diff --git a/substrate/client/authority-discovery/src/error.rs b/substrate/client/authority-discovery/src/error.rs
index 216f8c26bf..751e3e76e9 100644
--- a/substrate/client/authority-discovery/src/error.rs
+++ b/substrate/client/authority-discovery/src/error.rs
@@ -40,17 +40,20 @@ pub enum Error {
 	MatchingHashedAuthorityIdWithAuthorityId,
 	/// Failed to set the authority discovery peerset priority group in the peerset module.
 	SettingPeersetPriorityGroup(String),
+	/// The sender side of the dht event stream has been closed likely due to the network
+	/// terminating.
+	DhtEventStreamTerminated,
 	/// Failed to encode a protobuf payload.
 	EncodingProto(prost::EncodeError),
 	/// Failed to decode a protobuf payload.
 	DecodingProto(prost::DecodeError),
-	/// Failed to encode or decode scale payload
+	/// Failed to encode or decode scale payload.
 	EncodingDecodingScale(codec::Error),
 	/// Failed to parse a libp2p multi address.
 	ParsingMultiaddress(libp2p::core::multiaddr::Error),
-	/// Failed to sign using a specific public key
+	/// Failed to sign using a specific public key.
 	MissingSignature(CryptoTypePublicPair),
-	/// Failed to sign using all public keys
+	/// Failed to sign using all public keys.
 	Signing,
 	/// Failed to register Prometheus metric.
 	Prometheus(prometheus_endpoint::PrometheusError),
diff --git a/substrate/client/authority-discovery/src/lib.rs b/substrate/client/authority-discovery/src/lib.rs
index 45f05e1039..1a8a5c9f40 100644
--- a/substrate/client/authority-discovery/src/lib.rs
+++ b/substrate/client/authority-discovery/src/lib.rs
@@ -330,9 +330,9 @@ where
 	}
 
 	fn handle_dht_events(&mut self, cx: &mut Context) -> Result<()> {
-		while let Poll::Ready(Some(event)) = self.dht_event_rx.poll_next_unpin(cx) {
-			match event {
-				DhtEvent::ValueFound(v) => {
+		loop {
+			match self.dht_event_rx.poll_next_unpin(cx) {
+				Poll::Ready(Some(DhtEvent::ValueFound(v))) => {
 					if let Some(metrics) = &self.metrics {
 						metrics.dht_event_received.with_label_values(&["value_found"]).inc();
 					}
@@ -347,7 +347,7 @@ where
 
 					self.handle_dht_value_found_event(v)?;
 				}
-				DhtEvent::ValueNotFound(hash) => {
+				Poll::Ready(Some(DhtEvent::ValueNotFound(hash))) => {
 					if let Some(metrics) = &self.metrics {
 						metrics.dht_event_received.with_label_values(&["value_not_found"]).inc();
 					}
@@ -357,7 +357,7 @@ where
 						"Value for hash '{:?}' not found on Dht.", hash
 					)
 				},
-				DhtEvent::ValuePut(hash) => {
+				Poll::Ready(Some(DhtEvent::ValuePut(hash))) => {
 					if let Some(metrics) = &self.metrics {
 						metrics.dht_event_received.with_label_values(&["value_put"]).inc();
 					}
@@ -367,7 +367,7 @@ where
 						"Successfully put hash '{:?}' on Dht.", hash,
 					)
 				},
-				DhtEvent::ValuePutFailed(hash) => {
+				Poll::Ready(Some(DhtEvent::ValuePutFailed(hash))) => {
 					if let Some(metrics) = &self.metrics {
 						metrics.dht_event_received.with_label_values(&["value_put_failed"]).inc();
 					}
@@ -377,10 +377,12 @@ where
 						"Failed to put hash '{:?}' on Dht.", hash
 					)
 				},
+				// The sender side of the dht event stream has been closed, likely due to the
+				// network terminating.
+				Poll::Ready(None) => return Err(Error::DhtEventStreamTerminated),
+				Poll::Pending => return Ok(()),
 			}
 		}
-
-		Ok(())
 	}
 
 	fn handle_dht_value_found_event(
@@ -483,7 +485,6 @@ where
 	}
 
 	/// Update the peer set 'authority' priority group.
-	//
 	fn update_peer_set_priority_group(&self) -> Result<()> {
 		let addresses = self.addr_cache.get_subset();
 
@@ -539,11 +540,18 @@ where
 
 		match inner() {
 			Ok(()) => {}
+
+			// Handle fatal errors.
+			//
+			// Given that the network likely terminated authority discovery should do the same.
+			Err(Error::DhtEventStreamTerminated) => return Poll::Ready(()),
+
+			// Handle non-fatal errors.
 			Err(e) => error!(target: "sub-authority-discovery", "Poll failure: {:?}", e),
 		};
 
-		// Make sure to always return NotReady as this is a long running task with the same lifetime
-		// as the node itself.
+		// Return Poll::Pending as this is a long running task with the same lifetime as the node
+		// itself.
 		Poll::Pending
 	}
 }
diff --git a/substrate/client/authority-discovery/src/tests.rs b/substrate/client/authority-discovery/src/tests.rs
index 358376e5db..923b7ee0f2 100644
--- a/substrate/client/authority-discovery/src/tests.rs
+++ b/substrate/client/authority-discovery/src/tests.rs
@@ -19,6 +19,7 @@ use std::{iter::FromIterator, sync::{Arc, Mutex}};
 use futures::channel::mpsc::channel;
 use futures::executor::block_on;
 use futures::future::poll_fn;
+use futures::poll;
 use libp2p::{kad, PeerId};
 
 use sp_api::{ProvideRuntimeApi, ApiRef};
@@ -346,3 +347,36 @@ fn handle_dht_events_with_value_found_should_call_set_priority_group() {
 
 	let _ = block_on(poll_fn(f));
 }
+
+#[test]
+fn terminate_when_event_stream_terminates() {
+	let (dht_event_tx, dht_event_rx) = channel(1000);
+	let network: Arc<TestNetwork> = Arc::new(Default::default());
+	let key_store = KeyStore::new();
+	let test_api = Arc::new(TestApi {
+		authorities: vec![],
+	});
+
+	let mut authority_discovery = AuthorityDiscovery::new(
+		test_api,
+		network.clone(),
+		vec![],
+		key_store,
+		dht_event_rx.boxed(),
+		None,
+	);
+
+	block_on(async {
+		assert_eq!(Poll::Pending, poll!(&mut authority_discovery));
+
+		// Simulate termination of the network through dropping the sender side of the dht event
+		// channel.
+		drop(dht_event_tx);
+
+		assert_eq!(
+			Poll::Ready(()), poll!(&mut authority_discovery),
+			"Expect the authority discovery module to terminate once the sending side of the dht \
+			event channel is terminated.",
+		);
+	});
+}