diff --git a/ChangeLog.md b/ChangeLog.md
index 063b500e7..2a0819855 100644
--- a/ChangeLog.md
+++ b/ChangeLog.md
@@ -6,6 +6,8 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/) a
 
 ## [Unreleased]
 
+- fixed closing connection on failed authentication (#ES-772)
+
 ## [6.8.1] - 2020-12-22
 
 - fixed ignoring internal endpoints in acquireHostList (#DEVSUP-673)
diff --git a/src/main/java/com/arangodb/internal/velocystream/VstCommunication.java b/src/main/java/com/arangodb/internal/velocystream/VstCommunication.java
index 01625e7bd..0c1bcfd9c 100644
--- a/src/main/java/com/arangodb/internal/velocystream/VstCommunication.java
+++ b/src/main/java/com/arangodb/internal/velocystream/VstCommunication.java
@@ -22,7 +22,12 @@
 
 import com.arangodb.ArangoDBException;
 import com.arangodb.internal.ArangoDefaults;
-import com.arangodb.internal.net.*;
+import com.arangodb.internal.net.AccessType;
+import com.arangodb.internal.net.ArangoDBRedirectException;
+import com.arangodb.internal.net.Host;
+import com.arangodb.internal.net.HostDescription;
+import com.arangodb.internal.net.HostHandle;
+import com.arangodb.internal.net.HostHandler;
 import com.arangodb.internal.util.HostUtils;
 import com.arangodb.internal.util.RequestUtils;
 import com.arangodb.internal.util.ResponseUtils;
@@ -87,7 +92,7 @@ protected synchronized C connect(final HostHandle hostHandle, final AccessType a
                     connection.open();
                     hostHandler.success();
                     if (user != null) {
-                        authenticate(connection);
+                        tryAuthenticate(connection);
                     }
                     hostHandler.confirm();
                     return connection;
@@ -111,6 +116,15 @@ protected synchronized C connect(final HostHandle hostHandle, final AccessType a
         }
     }
 
+    private void tryAuthenticate(final C connection) {
+        try {
+            authenticate(connection);
+        } catch (final ArangoDBException authException) {
+            connection.close();
+            throw authException;
+        }
+    }
+
     protected abstract void authenticate(final C connection);
 
     @Override