diff --git a/roles/Cargo.lock b/roles/Cargo.lock
index 2e9ee5b98..f86606280 100644
--- a/roles/Cargo.lock
+++ b/roles/Cargo.lock
@@ -1355,6 +1355,7 @@ dependencies = [
  "bitcoind",
  "flate2",
  "key-utils",
+ "mining_device",
  "minreq",
  "once_cell",
  "pool_sv2",
diff --git a/roles/tests-integration/Cargo.toml b/roles/tests-integration/Cargo.toml
index a1d17847f..b10daf0dd 100644
--- a/roles/tests-integration/Cargo.toml
+++ b/roles/tests-integration/Cargo.toml
@@ -12,6 +12,10 @@ tar = "0.4.41"
 pool_sv2 = { version = "0.1.0", path = "../pool" }
 key-utils = { version = "1.0.0", path = "../../utils/key-utils" }
 tokio = { version = "1.16.1", features = ["full"] }
+mining_device = { version = "0.1.1", path = "../test-utils/mining-device" }
 
 [lib]
 path = "tests/common/mod.rs"
+
+[features]
+mining_device_reject_auth = ["pool_sv2/MG_reject_auth", "mining_device/abort_mining"]
diff --git a/roles/tests-integration/tests/common/mod.rs b/roles/tests-integration/tests/common/mod.rs
index 1691021f3..7bf8d7273 100644
--- a/roles/tests-integration/tests/common/mod.rs
+++ b/roles/tests-integration/tests/common/mod.rs
@@ -287,3 +287,13 @@ pub async fn start_template_provider_and_pool() -> Result<(PoolSv2, u16, Templat
         template_provider_port,
     ))
 }
+
+pub struct TestMiningDevice;
+
+impl TestMiningDevice {
+    pub async fn start(pool_address: SocketAddr) -> Result<(), pool_sv2::error::PoolError> {
+        mining_device::connect(pool_address.to_string(), None, None, None, 0)
+            .await
+            .map_err(|e| e.into())
+    }
+}
diff --git a/roles/tests-integration/tests/pool_integration.rs b/roles/tests-integration/tests/pool_integration.rs
index 4e9fc123a..f73cf7751 100644
--- a/roles/tests-integration/tests/pool_integration.rs
+++ b/roles/tests-integration/tests/pool_integration.rs
@@ -1,5 +1,7 @@
 use std::str::FromStr;
 
+use common::is_port_open;
+
 mod common;
 
 #[tokio::test]
@@ -29,3 +31,47 @@ async fn pool_bad_coinbase_output() {
     assert_eq!(state, pool_sv2::PoolState::Initial);
     template_provider.stop();
 }
+
+#[cfg(feature = "mining_device_reject_auth")]
+#[tokio::test]
+async fn pool_remove_downstream_after_bad_auth() {
+    let (template_provider, template_provider_port) = common::start_template_provider().await;
+    let test_pool = common::TestPoolSv2::new(
+        None,
+        None,
+        Some(
+            std::net::SocketAddr::from_str(&format!("127.0.0.1:{}", template_provider_port))
+                .unwrap(),
+        ),
+    );
+    let pool = test_pool.pool.clone();
+    let state = pool.state().await.safe_lock(|s| s.clone()).unwrap();
+    assert_eq!(state, pool_sv2::PoolState::Initial);
+    let _pool = pool.clone();
+    tokio::task::spawn(async move {
+        let _ = _pool.start().await;
+    });
+    tokio::time::sleep(std::time::Duration::from_secs(1)).await;
+    // Wait for the pool to start.
+    let pool_port = test_pool.port;
+    let pool_listening_address =
+        std::net::SocketAddr::from_str(&format!("127.0.0.1:{}", pool_port)).unwrap();
+    loop {
+        if is_port_open(pool_listening_address) {
+            break;
+        }
+    }
+    let state = pool.state().await.safe_lock(|s| s.clone()).unwrap();
+    assert_eq!(
+        state,
+        pool_sv2::PoolState::Running(pool_sv2::DroppedDownstreams::new())
+    );
+    assert!(common::TestMiningDevice::start(pool_listening_address)
+        .await
+        .is_err());
+    let state = pool.state().await.safe_lock(|s| s.clone()).unwrap();
+    let mut dropped_downstreams = pool_sv2::DroppedDownstreams::new();
+    dropped_downstreams.push(1);
+    assert_eq!(state, pool_sv2::PoolState::Running(dropped_downstreams));
+    template_provider.stop();
+}