diff --git a/packages/objectloader2/src/core/objectLoader2.spec.ts b/packages/objectloader2/src/core/objectLoader2.spec.ts
index 996c65b95..412a34d95 100644
--- a/packages/objectloader2/src/core/objectLoader2.spec.ts
+++ b/packages/objectloader2/src/core/objectLoader2.spec.ts
@@ -5,6 +5,7 @@ import { IndexedDatabase } from './stages/indexedDatabase.js'
 import { IDBFactory, IDBKeyRange } from 'fake-indexeddb'
 import { MemoryDatabase } from './stages/memory/memoryDatabase.js'
 import { MemoryDownloader } from './stages/memory/memoryDownloader.js'
+import { DefermentManager } from '../deferment/defermentManager.js'
 
 describe('objectloader2', () => {
   test('can get a root object from cache', async () => {
@@ -17,6 +18,7 @@ describe('objectloader2', () => {
     const loader = new ObjectLoader2({
       rootId,
       downloader,
+      deferments: new DefermentManager(() => {}),
       database: new IndexedDatabase({
         indexedDB: new IDBFactory(),
         keyRange: IDBKeyRange
@@ -37,6 +39,7 @@ describe('objectloader2', () => {
     const loader = new ObjectLoader2({
       rootId,
       downloader,
+      deferments: new DefermentManager(() => {}),
       database: new IndexedDatabase({
         indexedDB: new IDBFactory(),
         keyRange: IDBKeyRange
@@ -58,6 +61,7 @@ describe('objectloader2', () => {
     const loader = new ObjectLoader2({
       rootId,
       downloader,
+      deferments: new DefermentManager(() => {}),
       database: new IndexedDatabase({
         indexedDB: new IDBFactory(),
         keyRange: IDBKeyRange
@@ -97,7 +101,8 @@ describe('objectloader2', () => {
     const loader = new ObjectLoader2({
       rootId: root.baseId,
       downloader: new MemoryDownloader(rootId, records),
-      database: new MemoryDatabase({ items: records })
+      database: new MemoryDatabase({ items: records }),
+      deferments: new DefermentManager(() => {})
     })
 
     const r = []
@@ -139,7 +144,8 @@ describe('objectloader2', () => {
     const loader = new ObjectLoader2({
       rootId: root.baseId,
       downloader: new MemoryDownloader(rootId, records),
-      database: new MemoryDatabase({ items: records })
+      database: new MemoryDatabase({ items: records }),
+      deferments: new DefermentManager(() => {})
     })
     const r = []
     const obj = loader.getObject({ id: child1.baseId })
@@ -180,7 +186,8 @@ describe('objectloader2', () => {
       database: new IndexedDatabase({
         indexedDB: new IDBFactory(),
         keyRange: IDBKeyRange
-      })
+      }),
+      deferments: new DefermentManager(() => {})
     })
     const x = await loader.getRootObject()
     await loader.disposeAsync()
diff --git a/packages/objectloader2/src/core/stages/cacheReader.spec.ts b/packages/objectloader2/src/core/stages/cacheReader.spec.ts
index a6e04fee0..e9a168000 100644
--- a/packages/objectloader2/src/core/stages/cacheReader.spec.ts
+++ b/packages/objectloader2/src/core/stages/cacheReader.spec.ts
@@ -10,7 +10,7 @@ describe('CacheReader testing', () => {
     const i1: Item = { baseId: 'id1', base: { id: 'id', speckle_type: 'type' } }
 
     const cache = new MemoryCache({ maxSizeInMb: 1, ttlms: 1 }, () => {})
-    const deferments = new DefermentManager(cache, () => {})
+    const deferments = new DefermentManager(() => {}, cache)
     const cacheReader = new CacheReader(
       new MemoryDatabase({
         items: new Map<string, Base>([[i1.baseId, i1.base!]])
diff --git a/packages/objectloader2/src/core/stages/cacheWriter.spec.ts b/packages/objectloader2/src/core/stages/cacheWriter.spec.ts
index ea79a5782..bf12598b1 100644
--- a/packages/objectloader2/src/core/stages/cacheWriter.spec.ts
+++ b/packages/objectloader2/src/core/stages/cacheWriter.spec.ts
@@ -42,7 +42,7 @@ describe('CacheWriter', () => {
       ttlms: 60000
     }
     memoryCache = new MemoryCache(memoryCacheOptions, logger)
-    defermentManager = new DefermentManager(memoryCache, logger)
+    defermentManager = new DefermentManager(logger, memoryCache)
     requestItemMock = vi.fn()
 
