diff --git a/Sources/PostgresNIO/New/Connection State Machine/ConnectionStateMachine.swift b/Sources/PostgresNIO/New/Connection State Machine/ConnectionStateMachine.swift
index bbfa0faa..b7ecc461 100644
--- a/Sources/PostgresNIO/New/Connection State Machine/ConnectionStateMachine.swift	
+++ b/Sources/PostgresNIO/New/Connection State Machine/ConnectionStateMachine.swift	
@@ -203,7 +203,7 @@ struct ConnectionStateMachine {
             preconditionFailure("How can a connection be closed, if it was never connected.")
         
         case .closed:
-            preconditionFailure("How can a connection be closed, if it is already closed.")
+            return .wait
         
         case .authenticated,
              .sslRequestSent,
@@ -214,8 +214,8 @@ struct ConnectionStateMachine {
              .readyForQuery,
              .extendedQuery,
              .closeCommand:
-            return self.errorHappened(.uncleanShutdown)
-            
+            return self.errorHappened(.serverClosedConnection(underlying: nil))
+
         case .closing(let error):
             self.state = .closed(clientInitiated: true, error: error)
             self.quiescingState = .notQuiescing
@@ -910,7 +910,7 @@ struct ConnectionStateMachine {
             // the error state and will try to close the connection. However the server might have
             // send further follow up messages. In those cases we will run into this method again
             // and again. We should just ignore those events.
-            return .wait
+            return .closeConnection(closePromise)
 
         case .modifying:
             preconditionFailure("Invalid state: \(self.state)")
@@ -1034,16 +1034,16 @@ extension ConnectionStateMachine {
         case .clientClosesConnection, .clientClosedConnection:
             preconditionFailure("Pure client error, that is thrown directly in PostgresConnection")
         case .serverClosedConnection:
-            preconditionFailure("Pure client error, that is thrown directly and should never ")
+            return true
         }
     }
 
     mutating func setErrorAndCreateCleanupContextIfNeeded(_ error: PSQLError) -> ConnectionAction.CleanUpContext? {
-        guard self.shouldCloseConnection(reason: error) else {
-            return nil
+        if self.shouldCloseConnection(reason: error) {
+            return self.setErrorAndCreateCleanupContext(error)
         }
         
-        return self.setErrorAndCreateCleanupContext(error)
+        return nil
     }
     
     mutating func setErrorAndCreateCleanupContext(_ error: PSQLError, closePromise: EventLoopPromise<Void>? = nil) -> ConnectionAction.CleanUpContext {
@@ -1060,13 +1060,15 @@ extension ConnectionStateMachine {
             forwardedPromise = closePromise
         }
 
-        self.state = .closing(error)
-
-        var action = ConnectionAction.CleanUpContext.Action.close
-        if case .uncleanShutdown = error.code.base {
+        let action: ConnectionAction.CleanUpContext.Action
+        if case .serverClosedConnection = error.code.base {
+            self.state = .closed(clientInitiated: false, error: error)
             action = .fireChannelInactive
+        } else {
+            self.state = .closing(error)
+            action = .close
         }
-        
+
         return .init(action: action, tasks: tasks, error: error, closePromise: forwardedPromise)
     }
 }
diff --git a/Tests/PostgresNIOTests/New/PostgresConnectionTests.swift b/Tests/PostgresNIOTests/New/PostgresConnectionTests.swift
index 9c4dc5cb..59917c40 100644
--- a/Tests/PostgresNIOTests/New/PostgresConnectionTests.swift
+++ b/Tests/PostgresNIOTests/New/PostgresConnectionTests.swift
@@ -275,6 +275,34 @@ class PostgresConnectionTests: XCTestCase {
         }
     }
 
+    func testIfServerJustClosesTheErrorReflectsThat() async throws {
+        let (connection, channel) = try await self.makeTestConnectionWithAsyncTestingChannel()
+
+        async let response = try await connection.query("SELECT 1;", logger: self.logger)
+
+        let listenMessage = try await channel.waitForUnpreparedRequest()
+        XCTAssertEqual(listenMessage.parse.query, "SELECT 1;")
+
+        try await channel.testingEventLoop.executeInContext { channel.pipeline.fireChannelInactive() }
+        try await channel.testingEventLoop.executeInContext { channel.pipeline.fireChannelUnregistered() }
+
+        do {
+            _ = try await response
+            XCTFail("Expected to throw")
+        } catch {
+            XCTAssertEqual((error as? PSQLError)?.code, .serverClosedConnection)
+        }
+
+        // retry on same connection
+
+        do {
+            _ = try await connection.query("SELECT 1;", logger: self.logger)
+            XCTFail("Expected to throw")
+        } catch {
+            XCTAssertEqual((error as? PSQLError)?.code, .serverClosedConnection)
+        }
+    }
+
     struct TestPrepareStatement: PostgresPreparedStatement {
         static var sql = "SELECT datname FROM pg_stat_activity WHERE state = $1"
         typealias Row = String