diff --git a/llama_stack/distribution/server/server.py b/llama_stack/distribution/server/server.py
index 6c5e2506c..50cf44ec9 100644
--- a/llama_stack/distribution/server/server.py
+++ b/llama_stack/distribution/server/server.py
@@ -162,9 +162,10 @@ async def maybe_await(value):
     return value
 
 
-async def sse_generator(event_gen):
+async def sse_generator(event_gen_coroutine):
+    event_gen = await event_gen_coroutine
     try:
-        async for item in await event_gen:
+        async for item in event_gen:
             yield create_sse_event(item)
             await asyncio.sleep(0.01)
     except asyncio.CancelledError:
diff --git a/pyproject.toml b/pyproject.toml
index 47d845c30..209367c4b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -58,7 +58,16 @@ dev = [
     "ruamel.yaml",      # needed for openapi generator
 ]
 # These are the dependencies required for running unit tests.
-unit = ["sqlite-vec", "openai", "aiosqlite", "aiohttp", "pypdf", "chardet", "qdrant-client"]
+unit = [
+    "sqlite-vec",
+    "openai",
+    "aiosqlite",
+    "aiohttp",
+    "pypdf",
+    "chardet",
+    "qdrant-client",
+    "opentelemetry-exporter-otlp-proto-http"
+]
 # These are the core dependencies required for running integration tests. They are shared across all
 # providers. If a provider requires additional dependencies, please add them to your environment
 # separately. If you are using "uv" to execute your tests, you can use the "--with" flag to specify extra
diff --git a/tests/unit/server/test_sse.py b/tests/unit/server/test_sse.py
new file mode 100644
index 000000000..4a76bdc9b
--- /dev/null
+++ b/tests/unit/server/test_sse.py
@@ -0,0 +1,55 @@
+# Copyright (c) Meta Platforms, Inc. and affiliates.
+# All rights reserved.
+#
+# This source code is licensed under the terms described in the LICENSE file in
+# the root directory of this source tree.
+
+import asyncio
+
+import pytest
+
+from llama_stack.distribution.server.server import create_sse_event, sse_generator
+
+
+@pytest.mark.asyncio
+async def test_sse_generator_basic():
+    # An AsyncIterator wrapped in an Awaitable, just like our web methods
+    async def async_event_gen():
+        async def event_gen():
+            yield "Test event 1"
+            yield "Test event 2"
+
+        return event_gen()
+
+    sse_gen = sse_generator(async_event_gen())
+    assert sse_gen is not None
+
+    # Test that the events are streamed correctly
+    seen_events = []
+    async for event in sse_gen:
+        seen_events.append(event)
+    assert len(seen_events) == 2
+    assert seen_events[0] == create_sse_event("Test event 1")
+    assert seen_events[1] == create_sse_event("Test event 2")
+
+
+@pytest.mark.asyncio
+async def test_sse_generator_client_disconnected():
+    # An AsyncIterator wrapped in an Awaitable, just like our web methods
+    async def async_event_gen():
+        async def event_gen():
+            yield "Test event 1"
+            # Simulate a client disconnect before emitting event 2
+            raise asyncio.CancelledError()
+
+        return event_gen()
+
+    sse_gen = sse_generator(async_event_gen())
+    assert sse_gen is not None
+
+    # Start reading the events, ensuring this doesn't raise an exception
+    seen_events = []
+    async for event in sse_gen:
+        seen_events.append(event)
+    assert len(seen_events) == 1
+    assert seen_events[0] == create_sse_event("Test event 1")
diff --git a/uv.lock b/uv.lock
index cd82a016c..e6368f131 100644
--- a/uv.lock
+++ b/uv.lock
@@ -1458,6 +1458,7 @@ unit = [
     { name = "aiosqlite" },
     { name = "chardet" },
     { name = "openai" },
+    { name = "opentelemetry-exporter-otlp-proto-http" },
     { name = "pypdf" },
     { name = "qdrant-client" },
     { name = "sqlite-vec" },
@@ -1491,6 +1492,7 @@ requires-dist = [
     { name = "openai", marker = "extra == 'test'" },
     { name = "openai", marker = "extra == 'unit'" },
     { name = "opentelemetry-exporter-otlp-proto-http", marker = "extra == 'test'" },
+    { name = "opentelemetry-exporter-otlp-proto-http", marker = "extra == 'unit'" },
     { name = "opentelemetry-sdk", marker = "extra == 'test'" },
     { name = "pandas", marker = "extra == 'ui'" },
     { name = "pillow" },