diff --git a/tests/E2E/ServerInitiatedCloseTest.php b/tests/E2E/ServerInitiatedCloseTest.php
new file mode 100644
index 0000000..aafa1e3
--- /dev/null
+++ b/tests/E2E/ServerInitiatedCloseTest.php
@@ -0,0 +1,351 @@
+<?php
+
+declare(strict_types=1);
+
+namespace CrazyGoat\RabbitStream\Tests\E2E;
+
+use CrazyGoat\RabbitStream\Client\Connection;
+use CrazyGoat\RabbitStream\Exception\ConnectionException;
+use PHPUnit\Framework\TestCase;
+
+/**
+ * Tests for server-initiated connection close handling.
+ *
+ * These tests verify that when the RabbitMQ server closes a connection
+ * (e.g., via management API or administrative action), the client properly:
+ * - Detects the close via isConnected() returning false
+ * - Throws ConnectionException on subsequent operations
+ * - Handles the close gracefully without resource leaks
+ *
+ * @group destructive
+ * @group slow
+ * @group management-api
+ */
+class ServerInitiatedCloseTest extends TestCase
+{
+    private static string $host = '127.0.0.1';
+    private static int $port = 5552;
+    private static string $managementHost = '127.0.0.1';
+    private static int $managementPort = 15672;
+    private static string $managementUser = 'guest';
+    private static string $managementPass = 'guest';
+
+    public static function setUpBeforeClass(): void
+    {
+        self::$host = getenv('RABBITMQ_HOST') ?: self::$host;
+        self::$port = (int)(getenv('RABBITMQ_PORT') ?: self::$port);
+        self::$managementHost = getenv('RABBITMQ_MANAGEMENT_HOST') ?: self::$host;
+        self::$managementPort = (int)(getenv('RABBITMQ_MANAGEMENT_PORT') ?: self::$managementPort);
+        self::$managementUser = getenv('RABBITMQ_MANAGEMENT_USER') ?: self::$managementUser;
+        self::$managementPass = getenv('RABBITMQ_MANAGEMENT_PASS') ?: self::$managementPass;
+    }
+
+    /**
+     * Test that isConnected() returns false after server-initiated close.
+     */
+    public function testIsConnectedReturnsFalseAfterServerClose(): void
+    {
+        $connection = Connection::create(
+            host: self::$host,
+            port: self::$port,
+            user: 'guest',
+            password: 'guest',
+            vhost: '/'
+        );
+
+        $this->assertTrue($connection->isConnected(), 'Connection should be connected initially');
+
+        // Force server to close the connection via management API
+        $this->forceCloseConnectionViaManagementApi();
+
+        // Wait a moment for the close to propagate
+        usleep(100000); // 100ms
+
+        // After server-initiated close, isConnected() should return false
+        $this->assertFalse($connection->isConnected(), 'Connection should report as disconnected after server close');
+    }
+
+    /**
+     * Test that operations throw ConnectionException after server-initiated close.
+     */
+    public function testOperationsThrowAfterServerClose(): void
+    {
+        $connection = Connection::create(
+            host: self::$host,
+            port: self::$port,
+            user: 'guest',
+            password: 'guest',
+            vhost: '/'
+        );
+
+        $streamName = 'test-server-close-' . uniqid();
+        $connection->createStream($streamName);
+
+        // Force server to close the connection
+        $this->forceCloseConnectionViaManagementApi();
+
+        // Wait a moment for the close to propagate
+        usleep(100000); // 100ms
+
+        // Subsequent operations should throw ConnectionException
+        $this->expectException(ConnectionException::class);
+        $connection->createStream('another-stream-' . uniqid());
+    }
+
+    /**
+     * Test that the client handles server-initiated close gracefully without crashes.
+     */
+    public function testServerInitiatedCloseIsHandledGracefully(): void
+    {
+        $connection = Connection::create(
+            host: self::$host,
+            port: self::$port,
+            user: 'guest',
+            password: 'guest',
+            vhost: '/'
+        );
+
+        $streamName = 'test-graceful-close-' . uniqid();
+        $connection->createStream($streamName);
+
+        $this->assertTrue($connection->isConnected());
+
+        // Force server close
+        $this->forceCloseConnectionViaManagementApi();
+
+        // Wait for close to propagate
+        usleep(100000); // 100ms
+
+        // Verify connection is marked as closed
+        $this->assertFalse($connection->isConnected());
+
+        // Verify destructor doesn't throw or cause warnings
+        unset($connection);
+
+        // If we reach here without errors, the test passes
+        $this->addToAssertionCount(1);
+    }
+
+    /**
+     * Test that multiple operations after server close all throw properly.
+     */
+    public function testMultipleOperationsThrowAfterServerClose(): void
+    {
+        $connection = Connection::create(
+            host: self::$host,
+            port: self::$port,
+            user: 'guest',
+            password: 'guest',
+            vhost: '/'
+        );
+
+        $streamName = 'test-multi-ops-' . uniqid();
+        $connection->createStream($streamName);
+
+        // Force server close
+        $this->forceCloseConnectionViaManagementApi();
+
+        // Wait for close to propagate
+        usleep(100000); // 100ms
+
+        // First operation should throw
+        try {
+            $connection->createStream('stream-1-' . uniqid());
+            $this->fail('Expected ConnectionException was not thrown');
+        } catch (ConnectionException) {
+            // Expected
+        }
+
+        // Connection should still report as disconnected
+        $this->assertFalse($connection->isConnected());
+
+        // Second operation should also throw
+        $this->expectException(ConnectionException::class);
+        $connection->deleteStream($streamName);
+    }
+
+    /**
+     * Force close the connection via RabbitMQ Management API.
