diff --git a/src/main/java/com/databricks/zerobus/ZerobusSdk.java b/src/main/java/com/databricks/zerobus/ZerobusSdk.java
index f086137..a8b5429 100644
--- a/src/main/java/com/databricks/zerobus/ZerobusSdk.java
+++ b/src/main/java/com/databricks/zerobus/ZerobusSdk.java
@@ -10,6 +10,7 @@
 import java.util.concurrent.Executors;
 import java.util.concurrent.ThreadFactory;
 import java.util.concurrent.atomic.AtomicInteger;
+import java.util.function.Supplier;
 import org.slf4j.Logger;
 import org.slf4j.LoggerFactory;
 
@@ -160,7 +161,7 @@ public <RecordType extends Message> CompletableFuture<ZerobusStream<RecordType>>
       logger.debug("Creating stream for table: " + tableProperties.getTableName());
 
       // Create a token supplier that generates a fresh token for each gRPC request
-      java.util.function.Supplier<String> tokenSupplier =
+      Supplier<String> tokenSupplier =
           () -> {
             try {
               return TokenFactory.getZerobusToken(
@@ -174,14 +175,15 @@ public <RecordType extends Message> CompletableFuture<ZerobusStream<RecordType>>
             }
           };
 
-      // Create gRPC stub once with token supplier - it will fetch fresh tokens as needed
-      ZerobusGrpc.ZerobusStub stub =
-          stubFactory.createStubWithTokenSupplier(
-              serverEndpoint, tableProperties.getTableName(), tokenSupplier);
+      // Create a stub supplier that generates a fresh stub with token supplier each time
+      Supplier<ZerobusGrpc.ZerobusStub> stubSupplier =
+          () ->
+              stubFactory.createStubWithTokenSupplier(
+                  serverEndpoint, tableProperties.getTableName(), tokenSupplier);
 
       ZerobusStream<RecordType> stream =
           new ZerobusStream<>(
-              stub,
+              stubSupplier,
               tableProperties,
               stubFactory,
               serverEndpoint,
diff --git a/src/main/java/com/databricks/zerobus/ZerobusStream.java b/src/main/java/com/databricks/zerobus/ZerobusStream.java
index 8abdd39..1ba47f5 100644
--- a/src/main/java/com/databricks/zerobus/ZerobusStream.java
+++ b/src/main/java/com/databricks/zerobus/ZerobusStream.java
@@ -18,6 +18,7 @@
 import java.util.concurrent.ExecutorService;
 import java.util.concurrent.TimeoutException;
 import java.util.concurrent.atomic.AtomicBoolean;
+import java.util.function.Supplier;
 import org.slf4j.Logger;
 import org.slf4j.LoggerFactory;
 
@@ -126,6 +127,7 @@ public class ZerobusStream<RecordType extends Message> {
   private static final int CREATE_STREAM_TIMEOUT_MS = 15000;
 
   private ZerobusStub stub;
+  private final Supplier<ZerobusStub> stubSupplier;
   final TableProperties<RecordType> tableProperties;
   private final ZerobusSdkStubFactory stubFactory;
   private final String serverEndpoint;
@@ -352,10 +354,10 @@ private CompletableFuture<Void> createStream() {
             () -> {
               CompletableFuture<Void> createStreamTry = new CompletableFuture<>();
 
-              // The stub was created once with a token supplier, so we don't recreate it here
-              // The token supplier will provide a fresh token for each gRPC request
+              // Get a fresh stub from the supplier
+              stub = stubSupplier.get();
 
-              // Create the gRPC stream with the existing stub
+              // Create the gRPC stream with the fresh stub
               streamCreatedEvent = Optional.of(new CompletableFuture<>());
               stream =
                   Optional.of(
@@ -500,6 +502,9 @@ private void closeStream(boolean hardFailure, Optional<ZerobusException> excepti
       try {
         if (stream.isPresent()) {
           stream.get().onCompleted();
+          if (hardFailure) {
+            stream.get().cancel("Stream closed", null);
+          }
         }
       } catch (Exception e) {
         // Ignore errors during stream cleanup - stream may already be closed
@@ -528,6 +533,7 @@ private void closeStream(boolean hardFailure, Optional<ZerobusException> excepti
       stream = Optional.empty();
       streamCreatedEvent = Optional.empty();
       streamId = Optional.empty();
+      stub = null;
 
       this.notifyAll();
     }
@@ -1073,6 +1079,7 @@ public void onNext(EphemeralStreamResponse response) {
                       String.format(
                           "Server will close the stream in %.3fms. Triggering stream recovery.",
                           durationMs));
+                  streamFailureInfo.resetFailure(StreamFailureType.SERVER_CLOSED_STREAM);
                   handleStreamFailed(StreamFailureType.SERVER_CLOSED_STREAM, Optional.empty());
                 }
                 break;
@@ -1085,6 +1092,13 @@ public void onNext(EphemeralStreamResponse response) {
 
