diff --git a/client-node-tests/src/integration.test.ts b/client-node-tests/src/integration.test.ts
index 2ddae1a2c..e63a5a9fd 100644
--- a/client-node-tests/src/integration.test.ts
+++ b/client-node-tests/src/integration.test.ts
@@ -2427,6 +2427,49 @@ suite('Server tests', () => {
 		}
 	}).timeout(5000);
 
+	test('A refused initialization stops the client without an unhandled rejection', async () => {
+		const outputChannel = vscode.window.createOutputChannel('Initialization refused', { log: true });
+		const client = new lsclient.LanguageClient('initialization-refused', 'Initialization refused', {
+			module: path.join(__dirname, './servers/failInitializeServer.js'),
+			transport: lsclient.TransportKind.ipc,
+		}, {
+			outputChannel,
+			initializationFailedHandler: () => false,
+			errorHandler: {
+				error: () => ({ action: lsclient.ErrorAction.Continue }),
+				closed: () => ({ action: lsclient.CloseAction.DoNotRestart, handled: true }),
+			}
+		});
+		// The client moves from StartFailed to Stopped when the server's connection closes.
+		const stopped = new Promise<void>(resolve => {
+			const listener = client.onDidChangeState(event => {
+				if (event.newState === lsclient.State.Stopped) {
+					listener.dispose();
+					resolve();
+				}
+			});
+		});
+		const unhandled: unknown[] = [];
+		const onUnhandled = (reason: unknown) => unhandled.push(reason);
+		process.on('unhandledRejection', onUnhandled);
+		const stop = sinon.spy(client, 'stop');
+		try {
+			await assert.rejects(client.start(), /Initialization refused/);
+			// The client still stops after the failure, so the Node client terminates the
+			// server process, which closes the connection. The process has then also logged
+			// its exit, so the output channel can be disposed.
+			assert.strictEqual(stop.callCount, 1);
+			await stopped;
+			assert.deepStrictEqual(unhandled, []);
+		} finally {
+			process.off('unhandledRejection', onUnhandled);
+			stop.restore();
+			await client.dispose();
+			client.diagnostics?.dispose();
+			outputChannel.dispose();
+		}
+	}).timeout(10000);
+
 	test('Stop fails if server crashes after shutdown request', async () => {
 		const serverOptions: lsclient.ServerOptions = {
 			module: path.join(__dirname, './servers/crashOnShutdownServer.js'),
diff --git a/client-node-tests/src/servers/failInitializeServer.ts b/client-node-tests/src/servers/failInitializeServer.ts
new file mode 100644
index 000000000..35a244ca9
--- /dev/null
+++ b/client-node-tests/src/servers/failInitializeServer.ts
@@ -0,0 +1,13 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { createConnection, InitializeError, ResponseError } from 'vscode-languageserver/node';
+
+const connection = createConnection();
+connection.onInitialize(() => {
+	// Refuse initialization but keep running, so the client still owns a live connection.
+	return new ResponseError<InitializeError>(1, 'Initialization refused', { retry: false });
+});
+connection.listen();
diff --git a/client/src/common/client.ts b/client/src/common/client.ts
index a86688b13..80f77c9da 100644
--- a/client/src/common/client.ts
+++ b/client/src/common/client.ts
@@ -1554,14 +1554,14 @@ export abstract class BaseLanguageClient implements FeatureClient<Middleware, La
 				if (this._clientOptions.initializationFailedHandler(error)) {
 					void this.initialize(connection);
 				} else {
-					void this.stop();
+					this.stopAfterFailedInitialize();
 				}
 			} else if (error instanceof ResponseError && error.data && error.data.retry) {
 				void Window.showErrorMessage(error.message, { title: 'Retry', id: 'retry' }).then(item => {
 					if (item && item.id === 'retry') {
 						void this.initialize(connection);
 					} else {
-						void this.stop();
+						this.stopAfterFailedInitialize();
 					}
 				});
 			} else {
@@ -1569,12 +1569,22 @@ export abstract class BaseLanguageClient implements FeatureClient<Middleware, La
 					void Window.showErrorMessage(error.message);
 				}
 				this.error('Server initialization failed.', error);
-				void this.stop();
+				this.stopAfterFailedInitialize();
 			}
 			throw error;
 		}
 	}
 
+	private stopAfterFailedInitialize(): void {
+		// The client is still starting, so the base shutdown rejects because the client is
+		// not running. Calling stop() still lets subclasses release what they own: the Node
+		// client terminates the server process. Nothing awaits the result, so handle the
+		// rejection here instead of leaving it unhandled.
+		this.stop().catch((error) => {
+			this.error(`Stopping server failed`, error, false);
+		});
+	}
+
 	private _clientGetRootPath(): string | undefined {
 		const folders = Workspace.workspaceFolders;
 		if (!folders || folders.length === 0) {