diff --git a/tokio/src/sync/watch.rs b/tokio/src/sync/watch.rs
index 3f6134b438b..7852b0cb1bf 100644
--- a/tokio/src/sync/watch.rs
+++ b/tokio/src/sync/watch.rs
@@ -247,7 +247,7 @@ impl<T> Receiver<T> {
     /// [`changed`]: Receiver::changed
     pub fn borrow_and_update(&mut self) -> Ref<'_, T> {
         let inner = self.shared.value.read().unwrap();
-        self.version = self.shared.version.load(SeqCst);
+        self.version = self.shared.version.load(SeqCst) & !CLOSED;
         Ref { inner }
     }
 
diff --git a/tokio/tests/sync_watch.rs b/tokio/tests/sync_watch.rs
index 9dcb0c530fa..a2a276d8beb 100644
--- a/tokio/tests/sync_watch.rs
+++ b/tokio/tests/sync_watch.rs
@@ -169,3 +169,20 @@ fn poll_close() {
 
     assert!(tx.send("two").is_err());
 }
+
+#[test]
+fn borrow_and_update() {
+    let (tx, mut rx) = watch::channel("one");
+
+    tx.send("two").unwrap();
+    assert_ready!(spawn(rx.changed()).poll()).unwrap();
+    assert_pending!(spawn(rx.changed()).poll());
+
+    tx.send("three").unwrap();
+    assert_eq!(*rx.borrow_and_update(), "three");
+    assert_pending!(spawn(rx.changed()).poll());
+
+    drop(tx);
+    assert_eq!(*rx.borrow_and_update(), "three");
+    assert_ready!(spawn(rx.changed()).poll()).unwrap_err();
+}