diff --git a/src/ZB.MOM.WW.MxGateway.Server/Sessions/SessionEventDistributor.cs b/src/ZB.MOM.WW.MxGateway.Server/Sessions/SessionEventDistributor.cs
index 9ea3ec4..ba97a03 100644
--- a/src/ZB.MOM.WW.MxGateway.Server/Sessions/SessionEventDistributor.cs
+++ b/src/ZB.MOM.WW.MxGateway.Server/Sessions/SessionEventDistributor.cs
@@ -683,14 +683,35 @@ public sealed class SessionEventDistributor : IAsyncDisposable
     }
 
     // Applies the per-subscriber backpressure policy when a subscriber's bounded channel is
-    // full. Runs on the pump thread. The offending subscriber is ALWAYS disconnected with an
-    // overflow fault and unregistered, so it can never wedge the pump again; the overflow
-    // handler decides the observable side effects (overflow metric, and — for legacy
+    // full — or, indistinguishably from the pump's side, already completed. A subscriber that
+    // really overflowed is ALWAYS disconnected with an overflow fault and unregistered, so it
+    // can never wedge the pump again; one that merely unregistered itself is dropped silently
+    // (see the discriminator below). Runs on the pump thread. The overflow handler decides the
+    // observable side effects (overflow metric, and — for legacy
     // single-subscriber FailFast — faulting the owning session). Multi-subscriber FailFast
     // intentionally degrades to a plain disconnect (see SubscriberOverflowHandler docs): one
     // slow consumer must not fault a session shared by other healthy subscribers.
     private void OnSubscriberOverflow(Subscriber subscriber, ulong workerSequence)
     {
+        // Claim the disconnect FIRST, because a false TryWrite is ambiguous. It means either
+        // "channel full" (a genuine overflow) or "channel already completed" — which happens
+        // when the subscriber unregistered after the pump captured the fan-out array and is
+        // therefore a GRACEFUL close, not backpressure. RemoveSubscriber separates the two:
+        // every path that completes a channel during fan-out (lease disposal via Unregister,
+        // and this method) removes the subscriber from the set BEFORE completing it, so a
+        // completed channel implies the subscriber is already gone and RemoveSubscriber
+        // returns false. (CompleteAllSubscribers completes without removing, but only after
+        // the pump has left its loop, so it cannot be observed here.)
+        //
+        // Bailing out on false is what keeps a normal stream ending mid-traffic from emitting
+        // a bogus EventQueueOverflow metric and — under the default single-subscriber FailFast
+        // policy — faulting the whole session. Winning the removal also guarantees the side
+        // effects below run exactly once per subscriber.
+        if (!RemoveSubscriber(subscriber))
+        {
+            return;
+        }
+
         // Decide whether FailFast may fault the whole session for this overflow. This is the
         // "isOnlySubscriber" signal the legacy single-subscriber FailFast path keys on.
         bool isOnlySubscriber = !subscriber.IsInternal && _singleSubscriberMode;
@@ -717,20 +738,15 @@ public sealed class SessionEventDistributor : IAsyncDisposable
                 subscriber.Id);
         }
 
-        // Disconnect ONLY this subscriber: complete its channel with the overflow fault and
-        // remove it from the fan-out set. Its gRPC reader's MoveNextAsync then throws the
-        // SessionManagerException, which EventStreamService surfaces to the client exactly as
-        // the pre-epic per-RPC overflow did. The pump and every other subscriber are untouched.
-        //
-        // The removal takes _lifecycleLock because it must republish the fan-out snapshot; the
-        // pump holds no other lock here (fan-out runs outside _replayLock), so this cannot
-        // invert the _replayLock-then-_lifecycleLock order RegisterWithReplay uses.
-        if (RemoveSubscriber(subscriber))
-        {
-            subscriber.Channel.Writer.TryComplete(new SessionManagerException(
-                SessionManagerErrorCode.EventQueueOverflow,
-                $"Session {_sessionId} event stream queue overflowed."));
-        }
+        // Disconnect ONLY this subscriber: it is already out of the fan-out set (removed above),
+        // so complete its channel with the overflow fault. Its gRPC reader's MoveNextAsync then
+        // throws the SessionManagerException, which EventStreamService surfaces to the client
+        // exactly as the pre-epic per-RPC overflow did. The pump and every other subscriber are
+        // untouched. This runs even when the handler above threw — the subscriber must never be
+        // left attached with an un-completed channel.
+        subscriber.Channel.Writer.TryComplete(new SessionManagerException(
+            SessionManagerErrorCode.EventQueueOverflow,
+            $"Session {_sessionId} event stream queue overflowed."));
     }
 
     private void CompleteAllSubscribers(Exception? error)
@@ -765,6 +781,11 @@ public sealed class SessionEventDistributor : IAsyncDisposable
     // Returns true only for the caller that actually removed it, so the channel is completed
     // exactly once however many disposal/overflow paths race. Completing the channel is left to
     // that caller and happens OUTSIDE the lock: this lock guards set membership only.
+    //
+    // Remove-then-complete (never the reverse) is load-bearing, not incidental: it is what lets
+    // OnSubscriberOverflow read a false return as "this subscriber unregistered gracefully"
+    // rather than "this subscriber overflowed". Completing before removing would resurrect the
+    // spurious-session-fault bug.
     private bool RemoveSubscriber(Subscriber subscriber)
     {
         lock (_lifecycleLock)
diff --git a/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Sessions/SessionEventDistributorTests.cs b/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Sessions/SessionEventDistributorTests.cs
index 75a74ad..1338a71 100644
--- a/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Sessions/SessionEventDistributorTests.cs
+++ b/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Sessions/SessionEventDistributorTests.cs
@@ -1,3 +1,4 @@
+using System.Collections.Concurrent;
 using System.Threading.Channels;
 using Microsoft.Extensions.Logging.Abstractions;
 using Microsoft.Extensions.Time.Testing;
@@ -1114,6 +1115,96 @@ public sealed class SessionEventDistributorTests
         Assert.Equal(1, distributor.SubscriberCount);
     }
 
