diff --git a/iotdb-core/datanode/src/main/java/org/apache/iotdb/db/pipe/source/dataregion/realtime/PipeRealtimeDataRegionSource.java b/iotdb-core/datanode/src/main/java/org/apache/iotdb/db/pipe/source/dataregion/realtime/PipeRealtimeDataRegionSource.java
index 367c83274215..fa716d5dccaf 100644
--- a/iotdb-core/datanode/src/main/java/org/apache/iotdb/db/pipe/source/dataregion/realtime/PipeRealtimeDataRegionSource.java
+++ b/iotdb-core/datanode/src/main/java/org/apache/iotdb/db/pipe/source/dataregion/realtime/PipeRealtimeDataRegionSource.java
@@ -380,7 +380,10 @@ protected void extractProgressReportEvent(final PipeRealtimeEvent event) {
       if (lastEvent == null || !(lastEvent.getEvent() instanceof PipeHeartbeatEvent)) {
         break;
       }
-      pendingQueue.pollLast();
+      final PipeRealtimeEvent droppedEvent = (PipeRealtimeEvent) pendingQueue.pollLast();
+      if (droppedEvent != null) {
+        droppedEvent.decreaseReferenceCount(PipeRealtimeDataRegionSource.class.getName(), false);
+      }
     }
     final Event last = pendingQueue.peekLast();
     if (last instanceof PipeRealtimeEvent
@@ -391,6 +394,7 @@ protected void extractProgressReportEvent(final PipeRealtimeEvent event) {
           oldEvent
               .getProgressIndex()
               .updateToMinimumEqualOrIsAfterProgressIndex(event.getProgressIndex()));
+      event.decreaseReferenceCount(PipeRealtimeDataRegionSource.class.getName(), false);
       return;
     }
     pendingQueue.offer(event);
diff --git a/iotdb-core/datanode/src/test/java/org/apache/iotdb/db/pipe/source/PipeRealtimeExtractTest.java b/iotdb-core/datanode/src/test/java/org/apache/iotdb/db/pipe/source/PipeRealtimeExtractTest.java
index 2cba4c8eebca..8cf5eaa81850 100644
--- a/iotdb-core/datanode/src/test/java/org/apache/iotdb/db/pipe/source/PipeRealtimeExtractTest.java
+++ b/iotdb-core/datanode/src/test/java/org/apache/iotdb/db/pipe/source/PipeRealtimeExtractTest.java
@@ -26,8 +26,11 @@
 import org.apache.iotdb.commons.pipe.config.constant.PipeSourceConstant;
 import org.apache.iotdb.commons.pipe.config.plugin.configuraion.PipeTaskRuntimeConfiguration;
 import org.apache.iotdb.commons.pipe.config.plugin.env.PipeTaskSourceRuntimeEnvironment;
+import org.apache.iotdb.commons.pipe.event.EnrichedEvent;
+import org.apache.iotdb.commons.pipe.event.ProgressReportEvent;
 import org.apache.iotdb.commons.utils.FileUtils;
 import org.apache.iotdb.db.pipe.event.realtime.PipeRealtimeEvent;
+import org.apache.iotdb.db.pipe.event.realtime.PipeRealtimeEventFactory;
 import org.apache.iotdb.db.pipe.source.dataregion.realtime.PipeRealtimeDataRegionHybridSource;
 import org.apache.iotdb.db.pipe.source.dataregion.realtime.PipeRealtimeDataRegionLogSource;
 import org.apache.iotdb.db.pipe.source.dataregion.realtime.PipeRealtimeDataRegionSource;
@@ -71,6 +74,7 @@
 public class PipeRealtimeExtractTest {
 
   private static final Logger LOGGER = LoggerFactory.getLogger(PipeRealtimeExtractTest.class);
+  private static final String TEST_REFERENCE_HOLDER = PipeRealtimeExtractTest.class.getName();
 
   private final String dataRegion1 = "1";
   private final String dataRegion2 = "2";
@@ -317,6 +321,37 @@ public void testListenToTsFileSkipsAssignerWithoutTsFileSource() throws Exceptio
     }
   }
 
+  @Test
+  public void testProgressReportExtractionReleasesDroppedEvents() {
+    final TestRealtimeDataRegionSource source = new TestRealtimeDataRegionSource();
+
+    final PipeRealtimeEvent heartbeatEvent =
+        PipeRealtimeEventFactory.createRealtimeEvent(dataRegion1, false);
+    heartbeatEvent.increaseReferenceCount(TEST_REFERENCE_HOLDER);
+    source.extractHeartbeatForTest(heartbeatEvent);
+    Assert.assertEquals(1, heartbeatEvent.getEvent().getReferenceCount());
+
+    final PipeRealtimeEvent progressEvent = createProgressReportRealtimeEvent();
+    progressEvent.increaseReferenceCount(TEST_REFERENCE_HOLDER);
+    source.extractProgressReportEventForTest(progressEvent);
+
+    Assert.assertEquals(0, heartbeatEvent.getEvent().getReferenceCount());
+    Assert.assertEquals(1, progressEvent.getEvent().getReferenceCount());
+    Assert.assertEquals(1, source.getEventCount());
+
+    final PipeRealtimeEvent mergedProgressEvent = createProgressReportRealtimeEvent();
+    mergedProgressEvent.increaseReferenceCount(TEST_REFERENCE_HOLDER);
+    source.extractProgressReportEventForTest(mergedProgressEvent);
+
+    Assert.assertEquals(0, mergedProgressEvent.getEvent().getReferenceCount());
+    Assert.assertEquals(1, progressEvent.getEvent().getReferenceCount());
+    Assert.assertEquals(1, source.getEventCount());
+
+    final Event queuedEvent = source.pollForTest();
+    Assert.assertSame(progressEvent, queuedEvent);
+    ((EnrichedEvent) queuedEvent).clearReferenceCount(TEST_REFERENCE_HOLDER);
+  }
+
   private Future<?> write2DataRegion(
       final int writeNum, final String dataRegionId, final int startNum) {
     final File dataRegionDir =
@@ -401,6 +436,47 @@ private Future<?> listen(
         });
   }
 
+  private PipeRealtimeEvent createProgressReportRealtimeEvent() {
+    final ProgressReportEvent progressReportEvent = new ProgressReportEvent(null, 0, null);
+    progressReportEvent.bindProgressIndex(MinimumProgressIndex.INSTANCE);
+    return PipeRealtimeEventFactory.createRealtimeEvent(progressReportEvent);
+  }
+
+  private static class TestRealtimeDataRegionSource extends PipeRealtimeDataRegionSource {
+
+    private void extractHeartbeatForTest(final PipeRealtimeEvent event) {
+      extractHeartbeat(event);
+    }
+
+    private void extractProgressReportEventForTest(final PipeRealtimeEvent event) {
+      extractProgressReportEvent(event);
+    }
+
+    private Event pollForTest() {
+      return pendingQueue.directPoll();
+    }
+
+    @Override
+    protected void doExtract(final PipeRealtimeEvent event) {
+      // Not needed in this reference-counting unit test.
+    }
+
+    @Override
+    public Event supply() {
+      return pendingQueue.directPoll();
+    }
+
+    @Override
+    public boolean isNeedListenToTsFile() {
+      return false;
+    }
+
+    @Override
+    public boolean isNeedListenToInsertNode() {
+      return false;
+    }
+  }
+
   private static class NoTsFileRealtimeDataRegionSource extends PipeRealtimeDataRegionSource {
 
     private final AtomicInteger observedTsFileEventCount = new AtomicInteger(0);