diff --git a/Package.resolved b/Package.resolved
index 5e9023c5..fb776dd5 100644
--- a/Package.resolved
+++ b/Package.resolved
@@ -1,10 +1,10 @@
 {
-  "originHash" : "08de61941b7919a65e36c0e34f8c1c41995469b86a39122158b75b4a68c4527d",
+  "originHash" : "371f3dfcfa1201fc8d50e924ad31f9ebc4f90242924df1275958ac79df15dc12",
   "pins" : [
     {
       "identity" : "eventsource",
       "kind" : "remoteSourceControl",
-      "location" : "https://github.com/loopwork-ai/eventsource.git",
+      "location" : "https://github.com/mattt/eventsource.git",
       "state" : {
         "revision" : "e83f076811f32757305b8bf69ac92d05626ffdd7",
         "version" : "1.1.0"
diff --git a/Sources/MCP/Client/Client.swift b/Sources/MCP/Client/Client.swift
index 696ffd14..ae3b12d7 100644
--- a/Sources/MCP/Client/Client.swift
+++ b/Sources/MCP/Client/Client.swift
@@ -179,43 +179,40 @@ public actor Client {
         // Start message handling loop
         task = Task {
             guard let connection = self.connection else { return }
-            repeat {
-                // Check for cancellation before starting the iteration
-                if Task.isCancelled { break }
 
-                do {
-                    let stream = await connection.receive()
-                    for try await data in stream {
-                        if Task.isCancelled { break }  // Check inside loop too
-
-                        // Attempt to decode data
-                        // Try decoding as a batch response first
-                        if let batchResponse = try? decoder.decode([AnyResponse].self, from: data) {
-                            await handleBatchResponse(batchResponse)
-                        } else if let response = try? decoder.decode(AnyResponse.self, from: data) {
-                            await handleResponse(response)
-                        } else if let message = try? decoder.decode(AnyMessage.self, from: data) {
-                            await handleMessage(message)
-                        } else {
-                            var metadata: Logger.Metadata = [:]
-                            if let string = String(data: data, encoding: .utf8) {
-                                metadata["message"] = .string(string)
-                            }
-                            await logger?.warning(
-                                "Unexpected message received by client (not single/batch response or notification)",
-                                metadata: metadata
-                            )
+            // Get the stream once - async streams can only be iterated once.
+            // Previously, receive() was called inside a repeat loop, which meant
+            // each iteration tried to create a new stream from an already-consumed one.
+            let stream = await connection.receive()
+
+            do {
+                for try await data in stream {
+                    if Task.isCancelled { break }
+
+                    // Attempt to decode data
+                    // Try decoding as a batch response first
+                    if let batchResponse = try? decoder.decode([AnyResponse].self, from: data) {
+                        await handleBatchResponse(batchResponse)
+                    } else if let response = try? decoder.decode(AnyResponse.self, from: data) {
+                        await handleResponse(response)
+                    } else if let message = try? decoder.decode(AnyMessage.self, from: data) {
+                        await handleMessage(message)
+                    } else {
+                        var metadata: Logger.Metadata = [:]
+                        if let string = String(data: data, encoding: .utf8) {
+                            metadata["message"] = .string(string)
                         }
+                        await logger?.warning(
+                            "Unexpected message received by client (not single/batch response or notification)",
+                            metadata: metadata
+                        )
                     }
-                } catch let error where MCPError.isResourceTemporarilyUnavailable(error) {
-                    try? await Task.sleep(for: .milliseconds(10))
-                    continue
-                } catch {
-                    await logger?.error(
-                        "Error in message handling loop", metadata: ["error": "\(error)"])
-                    break
                 }
-            } while true
+            } catch {
+                await logger?.error(
+                    "Error in message handling loop", metadata: ["error": "\(error)"])
+            }
+
             await self.logger?.debug("Client message handling loop task is terminating.")
         }