     options = {
diff --git a/packages/objectloader2/src/core/stages/serverDownloader.spec.ts b/packages/objectloader2/src/core/stages/serverDownloader.spec.ts
index 2394ca8e2..dc45ba030 100644
--- a/packages/objectloader2/src/core/stages/serverDownloader.spec.ts
+++ b/packages/objectloader2/src/core/stages/serverDownloader.spec.ts
@@ -257,4 +257,126 @@ describe('downloader', () => {
     })
     await downloader.disposeAsync()
   })
+
+  test('nothing is frozen when validateResponse returns 403', async () => {
+    const fetchMocker = createFetchMock(vi)
+    const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => {})
+
+    // Mock a 403 Forbidden response
+    fetchMocker.mockResponseOnce('', { status: 403, statusText: 'Forbidden' })
+
+    const gathered = new AsyncGeneratorQueue<Item>()
+    const downloader = new ServerDownloader({
+      serverUrl: 'http://speckle.test',
+      streamId: 'streamId',
+      objectId: 'objectId',
+      token: 'invalid-token',
+      fetch: fetchMocker,
+      logger: (): void => {}
+    })
+
+    try {
+      downloader.initialize({
+        results: gathered,
+        total: 2,
+        maxDownloadBatchWait: 100
+      })
+
+      // Add items to trigger batch processing
+      downloader.add('id1')
+      downloader.add('id2')
+
+      // Wait for the batch to be processed and fail with 403
+      await new Promise((resolve) => setTimeout(resolve, 200))
+
+      // Verify that the error was logged (indicating the batch processing failed)
+      expect(consoleErrorSpy).toHaveBeenCalledWith(
+        'Batch processing failed:',
+        expect.any(Error)
+      )
+
+      // The key test: verify we can still dispose the downloader properly
+      // This ensures the system isn't frozen and can clean up resources
+      const disposePromise = downloader.disposeAsync()
+
+      // Add a timeout to ensure disposal doesn't hang indefinitely
+      const timeoutPromise = new Promise((_, reject) => {
+        setTimeout(() => reject(new Error('Disposal timed out')), 5000)
+      })
+
+      // This should complete without timing out or throwing
+      await Promise.race([disposePromise, timeoutPromise])
+
+      // Additional verification: the batching queue should be marked as disposed
+      // We can't directly access the private field, but we can verify disposal completed
+      expect(true).toBe(true) // If we reach here, disposal succeeded
+    } finally {
+      consoleErrorSpy.mockRestore()
+    }
+  })
+
+  test('system remains functional after 403 error and can be properly cleaned up', async () => {
+    const fetchMocker = createFetchMock(vi)
+    const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => {})
+
+    // First call returns 403, subsequent calls should not be made due to queue disposal
+    fetchMocker.mockResponseOnce('', { status: 403, statusText: 'Forbidden' })
+
+    const gathered = new AsyncGeneratorQueue<Item>()
+    const downloader = new ServerDownloader({
+      serverUrl: 'http://speckle.test',
+      streamId: 'streamId',
+      objectId: 'objectId',
+      token: 'invalid-token',
+      fetch: fetchMocker,
+      logger: (): void => {}
+    })
+
+    try {
+      downloader.initialize({
+        results: gathered,
+        total: 5,
+        maxDownloadBatchWait: 50
+      })
+
+      // Add first batch that will trigger the 403 error
+      downloader.add('id1')
+      downloader.add('id2')
+
+      // Wait for first batch to fail
+      await new Promise((resolve) => setTimeout(resolve, 100))
+
+      // Verify error was logged
+      expect(consoleErrorSpy).toHaveBeenCalledWith(
+        'Batch processing failed:',
+        expect.any(Error)
+      )
+
+      // Try to add more items after the failure
+      // These should be ignored since the queue is now disposed
+      downloader.add('id3')
+      downloader.add('id4')
+      downloader.add('id5')
+
+      // Wait a bit more to ensure no additional processing attempts
+      await new Promise((resolve) => setTimeout(resolve, 100))
+
+      // Note: The batching queue might make multiple attempts before disposal
+      // The key is that disposal should still work regardless of how many calls were made
+      expect(fetchMocker).toHaveBeenCalled()
+
+      // Critical test: disposal should complete without hanging
+      const start = Date.now()
+      await downloader.disposeAsync()
+      const elapsed = Date.now() - start
+
+      // Disposal should be quick (under 1 second) and not hang
+      expect(elapsed).toBeLessThan(1000)
+
+      // Verify that the results queue can also be disposed properly
+      await gathered.disposeAsync()
+    } finally {
+      consoleErrorSpy.mockRestore()
+    }
+  })
 })
diff --git a/packages/objectloader2/src/deferment/defermentManager.test.ts b/packages/objectloader2/src/deferment/defermentManager.test.ts
index 94f279463..6818b1f5b 100644
--- a/packages/objectloader2/src/deferment/defermentManager.test.ts
+++ b/packages/objectloader2/src/deferment/defermentManager.test.ts
@@ -9,7 +9,8 @@ describe('DefermentManager', () => {
     const mockLogger: CustomLogger = vi.fn()
     const mockCache = {
       get: vi.fn(),
-      add: vi.fn()
+      add: vi.fn(),
+      dispose: vi.fn()
     } as unknown as MemoryCache
     const defermentManager = new DefermentManager(mockLogger, mockCache)
     expect(defermentManager).toBeDefined()
@@ -81,7 +82,8 @@ describe('DefermentManager', () => {
       const add = vi.fn()
       const mockCache = {
         get,
-        add
+        add,
+        dispose: vi.fn()
       } as unknown as MemoryCache
       const defermentManager = new DefermentManager(mockLogger, mockCache)
 
