diff --git a/build.gradle b/build.gradle
index 37039b6da..c3f0b805c 100644
--- a/build.gradle
+++ b/build.gradle
@@ -74,7 +74,7 @@ ext.versions = [
     "jackson": "2.11.2", 
     "launchdarklyJavaSdkCommon": "1.2.0",
     "okhttp": "4.8.1", // specify this for the SDK build instead of relying on the transitive dependency from okhttp-eventsource
-    "okhttpEventsource": "2.3.1",
+    "okhttpEventsource": "2.3.2",
     "slf4j": "1.7.21",
     "snakeyaml": "1.26",
     "jedis": "2.9.0"
diff --git a/src/test/java/com/launchdarkly/sdk/server/LDClientEndToEndTest.java b/src/test/java/com/launchdarkly/sdk/server/LDClientEndToEndTest.java
index 57a188aa3..cb1dd8aea 100644
--- a/src/test/java/com/launchdarkly/sdk/server/LDClientEndToEndTest.java
+++ b/src/test/java/com/launchdarkly/sdk/server/LDClientEndToEndTest.java
@@ -4,10 +4,14 @@
 import com.google.gson.JsonObject;
 import com.launchdarkly.sdk.LDUser;
 import com.launchdarkly.sdk.LDValue;
+import com.launchdarkly.sdk.server.interfaces.DataSourceStatusProvider;
 
 import org.junit.Test;
 
 import java.net.URI;
+import java.time.Duration;
+import java.util.concurrent.BlockingQueue;
+import java.util.concurrent.LinkedBlockingQueue;
 
 import static com.launchdarkly.sdk.server.Components.externalUpdatesOnly;
 import static com.launchdarkly.sdk.server.Components.noEvents;
@@ -112,19 +116,54 @@ public void clientStartsInStreamingMode() throws Exception {
     }
   }
 
+  @Test
+  public void clientStartsInStreamingModeAfterRecoverableError() throws Exception {
+    MockResponse errorResp = new MockResponse().setResponseCode(503);
+
+    String streamData = "event: put\n" +
+        "data: {\"data\":" + makeAllDataJson() + "}\n\n";    
+    MockResponse streamResp = TestHttpUtil.eventStreamResponse(streamData);
+    
+    try (MockWebServer server = makeStartedServer(errorResp, streamResp)) {
+      LDConfig config = new LDConfig.Builder()
+          .dataSource(baseStreamingConfig(server))
+          .events(noEvents())
+          .build();
+      
+      try (LDClient client = new LDClient(sdkKey, config)) {
+        assertTrue(client.isInitialized());
+        assertTrue(client.boolVariation(flagKey, user, false));
+      }
+    }
+  }
+
   @Test
   public void clientFailsInStreamingModeWith401Error() throws Exception {
     MockResponse resp = new MockResponse().setResponseCode(401);
     
-    try (MockWebServer server = makeStartedServer(resp)) {
+    try (MockWebServer server = makeStartedServer(resp, resp, resp)) {
       LDConfig config = new LDConfig.Builder()
-          .dataSource(baseStreamingConfig(server))
+          .dataSource(baseStreamingConfig(server).initialReconnectDelay(Duration.ZERO))
           .events(noEvents())
           .build();
       
       try (LDClient client = new LDClient(sdkKey, config)) {
         assertFalse(client.isInitialized());
         assertFalse(client.boolVariation(flagKey, user, false));
+        
+        BlockingQueue<DataSourceStatusProvider.Status> statuses = new LinkedBlockingQueue<>();
+        client.getDataSourceStatusProvider().addStatusListener(statuses::add);
+
+        Thread.sleep(100); // make sure it didn't retry the connection
+        assertThat(client.getDataSourceStatusProvider().getStatus().getState(),
+            equalTo(DataSourceStatusProvider.State.OFF));
+        while (!statuses.isEmpty()) {
+          // The status listener may or may not have been registered early enough to receive
+          // the OFF notification, but we should at least not see any *other* statuses.
+          assertThat(statuses.take().getState(), equalTo(DataSourceStatusProvider.State.OFF)); 
+        }
+        assertThat(statuses.isEmpty(), equalTo(true));
+        assertThat(server.getRequestCount(), equalTo(1)); // no retries
       }
     }
   }