diff --git a/activemq-core/src/main/java/org/apache/activemq/broker/TransportConnection.java b/activemq-core/src/main/java/org/apache/activemq/broker/TransportConnection.java
index cea76720e4..fcbbe9ed37 100755
--- a/activemq-core/src/main/java/org/apache/activemq/broker/TransportConnection.java
+++ b/activemq-core/src/main/java/org/apache/activemq/broker/TransportConnection.java
@@ -232,8 +232,10 @@ public class TransportConnection implements Connection, Task, CommandVisitor {
         }
         if (!stopping.get()) {
             transportException.set(e);
-            if (TRANSPORTLOG.isInfoEnabled()) {
-                TRANSPORTLOG.info("Transport failed: " + e, e);
+            if (TRANSPORTLOG.isDebugEnabled()) {
+                TRANSPORTLOG.debug("Transport failed: " + e, e);
+            } else if (TRANSPORTLOG.isInfoEnabled()) {
+                TRANSPORTLOG.info("Transport failed: " + e);
             }
             stopAsync();
         }
diff --git a/activemq-core/src/main/java/org/apache/activemq/transport/vm/VMTransport.java b/activemq-core/src/main/java/org/apache/activemq/transport/vm/VMTransport.java
index b795c32ad6..efa35b144a 100755
--- a/activemq-core/src/main/java/org/apache/activemq/transport/vm/VMTransport.java
+++ b/activemq-core/src/main/java/org/apache/activemq/transport/vm/VMTransport.java
@@ -22,6 +22,7 @@ import java.net.URI;
 import java.util.concurrent.LinkedBlockingQueue;
 import java.util.concurrent.atomic.AtomicBoolean;
 import java.util.concurrent.atomic.AtomicLong;
+import org.apache.activemq.command.ShutdownInfo;
 import org.apache.activemq.thread.Task;
 import org.apache.activemq.thread.TaskRunner;
 import org.apache.activemq.thread.TaskRunnerFactory;
@@ -156,7 +157,7 @@ public class VMTransport implements Transport, Task {
         	
             // let the peer know that we are disconnecting..
             try {
-            	peer.transportListener.onException(new TransportDisposedIOException("Peer (" + peer.toString() + ") disposed."));
+                peer.transportListener.onCommand(new ShutdownInfo());
             } catch (Exception ignore) {
             }
         	
diff --git a/activemq-core/src/test/java/org/apache/activemq/bugs/AMQ2902Test.java b/activemq-core/src/test/java/org/apache/activemq/bugs/AMQ2902Test.java
new file mode 100644
index 0000000000..774d2efa30
--- /dev/null
+++ b/activemq-core/src/test/java/org/apache/activemq/bugs/AMQ2902Test.java
@@ -0,0 +1,112 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You under the Apache License, Version 2.0
+ * (the "License"); you may not use this file except in compliance with
+ * the License.  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.apache.activemq.bugs;
+
+import java.util.concurrent.atomic.AtomicBoolean;
+import javax.jms.Connection;
+import javax.jms.ConnectionFactory;
+import javax.jms.JMSException;
+import junit.framework.TestCase;
+import org.apache.activemq.ActiveMQConnectionFactory;
+import org.apache.activemq.broker.TransportConnection;
+import org.apache.activemq.transport.TransportDisposedIOException;
+import org.apache.log4j.Appender;
+import org.apache.log4j.Layout;
+import org.apache.log4j.Level;
+import org.apache.log4j.Logger;
+import org.apache.log4j.spi.ErrorHandler;
+import org.apache.log4j.spi.Filter;
+import org.apache.log4j.spi.LoggingEvent;
+
+public class AMQ2902Test extends TestCase {
+    final AtomicBoolean gotExceptionInLog = new AtomicBoolean(Boolean.FALSE);
+
+    Appender appender = new Appender() {
+        public void addFilter(Filter newFilter) {
+        }
+
+        public Filter getFilter() {
+            return null;
+        }
+
+        public void clearFilters() {
+        }
+
+        public void close() {
+        }
+
+        public void doAppend(LoggingEvent event) {
+            if (event.getThrowableInformation() != null
+                    && event.getThrowableInformation().getThrowable() instanceof TransportDisposedIOException) {
+                gotExceptionInLog.set(Boolean.TRUE);
+            }
+            return;
+        }
+
+        public String getName() {
+            return "AMQ2902TestAppender";
+        }
+
+        public void setErrorHandler(ErrorHandler errorHandler) {
+        }
+
+        public ErrorHandler getErrorHandler() {
+            return null;
+        }
+
+        public void setLayout(Layout layout) {
+        }
+
+        public Layout getLayout() {
+            return null;
+        }
+
+        public void setName(String name) {
+        }
+
+        public boolean requiresLayout() {
+            return false;
+        }
+    };
+
+    public void testNoExceptionOnClosewithStartStop() throws JMSException {
+        ConnectionFactory connectionFactory = new ActiveMQConnectionFactory(
+                "vm://localhost?broker.persistent=false");
+        Connection connection = connectionFactory.createConnection();
+        connection.start();
+        connection.stop();
+        connection.close();
+    }
+
+    public void testNoExceptionOnClose() throws JMSException {
+        ConnectionFactory connectionFactory = new ActiveMQConnectionFactory(
+                "vm://localhost?broker.persistent=false");
+        Connection connection = connectionFactory.createConnection();
+        connection.close();
+    }
+
+    public void setUp() throws Exception {
+        gotExceptionInLog.set(Boolean.FALSE);
+        Logger.getRootLogger().addAppender(appender);
+        Logger.getLogger(TransportConnection.class.getName() + ".Transport").setLevel(Level.DEBUG);
+    }
+
+    public void tearDown() throws Exception {
+        Logger.getRootLogger().removeAppender(appender);
+        assertFalse("got unexpected ex in log on graceful close", gotExceptionInLog.get());
+    }
+}