diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1e04dde6..3c2be854 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,13 @@
 # Change Log
 
+## [v2.1.4](https://github.com/ably/ably-python/tree/v2.1.4)
+
+[Full Changelog](https://github.com/ably/ably-python/compare/v2.1.3...v2.1.4)
+
+### What's Changed
+
+- Fixed handling of normal WebSocket close frames and improved reconnection logic [#672](https://github.com/ably/ably-python/pull/672)
+
 ## [v2.1.3](https://github.com/ably/ably-python/tree/v2.1.3)
 
 [Full Changelog](https://github.com/ably/ably-python/compare/v2.1.2...v2.1.3)
diff --git a/ably/__init__.py b/ably/__init__.py
index b77548b7..c364ffe6 100644
--- a/ably/__init__.py
+++ b/ably/__init__.py
@@ -16,4 +16,4 @@
 logger.addHandler(logging.NullHandler())
 
 api_version = '3'
-lib_version = '2.1.3'
+lib_version = '2.1.4'
diff --git a/ably/transport/websockettransport.py b/ably/transport/websockettransport.py
index 140b9d25..54b423c6 100644
--- a/ably/transport/websockettransport.py
+++ b/ably/transport/websockettransport.py
@@ -66,7 +66,8 @@ def __init__(self, connection_manager: ConnectionManager, host: str, params: dic
     def connect(self):
         headers = HttpUtils.default_headers()
         query_params = urllib.parse.urlencode(self.params)
-        ws_url = (f'wss://{self.host}?{query_params}')
+        scheme = 'wss' if self.options.tls else 'ws'
+        ws_url = f'{scheme}://{self.host}?{query_params}'
         log.info(f'connect(): attempting to connect to {ws_url}')
         self.ws_connect_task = asyncio.create_task(self.ws_connect(ws_url, headers))
         self.ws_connect_task.add_done_callback(self.on_ws_connect_done)
@@ -110,6 +111,11 @@ async def _handle_websocket_connection(self, ws_url, websocket):
             if not self.is_disposed:
                 await self.dispose()
                 self.connection_manager.deactivate_transport(err)
+        else:
+            # Read loop exited normally (e.g., server sent normal WS close frame)
+            if not self.is_disposed:
+                await self.dispose()
+                self.connection_manager.deactivate_transport()
 
     async def on_protocol_message(self, msg):
         self.on_activity()
@@ -214,8 +220,9 @@ async def send(self, message: dict):
         await self.websocket.send(raw_msg)
 
     def set_idle_timer(self, timeout: float):
-        if not self.idle_timer:
-            self.idle_timer = Timer(timeout, self.on_idle_timer_expire)
+        if self.idle_timer:
+            self.idle_timer.cancel()
+        self.idle_timer = Timer(timeout, self.on_idle_timer_expire)
 
     async def on_idle_timer_expire(self):
         self.idle_timer = None
diff --git a/pyproject.toml b/pyproject.toml
index 9f265656..da053830 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "ably"
-version = "2.1.3"
+version = "2.1.4"
 description = "Python REST and Realtime client library SDK for Ably realtime messaging service"
 readme = "LONG_DESCRIPTION.rst"
 requires-python = ">=3.7"
diff --git a/test/ably/realtime/realtimeconnection_test.py b/test/ably/realtime/realtimeconnection_test.py
index b4e53ed7..3db53909 100644
--- a/test/ably/realtime/realtimeconnection_test.py
+++ b/test/ably/realtime/realtimeconnection_test.py
@@ -1,6 +1,14 @@
 import asyncio
 
 import pytest
+from websockets import connect as _ws_connect
+
+try:
+    # websockets 15+ preferred import
+    from websockets.asyncio.server import serve as ws_serve
+except ImportError:
+    # websockets 14 and earlier fallback
+    from websockets.server import serve as ws_serve
 
 from ably.realtime.connection import ConnectionEvent, ConnectionState
 from ably.transport.defaults import Defaults
@@ -10,6 +18,68 @@
 from test.ably.utils import BaseAsyncTestCase
 
