diff --git a/crates/lune-std-net/src/server/mod.rs b/crates/lune-std-net/src/server/mod.rs
index 241cbb7..57ee2b6 100644
--- a/crates/lune-std-net/src/server/mod.rs
+++ b/crates/lune-std-net/src/server/mod.rs
@@ -1,4 +1,10 @@
-use std::net::SocketAddr;
+use std::{
+    net::SocketAddr,
+    sync::{
+        atomic::{AtomicBool, Ordering},
+        Arc,
+    },
+};
 
 use async_net::TcpListener;
 use futures_lite::pin;
@@ -39,51 +45,76 @@ pub async fn serve(lua: Lua, port: u16, config: ServeConfig) -> LuaResult<ServeH
     lua.spawn_local({
         let lua = lua.clone();
         async move {
-            let mut running_forever = false;
+            let handle_dropped = Arc::new(AtomicBool::new(false));
             loop {
-                let accepted = if running_forever {
-                    listener.accept().await
-                } else {
-                    match either(shutdown_rx.recv(), listener.accept()).await {
-                        Either::Left(res) => {
-                            if res.is_ok() {
-                                break;
-                            }
-                            // NOTE: We will only get a RecvError if the serve handle is dropped,
-                            // this means lua has garbage collected it and the user does not want
-                            // to manually stop the server using the serve handle. Run forever.
-                            running_forever = true;
+                // 1. Keep accepting new connections until we should shutdown
+                let (conn, addr) = if handle_dropped.load(Ordering::SeqCst) {
+                    // 1a. Handle has been dropped, and we don't need to listen for shutdown
+                    match listener.accept().await {
+                        Ok(acc) => acc,
+                        Err(_err) => {
+                            // TODO: Propagate error somehow
+                            continue;
+                        }
+                    }
+                } else {
+                    // 1b. Handle is possibly active, we must listen for shutdown
+                    match either(shutdown_rx.recv(), listener.accept()).await {
+                        Either::Left(Ok(())) => break,
+                        Either::Left(Err(_)) => {
+                            // NOTE #1: We will only get a RecvError if the serve handle is dropped,
+                            // this means lua has garbage collected it and the user does not want
+                            // to manually stop the server using the serve handle. Run forever.
+                            handle_dropped.store(true, Ordering::SeqCst);
+                            continue;
+                        }
+                        Either::Right(Ok(acc)) => acc,
+                        Either::Right(Err(_err)) => {
+                            // TODO: Propagate error somehow
                             continue;
                         }
-                        Either::Right(acc) => acc,
-                    }
-                };
-
-                let (conn, addr) = match accepted {
-                    Ok((conn, addr)) => (conn, addr),
-                    Err(err) => {
-                        eprintln!("Error while accepting connection: {err}");
-                        continue;
                     }
                 };
 
+                // 2. For each connection, spawn a new task to handle it
                 lua.spawn_local({
                     let rx = shutdown_rx.clone();
                     let io = HyperIo::from(conn);
+
                     let mut svc = service.clone();
                     svc.address = addr;
+
+                    let handle_dropped = Arc::clone(&handle_dropped);
                     async move {
                         let conn = Http1Builder::new()
                             .timer(HyperTimer)
                             .keep_alive(true)
                             .serve_connection(io, svc)
                             .with_upgrades();
-                        // NOTE: Because we use keep_alive for websockets above, we need to
-                        // also manually poll this future and handle the shutdown signal here
-                        pin!(conn);
-                        match either(rx.recv(), conn.as_mut()).await {
-                            Either::Left(_) => conn.as_mut().graceful_shutdown(),
-                            Either::Right(_) => {}
+                        if handle_dropped.load(Ordering::SeqCst) {
+                            if let Err(_err) = conn.await {
+                                // TODO: Propagate error somehow
+                            }
+                        } else {
+                            // NOTE #2: Because we use keep_alive for websockets above, we need to
+                            // also manually poll this future and handle the graceful shutdown,
+                            // otherwise the already accepted connection will linger and run
+                            // even if the stop method has been called on the serve handle
+                            pin!(conn);
+                            match either(rx.recv(), conn.as_mut()).await {
+                                Either::Left(Ok(())) => conn.as_mut().graceful_shutdown(),
+                                Either::Left(Err(_)) => {
+                                    // Same as note #1
+                                    handle_dropped.store(true, Ordering::SeqCst);
+                                    if let Err(_err) = conn.await {
+                                        // TODO: Propagate error somehow
+                                    }
+                                }
+                                Either::Right(Ok(())) => {}
+                                Either::Right(Err(_err)) => {
+                                    // TODO: Propagate error somehow
+                                }
+                            }
                         }
                     }
                 });
diff --git a/test.luau b/test.luau
new file mode 100644
index 0000000..be34e69
--- /dev/null
+++ b/test.luau
@@ -0,0 +1,12 @@
+local net = require("@lune/net")
+
+local counter = 0
+net.serve(8080, function()
+	counter += 1
+	return {
+		status = 200,
+		body = "Hello! This is response #" .. tostring(counter),
+	}
+end)
+
+print("Listening on port 8080 🚀")