diff --git a/src/sv2-tp.cpp b/src/sv2-tp.cpp
index 419998f1..afac5879 100644
--- a/src/sv2-tp.cpp
+++ b/src/sv2-tp.cpp
@@ -273,13 +273,13 @@ MAIN_FUNCTION
     registerSignalHandler(SIGINT, HandleSIGTERM);
 #endif
 
-    while(!g_interrupt) {
+    while (!g_interrupt && !tp->BackendDisconnected()) {
         UninterruptibleSleep(100ms);
     }
 
-    tp->Interrupt();
-    tp->StopThreads();
+    const bool backend_disconnected = tp->BackendDisconnected();
+
     tp.reset();
 
-    return EXIT_SUCCESS;
+    return backend_disconnected ? EXIT_FAILURE : EXIT_SUCCESS;
 }
diff --git a/src/sv2/template_provider.cpp b/src/sv2/template_provider.cpp
index a445bd46..7db69d0c 100644
--- a/src/sv2/template_provider.cpp
+++ b/src/sv2/template_provider.cpp
@@ -120,7 +120,11 @@ Sv2TemplateProvider::~Sv2TemplateProvider()
     m_connman->Interrupt();
     m_connman->StopThreads();
 
-    Interrupt();
+    if (!m_backend_disconnected.load()) {
+        Interrupt();
+    } else {
+        m_flag_interrupt_sv2 = true;
+    }
     StopThreads();
 }
 
@@ -132,16 +136,34 @@ void Sv2TemplateProvider::Interrupt()
     {
         LOCK(m_tp_mutex);
         for (auto& t : GetBlockTemplates()) {
-            t.second.second->interruptWait();
+            try {
+                t.second.second->interruptWait();
+            } catch (const ipc::Exception& e) {
+                HandleBackendDisconnect("interruptWait", e);
+            }
         }
     }
 
     m_flag_interrupt_sv2 = true;
-    m_mining.interrupt();
+    try {
+        m_mining.interrupt();
+    } catch (const ipc::Exception& e) {
+        HandleBackendDisconnect("interrupt", e);
+    }
     // Also interrupt network threads so client handlers can wind down quickly.
     if (m_connman) m_connman->Interrupt();
 }
 
+void Sv2TemplateProvider::HandleBackendDisconnect(const char* operation, const std::exception& e)
+{
+    const bool first_disconnect = !m_backend_disconnected.exchange(true);
+    if (first_disconnect) {
+        LogPrintLevel(BCLog::SV2, BCLog::Level::Error, "Bitcoin Core IPC connection lost during %s: %s\n", operation, e.what());
+    }
+    m_flag_interrupt_sv2 = true;
+    if (m_connman) m_connman->Interrupt();
+}
+
 void Sv2TemplateProvider::StopThreads()
 {
     if (m_thread_sv2_handler.joinable()) {
@@ -188,7 +210,12 @@ void Sv2TemplateProvider::ThreadSv2Handler()
         // TODO: Wait until there's no headers-only branch with more work than our chaintip.
         //       The current check can still cause us to broadcast a few dozen useless templates
         //       at startup.
-        if (!m_mining.isInitialBlockDownload()) break;
+        try {
+            if (!m_mining.isInitialBlockDownload()) break;
+        } catch (ipc::Exception& e) {
+            HandleBackendDisconnect("isInitialBlockDownload", e);
+            break;
+        }
         if (log_ibd == 0) {
             LogPrintf("Waiting for IBD to complete on %s network before serving templates (this may take a while)\n",
                       ChainTypeToString(gArgs.GetChainType()));
@@ -286,7 +313,11 @@ void Sv2TemplateProvider::ThreadSv2ClientHandler(size_t client_id)
                 if (!prepare_block_create_options(block_create_options)) break;
 
                 const auto time_start{SteadyClock::now()};
-                block_template = m_mining.createNewBlock(block_create_options);
+                try {
+                    block_template = m_mining.createNewBlock(block_create_options);
+                } catch (ipc::Exception& e) {
+                    HandleBackendDisconnect("createNewBlock", e);
+                }
                 if (!block_template) {
                     LogPrintLevel(BCLog::SV2, BCLog::Level::Trace, "No new template for client id=%zu, node is shutting down\n",
                         client_id);
@@ -352,8 +383,12 @@ void Sv2TemplateProvider::ThreadSv2ClientHandler(size_t client_id)
                               static_cast<long long>(fee_delta),
                               client_id);
             }
-
-            std::shared_ptr<BlockTemplate> tmpl = block_template->waitNext(options);
+            std::shared_ptr<BlockTemplate> tmpl;
+            try {
+                tmpl = block_template->waitNext(options);
+            } catch (ipc::Exception& e) {
+                HandleBackendDisconnect("waitNext", e);
+            }
             // The client may have disconnected during the wait, check now to avoid
             // a spurious IPC call and confusing log statements.
             {
@@ -405,7 +440,7 @@ void Sv2TemplateProvider::ThreadSv2ClientHandler(size_t client_id)
                 std::this_thread::sleep_for(50ms);
             }
         }
-    } catch (const std::exception& e) {
+    } catch (std::exception& e) {
         LogPrintLevel(BCLog::SV2, BCLog::Level::Trace,
                       "Client thread for id=%zu exiting after exception: %s\n",
                       client_id, e.what());
diff --git a/src/sv2/template_provider.h b/src/sv2/template_provider.h
index 5b53bcb6..5b9bfd1f 100644
--- a/src/sv2/template_provider.h
+++ b/src/sv2/template_provider.h
@@ -11,6 +11,7 @@
 #include <util/time.h>
 #include <streams.h>
 #include <memory>
+#include <atomic>
 
 using interfaces::BlockTemplate;
 
@@ -111,6 +112,11 @@ class Sv2TemplateProvider : public Sv2EventsInterface
     using BlockTemplateCache = std::map<uint64_t, std::pair<uint256, std::shared_ptr<BlockTemplate>>>;
     BlockTemplateCache m_block_template_cache GUARDED_BY(m_tp_mutex);
 
+    /**
+     * flag to check if the backend has been disconnected or not
+     */
+    std::atomic<bool> m_backend_disconnected{false};
+
 public:
     explicit Sv2TemplateProvider(interfaces::Mining& mining);
 
@@ -168,6 +174,9 @@ class Sv2TemplateProvider : public Sv2EventsInterface
     /* Block templates that connected clients may be working on */
     BlockTemplateCache& GetBlockTemplates() EXCLUSIVE_LOCKS_REQUIRED(m_tp_mutex) { return m_block_template_cache; }
 
+    // Accessor to get the backend disconnected state
+    bool BackendDisconnected() const {return m_backend_disconnected.load();}
+
 private:
 
     /* Forget templates from before the last block, but with a few seconds margin. */
@@ -189,6 +198,8 @@ class Sv2TemplateProvider : public Sv2EventsInterface
      */
     [[nodiscard]] bool SendWork(Sv2Client& client, uint64_t template_id, BlockTemplate& block_template, bool future_template);
 
+    void HandleBackendDisconnect(const char* operation, const std::exception& e);
+
 };
 
 #endif // BITCOIN_SV2_TEMPLATE_PROVIDER_H