diff --git a/libp2p/stream_muxer/yamux/yamux.py b/libp2p/stream_muxer/yamux/yamux.py
index b2711e1a8..82c2b7514 100644
--- a/libp2p/stream_muxer/yamux/yamux.py
+++ b/libp2p/stream_muxer/yamux/yamux.py
@@ -576,7 +576,7 @@ async def handle_incoming(self) -> None:
                                 0,
                             )
                             await self.secured_conn.write(rst_header)
-                elif typ == TYPE_DATA and flags & FLAG_RST:
+                elif (typ == TYPE_DATA or typ == TYPE_WINDOW_UPDATE) and flags & FLAG_RST:
                     async with self.streams_lock:
                         if stream_id in self.streams:
                             logger.debug(
@@ -661,13 +661,23 @@ async def handle_incoming(self) -> None:
                     async with self.streams_lock:
                         if stream_id in self.streams:
                             stream = self.streams[stream_id]
-                            async with stream.window_lock:
+                            if flags & FLAG_FIN:
                                 logger.debug(
-                                    f"Received window update for stream"
-                                    f"{self.peer_id}:{stream_id},"
-                                    f" increment: {increment}"
+                                    f"Received FIN for stream {self.peer_id}:"
+                                    f"{stream_id}, marking recv_closed"
                                 )
-                                stream.send_window += increment
+                                self.streams[stream_id].recv_closed = True
+                                if self.streams[stream_id].send_closed:
+                                    self.streams[stream_id].closed = True
+                                self.stream_events[stream_id].set()
+                            else:
+                                async with stream.window_lock:
+                                    logger.debug(
+                                        f"Received window update for stream"
+                                        f"{self.peer_id}:{stream_id},"
+                                        f" increment: {increment}"
+                                    )
+                                    stream.send_window += increment
             except Exception as e:
                 # Special handling for expected IncompleteReadError on stream close
                 if isinstance(e, IncompleteReadError):
diff --git a/newsfragments/931.bugfix.rst b/newsfragments/931.bugfix.rst
new file mode 100644
index 000000000..da3fc0c55
--- /dev/null
+++ b/newsfragments/931.bugfix.rst
@@ -0,0 +1 @@
+Handle FLAG_FIN & FLAG_RST in TYPE_WINDOW_UPDATE frames