diff --git a/http-client/src/main/java/io/micronaut/http/client/netty/ReactiveClientReader.java b/http-client/src/main/java/io/micronaut/http/client/netty/ReactiveClientReader.java
index fe36a0c442d..d59cc65cf60 100644
--- a/http-client/src/main/java/io/micronaut/http/client/netty/ReactiveClientReader.java
+++ b/http-client/src/main/java/io/micronaut/http/client/netty/ReactiveClientReader.java
@@ -16,6 +16,7 @@
 package io.micronaut.http.client.netty;
 
 import io.micronaut.core.annotation.Internal;
+import io.micronaut.core.annotation.Nullable;
 import io.micronaut.http.client.exceptions.ResponseClosedException;
 import io.micronaut.http.netty.reactive.HotObservable;
 import io.netty.channel.ChannelHandlerContext;
@@ -38,7 +39,9 @@
 abstract class ReactiveClientReader extends ChannelInboundHandlerAdapter implements HotObservable<HttpContent>, Subscription {
     private EventLoop eventLoop;
     private ChannelHandlerContext ctx;
+    @Nullable
     private Subscriber<? super HttpContent> subscriber;
+    private Throwable heldBackException;
     private long demand;
     private boolean cancelled = false;
 
@@ -48,12 +51,21 @@ public final void handlerAdded(ChannelHandlerContext ctx) throws Exception {
         eventLoop = ctx.channel().eventLoop();
     }
 
+    private void forwardException(Throwable t) {
+        if (subscriber == null) {
+            // no subscriber yet
+            heldBackException = t;
+        } else {
+            subscriber.onError(t);
+        }
+    }
+
     @Override
     public final void channelInactive(ChannelHandlerContext ctx) throws Exception {
         super.channelInactive(ctx);
         if (!cancelled) {
             cancelled = true;
-            subscriber.onError(new ResponseClosedException("Connection closed before full response body was transferred"));
+            forwardException(new ResponseClosedException("Connection closed before full response body was transferred"));
         }
     }
 
@@ -69,6 +81,11 @@ public final void subscribe(Subscriber<? super HttpContent> s) {
 
         subscriber = s;
         s.onSubscribe(this);
+        if (heldBackException != null) {
+            // already got an error
+            s.onError(heldBackException);
+            heldBackException = null;
+        }
     }
 
     @Override
@@ -118,6 +135,7 @@ public final void channelRead(ChannelHandlerContext ctx, Object msg) throws Exce
             }
         } else {
             assert demand > 0 : "should be ensured by FlowControlHandler";
+            // demand > 0 => subscriber != null, so this is safe
             subscriber.onNext((HttpContent) msg);
             if (last) {
                 cancelled = true;
@@ -136,7 +154,7 @@ public final void exceptionCaught(ChannelHandlerContext ctx, Throwable cause) th
         } else {
             cancelled = true;
             remove(ctx);
-            subscriber.onError(cause);
+            forwardException(cause);
         }
     }
 
diff --git a/http-client/src/test/groovy/io/micronaut/http/client/netty/ReactiveClientReaderSpec.groovy b/http-client/src/test/groovy/io/micronaut/http/client/netty/ReactiveClientReaderSpec.groovy
index 6ba5200d16d..e67ad7cb8d0 100644
--- a/http-client/src/test/groovy/io/micronaut/http/client/netty/ReactiveClientReaderSpec.groovy
+++ b/http-client/src/test/groovy/io/micronaut/http/client/netty/ReactiveClientReaderSpec.groovy
@@ -1,5 +1,6 @@
 package io.micronaut.http.client.netty
 
+import io.micronaut.http.client.exceptions.ResponseClosedException
 import io.netty.buffer.Unpooled
 import io.netty.channel.ChannelHandlerContext
 import io.netty.channel.embedded.EmbeddedChannel
@@ -8,6 +9,7 @@ import io.netty.handler.codec.http.HttpContent
 import io.netty.handler.flow.FlowControlHandler
 import org.reactivestreams.Subscriber
 import org.reactivestreams.Subscription
+import reactor.core.publisher.Flux
 import spock.lang.Specification
 
 class ReactiveClientReaderSpec extends Specification {
@@ -79,4 +81,48 @@ class ReactiveClientReaderSpec extends Specification {
         item == c3
         !nested
     }
+
+    def 'error before subscribe'() {
+        given:
+        def reader = new ReactiveClientReader() {
+            @Override
+            protected void remove(ChannelHandlerContext ctx) {
+            }
+        }
+        def channel = new EmbeddedChannel(reader)
+        def err = new RuntimeException()
+
+        when:
+        channel.pipeline().fireExceptionCaught(err)
+        channel.checkException()
+        then:
+        noExceptionThrown()
+
+        when:
+        Flux.from(reader).blockLast()
+        then:
+        def e = thrown RuntimeException
+        e == err
+    }
+
+    def 'inactive before subscribe'() {
+        given:
+        def reader = new ReactiveClientReader() {
+            @Override
+            protected void remove(ChannelHandlerContext ctx) {
+            }
+        }
+        def channel = new EmbeddedChannel(reader)
+
+        when:
+        channel.pipeline().fireChannelInactive()
+        channel.checkException()
+        then:
+        noExceptionThrown()
+
+        when:
+        Flux.from(reader).blockLast()
+        then:
+        thrown ResponseClosedException
+    }
 }