 
+async def _relay(src, dst):
+    try:
+        async for msg in src:
+            await dst.send(msg)
+    except Exception:
+        pass
+
+
+class WsProxy:
+    """Local WS proxy that forwards to real Ably and lets tests trigger a normal close."""
+
+    def __init__(self, target_host: str):
+        self.target_host = target_host
+        self.server = None
+        self.port: int | None = None
+        self._close_event: asyncio.Event | None = None
+
+    async def _handler(self, client_ws):
+        # Create a fresh event for this connection; signal to drop the connection cleanly
+        self._close_event = asyncio.Event()
+        path = client_ws.request.path  # e.g. "/?key=...&format=json"
+        target_url = f"wss://{self.target_host}{path}"
+        try:
+            async with _ws_connect(target_url, ping_interval=None) as server_ws:
+                c2s = asyncio.create_task(_relay(client_ws, server_ws))
+                s2c = asyncio.create_task(_relay(server_ws, client_ws))
+                close_task = asyncio.create_task(self._close_event.wait())
+                try:
+                    await asyncio.wait([c2s, s2c, close_task], return_when=asyncio.FIRST_COMPLETED)
+                finally:
+                    c2s.cancel()
+                    s2c.cancel()
+                    close_task.cancel()
+        except Exception:
+            pass
+        # After _handler returns the websockets server sends a normal close frame (1000)
+
+    async def close_active_connection(self):
+        """Trigger a normal WS close (code 1000) on the currently active client connection.
+
+        Signals the handler to exit; the websockets server framework then sends the
+        close frame automatically when the handler coroutine returns.
+        """
+        if self._close_event:
+            self._close_event.set()
+
+    @property
+    def endpoint(self) -> str:
+        """Endpoint string to pass to AblyRealtime (combine with tls=False)."""
+        return f"127.0.0.1:{self.port}"
+
+    async def __aenter__(self):
+        self.server = await ws_serve(self._handler, "127.0.0.1", 0, ping_interval=None)
+        self.port = self.server.sockets[0].getsockname()[1]
+        return self
+
+    async def __aexit__(self, *args):
+        if self.server:
+            self.server.close()
+            await self.server.wait_closed()
+
+
 class TestRealtimeConnection(BaseAsyncTestCase):
     async def asyncSetUp(self):
         self.test_vars = await TestApp.get_test_vars()
@@ -399,3 +469,37 @@ async def on_protocol_message(msg):
         await asyncio.wait_for(ably.connection.once_async(ConnectionState.CONNECTED), timeout=5)
 
         await ably.close()
+
+    async def test_normal_ws_close_triggers_immediate_reconnection(self):
+        """Server normal WS close (code 1000) must trigger immediate reconnection.
+
+        Regression test: ConnectionClosedOK was silently swallowed and deactivate_transport
+        was never called, leaving the client disconnected until the idle timer fired.
+        """
+        async with WsProxy(self.test_vars["host"]) as proxy:
+            ably = await TestApp.get_ably_realtime(
+                disconnected_retry_timeout=500_000,
+                suspended_retry_timeout=500_000,
+                tls=False,
+                realtime_host=proxy.endpoint,
+            )
+
+            try:
+                await asyncio.wait_for(
+                    ably.connection.once_async(ConnectionState.CONNECTED), timeout=10
+                )
+
+                # Simulate server sending a normal WS close frame
+                await proxy.close_active_connection()
+
+                # Must go CONNECTING quickly — not after the 25 s idle timer
+                await asyncio.wait_for(
+                    ably.connection.once_async(ConnectionState.CONNECTING), timeout=1
+                )
+
+                # Must reconnect immediately — not after the 500 s retry timer
+                await asyncio.wait_for(
+                    ably.connection.once_async(ConnectionState.CONNECTED), timeout=10
+                )
+            finally:
+                await ably.close()
diff --git a/uv.lock b/uv.lock
index 0a0c446a..456f8d0f 100644
--- a/uv.lock
+++ b/uv.lock
@@ -10,7 +10,7 @@ resolution-markers = [
 
 [[package]]
 name = "ably"
-version = "2.1.2"
+version = "2.1.4"
 source = { editable = "." }
 dependencies = [
     { name = "h2", version = "4.1.0", source = { registry = "https://pypi.org/simple" }, marker = "python_full_version < '3.9'" },