diff --git a/server/etcdserver/api/v3rpc/watch.go b/server/etcdserver/api/v3rpc/watch.go
index 3b82fe8d848b..c03fc8d9b50a 100644
--- a/server/etcdserver/api/v3rpc/watch.go
+++ b/server/etcdserver/api/v3rpc/watch.go
@@ -463,6 +463,7 @@ func (sws *serverWatchStream) sendLoop() {
 
 			var serr error
 			if !fragmented && !ok {
+				// gofail: var gRPCStreamSendWatchResponse struct{}
 				serr = sws.gRPCStream.Send(wr)
 			} else {
 				serr = sendFragments(wr, sws.maxRequestBytes, sws.gRPCStream.Send)
diff --git a/server/storage/mvcc/watchable_store.go b/server/storage/mvcc/watchable_store.go
index 33114fc51aaa..3ac0899c854c 100644
--- a/server/storage/mvcc/watchable_store.go
+++ b/server/storage/mvcc/watchable_store.go
@@ -39,6 +39,8 @@ var (
 	maxWatchersPerSync = 512
 )
 
+func GetChanBufLen() int { return chanBufLen }
+
 type watchable interface {
 	watch(key, end []byte, startRev int64, id WatchID, ch chan<- WatchResponse, fcs ...FilterFunc) (*watcher, cancelFunc)
 	progress(w *watcher)
diff --git a/tests/integration/v3_watch_test.go b/tests/integration/v3_watch_test.go
index 3d094c572814..dae13386f1d7 100644
--- a/tests/integration/v3_watch_test.go
+++ b/tests/integration/v3_watch_test.go
@@ -17,6 +17,7 @@ package integration
 import (
 	"bytes"
 	"context"
+	"errors"
 	"fmt"
 	"reflect"
 	"sort"
@@ -24,13 +25,17 @@ import (
 	"testing"
 	"time"
 
+	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 
 	pb "go.etcd.io/etcd/api/v3/etcdserverpb"
 	"go.etcd.io/etcd/api/v3/mvccpb"
+	"go.etcd.io/etcd/api/v3/v3rpc/rpctypes"
 	clientv3 "go.etcd.io/etcd/client/v3"
 	"go.etcd.io/etcd/server/v3/etcdserver/api/v3rpc"
+	"go.etcd.io/etcd/server/v3/storage/mvcc"
 	"go.etcd.io/etcd/tests/v3/framework/integration"
+	gofail "go.etcd.io/gofail/runtime"
 )
 
 // TestV3WatchFromCurrentRevision tests Watch APIs from current revision.
@@ -1467,3 +1472,56 @@ func TestV3WatchProgressWaitsForSync(t *testing.T) {
 		t.Fatal("Wrong revision in progress notification!")
 	}
 }
+
+// TestV3NoEventsLostOnCompact verifies that slow watchers exit with compacted watch response
+// if its next revision of events are compacted and no lost events sent to client.
+func TestV3NoEventsLostOnCompact(t *testing.T) {
+	if integration.ThroughProxy {
+		t.Skip("grpc proxy currently does not support requesting progress notifications")
+	}
+	integration.BeforeTest(t)
+	if len(gofail.List()) == 0 {
+		t.Skip("please run 'make gofail-enable' before running the test")
+	}
+	clus := integration.NewCluster(t, &integration.ClusterConfig{Size: 1})
+	defer clus.Terminate(t)
+
+	client := clus.RandClient()
+	ctx, cancel := context.WithTimeout(context.Background(), 5*time.Second)
+	defer cancel()
+
+	// sendLoop throughput is rate-limited to 1 event per second
+	require.NoError(t, gofail.Enable("gRPCStreamSendWatchResponse", `sleep("1s")`))
+	wch := client.Watch(ctx, "foo")
+
+	var rev int64 = 0
+	writeCount := mvcc.GetChanBufLen() * 11 / 10
+	for i := 0; i < writeCount; i++ {
+		resp, err := client.Put(ctx, "foo", "bar")
+		require.NoError(t, err)
+		rev = resp.Header.Revision
+	}
+	_, err := client.Compact(ctx, rev)
+	require.NoError(t, err)
+
+	time.Sleep(time.Second)
+	require.NoError(t, gofail.Disable("gRPCStreamSendWatchResponse"))
+
+	eventCount := 0
+	compacted := false
+	for resp := range wch {
+		err = resp.Err()
+		if err != nil {
+			if !errors.Is(err, rpctypes.ErrCompacted) {
+				t.Fatalf("want watch response err %v but got %v", rpctypes.ErrCompacted, err)
+			}
+			compacted = true
+			break
+		}
+		eventCount += len(resp.Events)
+		if eventCount == writeCount {
+			break
+		}
+	}
+	assert.Truef(t, compacted, "Expected stream to get compacted, instead we got %d events out of %d events", eventCount, writeCount)
+}
diff --git a/tests/robustness/makefile.mk b/tests/robustness/makefile.mk
index 381db6301b99..40ce1a5b6f6c 100644
--- a/tests/robustness/makefile.mk
+++ b/tests/robustness/makefile.mk
@@ -36,7 +36,7 @@ GOFAIL_VERSION = $(shell cd tools/mod && go list -m -f {{.Version}} go.etcd.io/g
 
 .PHONY: gofail-enable
 gofail-enable: install-gofail
-	gofail enable server/etcdserver/ server/storage/backend/ server/storage/mvcc/ server/storage/wal/
+	gofail enable server/etcdserver/ server/storage/backend/ server/storage/mvcc/ server/storage/wal/ server/etcdserver/api/v3rpc/
 	cd ./server && go get go.etcd.io/gofail@${GOFAIL_VERSION}
 	cd ./etcdutl && go get go.etcd.io/gofail@${GOFAIL_VERSION}
 	cd ./etcdctl && go get go.etcd.io/gofail@${GOFAIL_VERSION}