diff --git a/client/internal/connect.go b/client/internal/connect.go
index 3aca0bab9..47c63e6d0 100644
--- a/client/internal/connect.go
+++ b/client/internal/connect.go
@@ -164,6 +164,7 @@ func RunClient(ctx context.Context, config *Config, statusRecorder *peer.Status,
 		state.Set(StatusConnected)
 
 		<-engineCtx.Done()
+		statusRecorder.ClientTeardown()
 
 		backOff.Reset()
 
diff --git a/client/internal/peer/listener.go b/client/internal/peer/listener.go
index c8dc0fe70..c601fe534 100644
--- a/client/internal/peer/listener.go
+++ b/client/internal/peer/listener.go
@@ -5,6 +5,7 @@ type Listener interface {
 	OnConnected()
 	OnDisconnected()
 	OnConnecting()
+	OnDisconnecting()
 	OnAddressChanged(string, string)
 	OnPeersListChanged(int)
 }
diff --git a/client/internal/peer/notifier.go b/client/internal/peer/notifier.go
index efc9e47ad..4e618d2f8 100644
--- a/client/internal/peer/notifier.go
+++ b/client/internal/peer/notifier.go
@@ -8,6 +8,7 @@ const (
 	stateDisconnected = iota
 	stateConnected
 	stateConnecting
+	stateDisconnecting
 )
 
 type notifier struct {
@@ -57,8 +58,12 @@ func (n *notifier) updateServerStates(mgmState bool, signalState bool) {
 	}
 
 	n.currentServerState = newState
-	n.lastNotification = n.calculateState(newState, n.currentClientState)
 
+	if n.lastNotification == stateDisconnecting {
+		return
+	}
+
+	n.lastNotification = n.calculateState(newState, n.currentClientState)
 	go n.notifyAll(n.lastNotification)
 }
 
@@ -78,6 +83,14 @@ func (n *notifier) clientStop() {
 	go n.notifyAll(n.lastNotification)
 }
 
+func (n *notifier) clientTearDown() {
+	n.serverStateLock.Lock()
+	defer n.serverStateLock.Unlock()
+	n.currentClientState = false
+	n.lastNotification = stateDisconnecting
+	go n.notifyAll(n.lastNotification)
+}
+
 func (n *notifier) isServerStateChanged(newState bool) bool {
 	return n.currentServerState != newState
 }
@@ -99,6 +112,8 @@ func (n *notifier) notifyListener(l Listener, state int) {
 		l.OnConnected()
 	case stateConnecting:
 		l.OnConnecting()
+	case stateDisconnecting:
+		l.OnDisconnecting()
 	}
 }
 
diff --git a/client/internal/peer/status.go b/client/internal/peer/status.go
index 1ecdff301..62841d6fc 100644
--- a/client/internal/peer/status.go
+++ b/client/internal/peer/status.go
@@ -288,6 +288,11 @@ func (d *Status) ClientStop() {
 	d.notifier.clientStop()
 }
 
+// ClientTeardown will notify all listeners about the service is under teardown
+func (d *Status) ClientTeardown() {
+	d.notifier.clientTearDown()
+}
+
 // AddConnectionListener add a listener to the notifier
 func (d *Status) AddConnectionListener(listener Listener) {
 	d.notifier.addListener(listener)