+     *
+     * This method queries the management API for active connections,
+     * identifies the connection from this client by peer address, and
+     * forces the server to close it.
+     */
+    private function forceCloseConnectionViaManagementApi(): void
+    {
+        // Get our local IP address to identify our connection
+        $localIp = $this->getLocalIpAddress();
+
+        // Query management API for connections
+        $connections = $this->getConnectionsFromManagementApi();
+
+        if ($connections === null) {
+            $this->markTestSkipped('Management API not available or returned invalid response');
+        }
+
+        // Find our connection by peer_address
+        $ourConnection = null;
+        foreach ($connections as $conn) {
+            if (!is_array($conn)) {
+                continue;
+            }
+            if (!isset($conn['peer_address'])) {
+                continue;
+            }
+            if ($conn['peer_address'] !== $localIp) {
+                continue;
+            }
+            if (!isset($conn['peer_port'])) {
+                continue;
+            }
+            if ($conn['peer_port'] <= 0) {
+                continue;
+            }
+            $ourConnection = $conn;
+            break;
+        }
+
+        if ($ourConnection === null) {
+            // Try alternative: close all stream connections from our host
+            foreach ($connections as $conn) {
+                if (!is_array($conn)) {
+                    continue;
+                }
+                if (!isset($conn['peer_address'])) {
+                    continue;
+                }
+                if ($conn['peer_address'] !== $localIp) {
+                    continue;
+                }
+                if (!isset($conn['protocol'])) {
+                    continue;
+                }
+                if ($conn['protocol'] !== 'stream') {
+                    continue;
+                }
+                $ourConnection = $conn;
+                break;
+            }
+        }
+
+        if ($ourConnection === null) {
+            $this->markTestSkipped(
+                'Could not identify our connection in management API. ' .
+                'Local IP: ' . $localIp . ', Connections: ' . json_encode($connections)
+            );
+        }
+
+        // Close the connection via management API
+        if (!isset($ourConnection['name']) || !is_string($ourConnection['name'])) {
+            $this->markTestSkipped('Connection name not available or invalid');
+        }
+        $this->closeConnectionViaManagementApi($ourConnection['name']);
+    }
+
+    /**
+     * Get list of connections from RabbitMQ Management API.
+     *
+     * @return array<mixed>|null Array of connections or null on error
+     */
+    private function getConnectionsFromManagementApi(): ?array
+    {
+        $url = sprintf(
+            'http://%s:%d/api/connections',
+            self::$managementHost,
+            self::$managementPort
+        );
+
+        $ch = curl_init($url);
+        if ($ch === false) {
+            return null;
+        }
+
+        curl_setopt($ch, CURLOPT_USERPWD, self::$managementUser . ':' . self::$managementPass);
+        curl_setopt($ch, CURLOPT_RETURNTRANSFER, true);
+        curl_setopt($ch, CURLOPT_TIMEOUT, 5);
+        curl_setopt($ch, CURLOPT_HTTPHEADER, ['Content-Type: application/json']);
+
+        $response = curl_exec($ch);
+        $httpCode = curl_getinfo($ch, CURLINFO_HTTP_CODE);
+        curl_close($ch);
+
+        if ($response === false || $httpCode !== 200 || !is_string($response)) {
+            return null;
+        }
+
+        $decoded = json_decode($response, true);
+        if (!is_array($decoded)) {
+            return null;
+        }
+
+        return $decoded;
+    }
+
+    /**
+     * Close a specific connection via RabbitMQ Management API.
+     */
+    private function closeConnectionViaManagementApi(string $connectionName): void
+    {
+        $url = sprintf(
+            'http://%s:%d/api/connections/%s',
+            self::$managementHost,
+            self::$managementPort,
+            urlencode($connectionName)
+        );
+
+        $ch = curl_init($url);
+        if ($ch === false) {
+            $this->markTestSkipped('Failed to initialize curl for connection close');
+        }
+
+        curl_setopt($ch, CURLOPT_USERPWD, self::$managementUser . ':' . self::$managementPass);
+        curl_setopt($ch, CURLOPT_CUSTOMREQUEST, 'DELETE');
+        curl_setopt($ch, CURLOPT_RETURNTRANSFER, true);
+        curl_setopt($ch, CURLOPT_TIMEOUT, 5);
+
+        curl_exec($ch);
+        $httpCode = curl_getinfo($ch, CURLINFO_HTTP_CODE);
+        curl_close($ch);
+
+        // 204 = success, 404 = connection already closed (also acceptable)
+        if ($httpCode !== 204 && $httpCode !== 404) {
+            $this->markTestSkipped(
+                'Failed to close connection via management API. HTTP code: ' . $httpCode
+            );
+        }
+    }
+
+    /**
+     * Get the local IP address used to connect to RabbitMQ.
+     */
+    private function getLocalIpAddress(): string
+    {
+        // Try to get the IP address used for outbound connections
+        // by creating a test socket connection
+        $socket = @fsockopen(self::$host, self::$port, $errno, $errstr, 1);
+        if ($socket !== false) {
+            $localAddr = stream_socket_get_name($socket, false);
+            fclose($socket);
+            if ($localAddr !== false) {
+                // Parse IP:port format
+                if (str_contains($localAddr, ':')) {
+                    $parts = explode(':', $localAddr);
+                    return $parts[0];
+                }
+                return $localAddr;
+            }
+        }
+
+        // Fallback: try to get hostname IP
+        $hostname = gethostname();
+        if ($hostname !== false) {
+            $ip = gethostbyname($hostname);
+            if ($ip !== $hostname) {
+                return $ip;
+            }
+        }
+
+        // Final fallback
+        return '127.0.0.1';
+    }
+}