diff --git a/packages/fetch/src/event-stream.test.ts b/packages/fetch/src/event-stream.test.ts
index 68b977a..a1e5785 100644
--- a/packages/fetch/src/event-stream.test.ts
+++ b/packages/fetch/src/event-stream.test.ts
@@ -293,6 +293,55 @@ describe('toEventStream', () => {
     expect((await reader.read()).done).toEqual(true)
   })
 
+  it.each([
+    ['a BigInt', () => ({ big: 1n }), 'BigInt'],
+    ['a circular reference', () => {
+      const value: Record<string, unknown> = {}
+      value.self = value
+      return value
+    }, 'circular'],
+    ['a throwing toJSON', () => ({ toJSON() { throw new Error('toJSON failed') } }), 'toJSON failed'],
+  ])('releases the iterator when an event has %s', async (_, value, message) => {
+    let hasFinally = false
+
+    async function* gen() {
+      try {
+        yield value()
+        yield 2
+      }
+      finally {
+        hasFinally = true
+      }
+    }
+
+    const reader = toEventStream(gen())
+      .pipeThrough(new TextDecoderStream())
+      .getReader()
+
+    expect((await reader.read())).toEqual({ done: false, value: ': \n\n' })
+    await expect(reader.read()).rejects.toThrow(message)
+    expect(hasFinally).toBe(true)
+  })
+
+  it('reports the serialization error when releasing the iterator throws', async () => {
+    async function* gen() {
+      try {
+        yield { big: 1n }
+      }
+      finally {
+        // eslint-disable-next-line no-unsafe-finally
+        throw new Error('cleanup')
+      }
+    }
+
+    const reader = toEventStream(gen())
+      .pipeThrough(new TextDecoderStream())
+      .getReader()
+
+    await reader.read()
+    await expect(reader.read()).rejects.toThrow('BigInt')
+  })
+
   it('when canceled from client - return', async () => {
     let hasFinally = false
 
diff --git a/packages/fetch/src/event-stream.ts b/packages/fetch/src/event-stream.ts
index 723ac72..0b34cc2 100644
--- a/packages/fetch/src/event-stream.ts
+++ b/packages/fetch/src/event-stream.ts
@@ -146,6 +146,8 @@ export function toEventStream(
       }
     },
     async pull(controller) {
+      let result: IteratorResult<unknown>
+
       try {
         if (keepAliveEnabled) {
           timeout = setInterval(() => {
@@ -155,28 +157,7 @@ export function toEventStream(
           }, keepAliveInterval)
         }
 
-        const result = await iterator.next()
-
-        clearInterval(timeout)
-
-        if (cancelled) {
-          return
-        }
-
-        const [data, meta] = unwrapEvent(result.value)
-
-        if (!result.done || data !== undefined || meta !== undefined || emptyCloseEventEnabled) {
-          const event = result.done ? 'close' : 'message'
-          controller.enqueue(encodeEventStreamMessage({
-            ...meta,
-            event,
-            data: stringifyJSON(data),
-          }))
-        }
-
-        if (result.done) {
-          controller.close()
-        }
+        result = await iterator.next()
       }
       catch (err) {
         clearInterval(timeout)
@@ -199,6 +180,47 @@ export function toEventStream(
            */
           controller.error(err)
         }
+
+        return
+      }
+
+      clearInterval(timeout)
+
+      if (cancelled) {
+        return
+      }
+
+      try {
+        const [data, meta] = unwrapEvent(result.value)
+
+        if (!result.done || data !== undefined || meta !== undefined || emptyCloseEventEnabled) {
+          const event = result.done ? 'close' : 'message'
+          controller.enqueue(encodeEventStreamMessage({
+            ...meta,
+            event,
+            data: stringifyJSON(data),
+          }))
+        }
+      }
+      catch (err) {
+        /**
+         * The event could not be serialized (e.g. BigInt, circular data, a throwing toJSON).
+         * An errored stream never calls `cancel()`, so release the suspended iterator here.
+         */
+        try {
+          if (!result.done) {
+            await iterator.return?.()
+          }
+        }
+        finally {
+          controller.error(err)
+        }
+
+        return
+      }
+
+      if (result.done) {
+        controller.close()
       }
     },
     async cancel() {