diff --git a/telethon/network/connection/connection.py b/telethon/network/connection/connection.py
index 16764320..0b0fdb05 100644
--- a/telethon/network/connection/connection.py
+++ b/telethon/network/connection/connection.py
@@ -86,9 +86,6 @@ class Connection(abc.ABC):
         Disconnects from the server, and clears
         pending outgoing and incoming messages.
         """
-        self._disconnect(error=None)
-
-    def _disconnect(self, error):
         self._connected = False
 
         while not self._send_queue.empty():
@@ -154,33 +151,43 @@ class Connection(abc.ABC):
         except Exception:
             msg = 'Unexpected exception in the send loop'
             __log__.exception(msg)
-            self._disconnect(ConnectionError(msg))
+            self.disconnect()
 
     async def _recv_loop(self):
         """
         This loop is constantly putting items on the queue as they're read.
         """
-        try:
-            while self._connected:
+        while self._connected:
+            try:
                 data = await self._recv()
+            except asyncio.CancelledError:
+                break
+            except Exception as e:
+                if isinstance(e, (ConnectionError, asyncio.IncompleteReadError)):
+                    msg = 'The server closed the connection'
+                    __log__.info(msg)
+                elif isinstance(e, InvalidChecksumError):
+                    msg = 'The server response had an invalid checksum'
+                    __log__.info(msg)
+                else:
+                    msg = 'Unexpected exception in the receive loop'
+                    __log__.exception(msg)
+
+                if self._waiting_recv:
+                    # Await to lend back control to recv() to avoid deadlock.
+                    #
+                    # This is important because things will break if we don't
+                    # get back to asyncio's loop and just disconnect clearing
+                    # the queues in the process.
+                    await self._recv_queue.put(None)
+
+                self.disconnect()
+                break
+
+            try:
                 await self._recv_queue.put(data)
-        except asyncio.CancelledError:
-            pass
-        except Exception as e:
-            if isinstance(e, (ConnectionError, asyncio.IncompleteReadError)):
-                msg = 'The server closed the connection'
-                __log__.info(msg)
-            elif isinstance(e, InvalidChecksumError):
-                msg = 'The server response had an invalid checksum'
-                __log__.info(msg)
-            else:
-                msg = 'Unexpected exception in the receive loop'
-                __log__.exception(msg)
-
-            if self._waiting_recv and not self._recv_queue.empty():
-                await self._recv_queue.put_nowait(None)
-
-            self._disconnect(ConnectionError(msg))
+            except asyncio.CancelledError:
+                break
 
     @abc.abstractmethod
     def _send(self, data):