diff --git a/protocols/stream/src/behaviour.rs b/protocols/stream/src/behaviour.rs
index e72af8fbfce..977e5a6fd3f 100644
--- a/protocols/stream/src/behaviour.rs
+++ b/protocols/stream/src/behaviour.rs
@@ -32,7 +32,7 @@ impl Default for Behaviour {
 
 impl Behaviour {
     pub fn new() -> Self {
-        let (dial_sender, dial_receiver) = mpsc::channel(0);
+        let (dial_sender, dial_receiver) = mpsc::channel(32);
 
         Self {
             shared: Arc::new(Mutex::new(Shared::new(dial_sender))),
diff --git a/protocols/stream/src/control.rs b/protocols/stream/src/control.rs
index 2149c6bca48..1c0ad4ecfd9 100644
--- a/protocols/stream/src/control.rs
+++ b/protocols/stream/src/control.rs
@@ -8,7 +8,7 @@ use std::{
 
 use futures::{
     channel::{mpsc, oneshot},
-    SinkExt as _, StreamExt as _,
+    StreamExt as _,
 };
 use libp2p_identity::PeerId;
 use libp2p_swarm::{Stream, StreamProtocol};
@@ -48,14 +48,15 @@ impl Control {
     ) -> Result<Stream, OpenStreamError> {
         tracing::debug!(%peer, "Requesting new stream");
 
-        let mut new_stream_sender = Shared::lock(&self.shared).sender(peer);
-
         let (sender, receiver) = oneshot::channel();
 
-        new_stream_sender
-            .send(NewStream { protocol, sender })
-            .await
-            .map_err(|e| io::Error::new(io::ErrorKind::ConnectionReset, e))?;
+        Shared::send_new_stream(
+            &self.shared,
+            peer,
+            NewStream { protocol, sender },
+        )
+        .await
+        .map_err(OpenStreamError::Io)?;
 
         let stream = receiver
             .await
diff --git a/protocols/stream/src/shared.rs b/protocols/stream/src/shared.rs
index bee04b39fb1..2fb214dafb1 100644
--- a/protocols/stream/src/shared.rs
+++ b/protocols/stream/src/shared.rs
@@ -4,7 +4,7 @@ use std::{
     sync::{Arc, Mutex, MutexGuard},
 };
 
-use futures::channel::mpsc;
+use futures::{channel::mpsc, SinkExt as _};
 use libp2p_identity::PeerId;
 use libp2p_swarm::{ConnectionId, Stream, StreamProtocol};
 use rand::seq::IteratorRandom as _;
@@ -122,7 +122,7 @@ impl Shared {
         }
     }
 
-    pub(crate) fn sender(&mut self, peer: PeerId) -> mpsc::Sender<NewStream> {
+    fn prepare_sender(&mut self, peer: PeerId) -> SenderAction {
         let maybe_sender = self
             .connections
             .iter()
@@ -134,7 +134,9 @@ impl Shared {
             Some(sender) => {
                 tracing::debug!("Returning sender to existing connection");
 
-                sender.clone()
+                SenderAction::Connected {
+                    sender: sender.clone(),
+                }
             }
             None => {
                 tracing::debug!(%peer, "Not connected to peer, initiating dial");
@@ -144,9 +146,44 @@ impl Shared {
                     .entry(peer)
                     .or_insert_with(|| mpsc::channel(0));
 
-                let _ = self.dial_sender.try_send(peer);
+                SenderAction::Dial {
+                    pending_sender: sender.clone(),
+                    dial_sender: self.dial_sender.clone(),
+                    peer_to_dial: peer,
+                }
+            }
+        }
+    }
+
+    pub(crate) async fn send_new_stream(
+        shared: &Arc<Mutex<Shared>>,
+        peer: PeerId,
+        new_stream: NewStream,
+    ) -> io::Result<()> {
+        let action = {
+            let mut shared = Shared::lock(shared);
+            shared.prepare_sender(peer)
+        };
 
-                sender.clone()
+        match action {
+            SenderAction::Connected { mut sender } => sender
+                .send(new_stream)
+                .await
+                .map_err(|e| io::Error::new(io::ErrorKind::ConnectionReset, e)),
+            SenderAction::Dial {
+                mut pending_sender,
+                mut dial_sender,
+                peer_to_dial,
+            } => {
+                dial_sender
+                    .send(peer_to_dial)
+                    .await
+                    .map_err(|e| io::Error::new(io::ErrorKind::ConnectionReset, e.clone()))?;
+
+                pending_sender
+                    .send(new_stream)
+                    .await
+                    .map_err(|e| io::Error::new(io::ErrorKind::ConnectionReset, e))
             }
         }
     }
@@ -171,3 +208,14 @@ impl Shared {
         receiver
     }
 }
+
+enum SenderAction {
+    Connected {
+        sender: mpsc::Sender<NewStream>,
+    },
+    Dial {
+        pending_sender: mpsc::Sender<NewStream>,
+        dial_sender: mpsc::Sender<PeerId>,
+        peer_to_dial: PeerId,
+    },
+}
diff --git a/protocols/stream/tests/lib.rs b/protocols/stream/tests/lib.rs
index a00a00a8f62..374372a68bf 100644
--- a/protocols/stream/tests/lib.rs
+++ b/protocols/stream/tests/lib.rs
@@ -78,3 +78,47 @@ async fn dial_errors_are_propagated() {
     assert_eq!(e.kind(), io::ErrorKind::NotConnected);
     assert_eq!("Dial error: no addresses for peer.", e.to_string());
 }
+
+#[tokio::test]
+async fn backpressure_on_many_concurrent_dials() {
+    let _ = tracing_subscriber::fmt()
+        .with_env_filter(
+            EnvFilter::builder()
+                .with_default_directive(LevelFilter::DEBUG.into())
+                .from_env()
+                .unwrap(),
+        )
+        .with_test_writer()
+        .try_init();
+
+    let swarm1 = Swarm::new_ephemeral_tokio(|_| stream::Behaviour::new());
+    let control = swarm1.behaviour().new_control();
+
+    tokio::spawn(swarm1.loop_on_next());
+
+    // Spawn many concurrent dial attempts that will all fail
+    // Before the fix: some would silently drop and hang forever
+    // After the fix: all should fail with proper errors (backpressure propagated)
+    let mut handles = vec![];
+
+    for _ in 0..50 {
+        let mut control_clone = control.clone();
+        let handle = tokio::spawn(async move {
+            let result = control_clone.open_stream(PeerId::random(), PROTOCOL).await;
+            // All should fail, none should hang
+            assert!(result.is_err());
+        });
+        handles.push(handle);
+    }
+
+    // All tasks should complete (not hang indefinitely)
+    for handle in handles {
+        tokio::time::timeout(
+            std::time::Duration::from_secs(5),
+            handle,
+        )
+        .await
+        .expect("Task should not hang - backpressure should work")
+        .expect("Task should complete successfully");
+    }
+}