diff --git a/crates/rust-mcp-transport/src/client_sse.rs b/crates/rust-mcp-transport/src/client_sse.rs
index e7acb41..9a7183e 100644
--- a/crates/rust-mcp-transport/src/client_sse.rs
+++ b/crates/rust-mcp-transport/src/client_sse.rs
@@ -206,6 +206,8 @@ where
         let max_retries = self.max_retries;
         let retry_delay = self.retry_delay;
 
+        let custom_headers = self.custom_headers.clone();
+
         let read_stream = SseStream {
             sse_client,
             sse_url,
@@ -218,7 +220,7 @@ where
         let cancellation_token_sse = cancellation_token.clone();
         let sse_task_handle = tokio::spawn(async move {
             read_stream
-                .run(endpoint_event_tx, cancellation_token_sse)
+                .run(endpoint_event_tx, cancellation_token_sse, &custom_headers)
                 .await;
         });
         let mut sse_task_lock = self.sse_task.write().await;
diff --git a/crates/rust-mcp-transport/src/utils/sse_stream.rs b/crates/rust-mcp-transport/src/utils/sse_stream.rs
index aac29c8..e71ff18 100644
--- a/crates/rust-mcp-transport/src/utils/sse_stream.rs
+++ b/crates/rust-mcp-transport/src/utils/sse_stream.rs
@@ -1,4 +1,5 @@
 use bytes::{Bytes, BytesMut};
+use reqwest::header::{HeaderMap, HeaderValue, ACCEPT};
 use reqwest::Client;
 use std::time::Duration;
 use tokio::sync::{mpsc, oneshot};
@@ -39,11 +40,15 @@ impl SseStream {
         &self,
         mut endpoint_event_tx: Option<oneshot::Sender<Option<String>>>,
         cancellation_token: CancellationToken,
+        custom_headers: &Option<HeaderMap>,
     ) {
         let mut retry_count = 0;
         let mut buffer = BytesMut::with_capacity(BUFFER_CAPACITY);
         let mut endpoint_event_received = false;
 
+        let mut request_headers: HeaderMap = custom_headers.to_owned().unwrap_or_default();
+        request_headers.insert(ACCEPT, HeaderValue::from_static("text/event-stream"));
+
         // Main loop for reconnection attempts
         loop {
             // Check for cancellation before attempting connection
@@ -56,7 +61,7 @@ impl SseStream {
             let response = match self
                 .sse_client
                 .get(&self.sse_url)
-                .header("Accept", "text/event-stream")
+                .headers(request_headers.clone())
                 .send()
                 .await
             {
@@ -86,7 +91,18 @@ impl SseStream {
                     chunk = stream.next() => {
                         match chunk {
                             Some(chunk) => chunk,
-                            None => break, // Stream ended, break from inner loop to reconnect
+                            None => {
+                                if retry_count >= self.max_retries {
+                                    tracing::error!("Max retries ({}) reached, giving up",self.max_retries);
+                                    if let Some(tx) = endpoint_event_tx.take() {
+                                        let _ = tx.send(None);
+                                    }
+                                    return;
+                                }
+                                retry_count += 1;
+                                time::sleep(self.retry_delay).await;
+                                break; // Stream ended, break from inner loop to reconnect
+                            }
                         }
                     }
                     // Wait for cancellation
@@ -177,4 +193,81 @@ impl SseStream {
 }
 
 #[cfg(test)]
-mod tests {}
+mod tests {
+    use super::*;
+    use crate::utils::CancellationTokenSource;
+    use reqwest::header::{HeaderMap, HeaderValue};
+    use tokio::time::Duration;
+    use wiremock::matchers::{header, method, path};
+    use wiremock::{Mock, MockServer, ResponseTemplate};
+
+    #[tokio::test]
+    async fn test_sse_client_sends_custom_headers_on_connection() {
+        // Start WireMock server
+        let mock_server = MockServer::builder().start().await;
+
+        // Create WireMock stub with connection close
+        Mock::given(method("GET"))
+            .and(path("/sse"))
+            .and(header("Accept", "text/event-stream"))
+            .and(header("X-Custom-Header", "CustomValue"))
+            .respond_with(
+                ResponseTemplate::new(200)
+                    .set_body_string("event: endpoint\ndata: mock-endpoint\n\n")
+                    .append_header("Content-Type", "text/event-stream")
+                    .append_header("Connection", "close"), // Ensure connection closes
+            )
+            .expect(1) // Expect exactly one request
+            .mount(&mock_server)
+            .await;
+
+        // Create custom headers
+        let mut custom_headers = HeaderMap::new();
+        custom_headers.insert("X-Custom-Header", HeaderValue::from_static("CustomValue"));
+
+        // Create channel and SseStream
+        let (read_tx, _read_rx) = mpsc::channel::<Bytes>(64);
+        let sse = SseStream {
+            sse_client: reqwest::Client::new(),
+            sse_url: format!("{}/sse", mock_server.uri()),
+            max_retries: 0, // to receive one request only
+            retry_delay: Duration::from_millis(100),
+            read_tx,
+        };
+
+        // Create cancellation token and endpoint channel
+        let (cancellation_source, cancellation_token) = CancellationTokenSource::new();
+        let (endpoint_event_tx, endpoint_event_rx) = oneshot::channel::<Option<String>>();
+
+        // Spawn the run method
+        let sse_task = tokio::spawn({
+            async move {
+                sse.run(
+                    Some(endpoint_event_tx),
+                    cancellation_token,
+                    &Some(custom_headers),
+                )
+                .await;
+            }
+        });
+
+        // Wait for the endpoint event or timeout
+        let event_result =
+            tokio::time::timeout(Duration::from_millis(500), endpoint_event_rx).await;
+
+        // Cancel the task to ensure loop exits
+        let _ = cancellation_source.cancel();
+
+        // Wait for the task to complete with a timeout
+        match tokio::time::timeout(Duration::from_secs(1), sse_task).await {
+            Ok(result) => result.unwrap(),
+            Err(_) => panic!("Test timed out after 1 second"),
+        }
+
+        // Verify the endpoint event was received
+        match event_result {
+            Ok(Ok(Some(event))) => assert_eq!(event, "mock-endpoint", "Expected endpoint event"),
+            _ => panic!("Did not receive expected endpoint event"),
+        }
+    }
+}