diff --git a/src/ZB.MOM.WW.ScadaBridge.DataConnectionLayer/Adapters/MxGatewayDataConnection.cs b/src/ZB.MOM.WW.ScadaBridge.DataConnectionLayer/Adapters/MxGatewayDataConnection.cs
index 42c32655..e22e4769 100644
--- a/src/ZB.MOM.WW.ScadaBridge.DataConnectionLayer/Adapters/MxGatewayDataConnection.cs
+++ b/src/ZB.MOM.WW.ScadaBridge.DataConnectionLayer/Adapters/MxGatewayDataConnection.cs
@@ -105,14 +105,16 @@ public class MxGatewayDataConnection : IDataConnection, IBrowsableDataConnection
 
         // Background event loop: route each value change to the matching subscription callback.
         _eventLoopCts = new CancellationTokenSource();
-        _ = Task.Run(() => RunEventLoopAsync(_eventLoopCts.Token));
+        var loopToken = _eventLoopCts.Token;   // capture NOW: the field may be replaced by a
+        var loopClient = _client;              // subsequent reconnect before Task.Run executes (N1)
+        _ = Task.Run(() => RunEventLoopAsync(loopClient, loopToken));
     }
 
-    private async Task RunEventLoopAsync(CancellationToken ct)
+    private async Task RunEventLoopAsync(IMxGatewayClient client, CancellationToken ct)
     {
         try
         {
-            await _client!.RunEventLoopAsync(update =>
+            await client.RunEventLoopAsync(update =>
             {
                 if (_tagToSub.TryGetValue(update.TagPath, out var subId) && _subs.TryGetValue(subId, out var s))
                     s.Callback(update.TagPath, new TagValue(update.Value, update.Quality, update.Timestamp));
@@ -122,6 +124,18 @@ public class MxGatewayDataConnection : IDataConnection, IBrowsableDataConnection
         {
             // Normal shutdown (DisconnectAsync / DisposeAsync cancelled the loop).
         }
+        catch (Exception ex) when (ct.IsCancellationRequested)
+        {
+            // Teardown fault of a superseded loop (N1): Cancel() is not synchronous with
+            // the loop's exit — a cancelled/disposed gRPC stream commonly surfaces as
+            // RpcException(StatusCode.Cancelled) (Grpc.Net default without
+            // ThrowOperationCanceledOnCancellation) or ObjectDisposedException from the
+            // concurrent DisposeAsync, milliseconds AFTER ConnectAsync has already reset
+            // _disconnectFired. Any fault on a cancelled token is normal shutdown;
+            // raising Disconnected here would flap the NEW healthy session.
+            _logger.LogDebug(ex,
+                "MxGateway event loop faulted after cancellation — superseded loop teardown; not signalling disconnect");
+        }
         catch (Exception ex)
         {
             _logger.LogWarning(ex, "MxGateway event stream faulted; signalling disconnect");
diff --git a/tests/ZB.MOM.WW.ScadaBridge.DataConnectionLayer.Tests/Adapters/MxGatewayDataConnectionReconnectTests.cs b/tests/ZB.MOM.WW.ScadaBridge.DataConnectionLayer.Tests/Adapters/MxGatewayDataConnectionReconnectTests.cs
index cb032d61..b50cbfd3 100644
--- a/tests/ZB.MOM.WW.ScadaBridge.DataConnectionLayer.Tests/Adapters/MxGatewayDataConnectionReconnectTests.cs
+++ b/tests/ZB.MOM.WW.ScadaBridge.DataConnectionLayer.Tests/Adapters/MxGatewayDataConnectionReconnectTests.cs
@@ -1,3 +1,4 @@
+using Grpc.Core;
 using Microsoft.Extensions.Logging.Abstractions;
 using NSubstitute;
 using ZB.MOM.WW.ScadaBridge.DataConnectionLayer.Adapters;
@@ -47,6 +48,73 @@ public class MxGatewayDataConnectionReconnectTests
         Assert.False(loopTokens[1].IsCancellationRequested);  // new loop live
     }
 
