diff --git a/lib/livebook/runtime/erl_dist/runtime_server.ex b/lib/livebook/runtime/erl_dist/runtime_server.ex
index 1082c39e1..d55cbb8c3 100644
--- a/lib/livebook/runtime/erl_dist/runtime_server.ex
+++ b/lib/livebook/runtime/erl_dist/runtime_server.ex
@@ -576,6 +576,7 @@ defmodule Livebook.Runtime.ErlDist.RuntimeServer do
           put_in(state.smart_cells[ref], info)
 
         {:error, error} ->
+          send(state.owner, {:runtime_smart_cell_down, ref})
           Logger.error("failed to start smart cell - #{Exception.format_exit(error)}")
           state
       end
@@ -594,10 +595,10 @@ defmodule Livebook.Runtime.ErlDist.RuntimeServer do
   end
 
   def handle_cast({:stop_smart_cell, ref}, state) do
-    {%{pid: pid}, state} = pop_in(state.smart_cells[ref])
+    {info, state} = pop_in(state.smart_cells[ref])
 
-    if pid do
-      DynamicSupervisor.terminate_child(state.smart_cell_supervisor, pid)
+    if info do
+      DynamicSupervisor.terminate_child(state.smart_cell_supervisor, info.pid)
     end
 
     {:noreply, state}
diff --git a/test/livebook/runtime/erl_dist/runtime_server_test.exs b/test/livebook/runtime/erl_dist/runtime_server_test.exs
index 92dddd8ef..bfb77efcb 100644
--- a/test/livebook/runtime/erl_dist/runtime_server_test.exs
+++ b/test/livebook/runtime/erl_dist/runtime_server_test.exs
@@ -242,6 +242,10 @@ defmodule Livebook.Runtime.ErlDist.RuntimeServerTest do
 
       @impl true
       def init(info) do
+        if info.attrs["crash"] do
+          raise "crash"
+        end
+
         {:ok, info}
       end
 
@@ -274,6 +278,13 @@ defmodule Livebook.Runtime.ErlDist.RuntimeServerTest do
       assert_receive {:runtime_smart_cell_down, "ref"}
     end
 
+    @tag opts: @opts
+    @tag capture_log: true
+    test "notifies runtime owner when a smart cell fails to start", %{pid: pid} do
+      RuntimeServer.start_smart_cell(pid, "dumb", "ref", %{"crash" => true}, [])
+      assert_receive {:runtime_smart_cell_down, "ref"}
+    end
+
     @tag opts: @opts
     test "once started scans binding and sends the result to the cell server", %{pid: pid} do
       RuntimeServer.start_smart_cell(pid, "dumb", "ref", %{}, [])
@@ -304,5 +315,17 @@ defmodule Livebook.Runtime.ErlDist.RuntimeServerTest do
       RuntimeServer.evaluate_code(pid, :elixir, "1 + 1", {:c1, :e1}, [], smart_cell_ref: "ref")
       assert_receive {:smart_cell_debug, "ref", :handle_info, :scan_eval_result_ping}
     end
+
+    @tag opts: @opts
+    test "ignores stop request for stopped smart cells", %{pid: pid} do
+      RuntimeServer.start_smart_cell(pid, "dumb", "ref", %{}, [])
+      assert_receive {:runtime_smart_cell_started, "ref", %{js_view: %{pid: smart_cell_pid}}}
+      Process.exit(smart_cell_pid, :crashed)
+      assert_receive {:runtime_smart_cell_down, "ref"}
+      RuntimeServer.stop_smart_cell(pid, "ref")
+
+      # The server should still be operational
+      RuntimeServer.evaluate_code(pid, :elixir, "1 + 1", {:c1, :e1}, [])
+    end
   end
 end