diff --git a/embassy-net-ppp/Cargo.toml b/embassy-net-ppp/Cargo.toml
index b2874c683..191577b5c 100644
--- a/embassy-net-ppp/Cargo.toml
+++ b/embassy-net-ppp/Cargo.toml
@@ -18,7 +18,7 @@ log = { version = "0.4.14", optional = true }
 embedded-io-async = { version = "0.5.0" }
 embassy-net-driver-channel = { version = "0.1.0", path = "../embassy-net-driver-channel" }
 embassy-futures = { version = "0.1.0", path = "../embassy-futures" }
-ppproto = { version = "0.1.1"}
+ppproto = { version = "0.1.2"}
 embassy-sync = { version = "0.2.0", path = "../embassy-sync" }
 
 [package.metadata.embassy_docs]
diff --git a/embassy-net-ppp/src/lib.rs b/embassy-net-ppp/src/lib.rs
index ca87fbaea..66496ee0a 100644
--- a/embassy-net-ppp/src/lib.rs
+++ b/embassy-net-ppp/src/lib.rs
@@ -53,6 +53,8 @@ pub enum RunError<E> {
     WriteZero,
     /// Writing to the serial got EOF.
     Eof,
+    /// PPP protocol was terminated by the peer
+    Terminated,
 }
 
 impl<E> From<WriteAllError<E>> for RunError<E> {
@@ -128,6 +130,9 @@ impl<'d> Runner<'d> {
 
                     let status = ppp.status();
                     match status.phase {
+                        ppproto::Phase::Dead => {
+                            return Err(RunError::Terminated);
+                        }
                         ppproto::Phase::Open => {
                             if !was_up {
                                 on_ipv4_up(status.ipv4.unwrap());