diff --git a/src/core/Akka.Streams.Tests/Implementation/ChannelSourceSpec.cs b/src/core/Akka.Streams.Tests/Implementation/ChannelSourceSpec.cs
index f0535eef1d6..2961df9b577 100644
--- a/src/core/Akka.Streams.Tests/Implementation/ChannelSourceSpec.cs
+++ b/src/core/Akka.Streams.Tests/Implementation/ChannelSourceSpec.cs
@@ -6,6 +6,9 @@
 //-----------------------------------------------------------------------
 
 using System;
+using System.Collections.Concurrent;
+using System.Collections.Immutable;
+using System.Linq;
 using System.Threading;
 using System.Threading.Channels;
 using System.Threading.Tasks;
@@ -92,5 +95,52 @@ public async Task ChannelSource_must_read_incoming_events()
             probe.ExpectNext(4);
             probe.ExpectNext(5);
         }
+
+        /// <summary>
+        /// Reproduces GitHub issue #7940: NullReferenceException when completing
+        /// a ChannelReader while the stream is waiting for data.
+        /// </summary>
+        [Fact(DisplayName = "ChannelSource should not throw NRE when completing channel while waiting for data")]
+        public async Task ChannelSource_should_not_throw_NRE_when_completing_channel_while_waiting_for_data()
+        {
+            // This test reproduces the race condition from #7940
+            // Run multiple iterations to increase chance of hitting the race
+            for (var iteration = 0; iteration < 20; iteration++)
+            {
+                var channel = Channel.CreateUnbounded<string>();
+                var processed = new ConcurrentBag<string>();
+
+                // Exactly matches the repro from the issue - using ImmutableArray.Create and Sink.Ignore<Done>
+                var streamTask = ChannelSource.FromReader(channel.Reader)
+                    .Select(ImmutableArray.Create)
+                    .Select(s =>
+                    {
+                        foreach (var item in s) processed.Add(item);
+                        return Done.Instance;
+                    })
+                    .ToMaterialized(Sink.Ignore<Done>(), Keep.Right)
+                    .Run(_materializer);
+
+                // Write some items
+                var testInput = Enumerable.Range(1, 5).Select(i => i.ToString()).ToList();
+                foreach (var item in testInput)
+                    await channel.Writer.WriteAsync(item);
+
+                // Wait 1 second for stream to process items and then wait for more data
+                // This is the key to reproducing the race - the stream needs to be
+                // waiting in WaitToReadAsync when we complete the writer (channel is empty)
+                await Task.Delay(1000);
+
+                // Complete the channel - this can cause NRE if there's a race
+                // between OnReaderComplete and the async continuation of WaitToReadAsync
+                channel.Writer.Complete();
+
+                // Stream should complete cleanly without exceptions
+                await streamTask;
+
+                // Verify all items were processed
+                processed.Count.Should().Be(5, $"iteration {iteration} failed");
+            }
+        }
     }
 }
diff --git a/src/core/Akka.Streams/Implementation/ChannelSources.cs b/src/core/Akka.Streams/Implementation/ChannelSources.cs
index 7097bef3516..5871561c388 100644
--- a/src/core/Akka.Streams/Implementation/ChannelSources.cs
+++ b/src/core/Akka.Streams/Implementation/ChannelSources.cs
@@ -6,6 +6,7 @@
 //-----------------------------------------------------------------------
 
 using System;
+using System.Threading;
 using System.Threading.Channels;
 using System.Threading.Tasks;
 using Akka.Streams.Stage;
@@ -21,6 +22,10 @@ sealed class ChannelSourceLogic<T> : OutGraphStageLogic
         private readonly Action<Exception> _onReaderComplete;
         private readonly Action<Task<bool>> _onReadReady;
 
+        // Flag to prevent race condition between OnReaderComplete and OnValueRead
+        // when channel completion and WaitToReadAsync fire simultaneously (issue #7940)
+        private int _completing;
+
         public ChannelSourceLogic(SourceShape<T> source, Outlet<T> outlet,
             ChannelReader<T> reader) : base(source)
         {
@@ -44,20 +49,41 @@ public ChannelSourceLogic(SourceShape<T> source, Outlet<T> outlet,
 
         private void OnReaderComplete(Exception reason)
         {
+            // Use atomic compare-exchange to ensure only one completion path runs
+            // This prevents race with OnValueRead when both fire simultaneously
+            if (Interlocked.CompareExchange(ref _completing, 1, 0) != 0)
+                return; // Already completing from another path
+
             if (reason is null)
                 CompleteStage();
             else
                 FailStage(reason);
         }
 
-        private void OnValueReadFailure(Exception reason) => FailStage(reason);
+        private void OnValueReadFailure(Exception reason)
+        {
+            // Use atomic compare-exchange to ensure only one completion path runs
+            if (Interlocked.CompareExchange(ref _completing, 1, 0) != 0)
+                return; // Already completing from another path
+
+            FailStage(reason);
+        }
 
         private void OnValueRead(bool dataAvailable)
         {
             if (dataAvailable && _reader.TryRead(out var element))
+            {
                 Push(_outlet, element);
+            }
             else
+            {
+                // Use atomic compare-exchange to ensure only one completion path runs
+                // This prevents race with OnReaderComplete when both fire simultaneously
+                if (Interlocked.CompareExchange(ref _completing, 1, 0) != 0)
+                    return; // Already completing from another path
+
                 CompleteStage();
+            }
         }
 
         public override void OnPull()
@@ -73,9 +99,17 @@ public override void OnPull()
                 {
                     var dataAvailable = continuation.GetAwaiter().GetResult();
                     if (dataAvailable && _reader.TryRead(out element))
+                    {
                         Push(_outlet, element);
+                    }
                     else
+                    {
+                        // Use atomic compare-exchange to ensure only one completion path runs
+                        if (Interlocked.CompareExchange(ref _completing, 1, 0) != 0)
+                            return; // Already completing from another path
+
                         CompleteStage();
+                    }
                 }
                 else
                     continuation.AsTask().ContinueWith(_onReadReady);