diff --git a/spring-webflux/src/main/java/org/springframework/web/reactive/function/client/DefaultWebClient.java b/spring-webflux/src/main/java/org/springframework/web/reactive/function/client/DefaultWebClient.java
index dffd076293..36e536192f 100644
--- a/spring-webflux/src/main/java/org/springframework/web/reactive/function/client/DefaultWebClient.java
+++ b/spring-webflux/src/main/java/org/springframework/web/reactive/function/client/DefaultWebClient.java
@@ -26,6 +26,7 @@ import java.util.Collections;
 import java.util.LinkedHashMap;
 import java.util.List;
 import java.util.Map;
+import java.util.concurrent.atomic.AtomicBoolean;
 import java.util.function.Consumer;
 import java.util.function.Function;
 import java.util.function.IntPredicate;
@@ -37,6 +38,7 @@ import io.micrometer.observation.contextpropagation.ObservationThreadLocalAccess
 import org.reactivestreams.Publisher;
 import reactor.core.publisher.Flux;
 import reactor.core.publisher.Mono;
+import reactor.core.publisher.SignalType;
 import reactor.util.context.Context;
 
 import org.springframework.core.ParameterizedTypeReference;
@@ -455,13 +457,16 @@ class DefaultWebClient implements WebClient {
 				if (this.contextModifier != null) {
 					responseMono = responseMono.contextWrite(this.contextModifier);
 				}
+				final AtomicBoolean responseReceived = new AtomicBoolean();
 				return responseMono
+						.doOnNext(response -> responseReceived.set(true))
 						.doOnError(observationContext::setError)
-						.doOnCancel(() -> {
-							observationContext.setAborted(true);
+						.doFinally(signalType -> {
+							if (signalType == SignalType.CANCEL && !responseReceived.get()) {
+								observationContext.setAborted(true);
+							}
 							observation.stop();
 						})
-						.doOnTerminate(observation::stop)
 						.contextWrite(context -> context.put(ObservationThreadLocalAccessor.KEY, observation));
 			});
 		}
diff --git a/spring-webflux/src/test/java/org/springframework/web/reactive/function/client/WebClientObservationTests.java b/spring-webflux/src/test/java/org/springframework/web/reactive/function/client/WebClientObservationTests.java
index a94a5671b2..c1fe179a9d 100644
--- a/spring-webflux/src/test/java/org/springframework/web/reactive/function/client/WebClientObservationTests.java
+++ b/spring-webflux/src/test/java/org/springframework/web/reactive/function/client/WebClientObservationTests.java
@@ -18,6 +18,9 @@ package org.springframework.web.reactive.function.client;
 
 import java.time.Duration;
 import java.util.Collections;
+import java.util.List;
+import java.util.Optional;
+import java.util.OptionalLong;
 
 import io.micrometer.observation.Observation;
 import io.micrometer.observation.ObservationHandler;
@@ -27,10 +30,13 @@ import io.micrometer.observation.tck.TestObservationRegistryAssert;
 import org.junit.jupiter.api.BeforeEach;
 import org.junit.jupiter.api.Test;
 import org.mockito.ArgumentCaptor;
+import reactor.core.publisher.Flux;
 import reactor.core.publisher.Mono;
 import reactor.test.StepVerifier;
 
+import org.springframework.http.HttpHeaders;
 import org.springframework.http.HttpStatus;
+import org.springframework.http.MediaType;
 
 import static org.assertj.core.api.Assertions.assertThat;
 import static org.mockito.ArgumentMatchers.any;
@@ -59,7 +65,10 @@ class WebClientObservationTests {
 	void setup() {
 		ClientResponse mockResponse = mock();
 		when(mockResponse.statusCode()).thenReturn(HttpStatus.OK);
+		when(mockResponse.headers()).thenReturn(new MockClientHeaders());
 		when(mockResponse.bodyToMono(Void.class)).thenReturn(Mono.empty());
+		when(mockResponse.bodyToFlux(String.class)).thenReturn(Flux.just("first", "second"));
+		when(mockResponse.releaseBody()).thenReturn(Mono.empty());
 		given(this.exchangeFunction.exchange(this.request.capture())).willReturn(Mono.just(mockResponse));
 		this.builder = WebClient.builder().baseUrl("/base").exchangeFunction(this.exchangeFunction).observationRegistry(this.observationRegistry);
 		this.observationRegistry.observationConfig().observationHandler(new HeaderInjectingHandler());
@@ -114,6 +123,16 @@ class WebClientObservationTests {
 				.hasLowCardinalityKeyValue("status", "CLIENT_ERROR");
 	}
 
+	@Test
+	void recordsObservationForCancelledExchangeDuringResponse() {
+		StepVerifier.create(this.builder.build().get().uri("/path").retrieve().bodyToFlux(String.class).take(1))
+				.expectNextCount(1)
+				.expectComplete()
+				.verify(Duration.ofSeconds(5));
+		assertThatHttpObservation().hasLowCardinalityKeyValue("outcome", "SUCCESS")
+				.hasLowCardinalityKeyValue("status", "200");
+	}
+
 	@Test
 	void setsCurrentObservationInReactorContext() {
 		ExchangeFilterFunction assertionFilter = new ExchangeFilterFunction() {
@@ -130,7 +149,7 @@ class WebClientObservationTests {
 		this.builder.filter(assertionFilter).build().get().uri("/resource/{id}", 42)
 				.retrieve().bodyToMono(Void.class)
 				.block(Duration.ofSeconds(10));
-			verifyAndGetRequest();
+		verifyAndGetRequest();
 	}
 
 	@Test
@@ -170,4 +189,29 @@ class WebClientObservationTests {
 		}
 	}
 
+	static class MockClientHeaders implements ClientResponse.Headers {
+
+		private HttpHeaders headers = new HttpHeaders();
+
+		@Override
+		public OptionalLong contentLength() {
+			return OptionalLong.empty();
+		}
+
+		@Override
+		public Optional<MediaType> contentType() {
+			return Optional.empty();
+		}
+
+		@Override
+		public List<String> header(String headerName) {
+			return Collections.emptyList();
+		}
+
+		@Override
+		public HttpHeaders asHttpHeaders() {
+			return this.headers;
+		}
+	}
+
 }