diff --git a/src/Microsoft.Diagnostics.NETCore.Client/DiagnosticsIpc/IpcServerTransport.cs b/src/Microsoft.Diagnostics.NETCore.Client/DiagnosticsIpc/IpcServerTransport.cs
index 3881ac26e8..9421783908 100644
--- a/src/Microsoft.Diagnostics.NETCore.Client/DiagnosticsIpc/IpcServerTransport.cs
+++ b/src/Microsoft.Diagnostics.NETCore.Client/DiagnosticsIpc/IpcServerTransport.cs
@@ -14,6 +14,7 @@ namespace Microsoft.Diagnostics.NETCore.Client
 {
     internal abstract class IpcServerTransport : IDisposable
     {
+        private IIpcServerTransportCallbackInternal _callback;
         private bool _disposed;
 
         public static IpcServerTransport Create(string transportPath, int maxConnections)
@@ -66,6 +67,16 @@ protected void VerifyNotDisposed()
                 throw new ObjectDisposedException(this.GetType().Name);
             }
         }
+
+        internal void SetCallback(IIpcServerTransportCallbackInternal callback)
+        {
+            _callback = callback;
+        }
+
+        protected void OnCreateNewServer()
+        {
+            _callback?.CreatedNewServer();
+        }
     }
 
     internal sealed class WindowsPipeServerTransport : IpcServerTransport
@@ -128,6 +139,7 @@ private void CreateNewPipeServer()
                 _maxInstances,
                 PipeTransmissionMode.Byte,
                 PipeOptions.Asynchronous);
+            OnCreateNewServer();
         }
     }
 
@@ -196,6 +208,12 @@ private void CreateNewSocketServer()
             _socket.Bind(_path);
             _socket.Listen(_backlog);
             _socket.LingerState.Enabled = false;
+            OnCreateNewServer();
         }
     }
+
+    internal interface IIpcServerTransportCallbackInternal
+    {
+        void CreatedNewServer();
+    }
 }
diff --git a/src/Microsoft.Diagnostics.NETCore.Client/ReversedServer/ReversedDiagnosticsServer.cs b/src/Microsoft.Diagnostics.NETCore.Client/ReversedServer/ReversedDiagnosticsServer.cs
index da5cd66549..548dc49cc4 100644
--- a/src/Microsoft.Diagnostics.NETCore.Client/ReversedServer/ReversedDiagnosticsServer.cs
+++ b/src/Microsoft.Diagnostics.NETCore.Client/ReversedServer/ReversedDiagnosticsServer.cs
@@ -171,7 +171,14 @@ private void VerifyIsStarted()
         /// <returns>A task that completes when the server is no longer listening at the transport path.</returns>
         private async Task ListenAsync(int maxConnections, CancellationToken token)
         {
+            // This disposal shuts down the transport in case an exception is thrown.
             using var transport = IpcServerTransport.Create(_transportPath, maxConnections);
+            // Set transport callback for testing purposes.
+            transport.SetCallback(TransportCallback);
+            // This disposal shuts down the transport in case of cancellation; causes the transport
+            // to not recreate the server stream before the AcceptAsync call observes the cancellation.
+            using var _ = token.Register(() => transport.Dispose());
+
             while (!token.IsCancellationRequested)
             {
                 Stream stream = null;
@@ -340,5 +347,7 @@ private static bool TestStream(Stream stream)
         private bool IsStarted => null != _listenTask;
 
         public static int MaxAllowedConnections = IpcServerTransport.MaxAllowedConnections;
+
+        internal IIpcServerTransportCallbackInternal TransportCallback { get; set; }
     }
 }
diff --git a/src/tests/Microsoft.Diagnostics.NETCore.Client/ReversedServerTests.cs b/src/tests/Microsoft.Diagnostics.NETCore.Client/ReversedServerTests.cs
index 5b4250a7b8..96227a222f 100644
--- a/src/tests/Microsoft.Diagnostics.NETCore.Client/ReversedServerTests.cs
+++ b/src/tests/Microsoft.Diagnostics.NETCore.Client/ReversedServerTests.cs
@@ -267,6 +267,52 @@ private async Task ReversedServerSingleTargetExitsClientInviableTestCore(bool us
             await VerifyNoNewEndpointInfos(server, useAsync);
         }
 
