diff --git a/src/admin.rs b/src/admin.rs
index f08ef2e1..da1815a1 100644
--- a/src/admin.rs
+++ b/src/admin.rs
@@ -891,7 +891,7 @@ where
     match parts.len() {
         0 => {
             for (_, pool) in get_all_pools() {
-                pool.resume();
+                pool.resume().await;
             }
 
             let mut res = BytesMut::new();
@@ -911,7 +911,7 @@ where
 
             match get_pool(database, user) {
                 Some(pool) => {
-                    pool.resume();
+                    pool.resume().await;
 
                     let mut res = BytesMut::new();
 
diff --git a/src/client.rs b/src/client.rs
index c72e9d2a..336ae512 100644
--- a/src/client.rs
+++ b/src/client.rs
@@ -1057,6 +1057,8 @@ where
             };
 
             // Check if the pool is paused and wait until it's resumed.
+            // This check is needed for clients already in the query loop when PAUSE is issued,
+            // and also after pool refresh (RELOAD) to ensure pause state is respected.
             pool.wait_paused().await;
 
             // Refresh pool information, something might have changed.
diff --git a/src/config.rs b/src/config.rs
index e56f92b9..f4ca0e7d 100644
--- a/src/config.rs
+++ b/src/config.rs
@@ -17,7 +17,7 @@ use tokio::io::AsyncReadExt;
 
 use crate::dns_cache::CachedResolver;
 use crate::errors::Error;
-use crate::pool::{ClientServerMap, ConnectionPool};
+use crate::pool::{get_all_pools, ClientServerMap, ConnectionPool};
 use crate::sharding::ShardingFunction;
 use crate::stats::AddressStats;
 use crate::tls::{load_certs, load_keys};
@@ -1604,6 +1604,18 @@ pub async fn reload_config(client_server_map: ClientServerMap) -> Result<bool, E
 
     if old_config != new_config {
         info!("Config changed, reloading");
+
+        // Resume any paused old pools BEFORE creating new pools.
+        // This wakes up clients waiting on old pool's paused_waiter,
+        // so they can refresh to the new pool. Without this, clients
+        // waiting on old pool during RELOAD would deadlock forever.
+        for (_, old_pool) in get_all_pools() {
+            if old_pool.paused() {
+                info!("Resuming old pool before reload to wake up waiting clients");
+                old_pool.resume().await;
+            }
+        }
+
         ConnectionPool::from_config(client_server_map).await?;
         Ok(true)
     } else {
diff --git a/src/pool.rs b/src/pool.rs
index 7ecf24c1..5fc21866 100644
--- a/src/pool.rs
+++ b/src/pool.rs
@@ -683,7 +683,21 @@ impl ConnectionPool {
     }
 
