diff --git a/netwatch/src/udp.rs b/netwatch/src/udp.rs
index bbc1a8f..6cfc278 100644
--- a/netwatch/src/udp.rs
+++ b/netwatch/src/udp.rs
@@ -688,6 +688,8 @@ enum SocketState {
         addr: SocketAddr,
     },
     Closed {
+        /// The addr to rebind to when recovering.
+        addr: SocketAddr,
         last_max_gso_segments: NonZeroUsize,
         last_gro_segments: NonZeroUsize,
         last_may_fragment: bool,
@@ -768,25 +770,34 @@ impl SocketState {
     }
 
     fn rebind(&mut self) -> io::Result<()> {
-        let (addr, closed_state) = match self {
-            Self::Connected { state, addr, .. } => {
-                let s = SocketState::Closed {
-                    last_max_gso_segments: state.max_gso_segments(),
-                    last_gro_segments: state.gro_segments(),
-                    last_may_fragment: state.may_fragment(),
-                };
-                (*addr, s)
-            }
-            Self::Closed { .. } => {
-                return Err(io::Error::other("socket is closed and cannot be rebound"));
-            }
+        let addr = match self {
+            Self::Connected { addr, .. } => *addr,
+            Self::Closed { addr, .. } => *addr,
         };
         debug!("rebinding {}", addr);
 
-        *self = closed_state;
-        *self = Self::bind(addr)?;
+        // Transition to Closed first to drop the old socket.
+        // This is needed so the port is released before we try to bind again.
+        if let Self::Connected { state, .. } = self {
+            *self = SocketState::Closed {
+                addr,
+                last_max_gso_segments: state.max_gso_segments(),
+                last_gro_segments: state.gro_segments(),
+                last_may_fragment: state.may_fragment(),
+            };
+        }
 
-        Ok(())
+        match Self::bind(addr) {
+            Ok(new_state) => {
+                *self = new_state;
+                Ok(())
+            }
+            Err(err) => {
+                // Stay in Closed state but allow future rebind attempts
+                debug!("rebind failed, will retry on next attempt: {}", err);
+                Err(err)
+            }
+        }
     }
 
     fn is_closed(&self) -> bool {
@@ -795,8 +806,9 @@ impl SocketState {
 
     fn close(&mut self) -> Option<(tokio::net::UdpSocket, quinn_udp::UdpSocketState)> {
         match self {
-            Self::Connected { state, .. } => {
+            Self::Connected { state, addr, .. } => {
                 let s = SocketState::Closed {
+                    addr: *addr,
                     last_max_gso_segments: state.max_gso_segments(),
                     last_gro_segments: state.gro_segments(),
                     last_may_fragment: state.may_fragment(),