diff --git a/proxy.go b/proxy.go
index d1474189..2ba1fc0f 100644
--- a/proxy.go
+++ b/proxy.go
@@ -573,6 +573,9 @@ func (p *Proxy) handle(ctx *Context, conn net.Conn, brw *bufio.ReadWriter) error
 		if _, ok := err.(*trafficshape.ErrForceClose); ok {
 			closing = errClose
 		}
+		if err == io.ErrUnexpectedEOF {
+			closing = errClose
+		}
 	}
 	err = brw.Flush()
 	if err != nil {
diff --git a/proxy_test.go b/proxy_test.go
index 30bf17cf..d2f15cca 100644
--- a/proxy_test.go
+++ b/proxy_test.go
@@ -294,6 +294,109 @@ func TestIntegrationHTTP100Continue(t *testing.T) {
 	}
 }
 
+func TestIntegrationUnexpectedUpstreamFailure(t *testing.T) {
+	t.Parallel()
+
+	l, err := net.Listen("tcp", "[::]:0")
+	if err != nil {
+		t.Fatalf("net.Listen(): got %v, want no error", err)
+	}
+
+	p := NewProxy()
+	defer p.Close()
+
+	// setting a large proxy timeout
+	p.SetTimeout(1000 * time.Second)
+
+	sl, err := net.Listen("tcp", "[::]:0")
+	if err != nil {
+		t.Fatalf("net.Listen(): got %v, want no error", err)
+	}
+
+	go func() {
+		time.Sleep(1 * time.Second)
+		conn, err := sl.Accept()
+		if err != nil {
+			log.Errorf("proxy_test: failed to accept connection: %v", err)
+			return
+		}
+		defer conn.Close()
+
+		log.Infof("proxy_test: accepted connection: %s\n", conn.RemoteAddr())
+
+		req, err := http.ReadRequest(bufio.NewReader(conn))
+		if err != nil {
+			log.Errorf("proxy_test: failed to read request: %v", err)
+			return
+		}
+
+		res := &http.Response{
+			Status:     "200 OK",
+			StatusCode: 200,
+			Proto:      "HTTP/1.1",
+			ProtoMajor: 1,
+			ProtoMinor: 1,
+			Body:       ioutil.NopCloser(bytes.NewBufferString("body content")),
+			// Content length is set as 13 but response
+			// stops after sending 12 bytes
+			ContentLength: 13,
+			Request:       req,
+			Header:        make(http.Header, 0),
+		}
+		res.Write(conn)
+		conn.Close()
+
+		log.Infof("proxy_test: sent 200 response\n")
+	}()
+
+	tm := martiantest.NewModifier()
+	p.SetRequestModifier(tm)
+	p.SetResponseModifier(tm)
+
+	go p.Serve(l)
+
+	conn, err := net.Dial("tcp", l.Addr().String())
+	if err != nil {
+		t.Fatalf("net.Dial(): got %v, want no error", err)
+	}
+	defer conn.Close()
+
+	host := sl.Addr().String()
+	raw := fmt.Sprintf("POST http://%s/ HTTP/1.1\r\n"+
+		"Host: %s\r\n"+
+		"\r\n", host, host)
+	if _, err := conn.Write([]byte(raw)); err != nil {
+		t.Fatalf("conn.Write(headers): got %v, want no error", err)
+	}
+
+	res, err := http.ReadResponse(bufio.NewReader(conn), nil)
+	if err != nil {
+		t.Fatalf("http.ReadResponse(): got %v, want no error", err)
+	}
+	defer res.Body.Close()
+
+	if got, want := res.StatusCode, 200; got != want {
+		t.Fatalf("res.StatusCode: got %d, want %d", got, want)
+	}
+
+	got, err := ioutil.ReadAll(res.Body)
+	// if below error is unhandled in proxy, the test will timeout.
+	if err != io.ErrUnexpectedEOF {
+		t.Fatalf("ioutil.ReadAll(): got %v, want %v", err, io.ErrUnexpectedEOF)
+	}
+
+	if want := []byte("body content"); !bytes.Equal(got, want) {
+		t.Errorf("res.Body: got %q, want %q", got, want)
+	}
+
+	if !tm.RequestModified() {
+		t.Error("tm.RequestModified(): got false, want true")
+	}
+	if !tm.ResponseModified() {
+		t.Error("tm.ResponseModified(): got false, want true")
+	}
+}
+
 func TestIntegrationHTTPDownstreamProxy(t *testing.T) {
 	t.Parallel()