diff --git a/p2p/net/swarm/swarm_stream.go b/p2p/net/swarm/swarm_stream.go
index 36cd07e46d..4fee368250 100644
--- a/p2p/net/swarm/swarm_stream.go
+++ b/p2p/net/swarm/swarm_stream.go
@@ -92,7 +92,9 @@ func (s *Stream) Reset() error {
 }
 
 func (s *Stream) ResetWithError(errCode network.StreamErrorCode) error {
-	panic("not implemented")
+	err := s.stream.ResetWithError(errCode)
+	s.closeAndRemoveStream()
+	return err
 }
 
 func (s *Stream) closeAndRemoveStream() {
diff --git a/p2p/test/transport/transport_test.go b/p2p/test/transport/transport_test.go
index 7cfab5f3ca..f0f0932cd4 100644
--- a/p2p/test/transport/transport_test.go
+++ b/p2p/test/transport/transport_test.go
@@ -35,6 +35,7 @@ import (
 	"go.uber.org/mock/gomock"
 
 	ma "github.com/multiformats/go-multiaddr"
+	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 )
 
@@ -798,3 +799,74 @@ func TestConnClosedWhenRemoteCloses(t *testing.T) {
 		})
 	}
 }
+
+// TestStreamErrorCode tests correctness for resetting stream with errors
+func TestStreamErrorCode(t *testing.T) {
+	for _, tc := range transportsToTest {
+		t.Run(tc.Name, func(t *testing.T) {
+			if tc.Name != "QUIC" {
+				t.Skip("only implemented for QUIC")
+				return
+			}
+			server := tc.HostGenerator(t, TransportTestCaseOpts{})
+			client := tc.HostGenerator(t, TransportTestCaseOpts{NoListen: true})
+			defer server.Close()
+			defer client.Close()
+
+			checkError := func(err error, code network.StreamErrorCode, remote bool) {
+				t.Helper()
+				if err == nil {
+					t.Fatal("expected non nil error")
+				}
+				se := &network.StreamError{}
+				if errors.As(err, &se) {
+					require.Equal(t, se.ErrorCode, code)
+					require.Equal(t, se.Remote, remote)
+					return
+				}
+				t.Fatal("expected network.StreamError, got:", err)
+			}
+
+			errCh := make(chan error)
+			server.SetStreamHandler("/test", func(s network.Stream) {
+				defer s.Reset()
+				b := make([]byte, 10)
+				n, err := s.Read(b)
+				if !assert.NoError(t, err) {
+					return
+				}
+				_, err = s.Write(b[:n])
+				if !assert.NoError(t, err) {
+					return
+				}
+				_, err = s.Read(b)
+				errCh <- err
+			})
+			ctx, cancel := context.WithTimeout(context.Background(), 5*time.Second)
+			defer cancel()
+			client.Peerstore().AddAddrs(server.ID(), server.Addrs(), peerstore.PermanentAddrTTL)
+			s, err := client.NewStream(ctx, server.ID(), "/test")
+			require.NoError(t, err)
+
+			_, err = s.Write([]byte("hello"))
+			require.NoError(t, err)
+
+			buf := make([]byte, 10)
+			n, err := s.Read(buf)
+			require.NoError(t, err)
+			require.Equal(t, []byte("hello"), buf[:n])
+
+			err = s.ResetWithError(42)
+			require.NoError(t, err)
+
+			_, err = s.Read(buf)
+			checkError(err, 42, false)
+
+			_, err = s.Write(buf)
+			checkError(err, 42, false)
+
+			err = <-errCh
+			checkError(err, 42, true)
+		})
+	}
+}
diff --git a/p2p/transport/quic/conn_test.go b/p2p/transport/quic/conn_test.go
index d3e27a7e16..bf3f7b0751 100644
--- a/p2p/transport/quic/conn_test.go
+++ b/p2p/transport/quic/conn_test.go
@@ -270,6 +270,9 @@ func TestStreams(t *testing.T) {
 		t.Run(tc.Name, func(t *testing.T) {
 			testStreams(t, tc)
 		})
+		t.Run(tc.Name, func(t *testing.T) {
+			testStreamsErrorCode(t, tc)
+		})
 	}
 }
 
@@ -305,6 +308,45 @@ func testStreams(t *testing.T, tc *connTestCase) {
 	require.Equal(t, data, []byte("foobar"))
 }
 
+func testStreamsErrorCode(t *testing.T, tc *connTestCase) {
+	serverID, serverKey := createPeer(t)
+	_, clientKey := createPeer(t)
+
+	serverTransport, err := NewTransport(serverKey, newConnManager(t, tc.Options...), nil, nil, nil)
+	require.NoError(t, err)
+	defer serverTransport.(io.Closer).Close()
+	ln := runServer(t, serverTransport, "/ip4/127.0.0.1/udp/0/quic-v1")
+	defer ln.Close()
+
+	clientTransport, err := NewTransport(clientKey, newConnManager(t, tc.Options...), nil, nil, nil)
+	require.NoError(t, err)
+	defer clientTransport.(io.Closer).Close()
+	conn, err := clientTransport.Dial(context.Background(), ln.Multiaddr(), serverID)
+	require.NoError(t, err)
+	defer conn.Close()
+	serverConn, err := ln.Accept()
+	require.NoError(t, err)
+	defer serverConn.Close()
+
+	str, err := conn.OpenStream(context.Background())
+	require.NoError(t, err)
+	err = str.ResetWithError(42)
+	require.NoError(t, err)
+
+	sstr, err := serverConn.AcceptStream()
+	require.NoError(t, err)
+	_, err = io.ReadAll(sstr)
+	require.Error(t, err)
+	se := &network.StreamError{}
+	if errors.As(err, &se) {
+		require.Equal(t, se.ErrorCode, network.StreamErrorCode(42))
+		require.True(t, se.Remote)
+	} else {
+		t.Fatalf("expected error to be of network.StreamError type, got %T, %v", err, err)
+	}
+
+}
+
 func TestHandshakeFailPeerIDMismatch(t *testing.T) {
 	for _, tc := range connTestCases {
 		t.Run(tc.Name, func(t *testing.T) {
diff --git a/p2p/transport/quic/stream.go b/p2p/transport/quic/stream.go
index 7e8568a813..0bdc32f1d0 100644
--- a/p2p/transport/quic/stream.go
+++ b/p2p/transport/quic/stream.go
@@ -20,11 +20,14 @@ type stream struct {
 var _ network.MuxedStream = &stream{}
 
 func parseStreamError(err error) error {
+	if err == nil {
+		return err
+	}
 	se := &quic.StreamError{}
-	if err != nil && errors.As(err, &se) {
+	if errors.As(err, &se) {
 		code := se.ErrorCode
 		if code > math.MaxUint32 {
-			code = 0
+			code = reset
 		}
 		err = &network.StreamError{
 			ErrorCode: network.StreamErrorCode(code),