diff --git a/go.mod b/go.mod
index 2b3ef9cd6..0f779e35d 100644
--- a/go.mod
+++ b/go.mod
@@ -65,7 +65,7 @@ require (
 	github.com/mitchellh/hashstructure/v2 v2.0.2
 	github.com/nadoo/ipset v0.5.0
 	github.com/netbirdio/management-integrations/integrations v0.0.0-20250330143713-7901e0a82203
-	github.com/netbirdio/signal-dispatcher/dispatcher v0.0.0-20241010133937-e0df50df217d
+	github.com/netbirdio/signal-dispatcher/dispatcher v0.0.0-20250514131221-a464fd5f30cb
 	github.com/okta/okta-sdk-golang/v2 v2.18.0
 	github.com/oschwald/maxminddb-golang v1.12.0
 	github.com/patrickmn/go-cache v2.1.0+incompatible
diff --git a/go.sum b/go.sum
index a90db83de..226ee94c2 100644
--- a/go.sum
+++ b/go.sum
@@ -507,8 +507,8 @@ github.com/netbirdio/management-integrations/integrations v0.0.0-20250330143713-
 github.com/netbirdio/management-integrations/integrations v0.0.0-20250330143713-7901e0a82203/go.mod h1:2ZE6/tBBCKHQggPfO2UOQjyjXI7k+JDVl2ymorTOVQs=
 github.com/netbirdio/service v0.0.0-20240911161631-f62744f42502 h1:3tHlFmhTdX9axERMVN63dqyFqnvuD+EMJHzM7mNGON8=
 github.com/netbirdio/service v0.0.0-20240911161631-f62744f42502/go.mod h1:CIMRFEJVL+0DS1a3Nx06NaMn4Dz63Ng6O7dl0qH0zVM=
-github.com/netbirdio/signal-dispatcher/dispatcher v0.0.0-20241010133937-e0df50df217d h1:bRq5TKgC7Iq20pDiuC54yXaWnAVeS5PdGpSokFTlR28=
-github.com/netbirdio/signal-dispatcher/dispatcher v0.0.0-20241010133937-e0df50df217d/go.mod h1:5/sjFmLb8O96B5737VCqhHyGRzNFIaN/Bu7ZodXc3qQ=
+github.com/netbirdio/signal-dispatcher/dispatcher v0.0.0-20250514131221-a464fd5f30cb h1:Cr6age+ePALqlSvtp7wc6lYY97XN7rkD1K4XEDmY+TU=
+github.com/netbirdio/signal-dispatcher/dispatcher v0.0.0-20250514131221-a464fd5f30cb/go.mod h1:5/sjFmLb8O96B5737VCqhHyGRzNFIaN/Bu7ZodXc3qQ=
 github.com/netbirdio/wireguard-go v0.0.0-20241230120307-6a676aebaaf6 h1:X5h5QgP7uHAv78FWgHV8+WYLjHxK9v3ilkVXT1cpCrQ=
 github.com/netbirdio/wireguard-go v0.0.0-20241230120307-6a676aebaaf6/go.mod h1:tkCQ4FQXmpAgYVh++1cq16/dH4QJtmvpRv19DWGAHSA=
 github.com/nicksnyder/go-i18n/v2 v2.4.0 h1:3IcvPOAvnCKwNm0TB0dLDTuawWEj+ax/RERNC+diLMM=
diff --git a/signal/server/signal.go b/signal/server/signal.go
index bb11ee347..9dfba7798 100644
--- a/signal/server/signal.go
+++ b/signal/server/signal.go
@@ -3,7 +3,6 @@ package server
 import (
 	"context"
 	"fmt"
-	"io"
 	"time"
 
 	log "github.com/sirupsen/logrus"
@@ -29,10 +28,11 @@ const (
 	labelTypeStream        = "stream"
 	labelTypeMessage       = "message"
 
-	labelError             = "error"
-	labelErrorMissingId    = "missing_id"
-	labelErrorMissingMeta  = "missing_meta"
-	labelErrorFailedHeader = "failed_header"
+	labelError                   = "error"
+	labelErrorMissingId          = "missing_id"
+	labelErrorMissingMeta        = "missing_meta"
+	labelErrorFailedHeader       = "failed_header"
+	labelErrorFailedRegistration = "failed_registration"
 
 	labelRegistrationStatus   = "status"
 	labelRegistrationFound    = "found"
@@ -99,28 +99,9 @@ func (s *Server) ConnectStream(stream proto.SignalExchange_ConnectStreamServer)
 
 	log.Debugf("peer connected [%s] [streamID %d] ", p.Id, p.StreamID)
 
-	for {
-		select {
-		case <-stream.Context().Done():
-			log.Debugf("stream closed for peer [%s] [streamID %d] due to context cancellation", p.Id, p.StreamID)
-			return stream.Context().Err()
-		default:
-			// read incoming messages
-			msg, err := stream.Recv()
-			if err == io.EOF {
-				break
-			} else if err != nil {
-				return err
-			}
-
-			log.Tracef("Received a response from peer [%s] to peer [%s]", msg.Key, msg.RemoteKey)
-
-			_, err = s.dispatcher.SendMessage(stream.Context(), msg)
-			if err != nil {
-				log.Debugf("error while sending message from peer [%s] to peer [%s] %v", msg.Key, msg.RemoteKey, err)
-			}
-		}
-	}
+	<-stream.Context().Done()
+	log.Debugf("peer stream closing [%s] [streamID %d] ", p.Id, p.StreamID)
+	return nil
 }
 
 func (s *Server) RegisterPeer(stream proto.SignalExchange_ConnectStreamServer) (*peer.Peer, error) {
@@ -139,7 +120,12 @@ func (s *Server) RegisterPeer(stream proto.SignalExchange_ConnectStreamServer) (
 
 	p := peer.NewPeer(id[0], stream)
 	s.registry.Register(p)
-	s.dispatcher.ListenForMessages(stream.Context(), p.Id, s.forwardMessageToPeer)
+	err := s.dispatcher.ListenForMessages(stream.Context(), p.Id, s.forwardMessageToPeer)
+	if err != nil {
+		s.metrics.RegistrationFailures.Add(stream.Context(), 1, metric.WithAttributes(attribute.String(labelError, labelErrorFailedRegistration)))
+		log.Errorf("error while registering message listener for peer [%s] %v", p.Id, err)
+		return nil, status.Errorf(codes.Internal, "error while registering message listener")
+	}
 	return p, nil
 }