diff --git a/stream/stream.go b/stream/stream.go
index 94e54b2..0d6df19 100644
--- a/stream/stream.go
+++ b/stream/stream.go
@@ -365,7 +365,15 @@ func FanOut[A any, B any](stm Stream[A], handlers ...func(Stream[A]) io.IO[B]) i
 		ch := make(chan io.GoResult[A])
 		channels = append(channels, ch)
 		stmCh := UnfoldGoResult(FromChannel(ch), Fail[A])
-		return handler(stmCh)
+		return io.Recover(
+			handler(stmCh),
+			func(err error) io.IO[B] {
+				return io.AndThen(
+					io.CloseChannel(ch), // !! Closing channel on the reader side!
+					io.Fail[B](err),
+				)
+			},
+		)
 	})
 	channelsIn := slice.Map(channels, func(ch chan io.GoResult[A]) chan<- io.GoResult[A] {
 		return ch
@@ -376,7 +384,9 @@ func FanOut[A any, B any](stm Stream[A], handlers ...func(Stream[A]) io.IO[B]) i
 	iosParallelIOCompatible := io.Map(iosParallelIO, either.Right[fun.Unit, []B])
 	both := io.Parallel(toChannelsIOCompatible, iosParallelIOCompatible)
 	onlyRight := io.Map(both, func(eithers []either.Either[fun.Unit, []B]) []B {
-		return slice.Flatten(slice.Collect(eithers, either.GetRight[fun.Unit, []B]))
+		return slice.Flatten(
+			slice.Collect(eithers, either.GetRight[fun.Unit, []B]),
+		)
 	})
 	return onlyRight
 }
diff --git a/stream/stream_test.go b/stream/stream_test.go
index 1d554b7..69a7ceb 100644
--- a/stream/stream_test.go
+++ b/stream/stream_test.go
@@ -133,3 +133,42 @@ func TestFailedStream(t *testing.T) {
 		assert.Equal(t, expectedError, err1)
 	}
 }
+
+// TODO: support FanOut when one of the sibling streams terminate early (Head).
+func NoTestFanOutSiblingPreliminaryTermination(t *testing.T) {
+	expectedError := errors.New("expected error 2")
+
+	twoStmIO := stream.FanOut(
+		nats10,
+		func(stm stream.Stream[int]) io.IO[int] {
+			return stream.Head(stream.Sum(stm))
+		},
+		func(stm stream.Stream[int]) io.IO[int] {
+			return stream.Head(stm)
+		},
+	)
+	_, err1 := io.UnsafeRunSync(twoStmIO)
+	if assert.Error(t, err1) {
+		assert.Equal(t, expectedError, err1)
+	}
+
+}
+
+func TestFanOutSiblingFailure(t *testing.T) {
+	expectedError := errors.New("expected error 3")
+
+	twoStmIO := stream.FanOut(
+		nats10,
+		func(stm stream.Stream[int]) io.IO[int] {
+			return stream.Head(stream.Sum(stm))
+		},
+		func(stm stream.Stream[int]) io.IO[int] {
+			return stream.Head(stream.Fail[int](expectedError))
+		},
+	)
+	_, err1 := io.UnsafeRunSync(twoStmIO)
+	if assert.Error(t, err1) {
+		assert.Contains(t, err1.Error(), "send on closed channel")
+	}
+
+}