diff --git a/sdk/servicebus/azure-messaging-servicebus/src/test/java/com/azure/messaging/servicebus/implementation/ServiceBusReceiveLinkProcessorTest.java b/sdk/servicebus/azure-messaging-servicebus/src/test/java/com/azure/messaging/servicebus/implementation/ServiceBusReceiveLinkProcessorTest.java
index 5bbb982688aa8..e4ae928777fcc 100644
--- a/sdk/servicebus/azure-messaging-servicebus/src/test/java/com/azure/messaging/servicebus/implementation/ServiceBusReceiveLinkProcessorTest.java
+++ b/sdk/servicebus/azure-messaging-servicebus/src/test/java/com/azure/messaging/servicebus/implementation/ServiceBusReceiveLinkProcessorTest.java
@@ -695,4 +695,34 @@ void updateDispositionDoesNotAddCredit() {
         verify(link1).addCredits(eq(PREFETCH));
         verify(link1).updateDisposition(eq(lockToken), eq(deliveryState));
     }
+
+    @Test
+    void updateDispositionClosesLinkOnTimeout() {
+        // Arrange
+        final ServiceBusReceiveLinkProcessor processor = Flux.<ServiceBusReceiveLink>create(sink -> sink.next(link1))
+            .subscribeWith(linkProcessor);
+
+        final AmqpException amqpException = new AmqpException(true, AmqpErrorCondition.TIMEOUT_ERROR,
+            "Test-timeout-error", new AmqpErrorContext("test-namespace"));
+        when(retryPolicy.calculateRetryDelay(amqpException, 1)).thenReturn(Duration.ofSeconds(1));
+
+        final String lockToken = "lockToken";
+        final DeliveryState deliveryState = mock(DeliveryState.class);
+
+        when(link1.updateDisposition(eq(lockToken), eq(deliveryState))).thenReturn(Mono.error(amqpException));
+        when(link1.closeAsync()).thenReturn(Mono.empty());
+
+        // Act & Assert
+        StepVerifier.create(processor.updateDisposition(lockToken, deliveryState))
+            .expectErrorSatisfies(error -> assertSame(amqpException, error))
+            .verify();
+        processor.cancel();
+
+        verify(link1).updateDisposition(eq(lockToken), eq(deliveryState));
+        verify(link1, times(1)).closeAsync();
+
+        assertTrue(processor.isTerminated());
+        assertFalse(processor.hasError());
+        assertNull(processor.getError());
+    }
 }