diff --git a/http-core/src/main/scala/org/apache/pekko/http/impl/engine/http2/Http2StreamHandling.scala b/http-core/src/main/scala/org/apache/pekko/http/impl/engine/http2/Http2StreamHandling.scala
index c55d9e61e..1bd369490 100644
--- a/http-core/src/main/scala/org/apache/pekko/http/impl/engine/http2/Http2StreamHandling.scala
+++ b/http-core/src/main/scala/org/apache/pekko/http/impl/engine/http2/Http2StreamHandling.scala
@@ -447,9 +447,9 @@ private[http2] trait Http2StreamHandling extends GraphStageLogic with LogHelper
         // We're not planning on sending any data on this stream anymore, so we don't care about window updates.
         this
       case rst@RstStreamFrame(streamId, _) =>
-        //TODO if errorCode is REFUSED_STREAM, we should try to open a new stream
-        val frame = ParsedHeadersFrame(streamId, endStream = true, Seq((":status", "429")), None)
-        dispatchStream(streamId, frame, ByteString.empty, correlationAttributes, _ => Closed)
+        val headers = ParsedHeadersFrame(streamId, endStream = false, Seq((":status", "429")), None)
+        dispatchSubstream(headers, Right(Source.failed(new PeerClosedStreamException(rst.streamId, rst.errorCode))), correlationAttributes)
+        Closed
       case _ =>
         expectIncomingStream(event, Closed, HalfClosedLocal(_), correlationAttributes)
     }
diff --git a/http2-tests/src/test/scala/org/apache/pekko/http/impl/engine/http2/Http2ClientSpec.scala b/http2-tests/src/test/scala/org/apache/pekko/http/impl/engine/http2/Http2ClientSpec.scala
index 4a8e2e9c3..33b868475 100644
--- a/http2-tests/src/test/scala/org/apache/pekko/http/impl/engine/http2/Http2ClientSpec.scala
+++ b/http2-tests/src/test/scala/org/apache/pekko/http/impl/engine/http2/Http2ClientSpec.scala
@@ -293,14 +293,21 @@ class Http2ClientSpec extends PekkoSpecWithMaterializer("""
           headerPayload.take(3) shouldBe dynamicTableUpdateTo8192
         })
       "close stream if peer sends RST_STREAM frame with REFUSED_STREAM".inAssertAllStagesStopped(new TestSetup with NetProbes {
-        user.emitRequest(Post("/", HttpEntity("hello")))
+        val data = ByteString("abcd")
+        user.emitRequest(Post("/", HttpEntity(data)))
         val TheStreamId = network.expect[HeadersFrame]().streamId
+        network.expectDATA(TheStreamId, endStream = true, data)
 
         network.sendRST_STREAM(TheStreamId, ErrorCode.REFUSED_STREAM)
 
         val response = user.expectResponse()
         response.status should be(StatusCodes.TooManyRequests)
 
+        val entityDataIn = ByteStringSinkProbe(response.entity.dataBytes)
+        val error = entityDataIn.expectError()
+        error.getMessage shouldBe "Stream with ID [1] was closed by peer with code REFUSED_STREAM(0x07)"
+
+        connectionShouldStillBeUsable()
       })
     }