure { hsListener, _ ->
+                hsListener.onClosed(12345, "Closed because yes")
+            }
+
+            // Verify that the failure contains an IOException with the expected message
+            val exception = result.exceptionOrNull()
+            assertTrue(
+                "Expected IOException but got ${exception?.javaClass?.simpleName}",
+                exception is IOException,
+            )
+        }
+
+    private suspend fun testHandshakeFailure(
+        triggerFailure: (StreamWebSocketListener, StreamSubscription) -> Unit
+    ): Result<StreamConnectionState.Connected> {
+        val seenStates = mutableListOf<StreamConnectionState>()
+        every { subs.forEach(any()) } answers
+            {
+                val consumer = arg<(StreamClientListener) -> Unit>(0)
+                val listener =
+                    object : StreamClientListener {
+                        override fun onState(state: StreamConnectionState) {
+                            seenStates += state
+                        }
+
+                        override fun onEvent(event: Any) {}
+                    }
+                consumer(listener)
+                Result.success(Unit)
+            }
+
+        val lifeSub = mockk<StreamSubscription>(relaxed = true)
+        val hsSub = mockk<StreamSubscription>(relaxed = true)
+
+        every { socket.subscribe(any<StreamWebSocketListener>()) } returns Result.success(lifeSub)
+
+        var hsListener: StreamWebSocketListener? = null
+        every { socket.subscribe(any<StreamWebSocketListener>(), any()) } answers
+            {
+                hsListener = firstArg()
+                Result.success(hsSub)
+            }
+
+        every { socket.open(config) } answers
+            {
+                val listener = hsListener ?: error("Handshake listener not installed")
+                triggerFailure(listener, hsSub)
+                Result.success(Unit)
+            }
+
+        every { socket.close() } returns Result.success(Unit)
+
+        val result = session.connect(connectUserData())
+
+        assertTrue(result.isFailure)
+
+        // Verify that the handshake subscription was cancelled
+        verify { hsSub.cancel() }
+
+        // Verify that proper connection states were emitted
+        assertTrue(seenStates.first() is StreamConnectionState.Connecting.Opening)
+        assertTrue(seenStates.any { it is StreamConnectionState.Disconnected })
+
+        // Verify no health monitoring started
+        verify(exactly = 0) { health.start() }
+
+        return result
+    }
+
     private fun connectUserData(): ConnectUserData =
         ConnectUserData("u", "t", null, null, false, null, emptyMap())
 }