@@ -165,7 +167,8 @@ describe('DefermentManager', () => {
       const add = vi.fn()
       const mockCache = {
         get,
-        add
+        add,
+        dispose: vi.fn()
       } as unknown as MemoryCache
       const defermentManager = new DefermentManager(mockLogger, mockCache)
       const requestItem = vi.fn()
@@ -189,7 +192,8 @@ describe('DefermentManager', () => {
       const add = vi.fn()
       const mockCache = {
         get,
-        add
+        add,
+        dispose: vi.fn()
       } as unknown as MemoryCache
       const defermentManager = new DefermentManager(mockLogger, mockCache)
 
@@ -205,7 +209,8 @@ describe('DefermentManager', () => {
       const add = vi.fn()
       const mockCache = {
         get,
-        add
+        add,
+        dispose: vi.fn()
       } as unknown as MemoryCache
       const defermentManager = new DefermentManager(mockLogger, mockCache)
 
diff --git a/packages/objectloader2/src/queues/batchingQueue.dispose.test.ts b/packages/objectloader2/src/queues/batchingQueue.dispose.test.ts
index 163f5a4e6..f39ee9757 100644
--- a/packages/objectloader2/src/queues/batchingQueue.dispose.test.ts
+++ b/packages/objectloader2/src/queues/batchingQueue.dispose.test.ts
@@ -17,7 +17,7 @@ describe('BatchingQueue disposal', () => {
 
     await queue.disposeAsync()
 
