diff --git a/src/ZB.MOM.WW.MxGateway.Server/Sessions/SessionEventDistributor.cs b/src/ZB.MOM.WW.MxGateway.Server/Sessions/SessionEventDistributor.cs
index 27dbb91..6758a4d 100644
--- a/src/ZB.MOM.WW.MxGateway.Server/Sessions/SessionEventDistributor.cs
+++ b/src/ZB.MOM.WW.MxGateway.Server/Sessions/SessionEventDistributor.cs
@@ -6,11 +6,11 @@ namespace ZB.MOM.WW.MxGateway.Server.Sessions;
 
 /// <summary>
 ///     Invoked by the pump (on the pump thread) when a subscriber's bounded channel is full
-///     and the event cannot be written. The handler applies the per-subscriber backpressure
-///     policy: it records the overflow metric and, in the legacy single-subscriber FailFast
-///     case, faults the owning session. It does NOT complete the subscriber's channel — the
-///     distributor always disconnects the offending subscriber with an overflow fault — so
-///     the handler is purely observability plus the session-fault decision.
+///     and the event cannot be written. The handler applies policy side-effects only:
+///     it records the overflow metric and, in the legacy single-subscriber FailFast case,
+///     faults the owning session. The handler MUST NOT complete the subscriber's channel —
+///     the distributor performs the disconnect and channel-completion unconditionally,
+///     regardless of what the handler does.
 /// </summary>
 /// <param name="isOnlySubscriber">
 ///     <see langword="true"/> when the overflowing subscriber is the sole registered
@@ -397,8 +397,20 @@ public sealed class SessionEventDistributor : IAsyncDisposable
     // slow consumer must not fault a session shared by other healthy subscribers.
     private void OnSubscriberOverflow(Subscriber subscriber, ulong workerSequence)
     {
-        // Snapshot whether this is the sole subscriber BEFORE we unregister it. This is the
-        // legacy single-subscriber mode used by the single-subscriber FailFast back-compat path.
+        // Snapshot whether this is the sole subscriber BEFORE we unregister it. This drives
+        // the FailFast-fault-session-vs-disconnect decision: FailFast only faults the session
+        // when the overflowing subscriber is the sole subscriber.
+        //
+        // This snapshot is safe in v1 because AllowMultipleEventSubscribers=false is enforced
+        // by the validator and the single-subscriber guard in AttachEventSubscriber — a
+        // concurrent second registration is impossible, so the false-FailFast race (two
+        // subscribers, one overflows, Count reads as 1 after the other concurrently unregisters,
+        // FailFast wrongly faults the session) cannot occur today.
+        //
+        // REVISIT (Task 7/8): when multi-subscriber is enabled the guard is removed and the
+        // race window opens — a concurrent second registration could cause Count to read as 1
+        // here even with two subscribers, producing a false FailFast that faults a shared
+        // session. Resolve before enabling multi-subscriber.
         bool isOnlySubscriber = _subscribers.Count == 1;
 
         _logger.LogDebug(
diff --git a/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Grpc/EventStreamServiceTests.cs b/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Grpc/EventStreamServiceTests.cs
index 33a3d3b..8dd8c7e 100644
--- a/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Grpc/EventStreamServiceTests.cs
+++ b/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Grpc/EventStreamServiceTests.cs
@@ -206,6 +206,9 @@ public sealed class EventStreamServiceTests
         GatewayMetricsSnapshot snapshot = metrics.GetSnapshot();
         Assert.Equal(1, snapshot.QueueOverflows);
         Assert.Equal(1, snapshot.Faults);
+        // The finally block in StreamEventsAsync calls StreamDisconnected("Detached") on the
+        // overflow+fault path too; pin it here so a regression removing that call is caught.
+        Assert.Equal(1, snapshot.StreamDisconnects);
     }
 
     /// <summary>
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 52fd7a3..835f19f 100644
--- a/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Sessions/SessionEventDistributorTests.cs
+++ b/src/ZB.MOM.WW.MxGateway.Tests/Gateway/Sessions/SessionEventDistributorTests.cs
@@ -336,7 +336,12 @@ public sealed class SessionEventDistributorTests
         // while a second, healthy subscriber keeps receiving and the pump keeps pumping.
         Channel<MxEvent> source = Channel.CreateUnbounded<MxEvent>();
         int overflowCalls = 0;
-        bool? observedIsOnlySubscriber = null;
+        // Separate fields for the bool value and the "set" flag so both can use
+        // Volatile.Read/Write; bool? is not valid for the volatile keyword on a local.
+        // Interlocked.Increment on the pump thread is the store for overflowCalls;
+        // Volatile.Read/Write provide ordering for observedIsOnlySubscriber.
+        int observedIsOnlySubscriberSet = 0;
+        bool observedIsOnlySubscriberValue = false;
         await using SessionEventDistributor distributor = new(
             "session-test",
             ct => source.Reader.ReadAllAsync(ct),
@@ -348,7 +353,8 @@ public sealed class SessionEventDistributorTests
             isOnlySubscriber =>
             {
                 Interlocked.Increment(ref overflowCalls);
-                observedIsOnlySubscriber = isOnlySubscriber;
+                Volatile.Write(ref observedIsOnlySubscriberValue, isOnlySubscriber);
+                Volatile.Write(ref observedIsOnlySubscriberSet, 1);
             });
         await distributor.StartAsync(CancellationToken.None);
 