+        /// <summary>
+        /// Validates that the <see cref="ReversedDiagnosticsServer"/> does not create a new server
+        /// transport during disposal.
+        /// </summary>
+        [Fact]
+        public async Task ReversedServerNoCreateTransportAfterDispose()
+        {
+            var transportCallback = new IpcServerTransportCallback();
+
+            int transportVersion = 0;
+            TestRunner runner = null;
+            try
+            {
+                await using var server = CreateReversedServer(out string transportName);
+                server.TransportCallback = transportCallback;
+                server.Start();
+
+                // Start client pointing to diagnostics server
+                runner = StartTracee(transportName);
+
+                // Get client connection
+                IpcEndpointInfo info = await AcceptEndpointInfo(server, useAsync: true);
+
+                await VerifyEndpointInfo(runner, info, useAsync: true);
+
+                // There should not be any new endpoint infos
+                await VerifyNoNewEndpointInfos(server, useAsync: true);
+
+                ResumeRuntime(info);
+
+                await VerifyWaitForConnection(info, useAsync: true);
+
+                transportVersion = await transportCallback.GetStableTransportVersion();
+
+                // Server will be disposed
+            }
+            finally
+            {
+                _outputHelper.WriteLine("Stopping tracee.");
+                runner?.Stop();
+            }
+
+            // Check that the reversed server did not create a new server transport upon disposal.
+            Assert.Equal(transportVersion, await transportCallback.GetStableTransportVersion());
+        }
+
         private ReversedDiagnosticsServer CreateReversedServer(out string transportName)
         {
             transportName = ReversedServerHelper.CreateServerTransportName();
@@ -592,5 +638,84 @@ public async Task WaitForConnection(TimeSpan timeout, bool expectTimeout = false
                 }
             }
         }
+
+        private class IpcServerTransportCallback : IIpcServerTransportCallbackInternal
+        {
+            private static readonly TimeSpan StableTransportSemaphoreTimeout = TimeSpan.FromSeconds(3);
+            private static readonly TimeSpan StableTransportVersionPeriod = TimeSpan.FromSeconds(3);
+            private static readonly TimeSpan StableTransportVersionTimeout = TimeSpan.FromSeconds(30);
+
+            private readonly Timer _transportVersionTimer;
+            private readonly SemaphoreSlim _semaphore = new SemaphoreSlim(1);
+
+            private int _transportVersion = 0;
+            private TaskCompletionSource<int> _transportVersionSource;
+
+            public IpcServerTransportCallback()
+            {
+                // Initially set timer to not callback
+                _transportVersionTimer = new Timer(NotifyStableTransportVersion, this, Timeout.Infinite, 0);
+            }
+
+            public void CreatedNewServer()
+            {
+                _semaphore.Wait(StableTransportSemaphoreTimeout);
+                try
+                {
+                    _transportVersion++;
+                    // Restart timer with existing settings
+                    _transportVersionTimer.Change(0, 0);
+                }
+                finally
+                {
+                    _semaphore.Release();
+                }
+            }
+
+            private static void NotifyStableTransportVersion(object state)
+            {
+                ((IpcServerTransportCallback)state).NotifyStableTransportVersion();
+            }
+
+            private void NotifyStableTransportVersion()
+            {
+                _semaphore.Wait(StableTransportSemaphoreTimeout);
+                try
+                {
+                    // Disable timer callback
+                    _transportVersionTimer.Change(Timeout.Infinite, 0);
+                    // Notify and clear the completion source
+                    _transportVersionSource?.TrySetResult(_transportVersion);
+                    _transportVersionSource = null;
+                }
+                finally
+                {
+                    _semaphore.Release();
+                }
+            }
+
+            public async Task<int> GetStableTransportVersion()
+            {
+                await _semaphore.WaitAsync(StableTransportSemaphoreTimeout);
+                try
+                {
+                    _transportVersionSource = new TaskCompletionSource<int>(TaskCreationOptions.RunContinuationsAsynchronously);
+                    // Set timer to callback a period of time after last transport update
+                    _transportVersionTimer.Change(StableTransportVersionPeriod, Timeout.InfiniteTimeSpan);
+                }
+                finally
+                {
+                    _semaphore.Release();
+                }
+
+                using var cancellation = new CancellationTokenSource(StableTransportVersionTimeout);
+
+                CancellationToken token = cancellation.Token;
+                using var _ = token.Register(() => _transportVersionSource.TrySetCanceled(token));
+
+                // Wait for the transport version to stabilize for a certain amount of time.
+                return await _transportVersionSource.Task;
+            }
+        }
     }
 }