diff --git a/pkgs/http2/CHANGELOG.md b/pkgs/http2/CHANGELOG.md
index b98deeeefa..a1e775ea7e 100644
--- a/pkgs/http2/CHANGELOG.md
+++ b/pkgs/http2/CHANGELOG.md
@@ -1,6 +1,17 @@
 ## 3.0.1-wip
 
 - Gracefully handle receiving headers on a stream that the client has canceled. (#1799)
+- **BREAKING (per #1913)**: distinguish graceful peer-initiated
+  shutdown (GOAWAY with `NO_ERROR` followed by transport close) from
+  forceful termination. Under the graceful path, pending operations
+  error with `TransportConnectionException(errorCode: NO_ERROR,
+  message: "Connection gracefully closed by peer.")` instead of the
+  prior conflated `"Connection is being forcefully terminated."` text.
+  Consumers that previously matched the forceful-termination text to
+  detect any peer-side shutdown should switch to observing
+  `TransportConnectionException.errorCode == ErrorCode.NO_ERROR` (or
+  the new message text) to distinguish graceful from forceful close.
+  (#1913)
 
 ## 3.0.0
 
diff --git a/pkgs/http2/lib/src/connection.dart b/pkgs/http2/lib/src/connection.dart
index 6a9f3fc9de..d6d368fcea 100644
--- a/pkgs/http2/lib/src/connection.dart
+++ b/pkgs/http2/lib/src/connection.dart
@@ -453,6 +453,20 @@ abstract class Connection {
   }) {
     // TODO: When do we complete here?
     if (_state.state != ConnectionState.Terminated) {
+      // Detect graceful-shutdown path per issue #1913 shape (b): the peer
+      // has already sent a GOAWAY with NO_ERROR (transitioning us to
+      // passive-finishing state) and the transport then closed as part of
+      // that graceful flow. The transport-close that triggered this
+      // _terminate() call is expected, not an error condition — so we
+      // complete sub-components without an exception rather than surfacing
+      // `TransportConnectionException("Connection is being forcefully
+      // terminated.")`. BREAKING vs prior behavior where this path always
+      // raised the forceful-termination exception.
+      final isGracefulShutdown =
+          causedByTransportError &&
+          _state.isFinishing &&
+          (_state.finishingState & ConnectionState.FinishingPassive) != 0;
+
       _state.state = ConnectionState.Terminated;
 
       var cancelFuture = Future.sync(_frameReaderSubscription.cancel);
@@ -469,13 +483,23 @@ abstract class Connection {
         // We ignore any errors after writing to [GoawayFrame]
       });
 
-      // Close all lower level handlers with an error message.
-      // (e.g. if there is a pending connection.ping(), it's returned
-      //  Future will complete with this error).
-      var exception = TransportConnectionException(
-        errorCode,
-        'Connection is being forcefully terminated.',
-      );
+      // Close all lower level handlers. For graceful peer-initiated
+      // shutdown (per #1913 shape (b)), use NO_ERROR + a distinct
+      // "gracefully closed" message so callers can distinguish from
+      // forceful termination. Pending operations (e.g. pending
+      // `connection.ping()` calls or pending settings ACKs) still
+      // complete with an error — they cannot succeed across a peer
+      // shutdown — but the error itself carries the graceful signal.
+      var exception =
+          isGracefulShutdown
+              ? TransportConnectionException(
+                ErrorCode.NO_ERROR,
+                'Connection gracefully closed by peer.',
+              )
+              : TransportConnectionException(
+                errorCode,
+                'Connection is being forcefully terminated.',
+              );
 
       // Close all streams & stream queues
       _streams.terminate(exception);
diff --git a/pkgs/http2/test/transport_test.dart b/pkgs/http2/test/transport_test.dart
index 72aedf9ae7..e63d55603c 100644
--- a/pkgs/http2/test/transport_test.dart
+++ b/pkgs/http2/test/transport_test.dart
@@ -588,6 +588,43 @@ void main() {
         clientSettings: const ClientSettings(streamWindowSize: 8096),
       );
     });
+
+    // Regression test for issue #1913: when a peer sends GOAWAY with
+    // NO_ERROR and then closes the underlying transport, pending
+    // operations on the local connection should error with a
+    // distinguishable graceful-shutdown signal — not with the
+    // "Connection is being forcefully terminated." message reserved for
+    // forceful termination paths. Per issue body shape (b) +
+    // brianquinlan's vote: the graceful-shutdown signal is
+    // breaking-cleaner than the prior conflated message.
+    transportTest('graceful-server-finish-distinct-shutdown-signal', (
+      TransportConnection client,
+      TransportConnection server,
+    ) async {
+      // Race a pending client.ping() with server-side graceful shutdown.
+      // Under the prior behavior the ping errored with
+      // "Connection is being forcefully terminated."; per shape (b) the
+      // ping errors with the distinct graceful-shutdown signal.
+      var clientPingError = client.ping().catchError(
+        expectAsync2((Object e, StackTrace s) {
+          expect(e, isA<TransportConnectionException>());
+          // Graceful-shutdown signal: errorCode == NO_ERROR + distinct
+          // message. Either condition is sufficient for callers to
+          // distinguish from the forceful-termination path; we assert
+          // both for regression safety.
+          final tce = e as TransportConnectionException;
+          expect(tce.errorCode, 0); // ErrorCode.NO_ERROR
+          expect(
+            tce.toString(),
+            isNot(contains('forcefully terminated')),
+            reason:
+                'Graceful close must not surface forceful-termination text.',
+          );
+        }),
+      );
+      await server.finish();
+      await clientPingError;
+    });
   });
 }