diff --git a/eth/utp/utp_socket.nim b/eth/utp/utp_socket.nim
index 0a18472..dfc6cd0 100644
--- a/eth/utp/utp_socket.nim
+++ b/eth/utp/utp_socket.nim
@@ -612,9 +612,13 @@ proc checkTimeoutsLoop(s: UtpSocket) {.async.} =
   try:
     while true:
       await sleepAsync(checkTimeoutsLoopInterval)
-      await s.eventQueue.put(SocketEvent(kind: CheckTimeouts))
-  except CancelledError:
+      s.eventQueue.putNoWait(SocketEvent(kind: CheckTimeouts))
+  except CancelledError as exc:
+    # check timeouts loop is last running future managed by socket, if its
+    # cancelled we can fire closeEvent
+    s.closeEvent.fire()
     trace "checkTimeoutsLoop canceled"
+    raise exc
 
 proc startTimeoutLoop(s: UtpSocket) =
   s.checkTimeoutsLoop = checkTimeoutsLoop(s)
@@ -682,6 +686,10 @@ proc isConnected*(socket: UtpSocket): bool =
 proc isClosed*(socket: UtpSocket): bool =
   socket.state == Destroy and socket.closeEvent.isSet()
 
+proc isClosedAndCleanedUpAllResources*(socket: UtpSocket): bool =
+  ## Test Api to check that all resources are properly cleaned up 
+  socket.isClosed() and socket.eventLoop.cancelled() and socket.checkTimeoutsLoop.cancelled()
+
 proc destroy*(s: UtpSocket) =
   info "Destroying socket",
     to = s.socketKey
@@ -689,8 +697,12 @@ proc destroy*(s: UtpSocket) =
   ## Remote is not notified in any way about socket end of life
   s.state = Destroy
   s.eventLoop.cancel()
-  s.checkTimeoutsLoop.cancel()
-  s.closeEvent.fire()
+  # This procedure initiate cleanup process which goes like:
+  # Cancel EventLoop -> Cancel timeoutsLoop -> Fire closeEvent
+  # This is necessary due to how evenLoop look like i.e it has only one await
+  # point on `eventQueue.get` which trigger cancellation excepion only when
+  # someone will try run `eventQueue.put`. Without `eventQueue.put` , eventLoop
+  # future shows as cancelled, but handler for CancelledError is not run
 
 proc destroyWait*(s: UtpSocket) {.async.} =
   ## Moves socket to destroy state and clean all reasources and wait for all registered
@@ -1609,9 +1621,8 @@ proc eventLoop(socket: UtpSocket) {.async.} =
             else:
               # in any other case we do not need to do any thing 
               discard
-                    
       socket.checkTimeouts()
-  except CancelledError:
+  except CancelledError as exc:
     for w in socket.pendingWrites.items():
       if w.kind == Data and (not w.writer.finished()):
         let res = Result[int, WriteError].err(WriteError(kind: SocketNotWriteable, currentState: socket.state))
@@ -1624,7 +1635,10 @@ proc eventLoop(socket: UtpSocket) {.async.} =
         r.reader.complete(r.bytesAvailable)
     socket.pendingWrites.clear()
     socket.pendingReads.clear()
+    # main eventLoop has been cancelled, try to cancel check timeouts loop
+    socket.checkTimeoutsLoop.cancel()
     trace "main socket event loop cancelled"
+    raise exc
 
 proc startEventLoop(s: UtpSocket) =
   s.eventLoop = eventLoop(s)
diff --git a/tests/utp/test_utp_router.nim b/tests/utp/test_utp_router.nim
index 75b6816..5c4c76b 100644
--- a/tests/utp/test_utp_router.nim
+++ b/tests/utp/test_utp_router.nim
@@ -312,6 +312,8 @@ procSuite "Utp router unit tests":
 
     let connectResult = await connectFuture
 
+    await waitUntil(proc (): bool = router.len() == 0)
+    
     check:
       connectResult.isErr()
       connectResult.error().kind == ConnectionTimedOut
diff --git a/tests/utp/test_utp_socket.nim b/tests/utp/test_utp_socket.nim
index cf17e3c..53027d0 100644
--- a/tests/utp/test_utp_socket.nim
+++ b/tests/utp/test_utp_socket.nim
@@ -1465,3 +1465,64 @@ procSuite "Utp socket unit test":
       receivedData == dataRecived
 
     await sock1.destroyWait()
+
+  asyncTest "Clean up all resources when closing due to timeout failure":
+    let q = newAsyncQueue[Packet]()
+    let initialRemoteSeq = 10'u16
+
+    let dataToWrite = @[1'u8]
+    let customCfg = SocketConfig.init(dataResendsBeforeFailure = 2, optSndBuffer = 1)
+    let (outgoingSocket, initialPacket) = connectOutGoingSocket(initialRemoteSeq, q, cfg = customCfg)
+
+    let bytesWritten = await outgoingSocket.write(dataToWrite)
+    # this future will never finish as there is not place in write buffer
+    # although it should get properly clearead up when socket is closed
+    let writeFut = outgoingSocket.write(dataToWrite)
+
+    check:
+      bytesWritten.get() == len(dataToWrite)
+
+    let sentPacket = await q.get()
+    # wait for failure and cleanup of all resources
+    await waitUntil(proc (): bool = outgoingSocket.isClosedAndCleanedUpAllResources())
+    check:
+      # main event loop handler should fire and clean up dangling future
+      writeFut.finished()
+    await outgoingSocket.destroyWait()
+
+
+  asyncTest "Receiving ack for fin packet should destroy socket and clean up all resources":
+    let q = newAsyncQueue[Packet]()
+    let initialRemoteSeq = 10'u16
+
+    let (outgoingSocket, initialPacket) = connectOutGoingSocket(initialRemoteSeq, q)
+
+    outgoingSocket.close()
+
+    let sendFin = await q.get()
+
+    check:
+      sendFin.header.pType == ST_FIN
+
+    let responseAck =
+      ackPacket(
+        initialRemoteSeq,
+        initialPacket.header.connectionId,
+        sendFin.header.seqNr,
+        testBufferSize,
+        0
+      )
+
+    await outgoingSocket.processPacket(responseAck)
+
+    await waitUntil(proc (): bool = not outgoingSocket.isConnected())
+
+    check:
+      not outgoingSocket.isConnected()
+
+    await waitUntil(proc (): bool = outgoingSocket.isClosedAndCleanedUpAllResources())
+
+    check:
+      outgoingSocket.isClosedAndCleanedUpAllResources()
+
+    await outgoingSocket.destroyWait()