diff --git a/zio-http/src/main/scala/zio/http/netty/server/ServerInboundHandler.scala b/zio-http/src/main/scala/zio/http/netty/server/ServerInboundHandler.scala
index 10e33420cb..311ba6afee 100644
--- a/zio-http/src/main/scala/zio/http/netty/server/ServerInboundHandler.scala
+++ b/zio-http/src/main/scala/zio/http/netty/server/ServerInboundHandler.scala
@@ -323,11 +323,13 @@ private[zio] final case class ServerInboundHandler(
             }
             None
           }
-        }.flatMap(_.getOrElse(ZIO.unit)).catchSomeCause { case cause =>
-          ZIO.attempt(
-            attemptFastWrite(ctx, withDefaultErrorResponse(cause.squash)),
-          )
-        }
+        }.foldCauseZIO(
+          cause => ZIO.attempt(attemptFastWrite(ctx, withDefaultErrorResponse(cause.squash))),
+          {
+            case None       => ZIO.unit
+            case Some(task) => task.orElse(ZIO.attempt(ctx.close()))
+          },
+        )
       }
 
       pgm.provideEnvironment(env)
diff --git a/zio-http/src/test/scala/zio/http/ServerSpec.scala b/zio-http/src/test/scala/zio/http/ServerSpec.scala
index d46c52fe53..d624a6c527 100644
--- a/zio-http/src/test/scala/zio/http/ServerSpec.scala
+++ b/zio-http/src/test/scala/zio/http/ServerSpec.scala
@@ -371,6 +371,32 @@ object ServerSpec extends HttpRunnableSpec {
           .run()
       assertZIO(res)(equalTo("foo\nbar"))
     } @@ TestAspect.os(os => !os.isWindows),
+    test("streaming failure - known content type") {
+      val res =
+        Handler
+          .fromStream(ZStream.fromZIO(ZIO.attempt(throw new Exception("boom"))), 42)
+          .sandbox
+          .toHttpApp
+          .deploy
+          .body
+          .mapZIO(_.asString)
+          .run()
+          .exit
+      assertZIO(res)(failsWithA[java.io.IOException])
+    } @@ TestAspect.timeout(10.seconds),
+    test("streaming failure - unknown content type") {
+      val res =
+        Handler
+          .fromStreamChunked(ZStream.fromZIO(ZIO.attempt(throw new Exception("boom"))))
+          .sandbox
+          .toHttpApp
+          .deploy
+          .body
+          .mapZIO(_.asString)
+          .run()
+          .exit
+      assertZIO(res)(failsWithA[java.io.IOException])
+    } @@ TestAspect.timeout(10.seconds),
     suite("html")(
       test("body") {
         val res =