diff --git a/src/central/config_store.py b/src/central/config_store.py
index 2fda7bc..0f03826 100644
--- a/src/central/config_store.py
+++ b/src/central/config_store.py
@@ -6,6 +6,7 @@ Postgres LISTEN/NOTIFY for real-time config change notifications.
 
 import asyncio
 import json
+import logging
 from collections.abc import Awaitable, Callable
 from typing import Any
 
@@ -14,6 +15,8 @@ import asyncpg
 from central.config_models import AdapterConfig
 from central.crypto import decrypt, encrypt
 
+logger = logging.getLogger(__name__)
+
 
 async def _setup_json_codec(conn: asyncpg.Connection) -> None:
     """Set up JSON codec for asyncpg connection."""
@@ -188,36 +191,79 @@ class ConfigStore:
         Runs forever, calling callback(table, key) each time a change is
         detected. The callback can be sync or async.
 
+        On connection loss, automatically reconnects with exponential backoff.
+        Cancellation (via task.cancel()) propagates cleanly.
+
         Args:
             callback: Function called with (table_name, row_key) on each change.
         """
-        conn = await self._pool.acquire()
-        try:
+        backoff = 1.0
+        max_backoff = 30.0
 
-            def notification_handler(
-                conn: asyncpg.Connection,
-                pid: int,
-                channel: str,
-                payload: str,
-            ) -> None:
-                # payload format: "table_name:key"
-                if ":" in payload:
-                    table, key = payload.split(":", 1)
-                else:
-                    table, key = payload, ""
+        while True:
+            conn = None
+            try:
+                conn = await self._pool.acquire()
+                logger.info("Config listener connected to database")
+                backoff = 1.0  # Reset backoff on successful connect
 
-                result = callback(table, key)
-                if asyncio.iscoroutine(result):
-                    asyncio.create_task(result)
+                def notification_handler(
+                    conn: asyncpg.Connection,
+                    pid: int,
+                    channel: str,
+                    payload: str,
+                ) -> None:
+                    # payload format: "table_name:key"
+                    if ":" in payload:
+                        table, key = payload.split(":", 1)
+                    else:
+                        table, key = payload, ""
 
-            await conn.add_listener("config_changed", notification_handler)
+                    result = callback(table, key)
+                    if asyncio.iscoroutine(result):
+                        asyncio.create_task(result)
 
-            # Keep connection alive
-            while True:
-                await asyncio.sleep(60)
-                # Periodic keepalive query
-                await conn.execute("SELECT 1")
+                await conn.add_listener("config_changed", notification_handler)
 
-        finally:
-            await conn.remove_listener("config_changed", notification_handler)
-            await self._pool.release(conn)
+                try:
+                    # Keep connection alive with periodic keepalive
+                    while True:
+                        await asyncio.sleep(60)
+                        await conn.execute("SELECT 1")
+                finally:
+                    await conn.remove_listener("config_changed", notification_handler)
+
+            except asyncio.CancelledError:
+                # Cancellation must propagate cleanly
+                logger.info("Config listener cancelled")
+                raise
+
+            except (
+                asyncpg.PostgresConnectionError,
+                asyncpg.InterfaceError,
+                ConnectionResetError,
+                OSError,
+            ) as e:
+                logger.warning(
+                    "Config listener connection lost, reconnecting in %.1fs: %s",
+                    backoff,
+                    e,
+                )
+                await asyncio.sleep(backoff)
+                backoff = min(backoff * 2, max_backoff)
+
+            except Exception as e:
+                # Unexpected error - log and retry with backoff
+                logger.exception(
+                    "Config listener unexpected error, reconnecting in %.1fs",
+                    backoff,
+                )
+                await asyncio.sleep(backoff)
+                backoff = min(backoff * 2, max_backoff)
+
+            finally:
+                if conn is not None:
+                    try:
+                        await self._pool.release(conn)
+                    except Exception:
+                        pass  # Connection may already be invalid
diff --git a/tests/test_config_store.py b/tests/test_config_store.py
index 30ac9a8..7a627e8 100644
--- a/tests/test_config_store.py
+++ b/tests/test_config_store.py
@@ -1,7 +1,7 @@
 """Tests for database-backed configuration store.
 
 These tests require a real Postgres database. Set CENTRAL_TEST_DB_DSN
-environment variable or the tests will use the default test database.
+environment variable to override the default test database connection.
 """
 
 import asyncio
@@ -16,10 +16,11 @@ import pytest_asyncio
 from central.config_store import ConfigStore
 from central.crypto import KEY_SIZE, clear_key_cache
 
-# Test database DSN - uses central_test database
+# Test database DSN - uses central_test database with well-known test password.
+# Override via CENTRAL_TEST_DB_DSN env var if your test DB differs.
 TEST_DB_DSN = os.environ.get(
     "CENTRAL_TEST_DB_DSN",
-    "postgresql://central:3LNVFQJHsK3e7dOcAdvK3oS6d70f@localhost/central_test",
+    "postgresql://central_test:testpass@localhost/central_test",
 )
 
 
@@ -308,3 +309,31 @@ class TestNotifications:
                 await listen_task
             except asyncio.CancelledError:
                 pass
+
+
+class TestListenerReconnect:
+    """Tests for listener reconnection on connection loss."""
+
+    @pytest.mark.asyncio
+    async def test_listener_cancellation_propagates(
+        self, config_store: ConfigStore
+    ) -> None:
+        """Cancellation cleanly stops the listener without reconnect loop."""
+        async def callback(table: str, key: str) -> None:
+            pass
+
+        listen_task = asyncio.create_task(config_store.listen_for_changes(callback))
+
+        # Give listener time to start
+        await asyncio.sleep(0.1)
+
+        # Cancel and verify it stops
+        listen_task.cancel()
+        try:
+            await asyncio.wait_for(listen_task, timeout=2.0)
+        except asyncio.CancelledError:
+            pass  # Expected
+        except asyncio.TimeoutError:
+            pytest.fail("Listener did not stop after cancellation")
+
+        assert listen_task.cancelled() or listen_task.done()