diff --git a/src/engine/ov_genai/llm.py b/src/engine/ov_genai/llm.py
index 12bcdf8..0b3fe42 100755
--- a/src/engine/ov_genai/llm.py
+++ b/src/engine/ov_genai/llm.py
@@ -141,8 +141,15 @@ async def _run_generation():
                 generation_kwargs,
                 streamer
             )
+        def _generation_exception_handler(task: asyncio.Task):
+            exc = task.exception()
+            if exc and not task.cancelled():
+                # Force break the below loop
+                streamer.text_queue.put_nowait(None)
+                raise exc
 
         gen_task = asyncio.create_task(_run_generation())
+        gen_task.add_done_callback(_generation_exception_handler)
 
         try:
             while True:
diff --git a/src/engine/ov_genai/streamers.py b/src/engine/ov_genai/streamers.py
index 839f87c..d7844bf 100644
--- a/src/engine/ov_genai/streamers.py
+++ b/src/engine/ov_genai/streamers.py
@@ -53,6 +53,9 @@ def write(self, token: Union[int, List[int]]) -> openvino_genai.StreamingStatus:
 
     def cancel(self) -> None:
         """Signal cancellation of the streaming generation."""
+        # Signal completion to unblock any waiting consumer
+        # Write performs the same task. However, if there is nothing to be written yet, it may not be received by the consumer
+        self.text_queue.put_nowait(None)
         self._cancelled.set()
 
     def is_cancelled(self) -> bool:
diff --git a/src/engine/ov_genai/vlm.py b/src/engine/ov_genai/vlm.py
index 8d10f77..2e40a95 100644
--- a/src/engine/ov_genai/vlm.py
+++ b/src/engine/ov_genai/vlm.py
@@ -202,8 +202,15 @@ async def _run_generation():
                 generation_config=generation_kwargs,
                 streamer=streamer,
             )
+        def _generation_exception_handler(task: asyncio.Task):
+            exc = task.exception()
+            if exc and not task.cancelled():
+                # Force break the below loop
+                streamer.text_queue.put_nowait(None)
+                raise exc
 
         gen_task = asyncio.create_task(_run_generation())
+        gen_task.add_done_callback(_generation_exception_handler)
 
         try:
             while True:
diff --git a/src/server/worker_registry.py b/src/server/worker_registry.py
index 2e54bd5..63cc841 100644
--- a/src/server/worker_registry.py
+++ b/src/server/worker_registry.py
@@ -837,6 +837,16 @@ async def stream_generate(self, model_name: str, gen_config: OVGenAI_GenConfig)
             stream_queue=stream_queue,
             result_future=result_future,
         )
+        async def _generation_exception_handler(future: asyncio.Future):
+            logger.error("Got stream cancel.")
+            exc = future.exception()
+            if exc and not future.cancelled():
+                # Force break the below loop
+                logger.error("Canceling.")
+                await self.infer_cancel(request_id)
+                stream_queue.put_nowait(None)
+                raise exc
+        result_future.add_done_callback(_generation_exception_handler)
         
         # Register active request
         async with self._lock: