diff --git a/.gitignore b/.gitignore
index de9c32083..efb751920 100644
--- a/.gitignore
+++ b/.gitignore
@@ -12,3 +12,9 @@ tarballs/
 .stack-work/
 *~
 *#
+
+# No nix & direnv setup
+flake.nix
+flake.lock
+.envrc
+.direnv
\ No newline at end of file
diff --git a/conduit-extra/ChangeLog.md b/conduit-extra/ChangeLog.md
index d686cdcac..bc18c8d68 100644
--- a/conduit-extra/ChangeLog.md
+++ b/conduit-extra/ChangeLog.md
@@ -1,5 +1,9 @@
 # ChangeLog for conduit-extra
 
+## 1.3.8
+
+* Gracefully handle when a subprocess started using `Data.Conduit.Process.sourceProcessWithStreams` closes its stdin. Fixes [#523](https://github.com/snoyberg/conduit/issues/523)
+
 ## 1.3.7
 
 * Allow Data.Conduit.Network.Unix on Windows [#518](https://github.com/snoyberg/conduit/pull/518)
diff --git a/conduit-extra/Data/Conduit/Process.hs b/conduit-extra/Data/Conduit/Process.hs
index 1a340985a..70d606169 100644
--- a/conduit-extra/Data/Conduit/Process.hs
+++ b/conduit-extra/Data/Conduit/Process.hs
@@ -39,7 +39,8 @@ import Data.Conduit.Binary (sourceHandle, sinkHandle, sinkHandleBuilder, sinkHan
 import Data.ByteString (ByteString)
 import Data.ByteString.Builder (Builder)
 import Control.Concurrent.Async (runConcurrently, Concurrently(..))
-import Control.Exception (onException, throwIO, finally, bracket)
+import Control.Exception (onException, throwIO, finally, bracket, catch)
+import System.IO.Error (ioeGetErrorType, isResourceVanishedErrorType)
 #if (__GLASGOW_HASKELL__ < 710)
 import Control.Applicative ((<$>), (<*>))
 #endif
@@ -143,16 +144,24 @@ sourceProcessWithStreams cp producerStdin consumerStdout consumerStderr =
      , (sourceStdout, closeStdout)
      , (sourceStderr, closeStderr)
      , sph) <- streamingProcess cp
+    let safeSinkStdin = sinkStdin `catchC` ignoreStdinClosed
+        safeCloseStdin = closeStdin `catch` ignoreStdinClosed
     (_, resStdout, resStderr) <-
       runConcurrently (
         (,,)
-        <$> Concurrently ((unliftIO u $ runConduit $ producerStdin .| sinkStdin) `finally` closeStdin)
+        <$> Concurrently ((unliftIO u $ runConduit $ producerStdin .| safeSinkStdin) `finally` safeCloseStdin)
         <*> Concurrently (unliftIO u $ runConduit $ sourceStdout .| consumerStdout)
         <*> Concurrently (unliftIO u $ runConduit $ sourceStderr .| consumerStderr))
       `finally` (closeStdout >> closeStderr)
       `onException` terminateStreamingProcess sph
     ec <- waitForStreamingProcess sph
     return (ec, resStdout, resStderr)
+  where
+    ignoreStdinClosed :: forall m. (MonadIO m) => IOError -> m ()
+    ignoreStdinClosed e =
+      if isResourceVanishedErrorType (ioeGetErrorType e)
+        then pure ()
+        else liftIO (throwIO e)
 
 -- | Like @sourceProcessWithStreams@ but providing the command to be run as
 -- a @String@.
diff --git a/conduit-extra/conduit-extra.cabal b/conduit-extra/conduit-extra.cabal
index 0f316e7fa..63704041e 100644
--- a/conduit-extra/conduit-extra.cabal
+++ b/conduit-extra/conduit-extra.cabal
@@ -1,6 +1,6 @@
 Cabal-version:       >=1.10
 Name:                conduit-extra
-Version:             1.3.7
+Version:             1.3.8
 Synopsis:            Batteries included conduit: adapters for common libraries.
 Description:
     The conduit package itself maintains relative small dependencies. The purpose of this package is to collect commonly used utility functions wrapping other library dependencies, without depending on heavier-weight dependencies. The basic idea is that this package should only depend on haskell-platform packages and conduit.
diff --git a/conduit-extra/test/Data/Conduit/ProcessSpec.hs b/conduit-extra/test/Data/Conduit/ProcessSpec.hs
index fffefd890..a0ef836ef 100644
--- a/conduit-extra/test/Data/Conduit/ProcessSpec.hs
+++ b/conduit-extra/test/Data/Conduit/ProcessSpec.hs
@@ -5,6 +5,7 @@ module Data.Conduit.ProcessSpec (spec, main) where
 import Test.Hspec
 import Test.Hspec.QuickCheck (prop)
 import Data.Conduit
+import qualified Data.Conduit.Combinators as CC
 import qualified Data.Conduit.List as CL
 import Data.Conduit.Process
 import Control.Concurrent.Async (concurrently)
@@ -77,6 +78,14 @@ spec = describe "Data.Conduit.Process" $ do
                              CL.consume -- stdout
                              CL.consume -- stderr
                 `shouldReturn` (ExitSuccess, [mystr], [])
+    it "gracefully handles closed stdin" $ do
+        let blob = L.iterate (+1) 0
+            blobHead = L.toStrict $ L.take 10000 blob
+        sourceCmdWithStreams "head -c 10000"
+                             (CC.sourceLazy blob)
+                             (L.toStrict <$> CC.sinkLazy) -- stdout
+                             CL.consume -- stderr
+                `shouldReturn` (ExitSuccess, blobHead, [])
 #endif
     it "blocking vs non-blocking" $ do
         (ClosedStream, ClosedStream, ClosedStream, cph) <- streamingProcess (shell "sleep 1")