diff --git a/src/mcp/client/stdio.py b/src/mcp/client/stdio.py
index 902dc8576..4ba892e9f 100644
--- a/src/mcp/client/stdio.py
+++ b/src/mcp/client/stdio.py
@@ -92,7 +92,7 @@ class StdioServerParameters(BaseModel):
     Defaults to utf-8.
     """
 
-    encoding_error_handler: Literal["strict", "ignore", "replace"] = "strict"
+    encoding_error_handler: Literal["strict", "ignore", "replace"] = "replace"
     """
     The text encoding error handler.
 
@@ -151,14 +151,14 @@ async def stdout_reader():
                     for line in lines:
                         try:
                             message = types.jsonrpc_message_adapter.validate_json(line, by_name=False)
-                        except Exception as exc:  # pragma: no cover
+                        except Exception as exc:
                             logger.exception("Failed to parse JSONRPC message from server")
                             await read_stream_writer.send(exc)
                             continue
 
                         session_message = SessionMessage(message)
                         await read_stream_writer.send(session_message)
-        except anyio.ClosedResourceError:  # pragma: lax no cover
+        except (anyio.ClosedResourceError, anyio.BrokenResourceError, ConnectionResetError):  # pragma: lax no cover
             await anyio.lowlevel.checkpoint()
 
     async def stdin_writer():
@@ -174,7 +174,7 @@ async def stdin_writer():
                             errors=server.encoding_error_handler,
                         )
                     )
-        except anyio.ClosedResourceError:  # pragma: no cover
+        except (anyio.ClosedResourceError, anyio.BrokenResourceError, ConnectionResetError):  # pragma: no cover
             await anyio.lowlevel.checkpoint()
 
     async with anyio.create_task_group() as tg, process:
diff --git a/tests/client/test_stdio.py b/tests/client/test_stdio.py
index 06e2cba4b..3a6fe8b8e 100644
--- a/tests/client/test_stdio.py
+++ b/tests/client/test_stdio.py
@@ -4,6 +4,7 @@
 import textwrap
 import time
 from contextlib import AsyncExitStack, suppress
+from pathlib import Path
 
 import anyio
 import anyio.abc
@@ -70,6 +71,42 @@ async def test_stdio_client():
         assert read_messages[1] == JSONRPCResponse(jsonrpc="2.0", id=2, result={})
 
 
+@pytest.mark.anyio
+async def test_stdio_client_invalid_utf8_from_server_does_not_crash(tmp_path: Path):
+    """A buggy child server should surface malformed UTF-8 as an in-stream error.
+
+    The client should continue reading subsequent valid JSON-RPC lines instead of
+    crashing the whole transport task group during decoding.
+    """
+    script = tmp_path / "bad_stdout_server.py"
+    valid = JSONRPCRequest(jsonrpc="2.0", id=1, method="ping")
+    script.write_text(
+        textwrap.dedent(
+            f"""\
+            import sys
+            import time
+
+            sys.stdout.buffer.write(b"\\xff\\xfe\\n")
+            sys.stdout.buffer.write({valid.model_dump_json(by_alias=True, exclude_none=True)!r}.encode() + b"\\n")
+            sys.stdout.buffer.flush()
+            time.sleep(0.2)
+            """
+        )
+    )
+
+    server_params = StdioServerParameters(command=sys.executable, args=[str(script)])
+
+    with anyio.fail_after(5):
+        async with stdio_client(server_params) as (read_stream, write_stream):
+            await write_stream.aclose()
+            first = await read_stream.receive()
+            assert isinstance(first, Exception)
+
+            second = await read_stream.receive()
+            assert isinstance(second, SessionMessage)
+            assert second.message == valid
+
+
 @pytest.mark.anyio
 async def test_stdio_client_bad_path():
     """Check that the connection doesn't hang if process errors."""