-    expect(processFunction).not.toHaveBeenCalled()
+    expect(processFunction).toHaveBeenCalled()
     expect(queue.count()).toBe(0)
     expect(queue.isDisposed()).toBe(true)
   })
diff --git a/packages/objectloader2/src/queues/batchingQueue.test.ts b/packages/objectloader2/src/queues/batchingQueue.test.ts
index 027435e52..727c1f96b 100644
--- a/packages/objectloader2/src/queues/batchingQueue.test.ts
+++ b/packages/objectloader2/src/queues/batchingQueue.test.ts
@@ -146,4 +146,125 @@ describe('BatchingQueue', () => {
       await queue.disposeAsync()
     }
   })
+
+  test('should handle processFunction throwing an exception during flush and is disposed', async () => {
+    const errorMessage = 'Process function failed'
+    const processFunction = vi.fn().mockRejectedValue(new Error(errorMessage))
+
+    const queue = new BatchingQueue<{ id: string }>({
+      batchSize: 5,
+      maxWaitTime: 1000,
+      processFunction
+    })
+
+    const items = Array.from({ length: 3 }, (_, i) => ({ id: `item-${i}` }))
+    items.forEach((item) => queue.add(item.id, item))
+
+    expect(queue.count()).toBe(3)
+
+    // flush should not throw even if processFunction rejects
+    await expect(queue.flush()).resolves.not.toThrow()
+
+    expect(processFunction).toHaveBeenCalled()
+    expect(queue.count()).toBe(0)
+    expect(queue.isDisposed()).toBe(false)
+    expect(queue.isErrored()).toBe(true)
+    // Add more items after the exception
+    queue.add('key3', { id: `item-3` })
+    queue.add('key4', { id: `item-4` })
+
+    // Wait to see if second batch gets processed (it shouldn't due to errored state)
+    await new Promise((resolve) => setTimeout(resolve, 200))
+
+    expect(queue.count()).toBe(0) // Items were not added due to errored state
+    await queue.disposeAsync()
+  })
+
+  test('should drain remaining items when disposed', async () => {
+    const processSpy = vi.fn()
+    const queue = new BatchingQueue({
+      batchSize: 5, // Large batch size to prevent automatic processing
+      maxWaitTime: 10000, // Long timeout to prevent timeout-based processing
+      processFunction: async (batch: string[]): Promise<void> => {
+        await new Promise((resolve) => setTimeout(resolve, 10))
+        processSpy(batch)
+      }
+    })
+
+    // Add items that won't trigger automatic processing (less than batch size)
+    queue.add('key1', 'item1')
+    queue.add('key2', 'item2')
+    queue.add('key3', 'item3')
+
+    // Verify items are in queue but haven't been processed yet
+    expect(queue.count()).toBe(3)
+    expect(processSpy).not.toHaveBeenCalled()
+
+    // Dispose should drain the remaining items
+    await queue.disposeAsync()
+
+    // Verify all items were processed during disposal
+    expect(processSpy).toHaveBeenCalledTimes(1)
+    expect(processSpy).toHaveBeenCalledWith(['item1', 'item2', 'item3'])
+    expect(queue.count()).toBe(0)
+    expect(queue.isDisposed()).toBe(true)
+  })
+
+  test('should drain items even with ongoing processing during dispose', async () => {
+    const processSpy = vi.fn()
+    let firstBatchStarted = false
+    let allowFirstBatchToComplete: (() => void) | null = null
+
+    const queue = new BatchingQueue({
+      batchSize: 2,
+      maxWaitTime: 100,
+      processFunction: async (batch: string[]): Promise<void> => {
+        processSpy(batch)
+
+        // Make the first batch wait for our signal
+        if (!firstBatchStarted) {
+          firstBatchStarted = true
+          await new Promise<void>((resolve) => {
+            allowFirstBatchToComplete = resolve
+          })
+        } else {
+          // Other batches process normally
+          await new Promise((resolve) => setTimeout(resolve, 10))
+        }
+      }
+    })
+
+    // Add first batch that will trigger processing but will be blocked
+    queue.add('key1', 'item1')
+    queue.add('key2', 'item2')
+
+    // Wait for first batch to start processing and allowFirstBatchToComplete to be assigned
+    await new Promise((resolve) => setTimeout(resolve, 50))
+    expect(firstBatchStarted).toBe(true)
+    expect(processSpy).toHaveBeenCalledTimes(1)
+    expect(allowFirstBatchToComplete).not.toBeNull()
+
+    // Add more items while first batch is still processing
+    queue.add('key3', 'item3')
+    queue.add('key4', 'item4')
+
+    // Verify the additional items are queued
+    expect(queue.count()).toBe(2)
+
+    // Start disposal (this should wait for ongoing processing and then drain)
+    const disposePromise = queue.disposeAsync()
+
+    // Allow the first batch to complete
+    allowFirstBatchToComplete!()
+
+    // Wait for disposal to complete
+    await disposePromise
+
+    // Verify all batches were processed
+    expect(processSpy).toHaveBeenCalledTimes(2)
+    expect(processSpy).toHaveBeenCalledWith(['item1', 'item2'])
+    expect(processSpy).toHaveBeenCalledWith(['item3', 'item4'])
+    expect(queue.count()).toBe(0)
+    expect(queue.isDisposed()).toBe(true)
+  })
 })
diff --git a/packages/objectloader2/src/queues/batchingQueue.ts b/packages/objectloader2/src/queues/batchingQueue.ts
index 9d1c3d943..0b8dd5d2e 100644
--- a/packages/objectloader2/src/queues/batchingQueue.ts
+++ b/packages/objectloader2/src/queues/batchingQueue.ts
@@ -11,9 +11,10 @@ export default class BatchingQueue<T> {
   #batchSize: number
   #processFunction: (batch: T[]) => Promise<void>
   #timeoutId: ReturnType<typeof setTimeout> | null = null
-  #isProcessing = false
 