+    [Fact]
+    public async Task StaleEventLoopRpcFault_AfterReconnect_DoesNotSignalDisconnected()
+    {
+        var loops = new List<TaskCompletionSource>();
+        var loopTokens = new List<CancellationToken>();
+        var adapter = CreateAdapterWithControllableLoops(loops, loopTokens, out var disconnectsRef);
+
+        var details = new Dictionary<string, string> { ["Endpoint"] = "http://gw:5000", ["ApiKey"] = "k" };
+
+        await adapter.ConnectAsync(details);
+        await WaitUntilAsync(() => loopTokens.Count == 1);
+        await adapter.ConnectAsync(details);          // reconnect: cancels loop #0, resets _disconnectFired
+        await WaitUntilAsync(() => loopTokens.Count == 2);
+
+        // The OLD loop observes its cancellation as a gRPC fault, not an OCE —
+        // the Grpc.Net default without ThrowOperationCanceledOnCancellation.
+        loops[0].SetException(new RpcException(new Status(StatusCode.Cancelled, "call cancelled")));
+        await Task.Delay(200);
+        Assert.Equal(0, Volatile.Read(ref disconnectsRef.Value));  // stale fault absorbed — the fresh connection must not flap
+
+        // The CURRENT loop's genuine fault must still signal, exactly once.
+        loops[1].SetException(new RpcException(new Status(StatusCode.Unavailable, "gateway gone")));
+        await WaitUntilAsync(() => Volatile.Read(ref disconnectsRef.Value) == 1);
+    }
+
+    [Fact]
+    public async Task StaleEventLoopObjectDisposedFault_AfterReconnect_DoesNotSignalDisconnected()
+    {
+        var loops = new List<TaskCompletionSource>();
+        var loopTokens = new List<CancellationToken>();
+        var adapter = CreateAdapterWithControllableLoops(loops, loopTokens, out var disconnectsRef);
+
+        var details = new Dictionary<string, string> { ["Endpoint"] = "http://gw:5000", ["ApiKey"] = "k" };
+
+        await adapter.ConnectAsync(details);
+        await WaitUntilAsync(() => loopTokens.Count == 1);
+        await adapter.ConnectAsync(details);          // reconnect
+        await WaitUntilAsync(() => loopTokens.Count == 2);
+
+        // The old loop faults with the concurrent-DisposeAsync shape.
+        loops[0].SetException(new ObjectDisposedException("MxGatewayClient"));
+        await Task.Delay(200);
+        Assert.Equal(0, Volatile.Read(ref disconnectsRef.Value));
+    }
+
+    private sealed class IntRef { public int Value; }
+
+    private static MxGatewayDataConnection CreateAdapterWithControllableLoops(
+        List<TaskCompletionSource> loops, List<CancellationToken> loopTokens, out IntRef disconnectsRef)
+    {
+        var factory = Substitute.For<IMxGatewayClientFactory>();
+        factory.Create().Returns(_ =>
+        {
+            var c = Substitute.For<IMxGatewayClient>();
+            var tcs = new TaskCompletionSource(TaskCreationOptions.RunContinuationsAsynchronously);
+            loops.Add(tcs);
+            c.RunEventLoopAsync(Arg.Any<Action<MxValueUpdate>>(), Arg.Do<CancellationToken>(t => loopTokens.Add(t)))
+                .Returns(tcs.Task);
+            return c;
+        });
+        var adapter = new MxGatewayDataConnection(factory, NullLogger<MxGatewayDataConnection>.Instance);
+        var refHolder = new IntRef();
+        adapter.Disconnected += () => Interlocked.Increment(ref refHolder.Value);
+        disconnectsRef = refHolder;
+        return adapter;
+    }
+
     private static async Task WaitUntilAsync(Func<bool> condition)
     {
         for (var i = 0; i < 100 && !condition(); i++)