diff --git a/src/RPCServer.ts b/src/RPCServer.ts
index fbf9161..8226009 100644
--- a/src/RPCServer.ts
+++ b/src/RPCServer.ts
@@ -287,7 +287,9 @@ class RPCServer {
         // Input generator derived from the forward stream
         const inputGen = async function* (): AsyncIterable<I> {
           for await (const data of forwardStream) {
-            ctx.timer.refresh();
+            if (ctx.timer.status !== 'settled') {
+              ctx.timer.refresh();
+            }
             yield data.params as I;
           }
         };
@@ -296,7 +298,9 @@ class RPCServer {
           timer: ctx.timer,
         });
         for await (const response of handlerG) {
-          ctx.timer.refresh();
+          if (ctx.timer.status !== 'settled') {
+            ctx.timer.refresh();
+          }
           const responseMessage: JSONRPCResponseResult = {
             jsonrpc: '2.0',
             result: response,
@@ -570,13 +574,16 @@ class RPCServer {
       }
       // Setting up Timeout logic
       const timeout = this.defaultTimeoutMap.get(method);
-      if (timeout != null && timeout < this.handlerTimeoutTime) {
-        // Reset timeout with new delay if it is less than the default
-        timer.reset(timeout);
-      } else {
-        // Otherwise refresh
-        timer.refresh();
+      if (timer.status !== 'settled') {
+        if (timeout != null && timeout < this.handlerTimeoutTime) {
+          // Reset timeout with new delay if it is less than the default
+          timer.reset(timeout);
+        } else {
+          // Otherwise refresh
+          timer.refresh();
+        }
       }
+
       this.logger.info(`Handling stream with method (${method})`);
       let handlerResult: [JSONValue | undefined, ReadableStream<Uint8Array>];
       const headerWriter = rpcStream.writable.getWriter();
diff --git a/src/errors.ts b/src/errors.ts
index ae8958a..4a1fd4b 100644
--- a/src/errors.ts
+++ b/src/errors.ts
@@ -148,6 +148,13 @@ class ErrorRPCStreamEnded<T> extends ErrorRPCProtocol<T> {
 class ErrorRPCTimedOut<T> extends ErrorRPCProtocol<T> {
   static description = 'RPC handler has timed out';
   code = JSONRPCErrorCode.RPCTimedOut;
+  public toJSON(): JSONRPCError {
+    const json = super.toJSON();
+    if (typeof json === 'object' && !Array.isArray(json)) {
+      (json as POJO).type = this.constructor.name;
+    }
+    return json;
+  }
 }
 
 class ErrorUtilsUndefinedBehaviour<T> extends ErrorRPCProtocol<T> {
diff --git a/src/middleware.ts b/src/middleware.ts
index 4ab2226..d7cbb0b 100644
--- a/src/middleware.ts
+++ b/src/middleware.ts
@@ -278,9 +278,9 @@ const defaultClientMiddlewareWrapper = (
 export {
   binaryToJsonMessageStream,
   jsonMessageToBinaryStream,
+  timeoutMiddlewareClient,
+  timeoutMiddlewareServer,
   defaultMiddleware,
   defaultServerMiddlewareWrapper,
   defaultClientMiddlewareWrapper,
-  timeoutMiddlewareClient,
-  timeoutMiddlewareServer,
 };
diff --git a/src/types.ts b/src/types.ts
index 8972905..904184a 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -110,7 +110,12 @@ type JSONRPCResponseError = {
   id: string | number | null;
 };
 
-type ObjectEmpty = NonNullable<unknown>;
+/**
+ * Used when an empty object is needed.
+ * Defined here with a linter override to avoid a false positive.
+ */
+// eslint-disable-next-line
+type ObjectEmpty = {};
 
 // Prevent overwriting the metadata type with `Omit<>`
 type JSONRPCRequestMetadata<T extends Record<string, JSONValue> = ObjectEmpty> =
diff --git a/src/utils.ts b/src/utils.ts
index 82168db..6b0fedf 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -278,6 +278,7 @@ const standardErrors: {
   URIError,
   AggregateError,
   AbstractError,
+  ErrorRPCTimedOut: errors.ErrorRPCTimedOut,
 };
 
 /**
@@ -342,6 +343,7 @@ function toError(
         let e: Error;
         switch (eClass) {
           case AbstractError:
+          case errors.ErrorRPCTimedOut:
             e = eClass.fromJSON(errorData);
             break;
           case AggregateError:
diff --git a/tests/RPC.test.ts b/tests/RPC.test.ts
index 60fecbb..849728b 100644
--- a/tests/RPC.test.ts
+++ b/tests/RPC.test.ts
@@ -926,6 +926,70 @@ describe('RPC', () => {
 
     await rpcServer.stop({ force: true });
   });
+  testProp(
+    'RPC client times out and server is able to ignore exception',
+    [fc.string()],
+    async (message) => {
+      // Setup server and client communication pairs
+      const { clientPair, serverPair } = rpcTestUtils.createTapPairs<
+        Uint8Array,
+        Uint8Array
+      >();
+      const { p: ctxP, resolveP: resolveCtxP } = utils.promise<ContextTimed>();
+      class TestMethod extends UnaryHandler {
+        public handle = async (
+          input: JSONValue,
+          cancel: (reason?: any) => void,
+          meta: Record<string, JSONValue> | undefined,
+          ctx: ContextTimed,
+        ): Promise<JSONValue> => {
+          const abortProm = utils.promise<never>();
+          ctx.signal.addEventListener('abort', () => {
+            resolveCtxP(ctx);
+            abortProm.resolveP(ctx.signal.reason);
+          });
+          await abortProm.p;
+          return input;
+        };
+      }
+      // Set up a client and server with matching timeout settings
+      const rpcServer = new RPCServer({
+        logger,
+        idGen,
+        handlerTimeoutTime: 150,
+      });
+      await rpcServer.start({
+        manifest: {
+          testMethod: new TestMethod({}),
+        },
+      });
+      rpcServer.handleStream({
+        ...serverPair,
+        cancel: () => {},
+      });
+
+      const rpcClient = new RPCClient({
+        manifest: {
+          testMethod: new UnaryCaller(),
+        },
+        streamFactory: async () => {
+          return {
+            ...clientPair,
+            cancel: () => {},
+          };
+        },
+        logger,
+        idGen,
+      });
+      await expect(
+        rpcClient.methods.testMethod(message, { timer: 100 }),
+      ).resolves.toBe(message);
+      await expect(ctxP).resolves.toHaveProperty(['timer', 'delay'], 100);
+
+      await rpcServer.stop({ force: true });
+    },
+    { numRuns: 1 },
+  );
   testProp(
     'RPC Serializes and Deserializes Error',
     [rpcTestUtils.errorArb(rpcTestUtils.errorArb())],