-  #disposed = false
+  #isProcessing = false
+  #isDisposed = false
+  #isErrored = false
   #batchTimeout: number
 
   // Helper methods for cross-environment timeout handling
@@ -46,7 +47,8 @@ export default class BatchingQueue<T> {
   }
 
   async disposeAsync(): Promise<void> {
-    this.#disposed = true
+    if (this.#isDisposed) return
+    this.#isDisposed = true
     if (this.#timeoutId) {
       this.#getClearTimeoutFn()(this.#timeoutId)
       this.#timeoutId = null
@@ -62,56 +64,54 @@ export default class BatchingQueue<T> {
     // After any ongoing flush is completed, there might be items in the queue.
     // We should flush them.
     if (this.#queue.size > 0) {
-      await this.#flush()
+      await this.flush()
     }
   }
 
   add(key: string, item: T): void {
-    if (this.#disposed) return
+    if (this.#isDisposed || this.#isErrored) return
     this.#queue.enqueue(key, item)
     this.#addCheck()
   }
 
   addAll(keys: string[], items: T[]): void {
-    if (this.#disposed) return
+    if (this.#isDisposed || this.#isErrored) return
     this.#queue.enqueueAll(keys, items)
     this.#addCheck()
   }
 
   #addCheck(): void {
-    if (this.#disposed) return
+    if (this.#isDisposed) return
     if (this.#queue.size >= this.#batchSize) {
       // Fire and forget, no need to await
       // eslint-disable-next-line @typescript-eslint/no-floating-promises
-      this.#flush()
+      this.flush()
     } else {
       if (this.#timeoutId) {
         this.#getClearTimeoutFn()(this.#timeoutId)
       }
       // eslint-disable-next-line @typescript-eslint/no-misused-promises
-      this.#timeoutId = this.#getSetTimeoutFn()(() => this.#flush(), this.#batchTimeout)
+      this.#timeoutId = this.#getSetTimeoutFn()(() => this.flush(), this.#batchTimeout)
     }
   }
 
-  async #flush(): Promise<void> {
+  async flush(): Promise<void> {
     if (this.#timeoutId) {
       this.#getClearTimeoutFn()(this.#timeoutId)
       this.#timeoutId = null
     }
 
-    if (this.#isProcessing || this.#queue.size === 0) {
+    if (this.#isErrored || this.#isProcessing || this.#queue.size === 0) {
       return
     }
     this.#isProcessing = true
 
-    const batchToProcess = this.#getBatch(this.#batchSize)
-    if (this.#disposed) return
-
     try {
+      const batchToProcess = this.#getBatch(this.#batchSize)
       await this.#processFunction(batchToProcess)
     } catch (error) {
       console.error('Batch processing failed:', error)
-      this.#disposed = true
+      this.#isErrored = true
     } finally {
       this.#isProcessing = false
     }
@@ -127,7 +127,11 @@ export default class BatchingQueue<T> {
   }
 
   isDisposed(): boolean {
-    return this.#disposed
+    return this.#isDisposed
+  }
+
+  isErrored(): boolean {
+    return this.#isErrored
   }
 
   #getBatch(batchSize: number): T[] {