+    /// <summary>
+    ///     Regression: a subscriber that unregisters (lease disposed) after the pump captured the
+    ///     fan-out array is still written to, and <c>TryWrite</c> on its now-completed channel
+    ///     returns false — the same signal a full channel gives. Treating that as backpressure
+    ///     emitted a bogus <c>EventQueueOverflow</c> metric and, under the default
+    ///     single-subscriber FailFast policy, faulted the whole session: a stream ending normally
+    ///     during traffic could kill the session. The overflow path must claim the removal first
+    ///     and bail out when the subscriber is already gone.
+    /// </summary>
+    /// <returns>A task that represents the asynchronous operation.</returns>
+    [Fact]
+    public async Task GracefulUnregisterDuringFanOut_DoesNotReportOverflow_OrFaultTheSession()
+    {
+        Channel<MxEvent> source = Channel.CreateUnbounded<MxEvent>();
+
+        // Records every overflow-handler invocation. isInternal distinguishes the deliberate
+        // overflow (the internal subscriber below) from the graceful unregister under test.
+        ConcurrentQueue<(bool IsOnlySubscriber, bool IsInternal)> invocations = new();
+        IEventSubscriberLease? gracefulLease = null;
+        int disposedGracefulLease = 0;
+
+        await using SessionEventDistributor distributor = new(
+            "session-graceful-unregister",
+            ct => source.Reader.ReadAllAsync(ct),
+            subscriberQueueCapacity: 1,
+            replayBufferCapacity: 0,
+            replayRetentionSeconds: 0,
+            NullLogger<SessionEventDistributor>.Instance,
+            TimeProvider.System,
+            (isOnlySubscriber, isInternal) =>
+            {
+                invocations.Enqueue((isOnlySubscriber, isInternal));
+
+                // The seam that makes the race deterministic: this handler runs ON the pump
+                // thread, part-way through fanning one event to the array it already captured.
+                // Disposing the graceful lease here unregisters and completes that subscriber
+                // in exactly the window the fix targets — after the capture, before the pump
+                // reaches its TryWrite. Only on the first invocation, so a genuine repeat
+                // overflow cannot re-trigger it.
+                if (Interlocked.Exchange(ref disposedGracefulLease, 1) == 0)
+                {
+                    gracefulLease!.Dispose();
+                }
+            },
+            singleSubscriberMode: true);
+
+        await distributor.StartAsync(CancellationToken.None);
+
+        // Registered FIRST so it precedes the graceful subscriber in the captured fan-out array,
+        // putting the graceful subscriber's TryWrite after this one's overflow handler. Internal
+        // so its own (expected) overflow reports isOnlySubscriber == false and can never fault
+        // the session by itself. Never read from, so its capacity-1 channel fills immediately.
+        using IEventSubscriberLease overflowing = distributor.Register(isInternal: true);
+
+        // External subscriber that will unregister gracefully mid-fan-out. Under the old
+        // behavior its completed-channel TryWrite reported isOnlySubscriber == true, which is
+        // precisely the legacy FailFast "fault the session" signal.
+        gracefulLease = distributor.Register();
+
+        // Event 1 fills the internal subscriber's channel and is drained from the graceful one,
+        // so on event 2 the internal subscriber overflows while the graceful one has room —
+        // whichever order the array happens to hold, only the internal subscriber overflows.
+        source.Writer.TryWrite(Event(1));
+        MxEvent first = await ReadOneAsync(gracefulLease.Reader);
+        Assert.Equal(1ul, first.WorkerSequence);
+
+        // Event 2: the internal subscriber overflows, the handler disposes the graceful lease,
+        // and the pump then writes event 2 to that already-completed channel.
+        source.Writer.TryWrite(Event(2));
+
+        // The graceful subscriber's channel must complete cleanly — no EventQueueOverflow fault.
+        await AssertCompletedAsync(gracefulLease.Reader);
+
+        // The pump survives and keeps serving a freshly-attached subscriber.
+        using IEventSubscriberLease later = distributor.Register();
+        source.Writer.TryWrite(Event(3));
+        Assert.Equal(3ul, (await ReadOneAsync(later.Reader)).WorkerSequence);
+
+        // Guards against a vacuous pass: the deliberate internal overflow must actually have
+        // fired, since that handler call is the seam that disposes the lease mid-fan-out.
+        Assert.NotEmpty(invocations);
+        Assert.Equal(1, Volatile.Read(ref disposedGracefulLease));
+
+        // The deliberate internal overflow is expected; the graceful unregister must NOT have
+        // produced an overflow report of its own. An isOnlySubscriber == true invocation is the
+        // exact signal that would have faulted the session.
+        Assert.All(invocations, invocation => Assert.True(invocation.IsInternal));
+        Assert.DoesNotContain(invocations, invocation => invocation.IsOnlySubscriber);
+    }
+
     private static SessionEventDistributor CreateDistributor(ChannelReader<MxEvent> source)
         => CreateDistributor(source, replayBufferCapacity: 1024, replayRetentionSeconds: 300);