diff --git a/src/libraries/System.Net.Http/src/System/Net/Http/SocketsHttpHandler/Http2Connection.cs b/src/libraries/System.Net.Http/src/System/Net/Http/SocketsHttpHandler/Http2Connection.cs
index 6fde1077122f64..143021d56f7732 100644
--- a/src/libraries/System.Net.Http/src/System/Net/Http/SocketsHttpHandler/Http2Connection.cs
+++ b/src/libraries/System.Net.Http/src/System/Net/Http/SocketsHttpHandler/Http2Connection.cs
@@ -255,8 +255,10 @@ public async ValueTask SetupAsync(CancellationToken cancellationToken)
                     throw;
                 }
 
-                // TODO: Review this case!
-                throw new IOException(SR.net_http_http2_connection_not_established, e);
+                // Use _abortException if available, as it contains the real reason for the connection failure.
+                // For example, when ProcessIncomingFramesAsync detects a server-initiated disconnect and calls Abort(),
+                // _abortException will have the original IOException, while 'e' here may be an uninformative ObjectDisposedException.
+                throw new IOException(SR.net_http_http2_connection_not_established, _abortException ?? e);
             }
 
             // Avoid capturing the initial request's ExecutionContext for the entire lifetime of the new connection.
diff --git a/src/libraries/System.Net.Http/tests/FunctionalTests/HttpClientHandlerTest.Http2.cs b/src/libraries/System.Net.Http/tests/FunctionalTests/HttpClientHandlerTest.Http2.cs
index 416cd342435a69..36d1a46e717a6f 100644
--- a/src/libraries/System.Net.Http/tests/FunctionalTests/HttpClientHandlerTest.Http2.cs
+++ b/src/libraries/System.Net.Http/tests/FunctionalTests/HttpClientHandlerTest.Http2.cs
@@ -687,6 +687,48 @@ public async Task GetAsync_ServerSendSettingsWithoutMaxConcurrentStreams_ClientA
             }
         }
 
+        [ConditionalTheory(nameof(SupportsAlpn))]
+        [InlineData(false)] // server disconnects without sending SETTINGS
+        [InlineData(true)]  // server sends GOAWAY instead of SETTINGS
+        public async Task ServerDisconnectDuringSetup_PropagatesMeaningfulException(bool sendGoAway)
+        {
+            using (Http2LoopbackServer server = Http2LoopbackServer.CreateServer())
+            using (HttpClient client = CreateHttpClient())
+            {
+                Task<HttpResponseMessage> sendTask = client.GetAsync(server.Address);
+
+                // Accept connection and read client preface, but do NOT send SETTINGS.
+                Http2LoopbackConnection connection = await server.AcceptConnectionAsync();
+
+                if (sendGoAway)
+                {
+                    // Send GOAWAY instead of SETTINGS, then shut down.
+                    await connection.SendGoAway(0, ProtocolErrors.ENHANCE_YOUR_CALM);
+                    await connection.ShutdownSendAsync();
+
+                    // The client should throw HttpRequestException(HttpProtocolError) wrapping
+                    // HttpProtocolException with the GOAWAY error code.
+                    await AssertProtocolErrorAsync(sendTask, ProtocolErrors.ENHANCE_YOUR_CALM);
+                }
+                else
+                {
+                    // Immediately shut down the connection without sending SETTINGS.
+                    // This simulates a server-side disconnect during HTTP/2 setup.
+                    await connection.ShutdownSendAsync();
+
+                    // The client should throw HttpRequestException(InvalidResponse) wrapping
+                    // HttpIOException(InvalidResponse) -> HttpIOException(ResponseEnded),
+                    // indicating the server disconnected before sending SETTINGS.
+                    HttpRequestException ex = await Assert.ThrowsAsync<HttpRequestException>(() => sendTask);
+                    Assert.Equal(HttpRequestError.InvalidResponse, ex.HttpRequestError);
+                    HttpIOException httpIoEx = Assert.IsAssignableFrom<HttpIOException>(ex.InnerException);
+                    Assert.Equal(HttpRequestError.InvalidResponse, httpIoEx.HttpRequestError);
+                    HttpIOException innerHttpIoEx = Assert.IsAssignableFrom<HttpIOException>(httpIoEx.InnerException);
+                    Assert.Equal(HttpRequestError.ResponseEnded, innerHttpIoEx.HttpRequestError);
+                }
+            }
+        }
+
         // This test is based on RFC 7540 section 6.1:
         // "If a DATA frame is received whose stream identifier field is 0x0, the recipient MUST
         // respond with a connection error (Section 5.4.1) of type PROTOCOL_ERROR."