diff --git a/rust/monovertex/src/transformer.rs b/rust/monovertex/src/transformer.rs
index 8f7cc0509..f6fa044fc 100644
--- a/rust/monovertex/src/transformer.rs
+++ b/rust/monovertex/src/transformer.rs
@@ -11,11 +11,11 @@ use crate::sourcetransform_pb::{
 
 use tokio::sync::mpsc;
 use tokio::task::JoinHandle;
-use tokio::time::Duration;
 use tokio_stream::wrappers::ReceiverStream;
 use tokio_util::sync::CancellationToken;
 use tonic::transport::Channel;
 use tonic::{Request, Streaming};
+use tracing::warn;
 
 const DROP: &str = "U+005C__DROP__";
 
@@ -81,21 +81,36 @@ impl SourceTransformer {
             );
         }
 
+        // Cancellation token is used to cancel either sending task (if an error occurs while receiving) or receiving messages (if an error occurs on sending task)
         let token = CancellationToken::new();
-        let sender: JoinHandle<Result<()>> = tokio::spawn({
+
+        // Send transform requests to the source transformer server
+        let sender_task: JoinHandle<Result<()>> = tokio::spawn({
             let read_tx = self.read_tx.clone();
             let token = token.clone();
             async move {
                 for msg in messages {
-                    read_tx.send(msg.into()).await.map_err(|e| {
-                        token.cancel();
-                        Error::TransformerError(e.to_string())
-                    })?;
+                    let result = tokio::select! {
+                        result = read_tx.send(msg.into()) => result,
+                        _ = token.cancelled() => {
+                            warn!("Cancellation token was cancelled while sending source transform requests");
+                            return Ok(());
+                        },
+                    };
+
+                    match result {
+                        Ok(()) => continue,
+                        Err(e) => {
+                            token.cancel();
+                            return Err(Error::TransformerError(e.to_string()));
+                        }
+                    };
                 }
                 Ok(())
             }
         });
 
+        // Receive transformer results
         let mut messages = Vec::new();
         while !tracker.is_empty() {
             let resp = tokio::select! {
@@ -104,16 +119,33 @@ impl SourceTransformer {
                 },
                 resp = self.resp_stream.message() => {resp}
             };
-            let Some(resp) = resp? else {
-                break;
+
+            let resp = match resp {
+                Ok(Some(val)) => val,
+                Ok(None) => {
+                    // Logging at warning level since we don't expect this to happen
+                    warn!("Source transformer server closed its sending end of the stream. No more messages to receive");
+                    token.cancel();
+                    break;
+                }
+                Err(e) => {
+                    token.cancel();
+                    return Err(Error::TransformerError(format!(
+                        "gRPC error while receiving messages from source transformer server: {e:?}"
+                    )));
+                }
             };
+
             let Some((msg_id, msg_info)) = tracker.remove_entry(&resp.id) else {
+                token.cancel();
                 return Err(Error::TransformerError(format!(
                     "Received message with unknown ID {}",
                     resp.id
                 )));
             };
+
             for (i, result) in resp.results.into_iter().enumerate() {
+                // TODO: Expose metrics
                 if result.tags.iter().any(|x| x == DROP) {
                     continue;
                 }
@@ -129,12 +161,7 @@ impl SourceTransformer {
             }
         }
 
-        let sender_task = tokio::time::timeout(Duration::from_millis(2), sender);
-        let Ok(sender_task_result) = sender_task.await else {
-            return Err(Error::TransformerError("Possible bug: Sender task has not finished even after receiving all messages from transformer".to_string()));
-        };
-
-        sender_task_result.unwrap().map_err(|e| {
+        sender_task.await.unwrap().map_err(|e| {
             Error::TransformerError(format!(
                 "Sending messages to gRPC transformer failed: {e:?}",
             ))