     /// Resume the pool, allowing queries and resuming any pending queries.
-    pub fn resume(&self) {
+    /// If the pool is not validated (e.g., created during PAUSE via RELOAD),
+    /// validate it first before resuming to ensure it's ready for use.
+    pub async fn resume(&self) {
+        // Validate pool before resuming if it hasn't been validated yet.
+        // This handles the case where RELOAD was called during PAUSE,
+        // creating a new unvalidated pool. We validate it now to ensure
+        // clients won't block during authentication.
+        if !self.validated() {
+            info!("Pool not validated, validating before resume");
+            if let Err(e) = self.validate().await {
+                error!("Failed to validate pool during resume: {:?}", e);
+                // Continue with resume anyway - errors will surface when clients try to use it
+            }
+        }
+
         self.paused.store(false, Ordering::Relaxed);
         self.paused_waiter.notify_waiters();
     }
diff --git a/tests/ruby/pause_new_connections_spec.rb b/tests/ruby/pause_new_connections_spec.rb
new file mode 100644
index 00000000..88e136c4
--- /dev/null
+++ b/tests/ruby/pause_new_connections_spec.rb
@@ -0,0 +1,179 @@
+# frozen_string_literal: true
+require_relative 'spec_helper'
+
+describe "PAUSE with new client connections" do
+  let(:processes) { Helpers::Pgcat.single_instance_setup("sharded_db", 10) }
+  let(:pgcat_conn_str) { processes.pgcat.connection_string("sharded_db", "sharding_user") }
+
+  after do
+    processes.all_databases.map(&:reset)
+    processes.pgcat.shutdown
+  end
+
+  describe "New connections during PAUSE" do
+    it "should complete authentication and wait, not hang" do
+      admin_conn = PG::connect(processes.pgcat.admin_connection_string)
+
+      # Verify pool is not paused initially
+      results = admin_conn.async_exec("SHOW DATABASES").to_a
+      paused_pools = results.select { |r| r["database"] == "sharded_db" && r["paused"] == "1" }
+      expect(paused_pools).to be_empty, "Pool should not be paused initially"
+
+      # PAUSE the pool
+      admin_conn.async_exec("PAUSE")
+
+      # Verify pool is now paused
+      results = admin_conn.async_exec("SHOW DATABASES").to_a
+      paused_pools = results.select { |r| r["database"] == "sharded_db" && r["paused"] == "1" }
+      expect(paused_pools).not_to be_empty, "Pool should be paused"
+
+      # THIS IS THE KEY TEST:
+      # Try to connect a NEW client DURING pause
+      # Without the fix: This would hang during authentication or block indefinitely
+      # With the fix: This should complete authentication and return a connection object
+
+      connection_completed = false
+      connection_error = nil
+      query_result = nil
+      query_start_time = nil
+      query_end_time = nil
+
+      # Attempt connection in a separate thread with timeout
+      connect_thread = Thread.new do
+        begin
+          # This should complete quickly even though pool is paused
+          # The fix ensures authentication completes before checking pause state
+          new_conn = PG::connect(pgcat_conn_str)
+          connection_completed = true
+
+          # Now try to execute a query
+          # This SHOULD block until RESUME is issued
+          query_start_time = Time.now
+          query_result = new_conn.async_exec("SELECT 1 as test_value").to_a
+          query_end_time = Time.now
+
+          new_conn.close
+        rescue => e
+          connection_error = e
+        end
+      end
+
+      # Give the connection attempt time to complete authentication
+      # Without the fix: This would timeout or hang
+      # With the fix: Connection should complete within 2 seconds
+      sleep(2)
+
+      # ASSERTION 1: Connection should have completed (authentication done)
+      expect(connection_completed).to be(true),
+        "Connection should complete authentication even during PAUSE. " \
+        "Error: #{connection_error}"
+
+      # ASSERTION 2: Query should NOT have completed yet (waiting for RESUME)
+      expect(query_result).to be_nil,
+        "Query should not execute while pool is paused"
+
+      # Wait a bit more to ensure query is truly blocked
+      sleep(2)
+      expect(query_result).to be_nil,
+        "Query should still be blocked 4 seconds after PAUSE"
+
+      # Now RESUME the pool
+      admin_conn.async_exec("RESUME")
+
+      # Wait for the query to complete (should happen immediately after RESUME)
+      connect_thread.join(5) # 5 second timeout
+
+      # ASSERTION 3: Thread should have completed
+      expect(connect_thread.alive?).to be(false),
+        "Connection thread should complete after RESUME"
+
+      # ASSERTION 4: Query should have completed successfully
+      expect(query_result).not_to be_nil,
+        "Query should complete after RESUME"
+      expect(query_result.first["test_value"]).to eq("1"),
+        "Query should return correct result"
+
+      # ASSERTION 5: Query should have been blocked for at least 2 seconds
+      # (the time between when we checked it was nil and when we issued RESUME)
+      query_duration = query_end_time - query_start_time
+      expect(query_duration).to be >= 2.0,
+        "Query should have been blocked for at least 2 seconds during PAUSE, " \
+        "but completed in #{query_duration} seconds"
+
+      admin_conn.close
+    end
+
+    it "should handle multiple new connections during PAUSE" do
+      admin_conn = PG::connect(processes.pgcat.admin_connection_string)
+
+      # PAUSE the pool
+      admin_conn.async_exec("PAUSE")
+
+      # Start multiple connections during PAUSE
+      threads = []
+      connection_results = []
+
+      5.times do |i|
+        threads << Thread.new do
+          begin
+            conn = PG::connect(pgcat_conn_str)
+            result = conn.async_exec("SELECT #{i} as conn_id").to_a
+            conn.close
+            connection_results[i] = result.first["conn_id"].to_i
+          rescue => e
+            connection_results[i] = "ERROR: #{e.message}"
+          end
+        end
+      end
+
+      # Wait a moment for connections to authenticate
+      sleep(2)
+
+      # All connections should be waiting (not completed queries)
+      expect(connection_results.compact.size).to eq(0),
+        "No queries should complete during PAUSE"
+
+      # RESUME
+      admin_conn.async_exec("RESUME")
+
+      # Wait for all threads to complete
+      threads.each { |t| t.join(10) }
+
+      # All connections should have completed successfully
+      expect(connection_results.compact.size).to eq(5),
+        "All 5 connections should complete after RESUME"
+
+      # Verify each connection got the right result
+      5.times do |i|
+        expect(connection_results[i]).to eq(i),
+          "Connection #{i} should return correct result"
+      end
+
+      admin_conn.close
+    end
+
+    it "should not affect admin connections during PAUSE" do
+      admin_conn = PG::connect(processes.pgcat.admin_connection_string)
+
+      # PAUSE the pool
+      admin_conn.async_exec("PAUSE")
+
+      # Admin connection should still work immediately
+      # (not blocked by PAUSE)
+      result = admin_conn.async_exec("SHOW DATABASES").to_a
+      expect(result).not_to be_empty
+
+      # Create a NEW admin connection during PAUSE
+      # This should work immediately
+      new_admin_conn = PG::connect(processes.pgcat.admin_connection_string)
+      result = new_admin_conn.async_exec("SHOW POOLS").to_a
+      expect(result).not_to be_empty
+
+      new_admin_conn.close
+
+      # RESUME
+      admin_conn.async_exec("RESUME")
+      admin_conn.close
+    end
+  end
+end