diff --git a/changelog/813.bugfix b/changelog/813.bugfix
new file mode 100644
index 00000000..251cf4b9
--- /dev/null
+++ b/changelog/813.bugfix
@@ -0,0 +1 @@
+Cancel shutdown when a crashed worker is restarted.
diff --git a/src/xdist/dsession.py b/src/xdist/dsession.py
index 2ae3db6b..a950df62 100644
--- a/src/xdist/dsession.py
+++ b/src/xdist/dsession.py
@@ -225,6 +225,7 @@ def worker_errordown(self, node, error):
             self.triggershutdown()
         else:
             self.report_line("\nreplacing crashed worker %s" % node.gateway.id)
+            self.shuttingdown = False
             self._clone_node(node)
         self._active_nodes.remove(node)
 
diff --git a/testing/test_newhooks.py b/testing/test_newhooks.py
index 012f1ea7..dcd2bc05 100644
--- a/testing/test_newhooks.py
+++ b/testing/test_newhooks.py
@@ -94,3 +94,28 @@ def pytest_handlecrashitem(crashitem, report, sched):
         res = pytester.runpytest("-n2", "-s")
         res.stdout.fnmatch_lines_random(["*HOOK: pytest_handlecrashitem"])
         res.stdout.fnmatch_lines(["*3 passed*"])
+
+    def test_handlecrashitem_one(self, pytester: pytest.Pytester) -> None:
+        """Test pytest_handlecrashitem hook with just one test."""
+        pytester.makeconftest(
+            """
+            test_runs = 0
+
+            def pytest_handlecrashitem(crashitem, report, sched):
+                global test_runs
+
+                if test_runs == 0:
+                    sched.mark_test_pending(crashitem)
+                    test_runs = 1
+                else:
+                    print("HOOK: pytest_handlecrashitem")
+        """
+        )
+        res = pytester.runpytest("-n1", "-s", "-k", "test_b")
+        res.stdout.fnmatch_lines_random(["*HOOK: pytest_handlecrashitem"])
+        res.stdout.fnmatch_lines(
+            [
+                "FAILED test_handlecrashitem_one.py::test_b",
+                "FAILED test_handlecrashitem_one.py::test_b",
+            ]
+        )