diff --git a/dot/network/host_test.go b/dot/network/host_test.go
index 41c50ca53a..918075937c 100644
--- a/dot/network/host_test.go
+++ b/dot/network/host_test.go
@@ -476,3 +476,51 @@ func Test_RemoveReservedPeers(t *testing.T) {
 	err = nodeA.host.removeReservedPeers("failing peer ID")
 	require.Error(t, err)
 }
+
+func TestStreamCloseEOF(t *testing.T) {
+	basePathA := utils.NewTestBasePath(t, "nodeA")
+	configA := &Config{
+		BasePath:    basePathA,
+		Port:        7001,
+		NoBootstrap: true,
+		NoMDNS:      true,
+	}
+
+	nodeA := createTestService(t, configA)
+	nodeA.noGossip = true
+
+	basePathB := utils.NewTestBasePath(t, "nodeB")
+
+	configB := &Config{
+		BasePath:    basePathB,
+		Port:        7002,
+		NoBootstrap: true,
+		NoMDNS:      true,
+	}
+
+	nodeB := createTestService(t, configB)
+	nodeB.noGossip = true
+	handler := newTestStreamHandler(testBlockRequestMessageDecoder)
+	nodeB.host.registerStreamHandler("", handler.handleStream)
+	require.False(t, handler.exit)
+
+	addrInfoB := nodeB.host.addrInfo()
+	err := nodeA.host.connect(addrInfoB)
+	// retry connect if "failed to dial" error
+	if failedToDial(err) {
+		time.Sleep(TestBackoffTimeout)
+		err = nodeA.host.connect(addrInfoB)
+	}
+	require.NoError(t, err)
+
+	stream, err := nodeA.host.send(addrInfoB.ID, nodeB.host.protocolID, testBlockRequestMessage)
+	require.NoError(t, err)
+	require.False(t, handler.exit)
+
+	err = stream.Close()
+	require.NoError(t, err)
+
+	time.Sleep(TestBackoffTimeout)
+
+	require.True(t, handler.exit)
+}
diff --git a/dot/network/service.go b/dot/network/service.go
index e6db0e0bd5..7a64e5a243 100644
--- a/dot/network/service.go
+++ b/dot/network/service.go
@@ -580,8 +580,8 @@ func (s *Service) readStream(stream libp2pnetwork.Stream, decoder messageDecoder
 
 	for {
 		tot, err := readStream(stream, msgBytes[:])
-		if err == io.EOF {
-			continue
+		if errors.Is(err, io.EOF) {
+			return
 		} else if err != nil {
 			logger.Trace("failed to read from stream", "peer", stream.Conn().RemotePeer(), "protocol", stream.Protocol(), "error", err)
 			_ = stream.Close()
diff --git a/dot/network/test_helpers.go b/dot/network/test_helpers.go
index f1912e25ff..3eb8ba85a1 100644
--- a/dot/network/test_helpers.go
+++ b/dot/network/test_helpers.go
@@ -1,6 +1,7 @@
 package network
 
 import (
+	"errors"
 	"io"
 	"math/big"
 
@@ -89,6 +90,7 @@ func testBlockResponseMessage() *BlockResponseMessage {
 type testStreamHandler struct {
 	messages map[peer.ID][]Message
 	decoder  messageDecoder
+	exit     bool
 }
 
 func newTestStreamHandler(decoder messageDecoder) *testStreamHandler {
@@ -135,10 +137,14 @@ func (s *testStreamHandler) readStream(stream libp2pnetwork.Stream, peer peer.ID
 		msgBytes              = make([]byte, maxMessageSize)
 	)
 
+	defer func() {
+		s.exit = true
+	}()
+
 	for {
 		tot, err := readStream(stream, msgBytes)
-		if err == io.EOF {
-			continue
+		if errors.Is(err, io.EOF) {
+			return
 		} else if err != nil {
 			logger.Debug("failed to read from stream", "protocol", stream.Protocol(), "error", err)
 			_ = stream.Close()