diff --git a/src/replit_river/client_session.py b/src/replit_river/client_session.py
index ed498847..d703c87b 100644
--- a/src/replit_river/client_session.py
+++ b/src/replit_river/client_session.py
@@ -99,6 +99,8 @@ async def serve(self) -> None:
             try:
                 await self._handle_messages_from_ws()
             except ConnectionClosed:
+                if self._should_abort_streams_after_transport_failure():
+                    await self.close()
                 if self._retry_connection_callback:
                     self._task_manager.create_task(self._retry_connection_callback())
 
@@ -106,10 +108,13 @@ async def serve(self) -> None:
                 logger.debug("ConnectionClosed while serving", exc_info=True)
             except FailedSendingMessageException:
                 # Expected error if the connection is closed.
+                if self._should_abort_streams_after_transport_failure():
+                    await self.close()
                 logger.debug(
                     "FailedSendingMessageException while serving", exc_info=True
                 )
             except Exception:
+                await self.close()
                 logger.exception("caught exception at message iterator")
         except ExceptionGroup as eg:
             _, unhandled = eg.split(lambda e: isinstance(e, ConnectionClosed))
diff --git a/src/replit_river/session.py b/src/replit_river/session.py
index 465a6672..b4240b1a 100644
--- a/src/replit_river/session.py
+++ b/src/replit_river/session.py
@@ -286,6 +286,17 @@ async def close_websocket(
         if should_retry and self._retry_connection_callback:
             self._task_manager.create_task(self._retry_connection_callback())
 
+    def _should_abort_streams_after_transport_failure(self) -> bool:
+        return not self._transport_options.transparent_reconnect
+
+    def _abort_all_streams(self) -> None:
+        """Close all active stream channels, notifying any waiting consumers."""
+        if not self._streams:
+            return
+        for stream in self._streams.values():
+            stream.close()
+        self._streams.clear()
+
     async def close(self) -> None:
         """Close the session and all associated streams."""
         logger.info(
@@ -310,9 +321,7 @@ async def close(self) -> None:
 
             # TODO: unexpected_close should close stream differently here to
             # throw exception correctly.
-            for stream in self._streams.values():
-                stream.close()
-            self._streams.clear()
+            self._abort_all_streams()
 
             self._state = SessionState.CLOSED