diff --git a/proxyd/backend.go b/proxyd/backend.go
index 77d3326b..c84be0a7 100644
--- a/proxyd/backend.go
+++ b/proxyd/backend.go
@@ -383,6 +383,8 @@ func (b *Backend) Forward(ctx context.Context, reqs []*RPCReq, isBatch bool) ([]
 		res, err := b.doForward(ctx, reqs, isBatch)
 		switch err {
 		case nil: // do nothing
+		case context.Canceled:
+			return nil, err
 		case ErrBackendResponseTooLarge:
 			log.Warn(
 				"backend response too large",
@@ -583,6 +585,10 @@ func (b *Backend) doForward(ctx context.Context, rpcReqs []*RPCReq, isBatch bool
 	start := time.Now()
 	httpRes, err := b.client.DoLimited(httpReq)
 	if err != nil {
+		// if it's canceld, we don't want to count it as an error
+		if errors.Is(err, context.Canceled) {
+			return nil, err
+		}
 		b.intermittentErrorsSlidingWindow.Incr()
 		RecordBackendNetworkErrorRateSlidingWindow(b, b.ErrorRate())
 		return nil, wrapErr(err, "error in backend request")
@@ -798,7 +804,12 @@ func (bg *BackendGroup) Forward(ctx context.Context, rpcReqs []*RPCReq, isBatch
 	backendResp := <-ch
 
 	if backendResp.error != nil {
-		log.Error("error serving requests",
+		logfn := log.Error
+		// If the context was canceled, downgrade the log level to debug.
+		if errors.Is(backendResp.error, context.Canceled) {
+			logfn = log.Debug
+		}
+		logfn("error serving requests",
 			"req_id", GetReqID(ctx),
 			"auth", GetAuthCtx(ctx),
 			"err", backendResp.error,
@@ -1327,6 +1338,9 @@ type LimitedHTTPClient struct {
 
 func (c *LimitedHTTPClient) DoLimited(req *http.Request) (*http.Response, error) {
 	if err := c.sem.Acquire(req.Context(), 1); err != nil {
+		if errors.Is(err, context.Canceled) {
+			return nil, err
+		}
 		tooManyRequestErrorsTotal.WithLabelValues(c.backendName).Inc()
 		return nil, wrapErr(err, "too many requests")
 	}
@@ -1406,6 +1420,14 @@ func (bg *BackendGroup) ForwardRequestToBackendGroup(
 		if len(rpcReqs) > 0 {
 
 			res, err = back.Forward(ctx, rpcReqs, isBatch)
+			if errors.Is(err, context.Canceled) {
+				log.Info("context canceled", "req_id", GetReqID(ctx), "auth", GetAuthCtx(ctx))
+				return &BackendGroupRPCResponse{
+					RPCRes:   nil,
+					ServedBy: "",
+					error:    err,
+				}
+			}
 
 			if errors.Is(err, ErrConsensusGetReceiptsCantBeBatched) ||
 				errors.Is(err, ErrConsensusGetReceiptsInvalidTarget) ||
diff --git a/proxyd/backend_test.go b/proxyd/backend_test.go
index 73ebebfe..20429925 100644
--- a/proxyd/backend_test.go
+++ b/proxyd/backend_test.go
@@ -1,9 +1,15 @@
 package proxyd
 
 import (
+	"bytes"
+	"context"
+	"encoding/json"
+	"log/slog"
 	"testing"
 
+	"github.com/ethereum/go-ethereum/log"
 	"github.com/stretchr/testify/assert"
+	"golang.org/x/sync/semaphore"
 )
 
 func TestStripXFF(t *testing.T) {
@@ -20,3 +26,34 @@ func TestStripXFF(t *testing.T) {
 		assert.Equal(t, test.out, actual)
 	}
 }
+
+func TestForwardContextCanceled(t *testing.T) {
+	buf := bytes.NewBuffer(nil)
+	log.SetDefault(log.NewLogger(slog.NewTextHandler(buf, &slog.HandlerOptions{
+		Level: slog.LevelDebug.Level(),
+	})))
+	ctx, cancel := context.WithCancel(context.Background())
+	cancel()
+	sem := semaphore.NewWeighted(100)
+	backend := NewBackend(
+		"test",
+		"http://localhost:8545",
+		"ws://localhost:8545",
+		sem,
+	)
+	backendGroup := &BackendGroup{
+		Name:            "testgroup",
+		Backends:        []*Backend{backend},
+		routingStrategy: "fallback",
+	}
+	_, _, err := backendGroup.Forward(ctx, []*RPCReq{
+		{JSONRPC: "2.0", Method: "eth_blockNumber", ID: json.RawMessage("1")},
+	}, true)
+	assert.ErrorIs(t, context.Canceled, err)
+	assert.Equalf(t, uint(1), backend.networkRequestsSlidingWindow.Count(), "exact 1 network request should be counted")
+	assert.Equalf(t, uint(0), backend.intermittentErrorsSlidingWindow.Count(), "no intermittent errors should be counted")
+	assert.Zerof(t, backend.ErrorRate(), "error rate should be zero")
+	logs := buf.String()
+	assert.NotZero(t, logs)
+	assert.NotContainsf(t, logs, "level=ERROR", "context canceled error should not be logged as a ERROR")
+}
diff --git a/proxyd/server.go b/proxyd/server.go
index 1b529b6d..5932838c 100644
--- a/proxyd/server.go
+++ b/proxyd/server.go
@@ -532,7 +532,12 @@ func (s *Server) handleBatchRPC(ctx context.Context, reqs []json.RawMessage, isL
 					errors.Is(err, ErrConsensusGetReceiptsInvalidTarget) {
 					return nil, false, "", err
 				}
-				log.Error(
+				logfn := log.Error
+				// If the context was canceled, downgrade the log level to debug.
+				if errors.Is(err, context.Canceled) {
+					logfn = log.Debug
+				}
+				logfn(
 					"error forwarding RPC batch",
 					"batch_size", len(elems),
 					"backend_group", group,