diff --git a/bigquery/storage/managedwriter/connection.go b/bigquery/storage/managedwriter/connection.go
index 0d6f98b6f61..ceb1201e408 100644
--- a/bigquery/storage/managedwriter/connection.go
+++ b/bigquery/storage/managedwriter/connection.go
@@ -419,6 +419,8 @@ func (co *connection) lockingAppend(pw *pendingWrite) error {
 		err = (*arc).Send(pw.constructFullRequest(true))
 	}
 	if err != nil {
+		// Refund the flow controller immediately, as there's nothing to refund on the receiver.
+		co.fc.release(pw.reqSize)
 		if shouldReconnect(err) {
 			metricCtx := co.ctx // start with the ctx that must be present
 			if pw.writer != nil {
diff --git a/bigquery/storage/managedwriter/connection_test.go b/bigquery/storage/managedwriter/connection_test.go
index 8010afc70b3..08346a66d4f 100644
--- a/bigquery/storage/managedwriter/connection_test.go
+++ b/bigquery/storage/managedwriter/connection_test.go
@@ -103,6 +103,58 @@ func TestConnection_OpenWithRetry(t *testing.T) {
 	}
 }
 
+// Ensure we properly refund the flow control during send failures.
+// https://github.com/googleapis/google-cloud-go/issues/9540
+func TestConnection_LockingAppendFlowRelease(t *testing.T) {
+	ctx := context.Background()
+
+	pool := &connectionPool{
+		ctx:                ctx,
+		baseFlowController: newFlowController(10, 0),
+		open: openTestArc(&testAppendRowsClient{},
+			func(req *storagepb.AppendRowsRequest) error {
+				// Append always reports EOF on send.
+				return io.EOF
+			}, nil),
+	}
+	router := newSimpleRouter("")
+	if err := pool.activateRouter(router); err != nil {
+		t.Errorf("activateRouter: %v", err)
+	}
+
+	writer := &ManagedStream{id: "foo", ctx: ctx}
+	if err := pool.addWriter(writer); err != nil {
+		t.Errorf("addWriter: %v", err)
+	}
+
+	pw := newPendingWrite(ctx, writer, &storagepb.AppendRowsRequest{WriteStream: "somestream"}, newVersionedTemplate(), "", "")
+	for i := 0; i < 5; i++ {
+		conn, err := router.pool.selectConn(pw)
+		if err != nil {
+			t.Errorf("selectConn: %v", err)
+		}
+
+		// Ensure FC is empty before lockingAppend
+		if got := conn.fc.count(); got != 0 {
+			t.Errorf("attempt %d expected empty flow count, got %d", i, got)
+		}
+		if got := conn.fc.bytes(); got != 0 {
+			t.Errorf("attempt %d expected empty flow bytes, got %d", i, got)
+		}
+		// invoke lockingAppend, which fails
+		if err := conn.lockingAppend(pw); err != io.EOF {
+			t.Errorf("lockingAppend attempt %d: expected io.EOF, got %v", i, err)
+		}
+		// Ensure we're refunded due to failure
+		if got := conn.fc.count(); got != 0 {
+			t.Errorf("attempt %d expected empty flow count, got %d", i, got)
+		}
+		if got := conn.fc.bytes(); got != 0 {
+			t.Errorf("attempt %d expected empty flow bytes, got %d", i, got)
+		}
+	}
+}
+
 // Ensures we don't lose track of channels/connections during reconnects.
 // https://github.com/googleapis/google-cloud-go/issues/6766
 func TestConnection_LeakingReconnect(t *testing.T) {