diff --git a/client/transport/stdio.go b/client/transport/stdio.go
index 3d9d832ac..8da8f6bc0 100644
--- a/client/transport/stdio.go
+++ b/client/transport/stdio.go
@@ -4,15 +4,23 @@ import (
 	"bufio"
 	"context"
 	"encoding/json"
+	"errors"
 	"fmt"
 	"io"
 	"os"
 	"os/exec"
 	"sync"
+	"sync/atomic"
+	"time"
 
 	"github.com/mark3labs/mcp-go/mcp"
 )
 
+const (
+	readyTimeout      = 5 * time.Second
+	readyCheckTimeout = 1 * time.Second
+)
+
 // Stdio implements the transport layer of the MCP protocol using stdio communication.
 // It launches a subprocess and communicates with it via standard input/output streams
 // using JSON-RPC messages. The client handles message routing between requests and
@@ -31,6 +39,7 @@ type Stdio struct {
 	done           chan struct{}
 	onNotification func(mcp.JSONRPCNotification)
 	notifyMu       sync.RWMutex
+	exitErr        atomic.Value
 }
 
 // NewIO returns a new stdio-based transport using existing input, output, and
@@ -73,14 +82,13 @@ func (c *Stdio) Start(ctx context.Context) error {
 		return err
 	}
 
+	// Start reading responses in a goroutine and wait for it to be ready
 	ready := make(chan struct{})
 	go func() {
 		close(ready)
 		c.readResponses()
 	}()
-	<-ready
-
-	return nil
+	return waitUntilReadyOrExit(ready, c.done, readyTimeout)
 }
 
 // spawnCommand spawns a new process running c.command.
@@ -95,7 +103,6 @@ func (c *Stdio) spawnCommand(ctx context.Context) error {
 	mergedEnv = append(mergedEnv, c.env...)
 
 	cmd.Env = mergedEnv
-
 	stdin, err := cmd.StdinPipe()
 	if err != nil {
 		return fmt.Errorf("failed to create stdin pipe: %w", err)
@@ -120,20 +127,45 @@ func (c *Stdio) spawnCommand(ctx context.Context) error {
 		return fmt.Errorf("failed to start command: %w", err)
 	}
 
+	go func() {
+		err := cmd.Wait()
+		if err != nil {
+			c.exitErr.Store(err)
+		}
+		tryCloseDone(c.done)
+	}()
 	return nil
 }
 
-// Close shuts down the stdio client, closing the stdin pipe and waiting for the subprocess to exit.
-// Returns an error if there are issues closing stdin or waiting for the subprocess to terminate.
-func (c *Stdio) Close() error {
+func tryCloseDone(done chan struct{}) {
 	select {
-	case <-c.done:
-		return nil
+	case <-done:
+		return
 	default:
 	}
-	// cancel all in-flight request
-	close(c.done)
+	close(done)
+}
+func waitUntilReadyOrExit(ready <-chan struct{}, exited <-chan struct{}, timeout time.Duration) error {
+	select {
+	case <-exited:
+		return errors.New("process exited before signalling readiness")
+	case <-ready:
+		select {
+		case <-exited:
+			return errors.New("process exited after readiness")
+		case <-time.After(readyCheckTimeout):
+			return nil
+		}
+	case <-time.After(timeout):
+		return errors.New("timeout waiting for process ready")
+	}
+}
 
+// Close shuts down the stdio client, closing the stdin pipe and waiting for the subprocess to exit.
+// Returns an error if there are issues closing stdin or waiting for the subprocess to terminate.
+func (c *Stdio) Close() error {
+	// cancel all in-flight request
+	tryCloseDone(c.done)
 	if err := c.stdin.Close(); err != nil {
 		return fmt.Errorf("failed to close stdin: %w", err)
 	}
@@ -141,10 +173,9 @@ func (c *Stdio) Close() error {
 		return fmt.Errorf("failed to close stderr: %w", err)
 	}
 
-	if c.cmd != nil {
-		return c.cmd.Wait()
+	if err, ok := c.exitErr.Load().(error); ok && err != nil {
+		return err
 	}
-
 	return nil
 }
 
diff --git a/client/transport/stdio_test.go b/client/transport/stdio_test.go
index cb25bf796..51e90b0f0 100644
--- a/client/transport/stdio_test.go
+++ b/client/transport/stdio_test.go
@@ -407,5 +407,34 @@ func TestStdioErrors(t *testing.T) {
 			t.Errorf("Expected error when sending request after close, got nil")
 		}
 	})
+	t.Run("SubprocessStartsAndExitsImmediately", func(t *testing.T) {
+		// Create a temporary file for the mock server
+		tempFile, err := os.CreateTemp("", "mockstdio_server")
+		if err != nil {
+			t.Fatalf("Failed to create temp file: %v", err)
+		}
+		tempFile.Close()
+		mockServerPath := tempFile.Name()
 
+		// Add .exe suffix on Windows
+		if runtime.GOOS == "windows" {
+			os.Remove(mockServerPath) // Remove the empty file first
+			mockServerPath += ".exe"
+		}
+
+		if compileErr := compileTestServer(mockServerPath); compileErr != nil {
+			t.Fatalf("Failed to compile mock server: %v", compileErr)
+		}
+		//defer os.Remove(mockServerPath)
+
+		// Create a new Stdio transport
+		stdio := NewStdio(mockServerPath, nil)
+		stdio.env = append(stdio.env, "MOCK_FAIL_IMMEDIATELY=1")
+		defer stdio.Close()
+		// Start the transport
+		ctx := context.Background()
+		if startErr := stdio.Start(ctx); startErr == nil {
+			t.Fatalf("Expected error when starting Stdio transport, got nil")
+		}
+	})
 }
diff --git a/testdata/mockstdio_server.go b/testdata/mockstdio_server.go
index 9f13d5547..86bfb3071 100644
--- a/testdata/mockstdio_server.go
+++ b/testdata/mockstdio_server.go
@@ -26,6 +26,10 @@ type JSONRPCResponse struct {
 }
 
 func main() {
+	if os.Getenv("MOCK_FAIL_IMMEDIATELY") == "1" {
+		fmt.Fprintln(os.Stderr, "mock server: simulated startup failure")
+		os.Exit(1)
+	}
 	logger := slog.New(slog.NewJSONHandler(os.Stderr, &slog.HandlerOptions{}))
 	logger.Info("launch successful")
 	scanner := bufio.NewScanner(os.Stdin)