diff --git a/src/client/protocol/base.js b/src/client/protocol/base.js
index 365f096..717a5a6 100644
--- a/src/client/protocol/base.js
+++ b/src/client/protocol/base.js
@@ -91,13 +91,18 @@ class JsonRpcClientProtocol {
     this.connector.connect(this.server);
     this.connector.setEncoding("utf8");
     this.connector.on("connect", () => {
+      this.factory.remainingRetries = this.factory.options.retries;
       this.listener = this.connector;
       this.listen();
       resolve(this.server);
     });
-    this.connector.on("error", error => this._onConnectionFailed(error, resolve, reject));
-    this.connector.on("close", () => {
-      this.factory.emit("serverDisconnected");
+    this.connector.on("error", (error) =>
+      this._onConnectionFailed(error, resolve, reject)
+    );
+    this.connector.on("close", (hadError) => {
+      if (!hadError) {
+        this.factory.emit("serverDisconnected");
+      }
     });
   }
 
diff --git a/tests/issues/#123-reconnect-after-serverDisconnected.test.js b/tests/issues/#123-reconnect-after-serverDisconnected.test.js
new file mode 100644
index 0000000..6bcfc82
--- /dev/null
+++ b/tests/issues/#123-reconnect-after-serverDisconnected.test.js
@@ -0,0 +1,41 @@
+const { expect } = require("chai");
+const Jaysonic = require("../../src");
+const { server } = require("../test-server");
+const intercept = require("intercept-stdout");
+
+const tcpclient = new Jaysonic.client.tcp({
+  retries: 10
+});
+
+describe("#123 Reconnect after serverDisconnected", () => {
+  beforeEach(async () => {
+    await server.listen();
+  });
+  afterEach(async () => {
+    await tcpclient.end();
+  });
+  it("should attempt to reconnect at the default rate after receiving a serverDisconnected", async () => {
+    let reconnectAttempts = 0;
+    let capturedText = "";
+    const unhook = intercept((text) => {
+      capturedText += text;
+    });
+    tcpclient.serverDisconnected(async () => {
+      reconnectAttempts += 1;
+      tcpclient.pcolInstance = null;
+      await tcpclient.connect();
+    });
+    await tcpclient.connect();
+    await server.close();
+    await new Promise((r) => setTimeout(r, 10000));
+    unhook();
+    // first re-connect attempt is done without error
+    // second is done with error and does not trigger the serverDisconnected call
+    // after which the test should timeout
+    // 2 attempts, 5s apart 10s total
+    expect(capturedText).to.equal(
+      `Failed to connect. Address [127.0.0.1:8100]. Retrying. 9 attempts left.\nFailed to connect. Address [127.0.0.1:8100]. Retrying. 8 attempts left.\n`
+    );
+    expect(reconnectAttempts).to.equal(1);
+  }).timeout(30000);
+});