diff --git a/hyracks-fullstack/hyracks/hyracks-ipc/src/main/java/org/apache/hyracks/ipc/impl/IPCConnectionManager.java b/hyracks-fullstack/hyracks/hyracks-ipc/src/main/java/org/apache/hyracks/ipc/impl/IPCConnectionManager.java
index cde26d5..b191bd3 100644
--- a/hyracks-fullstack/hyracks/hyracks-ipc/src/main/java/org/apache/hyracks/ipc/impl/IPCConnectionManager.java
+++ b/hyracks-fullstack/hyracks/hyracks-ipc/src/main/java/org/apache/hyracks/ipc/impl/IPCConnectionManager.java
@@ -286,6 +286,7 @@
                 } catch (IOException e) {
                     LOGGER.error("Failed to accept channel ", e);
                     close(channelKey, channel);
+                    handle.setState(HandleState.CLOSED);
                 }
             }
             workingPendingConnections.clear();