diff --git a/shared/management/client/grpc.go b/shared/management/client/grpc.go
index f787c9377..6f5172376 100644
--- a/shared/management/client/grpc.go
+++ b/shared/management/client/grpc.go
@@ -372,6 +372,8 @@ func (c *GrpcClient) handleSyncStream(ctx context.Context, serverPubKey wgtypes.
 	stream, err := c.connectToSyncStream(ctx, serverPubKey, sysInfo)
 	if err != nil {
 		log.Debugf("failed to open Management Service stream: %s", err)
+		c.notifyDisconnected(err)
+		c.setSyncStreamDisconnected(err)
 		if s, ok := gstatus.FromError(err); ok && s.Code() == codes.PermissionDenied {
 			return backoff.Permanent(err) // unrecoverable error, propagate to the upper layer
 		}