diff --git a/pulsar-functions/instance/src/main/java/org/apache/pulsar/functions/instance/ProducerCache.java b/pulsar-functions/instance/src/main/java/org/apache/pulsar/functions/instance/ProducerCache.java
index f68c4e9589558..2e10581b35249 100644
--- a/pulsar-functions/instance/src/main/java/org/apache/pulsar/functions/instance/ProducerCache.java
+++ b/pulsar-functions/instance/src/main/java/org/apache/pulsar/functions/instance/ProducerCache.java
@@ -32,6 +32,7 @@
 import java.util.concurrent.atomic.AtomicBoolean;
 import lombok.extern.slf4j.Slf4j;
 import org.apache.pulsar.client.api.Producer;
+import org.apache.pulsar.client.api.PulsarClientException;
 import org.apache.pulsar.common.util.FutureUtil;
 
 @Slf4j
@@ -61,24 +62,41 @@ record ProducerCacheKey(CacheArea cacheArea, String topic, Object additionalKey)
     private final CopyOnWriteArrayList<CompletableFuture<Void>> closeFutures = new CopyOnWriteArrayList<>();
 
     public ProducerCache() {
-        Caffeine<ProducerCacheKey, Producer> builder = Caffeine.newBuilder()
+        Caffeine<ProducerCacheKey, Producer<?>> builder = Caffeine.newBuilder()
                 .scheduler(Scheduler.systemScheduler())
-                .<ProducerCacheKey, Producer>removalListener((key, producer, cause) -> {
+                .<ProducerCacheKey, Producer<?>>removalListener((key, producer, cause) -> {
                     log.info("Closing producer for topic {}, cause {}", key.topic(), cause);
                     CompletableFuture closeFuture =
-                            producer.flushAsync()
+                            CompletableFuture.supplyAsync(() -> producer.flushAsync(), Runnable::run)
                                     .orTimeout(FLUSH_OR_CLOSE_TIMEOUT_SECONDS, TimeUnit.SECONDS)
                                     .exceptionally(ex -> {
-                                        log.error("Error flushing producer for topic {}", key.topic(), ex);
+                                        Throwable unwrappedCause = FutureUtil.unwrapCompletionException(ex);
+                                        if (unwrappedCause instanceof PulsarClientException.AlreadyClosedException) {
+                                            log.error(
+                                                    "Error flushing producer for topic {} due to "
+                                                            + "AlreadyClosedException",
+                                                    key.topic());
+                                        } else {
+                                            log.error("Error flushing producer for topic {}", key.topic(),
+                                                    unwrappedCause);
+                                        }
                                         return null;
                                     }).thenCompose(__ ->
                                             producer.closeAsync().orTimeout(FLUSH_OR_CLOSE_TIMEOUT_SECONDS,
-                                                            TimeUnit.SECONDS)
-                                                    .exceptionally(ex -> {
-                                                        log.error("Error closing producer for topic {}", key.topic(),
-                                                                ex);
-                                                        return null;
-                                                    }));
+                                                    TimeUnit.SECONDS)
+                                    ).exceptionally(ex -> {
+                                        Throwable unwrappedCause = FutureUtil.unwrapCompletionException(ex);
+                                        if (unwrappedCause instanceof PulsarClientException.AlreadyClosedException) {
+                                            log.error(
+                                                    "Error closing producer for topic {} due to "
+                                                            + "AlreadyClosedException",
+                                                    key.topic());
+                                        } else {
+                                            log.error("Error closing producer for topic {}", key.topic(),
+                                                    unwrappedCause);
+                                        }
+                                        return null;
+                                    });
                     if (closed.get()) {
                         closeFutures.add(closeFuture);
                     }
diff --git a/pulsar-functions/instance/src/test/java/org/apache/pulsar/functions/instance/ProducerCacheTest.java b/pulsar-functions/instance/src/test/java/org/apache/pulsar/functions/instance/ProducerCacheTest.java
new file mode 100644
index 0000000000000..af95a7901b6e8
--- /dev/null
+++ b/pulsar-functions/instance/src/test/java/org/apache/pulsar/functions/instance/ProducerCacheTest.java
@@ -0,0 +1,64 @@
+/*
+ * 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.pulsar.functions.instance;
+
+import static org.mockito.Mockito.mock;
+import static org.mockito.Mockito.when;
+import java.util.concurrent.CompletableFuture;
+import org.apache.pulsar.client.api.Producer;
+import org.apache.pulsar.client.api.PulsarClientException;
+import org.testng.annotations.Test;
+
+public class ProducerCacheTest {
+
+    @Test
+    public void shouldTolerateAlreadyClosedExceptionInClose() {
+        ProducerCache cache = new ProducerCache();
+        Producer producer = mock(Producer.class);
+        when(producer.flushAsync()).thenReturn(CompletableFuture.completedFuture(null));
+        when(producer.closeAsync()).thenReturn(
+                CompletableFuture.failedFuture(new PulsarClientException.AlreadyClosedException("Already closed")));
+        cache.getOrCreateProducer(ProducerCache.CacheArea.CONTEXT_CACHE, "topic", "key",
+                () -> (Producer<Object>) producer);
+        cache.close();
+    }
+
+    @Test
+    public void shouldTolerateRuntimeExceptionInClose() {
+        ProducerCache cache = new ProducerCache();
+        Producer producer = mock(Producer.class);
+        when(producer.flushAsync()).thenReturn(CompletableFuture.completedFuture(null));
+        when(producer.closeAsync()).thenThrow(new RuntimeException("Some exception"));
+        cache.getOrCreateProducer(ProducerCache.CacheArea.CONTEXT_CACHE, "topic", "key",
+                () -> (Producer<Object>) producer);
+        cache.close();
+    }
+
+    @Test
+    public void shouldTolerateRuntimeExceptionInFlush() {
+        ProducerCache cache = new ProducerCache();
+        Producer producer = mock(Producer.class);
+        when(producer.flushAsync()).thenThrow(new RuntimeException("Some exception"));
+        when(producer.closeAsync()).thenReturn(CompletableFuture.completedFuture(null));
+        cache.getOrCreateProducer(ProducerCache.CacheArea.CONTEXT_CACHE, "topic", "key",
+                () -> (Producer<Object>) producer);
+        cache.close();
+    }
+
+}
\ No newline at end of file