diff --git a/sqlx-postgres/src/copy.rs b/sqlx-postgres/src/copy.rs
index c6daea7774..6adb0fe3cd 100644
--- a/sqlx-postgres/src/copy.rs
+++ b/sqlx-postgres/src/copy.rs
@@ -342,16 +342,21 @@ async fn pg_begin_copy_out<'c, C: DerefMut<Target = PgConnection> + Send + 'c>(
 
     let stream: TryAsyncStream<'c, Bytes> = try_stream! {
         loop {
-            let msg = conn.stream.recv().await?;
-            match msg.format {
-                MessageFormat::CopyData => r#yield!(msg.decode::<CopyData<Bytes>>()?.0),
-                MessageFormat::CopyDone => {
-                    let _ = msg.decode::<CopyDone>()?;
-                    conn.stream.recv_expect(MessageFormat::CommandComplete).await?;
+            match conn.stream.recv().await {
+                Err(e) => {
                     conn.stream.recv_expect(MessageFormat::ReadyForQuery).await?;
-                    return Ok(())
+                    return Err(e);
                 },
-                _ => return Err(err_protocol!("unexpected message format during copy out: {:?}", msg.format))
+                Ok(msg) => match msg.format {
+                    MessageFormat::CopyData => r#yield!(msg.decode::<CopyData<Bytes>>()?.0),
+                    MessageFormat::CopyDone => {
+                        let _ = msg.decode::<CopyDone>()?;
+                        conn.stream.recv_expect(MessageFormat::CommandComplete).await?;
+                        conn.stream.recv_expect(MessageFormat::ReadyForQuery).await?;
+                        return Ok(())
+                    },
+                    _ => return Err(err_protocol!("unexpected message format during copy out: {:?}", msg.format))
+                }
             }
         }
     };
diff --git a/tests/postgres/postgres.rs b/tests/postgres/postgres.rs
index 91728bde8d..07f5e53188 100644
--- a/tests/postgres/postgres.rs
+++ b/tests/postgres/postgres.rs
@@ -1,12 +1,15 @@
-use futures::{StreamExt, TryStreamExt};
+use futures::{Stream, StreamExt, TryStreamExt};
+
 use sqlx::postgres::types::Oid;
 use sqlx::postgres::{
     PgAdvisoryLock, PgConnectOptions, PgConnection, PgDatabaseError, PgErrorPosition, PgListener,
     PgPoolOptions, PgRow, PgSeverity, Postgres,
 };
 use sqlx::{Column, Connection, Executor, Row, Statement, TypeInfo};
+use sqlx_core::bytes::Bytes;
 use sqlx_test::{new, pool, setup_if_needed};
 use std::env;
+use std::pin::Pin;
 use std::sync::Arc;
 use std::time::Duration;
 
@@ -382,6 +385,67 @@ async fn it_can_query_all_scalar() -> anyhow::Result<()> {
     Ok(())
 }
 
+#[sqlx_macros::test]
+async fn copy_can_work_with_failed_transactions() -> anyhow::Result<()> {
+    let mut conn = new::<Postgres>().await?;
+
+    // We're using a (local) statement_timeout to simulate a runtime failure, as opposed to
+    // a parse/plan failure.
+    let mut tx = conn.begin().await?;
+    let _ = sqlx::query("SELECT pg_catalog.set_config($1, $2, true)")
+        .bind("statement_timeout")
+        .bind("1ms")
+        .execute(tx.as_mut())
+        .await?;
+
+    let mut copy_out: Pin<
+        Box<dyn Stream<Item = Result<Bytes, sqlx::Error>> + Send>,
+    > = (&mut tx)
+        .copy_out_raw("COPY (SELECT nspname FROM pg_catalog.pg_namespace WHERE pg_sleep(0.001) IS NULL) TO STDOUT")
+        .await?;
+
+    while copy_out.try_next().await.is_ok() {}
+    drop(copy_out);
+
+    tx.rollback().await?;
+
+    // conn should be usable again, as we explictly rolled back the transaction
+    let got: i32 = sqlx::query_scalar("SELECT 1")
+        .fetch_one(conn.as_mut())
+        .await?;
+    assert_eq!(1, got);
+
+    Ok(())
+}
+
+#[sqlx_macros::test]
+async fn it_can_work_with_failed_transactions() -> anyhow::Result<()> {
+    let mut conn = new::<Postgres>().await?;
+
+    // We're using a (local) statement_timeout to simulate a runtime failure, as opposed to
+    // a parse/plan failure.
+    let mut tx = conn.begin().await?;
+    let _ = sqlx::query("SELECT pg_catalog.set_config($1, $2, true)")
+        .bind("statement_timeout")
+        .bind("1ms")
+        .execute(tx.as_mut())
+        .await?;
+
+    assert!(sqlx::query("SELECT 1 WHERE pg_sleep(0.30) IS NULL")
+        .fetch_one(tx.as_mut())
+        .await
+        .is_err());
+    tx.rollback().await?;
+
+    // conn should be usable again, as we explictly rolled back the transaction
+    let got: i32 = sqlx::query_scalar("SELECT 1")
+        .fetch_one(conn.as_mut())
+        .await?;
+    assert_eq!(1, got);
+
+    Ok(())
+}
+
 #[sqlx_macros::test]
 async fn it_can_work_with_transactions() -> anyhow::Result<()> {
     let mut conn = new::<Postgres>().await?;