diff --git a/etl/src/replication/apply.rs b/etl/src/replication/apply.rs
index 1ddc8789..2a085d77 100644
--- a/etl/src/replication/apply.rs
+++ b/etl/src/replication/apply.rs
@@ -11,6 +11,7 @@ use std::sync::Arc;
 use std::time::{Duration, Instant};
 use tokio::pin;
 use tokio_postgres::types::PgLsn;
+use tracing::log::warn;
 use tracing::{debug, info};
 
 use crate::concurrency::shutdown::ShutdownRx;
@@ -571,7 +572,7 @@ where
 
                 // If we are not inside a transaction, we can cleanly stop streaming and return.
                 if !state.handling_transaction() {
-                    info!("shutting down apply worker while waiting for incoming events outside of a transaction");
+                    info!("shutting down apply loop while waiting for incoming events outside of a transaction");
                     return Ok(ApplyLoopResult::Paused);
                 }
 
@@ -583,7 +584,28 @@ where
             // PRIORITY 2: Process incoming replication messages from Postgres.
             // This is the primary data flow, converts replication protocol messages
             // into typed events and accumulates them into batches for efficient processing.
-            Some(message) = logical_replication_stream.next() => {
+            message = logical_replication_stream.next() => {
+                let Some(message) = message else {
+                    // The stream returned None, which should never happen for logical replication
+                    // since it runs indefinitely. This indicates either the connection was closed
+                    // or something unexpected occurred.
+                    if replication_client.is_closed() {
+                        warn!("replication stream ended because the postgres connection was closed, the apply loop will terminate");
+
+                        bail!(
+                            ErrorKind::SourceConnectionFailed,
+                            "PostgreSQL connection has been closed during the apply loop"
+                        )
+                    } else {
+                        warn!("replication stream ended unexpectedly without the connection being closed, the apply loop will terminate");
+
+                        bail!(
+                            ErrorKind::SourceConnectionFailed,
+                            "Replication stream ended unexpectedly during the apply loop"
+                        )
+                    }
+                };
+
                 let action = handle_replication_message_with_timeout(
                     &mut state,
                     logical_replication_stream.as_mut(),
@@ -661,6 +683,7 @@ where
                         false
                     )
                     .await?;
+
                 state.mark_status_update_sent();
             }
         }
diff --git a/etl/src/replication/client.rs b/etl/src/replication/client.rs
index 7c8f7688..b291f6bb 100644
--- a/etl/src/replication/client.rs
+++ b/etl/src/replication/client.rs
@@ -25,25 +25,24 @@ use tokio_postgres::{
 use tracing::{Instrument, error, info, warn};
 
 /// Spawns a background task to monitor a Postgres connection until it terminates.
-///
-/// The task will log when the connection terminates, either successfully or with an error.
 fn spawn_postgres_connection<T>(connection: Connection<Socket, T::Stream>)
 where
     T: MakeTlsConnect<Socket>,
     T::Stream: Send + 'static,
 {
-    // TODO: maybe return a handle for this task to keep track of it.
     let span = tracing::Span::current();
     let task = async move {
-        if let Err(e) = connection.await {
-            error!("an error occurred during the Postgres connection: {}", e);
-            return;
-        }
+        let result = connection.await;
 
-        info!("postgres connection terminated successfully")
+        match result {
+            Err(err) => error!("an error occurred during the postgres connection: {}", err),
+            Ok(()) => info!("postgres connection terminated successfully"),
+        }
     }
     .instrument(span);
 
+    // There is no need to track the connection task via the `JoinHandle` since the `Client`, which
+    // returned the connection, will automatically terminate the connection when dropped.
     tokio::spawn(task);
 }
 
@@ -252,6 +251,11 @@ impl PgReplicationClient {
         })
     }
 
+    /// Checks if the underlying connection is closed.
+    pub fn is_closed(&self) -> bool {
+        self.client.is_closed()
+    }
+
     /// Creates a new logical replication slot with the specified name and a transaction which is set
     /// on the snapshot exported by the slot creation.
     pub async fn create_slot_with_transaction(