@@ -372,8 +378,11 @@ public sealed class SessionEventDistributorTests
         Assert.Equal(SessionManagerErrorCode.EventQueueOverflow, fault.ErrorCode);
 
         // Two subscribers were registered at overflow time, so isOnlySubscriber is false.
-        Assert.Equal(1, overflowCalls);
-        Assert.False(observedIsOnlySubscriber);
+        // Use Interlocked.Read / Volatile.Read so the test-thread reads are ordered after the
+        // pump-thread writes, avoiding a data race by the C# memory model.
+        Assert.Equal(1, Volatile.Read(ref overflowCalls));
+        Assert.Equal(1, Volatile.Read(ref observedIsOnlySubscriberSet));
+        Assert.False(Volatile.Read(ref observedIsOnlySubscriberValue));
         Assert.Equal(1, distributor.SubscriberCount);
 
         // The pump is still running and the healthy subscriber still receives new events.
@@ -382,6 +391,73 @@ public sealed class SessionEventDistributorTests
         Assert.Equal(11ul, afterOverflow.WorkerSequence);
     }
 
+    [Fact]
+    public async Task SlowSubscriberOverflow_WithMultipleSubscribers_HandlerSeesIsOnlySubscriberFalse_OtherKeepsReceiving()
+    {
+        // Distributor-level pin for "FailFast with multiple subscribers degrades to
+        // disconnect-only (no session fault)": when the overflowing subscriber is NOT the
+        // sole subscriber, isOnlySubscriber is false, so a FailFast-wired handler must NOT
+        // fault the session. This test drives the distributor directly (without GatewaySession)
+        // with two subscribers and a FailFast-style overflow handler seam, overflows the slow
+        // one, and asserts (a) isOnlySubscriber==false, (b) the other subscriber keeps
+        // receiving, and (c) the pump keeps running — all without a GatewaySession.
+        //
+        // TODO(Task 8): add a GatewaySession-level "session stays Ready" assertion once
+        // multi-subscriber config is enabled by the Tasks 7/8 validator/guard change.
+        Channel<MxEvent> source = Channel.CreateUnbounded<MxEvent>();
+        bool handlerFiredWithFalse = false;
+        bool sessionFaultWouldBeCalled = false; // tracks if a FailFast path would fault
+        await using SessionEventDistributor distributor = new(
+            "session-multi-sub",
+            ct => source.Reader.ReadAllAsync(ct),
+            subscriberQueueCapacity: 2,
+            replayBufferCapacity: 0,
+            replayRetentionSeconds: 0,
+            NullLogger<SessionEventDistributor>.Instance,
+            TimeProvider.System,
+            isOnlySubscriber =>
+            {
+                if (!isOnlySubscriber)
+                {
+                    // Multi-subscriber: FailFast degrades to disconnect-only.
+                    Volatile.Write(ref handlerFiredWithFalse, true);
+                }
+                else
+                {
+                    // Single-subscriber: FailFast would fault the session — must not happen here.
+                    Volatile.Write(ref sessionFaultWouldBeCalled, true);
+                }
+            });
+        await distributor.StartAsync(CancellationToken.None);
+
+        // Slow subscriber: never reads, so capacity-2 channel overflows quickly.
+        using IEventSubscriberLease slow = distributor.Register();
+        // Healthy subscriber: drains every event promptly.
+        using IEventSubscriberLease healthy = distributor.Register();
+
+        // Drive enough events to overflow the slow subscriber's channel.
+        for (ulong sequence = 1; sequence <= 10; sequence++)
+        {
+            source.Writer.TryWrite(Event(sequence));
+            _ = await ReadOneAsync(healthy.Reader);
+        }
+
+        // Slow subscriber is disconnected with the overflow fault.
+        SessionManagerException fault = await Assert.ThrowsAsync<SessionManagerException>(
+            async () => await DrainUntilFaultAsync(slow.Reader));
+        Assert.Equal(SessionManagerErrorCode.EventQueueOverflow, fault.ErrorCode);
+
+        // The handler saw isOnlySubscriber==false (multi-subscriber degradation path).
+        Assert.True(Volatile.Read(ref handlerFiredWithFalse));
+        // The FailFast session-fault branch was NOT taken (session stays Ready equivalent).
+        Assert.False(Volatile.Read(ref sessionFaultWouldBeCalled));
+
+        // The pump and healthy subscriber are unaffected.
+        source.Writer.TryWrite(Event(11));
+        MxEvent afterOverflow = await ReadOneAsync(healthy.Reader);
+        Assert.Equal(11ul, afterOverflow.WorkerSequence);
+    }
+
     private static async Task DrainUntilFaultAsync(ChannelReader<MxEvent> reader)
     {
         // Drains any buffered events, then surfaces the channel's completion fault (if any)