diff --git a/plugin/forward/forward.go b/plugin/forward/forward.go
index cec1adb9c..e0a9f7133 100644
--- a/plugin/forward/forward.go
+++ b/plugin/forward/forward.go
@@ -191,6 +191,7 @@ func (f *Forward) ServeDNS(ctx context.Context, w dns.ResponseWriter, r *dns.Msg
 				proxy.Healthcheck()
 			}
 
+			fails++
 			if fails < len(f.proxies) {
 				continue
 			}
diff --git a/plugin/forward/forward_test.go b/plugin/forward/forward_test.go
index aca58cbf9..0f2b02ae5 100644
--- a/plugin/forward/forward_test.go
+++ b/plugin/forward/forward_test.go
@@ -1,8 +1,11 @@
 package forward
 
 import (
+	"context"
+	"net"
 	"strings"
 	"testing"
+	"time"
 
 	"github.com/coredns/caddy"
 	"github.com/coredns/caddy/caddyfile"
@@ -10,6 +13,10 @@ import (
 	"github.com/coredns/coredns/plugin/dnstap"
 	"github.com/coredns/coredns/plugin/pkg/proxy"
 	"github.com/coredns/coredns/plugin/pkg/transport"
+
+	"github.com/miekg/dns"
+	"github.com/opentracing/opentracing-go"
+	"github.com/opentracing/opentracing-go/mocktracer"
 )
 
 func TestList(t *testing.T) {
@@ -74,3 +81,57 @@ func TestSetTapPlugin(t *testing.T) {
 		t.Error("Unexpected order of dnstap plugins")
 	}
 }
+
+type mockResponseWriter struct{}
+
+func (m *mockResponseWriter) LocalAddr() net.Addr         { return nil }
+func (m *mockResponseWriter) RemoteAddr() net.Addr        { return nil }
+func (m *mockResponseWriter) WriteMsg(msg *dns.Msg) error { return nil }
+func (m *mockResponseWriter) Write([]byte) (int, error)   { return 0, nil }
+func (m *mockResponseWriter) Close() error                { return nil }
+func (m *mockResponseWriter) TsigStatus() error           { return nil }
+func (m *mockResponseWriter) TsigTimersOnly(bool)         {}
+func (m *mockResponseWriter) Hijack()                     {}
+
+// TestForward_Regression_NoBusyLoop tests that the ServeDNS function does
+// not enter an infinite busy loop when the upstream DNS server refuses
+// the connection.
+func TestForward_Regression_NoBusyLoop(t *testing.T) {
+	f := New()
+
+	// ForceTCP ensures that connection refused errors happen immediately on Dial
+	f.opts.ForceTCP = true
+
+	// Disable healthcheck
+	f.maxfails = 0
+
+	// Assume nothing is listening on this port, so the connection will be refused.
+	p := proxy.NewProxy("forward", "127.0.0.1:54321", "tcp")
+	f.SetProxy(p)
+
+	// Create a mock tracer to count the number of connection attempts
+	tracer := mocktracer.New()
+	span := tracer.StartSpan("test")
+
+	// Create a context with the span and a short timeout
+	ctx := opentracing.ContextWithSpan(context.Background(), span)
+	timeout := 500 * time.Millisecond
+	ctx, cancel := context.WithTimeout(ctx, timeout)
+	defer cancel()
+
+	req := new(dns.Msg)
+	req.SetQuestion("example.com.", dns.TypeA)
+
+	rw := &mockResponseWriter{}
+
+	_, err := f.ServeDNS(ctx, rw, req)
+	spans := tracer.FinishedSpans()
+
+	if err == nil {
+		t.Errorf("Expected error from ServeDNS due to connection refused, got nil")
+	}
+
+	if len(spans) != 1 {
+		t.Errorf("Expected 1 span, got %d", len(spans))
+	}
+}