           @Override
           public void onError(Throwable t) {
+            synchronized (ZerobusStream.this) {
+              if (state == StreamState.CLOSED && !stream.isPresent()) {
+                logger.debug("Ignoring error on already closed stream: " + t.getMessage());
+                return;
+              }
+            }
+
             Optional<Throwable> error = Optional.of(t);
 
             if (t instanceof StatusRuntimeException) {
@@ -1336,7 +1350,7 @@ public void close() throws ZerobusException {
   }
 
   public ZerobusStream(
-      ZerobusStub stub,
+      Supplier<ZerobusStub> stubSupplier,
       TableProperties<RecordType> tableProperties,
       ZerobusSdkStubFactory stubFactory,
       String serverEndpoint,
@@ -1347,7 +1361,8 @@ public ZerobusStream(
       StreamConfigurationOptions options,
       ExecutorService zerobusStreamExecutor,
       ExecutorService ec) {
-    this.stub = stub;
+    this.stub = null;
+    this.stubSupplier = stubSupplier;
     this.tableProperties = tableProperties;
     this.stubFactory = stubFactory;
     this.serverEndpoint = serverEndpoint;
diff --git a/src/test/java/com/databricks/zerobus/ZerobusSdkTest.java b/src/test/java/com/databricks/zerobus/ZerobusSdkTest.java
index d184405..6a0ec76 100644
--- a/src/test/java/com/databricks/zerobus/ZerobusSdkTest.java
+++ b/src/test/java/com/databricks/zerobus/ZerobusSdkTest.java
@@ -38,6 +38,7 @@ public class ZerobusSdkTest {
   private ZerobusSdk zerobusSdk;
   private ZerobusSdkStubFactory zerobusSdkStubFactory;
   private org.mockito.MockedStatic<TokenFactory> tokenFactoryMock;
+  private io.grpc.stub.ClientCallStreamObserver<EphemeralStreamRequest> spiedStream;
 
   @BeforeEach
   public void setUp() {
@@ -76,7 +77,10 @@ public void setUp() {
                   (StreamObserver<EphemeralStreamResponse>) invocation.getArgument(0);
 
               mockedGrpcServer.initialize(ackSender);
-              return mockedGrpcServer.getMessageReceiver();
+
+              // Spy on the message receiver to verify cancel() is called
+              spiedStream = spy(mockedGrpcServer.getMessageReceiver());
+              return spiedStream;
             })
         .when(zerobusStub)
         .ephemeralStream(any());
@@ -378,4 +382,40 @@ public void testCallbackExceptionHandling() throws Exception {
     stream.close();
     assertEquals(StreamState.CLOSED, stream.getState());
   }
+
+  @Test
+  public void testGrpcStreamIsCancelledOnClose() throws Exception {
+    // Test that the underlying gRPC stream is properly cancelled when stream.close() is called
+    mockedGrpcServer.injectAckRecord(0);
+
+    TableProperties<CityPopulationTableRow> tableProperties =
+        new TableProperties<>("test-table", CityPopulationTableRow.getDefaultInstance());
+    StreamConfigurationOptions options =
+        StreamConfigurationOptions.builder().setRecovery(false).build();
+
+    ZerobusStream<CityPopulationTableRow> stream =
+        zerobusSdk.createStream(tableProperties, "client-id", "client-secret", options).get();
+
+    assertEquals(StreamState.OPENED, stream.getState());
+
+    // Ingest one record
+    CompletableFuture<Void> writeCompleted =
+        stream.ingestRecord(
+            CityPopulationTableRow.newBuilder()
+                .setCityName("test-city")
+                .setPopulation(1000)
+                .build());
+
+    writeCompleted.get(5, TimeUnit.SECONDS);
+
+    // Close the stream
+    stream.close();
+    assertEquals(StreamState.CLOSED, stream.getState());
+
+    // Verify that cancel() was called on the gRPC stream
+    verify(spiedStream, times(1)).cancel(anyString(), any());
+
+    // Also verify onCompleted() was called
+    verify(spiedStream, times(1)).onCompleted();
+  }
 }