diff --git a/plugins/terminal/backend/src/com/intellij/terminal/backend/StateAwareTerminalSession.kt b/plugins/terminal/backend/src/com/intellij/terminal/backend/StateAwareTerminalSession.kt
index 74024696fd28..01c1817de770 100644
--- a/plugins/terminal/backend/src/com/intellij/terminal/backend/StateAwareTerminalSession.kt
+++ b/plugins/terminal/backend/src/com/intellij/terminal/backend/StateAwareTerminalSession.kt
@@ -1,5 +1,6 @@
 package com.intellij.terminal.backend
 
+import com.intellij.openapi.diagnostic.logger
 import com.intellij.openapi.diagnostic.thisLogger
 import com.intellij.openapi.editor.impl.DocumentImpl
 import com.intellij.openapi.project.Project
@@ -13,13 +14,17 @@ import com.intellij.util.asDisposable
 import kotlinx.coroutines.CoroutineName
 import kotlinx.coroutines.CoroutineScope
 import kotlinx.coroutines.ExperimentalCoroutinesApi
+import kotlinx.coroutines.TimeoutCancellationException
 import kotlinx.coroutines.cancel
 import kotlinx.coroutines.channels.Channel
 import kotlinx.coroutines.channels.SendChannel
 import kotlinx.coroutines.flow.Flow
+import kotlinx.coroutines.flow.buffer
+import kotlinx.coroutines.flow.channelFlow
 import kotlinx.coroutines.flow.map
 import kotlinx.coroutines.flow.merge
 import kotlinx.coroutines.launch
+import kotlinx.coroutines.withTimeout
 import org.jetbrains.plugins.terminal.block.reworked.TerminalSessionModel
 import org.jetbrains.plugins.terminal.block.reworked.TerminalSessionModelImpl
 import org.jetbrains.plugins.terminal.block.ui.TerminalUiUtils
@@ -53,6 +58,7 @@ import org.jetbrains.plugins.terminal.view.impl.MutableTerminalOutputModelImpl
 import org.jetbrains.plugins.terminal.view.impl.updateContent
 import org.jetbrains.plugins.terminal.view.shellIntegration.impl.TerminalBlocksModelImpl
 import kotlin.coroutines.cancellation.CancellationException
+import kotlin.time.Duration.Companion.seconds
 import kotlin.time.TimeSource
 
 /**
@@ -172,13 +178,32 @@ internal class StateAwareTerminalSession(
   fun getHyperlinkFacade(isInAlternateBuffer: Boolean): BackendTerminalHyperlinkFacade? =
     if (isInAlternateBuffer) alternateBufferHyperlinkFacade else outputHyperlinkFacade
 
-  override suspend fun getOutputFlow(): Flow<List<TerminalOutputEvent>> = outputFlowProducer.getIncrementalUpdateFlow()
+  override suspend fun getOutputFlow(): Flow<List<TerminalOutputEvent>> {
+    return channelFlow {
+      try {
+        outputFlowProducer.getIncrementalUpdateFlow().collect { events ->
+          withTimeout(3.seconds) {
+            send(events)
+          }
+        }
+      }
+      catch (_: TimeoutCancellationException) {
+        // Downstream consumer is too slow, ending the flow to unblock the original session output flow processing.
+        // The collector should request a new flow and receive a state snapshot
+        LOG.info("Failed to emit output to the collector in 3 seconds, is there a connection problem? Terminating the output flow.")
+      }
+    }.buffer(Channel.RENDEZVOUS)
+  }
 
   override val isClosed: Boolean
     get() = delegate.isClosed
 
   override suspend fun hasRunningCommands(): Boolean = delegate.hasRunningCommands()
 
+  companion object {
+    private val LOG = logger<StateAwareTerminalSession>()
+  }
+
   private inner class State : MutableStateWithIncrementalUpdates<List<TerminalOutputEvent>> {
     override suspend fun applyUpdate(update: List<TerminalOutputEvent>): List<TerminalOutputEvent> {
       for (event in update) {
diff --git a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalSessionController.kt b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalSessionController.kt
index 6bf057146fd5..b231eb8817d4 100644
--- a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalSessionController.kt
+++ b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalSessionController.kt
@@ -10,7 +10,9 @@ import com.intellij.openapi.diagnostic.thisLogger
 import com.intellij.terminal.JBTerminalSystemSettingsProviderBase
 import com.intellij.terminal.frontend.view.hyperlinks.FrontendTerminalHyperlinkFacade
 import com.intellij.util.containers.DisposableWrapperList
+import fleet.rpc.client.durable
 import kotlinx.coroutines.CompletableDeferred
+import kotlinx.coroutines.CoroutineName
 import kotlinx.coroutines.CoroutineScope
 import kotlinx.coroutines.Dispatchers
 import kotlinx.coroutines.Runnable
@@ -50,11 +52,17 @@ internal class TerminalSessionController(
   private val edtContext = Dispatchers.EDT + ModalityState.any().asContextElement()
 
   fun handleEvents(session: TerminalSession) {
-    coroutineScope.launch {
-      val outputFlow = session.getOutputFlow()
-      withContext(edtContext) {
-        outputFlow.collect { events ->
-          doHandleEvents(events)
+    coroutineScope.launch(Dispatchers.IO + CoroutineName("Output flow collection")) {
+      // Get output flow again even if it was terminated.
+      // It can happen in case of RemDev if there were any connection problems and backend decided to terminate the flow.
+      while (!session.isClosed) {
+        // Wrap the flow collection into `durable` call to retry in case of connection issues.
+        durable {
+          session.getOutputFlow().collect { events ->
+            withContext(edtContext) {
+              doHandleEvents(events)
+            }
+          }
         }
       }
     }
diff --git a/plugins/terminal/src/org/jetbrains/plugins/terminal/session/impl/TerminalSession.kt b/plugins/terminal/src/org/jetbrains/plugins/terminal/session/impl/TerminalSession.kt
index c65c9056787f..5cbe3c819444 100644
--- a/plugins/terminal/src/org/jetbrains/plugins/terminal/session/impl/TerminalSession.kt
+++ b/plugins/terminal/src/org/jetbrains/plugins/terminal/session/impl/TerminalSession.kt
@@ -20,6 +20,8 @@ interface TerminalSession {
    * Use this flow to handle the output events of the Terminal session.
    *
    * Underlying logic should continue reading the PTYs output stream only if there is some collector of this flow.
+   * If the flow collector is too slow (can't handle event in 3 seconds), the flow can be terminated, and
+   * you need to request a new flow and receive a state snapshot.
    */
   suspend fun getOutputFlow(): Flow<List<TerminalOutputEvent>>