diff --git a/src/mcp/client/stdio/__init__.py b/src/mcp/client/stdio/__init__.py
index 83de57a2..d51d5c12 100644
--- a/src/mcp/client/stdio/__init__.py
+++ b/src/mcp/client/stdio/__init__.py
@@ -6,6 +6,7 @@
 
 import anyio
 import anyio.lowlevel
+from anyio.abc import Process
 from anyio.streams.memory import MemoryObjectReceiveStream, MemoryObjectSendStream
 from anyio.streams.text import TextReceiveStream
 from pydantic import BaseModel, Field
@@ -38,6 +39,10 @@
 )
 
 
+class ProcessTerminatedEarlyError(Exception):
+    """Raised when a process terminates unexpectedly."""
+
+
 def get_default_environment() -> dict[str, str]:
     """
     Returns a default environment object including only environment variables deemed
@@ -110,7 +115,7 @@ async def stdio_client(server: StdioServerParameters, errlog: TextIO = sys.stder
     command = _get_executable_command(server.command)
 
     # Open process with stderr piped for capture
-    process = await _create_platform_compatible_process(
+    process: Process = await _create_platform_compatible_process(
         command=command,
         args=server.args,
         env=(
@@ -122,7 +127,7 @@ async def stdio_client(server: StdioServerParameters, errlog: TextIO = sys.stder
         cwd=server.cwd,
     )
 
-    async def stdout_reader():
+    async def stdout_reader(done_event: anyio.Event):
         assert process.stdout, "Opened process is missing stdout"
 
         try:
@@ -146,6 +151,7 @@ async def stdout_reader():
                         await read_stream_writer.send(message)
         except anyio.ClosedResourceError:
             await anyio.lowlevel.checkpoint()
+        done_event.set()
 
     async def stdin_writer():
         assert process.stdin, "Opened process is missing stdin"
@@ -163,20 +169,45 @@ async def stdin_writer():
         except anyio.ClosedResourceError:
             await anyio.lowlevel.checkpoint()
 
+    process_error: str | None = None
+
     async with (
         anyio.create_task_group() as tg,
         process,
     ):
-        tg.start_soon(stdout_reader)
+        stdout_done_event = anyio.Event()
+        tg.start_soon(stdout_reader, stdout_done_event)
         tg.start_soon(stdin_writer)
         try:
             yield read_stream, write_stream
+            if stdout_done_event.is_set():
+                # The stdout reader exited before the calling code stopped listening
+                #  (e.g. because of process error)
+                # Give the process a chance to exit if it was the reason for crashing
+                #  so we can get exit code
+                with anyio.move_on_after(0.1) as scope:
+                    await process.wait()
+                    process_error = f"Process exited with code {process.returncode}."
+                if scope.cancelled_caught:
+                    process_error = (
+                        "Stdout reader exited (process did not exit immediately)."
+                    )
         finally:
+            await read_stream.aclose()
+            await write_stream.aclose()
+            await read_stream_writer.aclose()
+            await write_stream_reader.aclose()
             # Clean up process to prevent any dangling orphaned processes
-            if sys.platform == "win32":
-                await terminate_windows_process(process)
-            else:
-                process.terminate()
+            if process.returncode is None:
+                if sys.platform == "win32":
+                    await terminate_windows_process(process)
+                else:
+                    process.terminate()
+
+    if process_error:
+        # Raise outside the task group so that the error is not wrapped in an
+        #  ExceptionGroup
+        raise ProcessTerminatedEarlyError(process_error)
 
 
 def _get_executable_command(command: str) -> str:
diff --git a/tests/client/test_stdio.py b/tests/client/test_stdio.py
index 95747ffd..ae968974 100644
--- a/tests/client/test_stdio.py
+++ b/tests/client/test_stdio.py
@@ -1,11 +1,17 @@
 import shutil
 
 import pytest
+from anyio import fail_after
 
-from mcp.client.stdio import StdioServerParameters, stdio_client
+from mcp.client.stdio import (
+    ProcessTerminatedEarlyError,
+    StdioServerParameters,
+    stdio_client,
+)
 from mcp.types import JSONRPCMessage, JSONRPCRequest, JSONRPCResponse
 
 tee: str = shutil.which("tee")  # type: ignore
+uv: str = shutil.which("uv")  # type: ignore
 
 
 @pytest.mark.anyio
@@ -41,3 +47,28 @@ async def test_stdio_client():
         assert read_messages[1] == JSONRPCMessage(
             root=JSONRPCResponse(jsonrpc="2.0", id=2, result={})
         )
+
+
+@pytest.mark.anyio
+@pytest.mark.skipif(uv is None, reason="could not find uv command")
+async def test_stdio_client_bad_path():
+    """Check that the connection doesn't hang if process errors."""
+    server_parameters = StdioServerParameters(
+        command="uv", args=["run", "non-existent-file.py"]
+    )
+
+    with pytest.raises(ProcessTerminatedEarlyError):
+        try:
+            with fail_after(1):
+                async with stdio_client(server_parameters) as (
+                    read_stream,
+                    _,
+                ):
+                    # Try waiting for read_stream so that we don't exit before the
+                    #  process fails.
+                    async with read_stream:
+                        async for message in read_stream:
+                            if isinstance(message, Exception):
+                                raise message
+        except TimeoutError:
+            pytest.fail("The connection hung.")