diff --git a/p2p/transport/tcpreuse/listener.go b/p2p/transport/tcpreuse/listener.go
index eacd9aeacf..6ab1918ec3 100644
--- a/p2p/transport/tcpreuse/listener.go
+++ b/p2p/transport/tcpreuse/listener.go
@@ -109,19 +109,19 @@ func (t *ConnMgr) DemultiplexedListen(laddr ma.Multiaddr, connType Demultiplexed
 	}
 
 	ctx, cancel := context.WithCancel(context.Background())
-	cancelFunc := func() error {
-		cancel()
+	removeFunc := func() error {
 		t.mx.Lock()
 		defer t.mx.Unlock()
 		delete(t.listeners, laddr.String())
 		delete(t.listeners, gmal.Multiaddr().String())
-		return gmal.Close()
+		return nil
 	}
 	ml = &multiplexedListener{
 		GatedMaListener: gmal,
 		listeners:       make(map[DemultiplexedConnType]*demultiplexedListener),
 		ctx:             ctx,
-		closeFn:         cancelFunc,
+		cancel:          cancel,
+		closeFn:         removeFunc,
 	}
 	t.listeners[laddr.String()] = ml
 	t.listeners[gmal.Multiaddr().String()] = ml
@@ -146,8 +146,12 @@ type multiplexedListener struct {
 	mx        sync.RWMutex
 
 	ctx     context.Context
+	cancel  context.CancelFunc
 	closeFn func() error
 	wg      sync.WaitGroup
+
+	closeOnce sync.Once
+	closeErr  error
 }
 
 var ErrListenerExists = errors.New("listener already exists for this conn type on this address")
@@ -159,6 +163,9 @@ func (m *multiplexedListener) DemultiplexedListen(connType DemultiplexedConnType
 
 	m.mx.Lock()
 	defer m.mx.Unlock()
+	if m.ctx.Err() != nil {
+		return nil, transport.ErrListenerClosed
+	}
 	if _, ok := m.listeners[connType]; ok {
 		return nil, ErrListenerExists
 	}
@@ -249,14 +256,20 @@ func (m *multiplexedListener) run() error {
 }
 
 func (m *multiplexedListener) Close() error {
-	m.mx.Lock()
-	for _, l := range m.listeners {
-		l.cancelFunc()
-	}
-	err := m.closeListener()
-	m.mx.Unlock()
-	m.wg.Wait()
-	return err
+	m.closeOnce.Do(func() {
+		m.mx.Lock()
+		m.cancel()
+		for _, l := range m.listeners {
+			l.cancelFunc()
+		}
+		m.mx.Unlock()
+
+		// closeFn acquires the ConnMgr lock. Call it without holding m.mx,
+		// since DemultiplexedListen acquires those locks in the opposite order.
+		m.closeErr = m.closeListener()
+		m.wg.Wait()
+	})
+	return m.closeErr
 }
 
 func (m *multiplexedListener) closeListener() error {
@@ -267,14 +280,11 @@ func (m *multiplexedListener) closeListener() error {
 
 func (m *multiplexedListener) removeDemultiplexedListener(c DemultiplexedConnType) {
 	m.mx.Lock()
-	defer m.mx.Unlock()
-
 	delete(m.listeners, c)
-	if len(m.listeners) == 0 {
-		m.closeListener()
-		m.mx.Unlock()
-		m.wg.Wait()
-		m.mx.Lock()
+	empty := len(m.listeners) == 0
+	m.mx.Unlock()
+	if empty {
+		_ = m.Close()
 	}
 }
 
diff --git a/p2p/transport/tcpreuse/listener_test.go b/p2p/transport/tcpreuse/listener_test.go
index 3095dd6c26..de6faec0a3 100644
--- a/p2p/transport/tcpreuse/listener_test.go
+++ b/p2p/transport/tcpreuse/listener_test.go
@@ -8,6 +8,7 @@ import (
 	"crypto/tls"
 	"crypto/x509"
 	"crypto/x509/pkix"
+	"errors"
 	"fmt"
 	"math/big"
 	"net"
@@ -67,6 +68,94 @@ func (ml *maListener) Accept() (manet.Conn, error) {
 	return c, err
 }
 
+type blockingCloseGatedMaListener struct {
+	transport.GatedMaListener
+	closeStarted  chan struct{}
+	continueClose chan struct{}
+}
+
+func (l *blockingCloseGatedMaListener) Close() error {
+	close(l.closeStarted)
+	<-l.continueClose
+	return l.GatedMaListener.Close()
+}
+
+func TestConcurrentListenAndCloseDoesNotDeadlock(t *testing.T) {
+	cm := NewConnMgr(false, upgrader(t))
+	listenAddr := ma.StringCast("/ip4/127.0.0.1/tcp/0")
+	gmal, err := cm.gatedMaListen(listenAddr)
+	require.NoError(t, err)
+
+	closeStarted := make(chan struct{})
+	continueClose := make(chan struct{})
+	ctx, cancel := context.WithCancel(context.Background())
+	ml := &multiplexedListener{
+		GatedMaListener: &blockingCloseGatedMaListener{
+			GatedMaListener: gmal,
+			closeStarted:    closeStarted,
+			continueClose:   continueClose,
+		},
+		listeners: make(map[DemultiplexedConnType]*demultiplexedListener),
+		ctx:       ctx,
+		cancel:    cancel,
+	}
+	ml.closeFn = func() error {
+		cm.mx.Lock()
+		defer cm.mx.Unlock()
+		delete(cm.listeners, listenAddr.String())
+		delete(cm.listeners, gmal.Multiaddr().String())
+		return nil
+	}
+	cm.mx.Lock()
+	cm.listeners[listenAddr.String()] = ml
+	cm.listeners[gmal.Multiaddr().String()] = ml
+	cm.mx.Unlock()
+
+	closeDone := make(chan error, 1)
+	go func() { closeDone <- ml.Close() }()
+	<-closeStarted // Pause closure while starting a concurrent listener registration.
+
+	listenDone := make(chan error, 1)
+	go func() {
+		_, err := cm.DemultiplexedListen(gmal.Multiaddr(), DemultiplexedConnType_HTTP)
+		listenDone <- err
+	}()
+
+	// On the buggy path, DemultiplexedListen holds cm.mx and blocks on ml.mx.
+	// With the fix, it may instead observe the canceled listener and return.
+	var listenErr error
+	listenReturned := false
+	require.Eventually(t, func() bool {
+		select {
+		case listenErr = <-listenDone:
+			listenReturned = true
+			return true
+		default:
+		}
+		if cm.mx.TryLock() {
+			cm.mx.Unlock()
+			return false
+		}
+		return true
+	}, time.Second, time.Millisecond)
+	close(continueClose)
+
+	select {
+	case err := <-closeDone:
+		require.NoError(t, err)
+	case <-time.After(time.Second):
+		t.Fatal("multiplexed listener Close deadlocked with DemultiplexedListen")
+	}
+	if !listenReturned {
+		select {
+		case listenErr = <-listenDone:
+		case <-time.After(time.Second):
+			t.Fatal("DemultiplexedListen deadlocked with multiplexed listener Close")
+		}
+	}
+	require.True(t, listenErr == nil || errors.Is(listenErr, transport.ErrListenerClosed), listenErr)
+}
+
 type wsHandler struct{ conns chan *websocket.Conn }
 
 func (wh wsHandler) ServeHTTP(w http.ResponseWriter, r *http.Request) {