diff --git a/Generals/Code/GameEngine/Source/GameClient/GUI/GUICallbacks/Menus/WOLGameSetupMenu.cpp b/Generals/Code/GameEngine/Source/GameClient/GUI/GUICallbacks/Menus/WOLGameSetupMenu.cpp
index ab56b662681..11dbafa3092 100644
--- a/Generals/Code/GameEngine/Source/GameClient/GUI/GUICallbacks/Menus/WOLGameSetupMenu.cpp
+++ b/Generals/Code/GameEngine/Source/GameClient/GUI/GUICallbacks/Menus/WOLGameSetupMenu.cpp
@@ -135,6 +135,7 @@ static Bool buttonPushed = false;
 static const char *nextScreen = NULL;
 static Bool raiseMessageBoxes = false;
 static Bool launchGameNext = FALSE;
+static Bool isHandlingDisconnect = false;
 
 // window ids ------------------------------------------------------------------------------
 static NameKeyType parentWOLGameSetupID = NAMEKEY_INVALID;
@@ -1164,6 +1165,13 @@ Bool initialAcceptEnable = FALSE;
 //-------------------------------------------------------------------------------------------------
 void WOLGameSetupMenuInit( WindowLayout *layout, void *userData )
 {
+	// Prevent infinite recursion if we're already handling a disconnect
+	if (isHandlingDisconnect)
+	{
+		DEBUG_LOG(("WOLGameSetupMenuInit() - already handling disconnect, returning to prevent recursion"));
+		return;
+	}
+
 	if (TheGameSpyGame && TheGameSpyGame->isGameInProgress())
 	{
 		TheGameSpyGame->setGameInProgress(FALSE);
@@ -1181,6 +1189,7 @@ void WOLGameSetupMenuInit( WindowLayout *layout, void *userData )
 			GSMessageBoxOk( title, body );
 			TheGameSpyInfo->reset();
 			DEBUG_LOG(("WOLGameSetupMenuInit() - game was in progress, and we were disconnected, so pop immediate back to main menu"));
+			isHandlingDisconnect = true;
 			TheShell->popImmediate();
 			return;
 		}
@@ -1188,6 +1197,7 @@ void WOLGameSetupMenuInit( WindowLayout *layout, void *userData )
 		// If we init while the game is in progress, we are really returning to the menu
 		// after the game.  So, we pop the menu and go back to the lobby.  Whee!
 		DEBUG_LOG(("WOLGameSetupMenuInit() - game was in progress, so pop immediate back to lobby"));
+		isHandlingDisconnect = true;
 		TheShell->popImmediate();
 		if (TheGameSpyPeerMessageQueue && TheGameSpyPeerMessageQueue->isConnected())
 		{
@@ -1363,6 +1373,9 @@ static void shutdownComplete( WindowLayout *layout )
 //-------------------------------------------------------------------------------------------------
 void WOLGameSetupMenuShutdown( WindowLayout *layout, void *userData )
 {
+	// Reset the disconnect handling flag to allow the menu to reinitialize properly
+	isHandlingDisconnect = false;
+
 	TheGameSpyInfo->unregisterTextWindow(listboxGameSetupChat);
 
 	if( WOLMapSelectLayout )
diff --git a/GeneralsMD/Code/GameEngine/Source/GameClient/GUI/GUICallbacks/Menus/WOLGameSetupMenu.cpp b/GeneralsMD/Code/GameEngine/Source/GameClient/GUI/GUICallbacks/Menus/WOLGameSetupMenu.cpp
index 4943572fa85..4121c45da92 100644
--- a/GeneralsMD/Code/GameEngine/Source/GameClient/GUI/GUICallbacks/Menus/WOLGameSetupMenu.cpp
+++ b/GeneralsMD/Code/GameEngine/Source/GameClient/GUI/GUICallbacks/Menus/WOLGameSetupMenu.cpp
@@ -146,6 +146,7 @@ static Bool buttonPushed = false;
 static const char *nextScreen = NULL;
 static Bool raiseMessageBoxes = false;
 static Bool launchGameNext = FALSE;
+static Bool isHandlingDisconnect = false;
 
 // window ids ------------------------------------------------------------------------------
 static NameKeyType parentWOLGameSetupID = NAMEKEY_INVALID;
@@ -1695,6 +1696,13 @@ Bool initialAcceptEnable = FALSE;
 //-------------------------------------------------------------------------------------------------
 void WOLGameSetupMenuInit( WindowLayout *layout, void *userData )
 {
+	// Prevent infinite recursion if we're already handling a disconnect
+	if (isHandlingDisconnect)
+	{
+		DEBUG_LOG(("WOLGameSetupMenuInit() - already handling disconnect, returning to prevent recursion"));
+		return;
+	}
+
 	NGMP_OnlineServices_LobbyInterface* pLobbyInterface = NGMP_OnlineServicesManager::GetInterface<NGMP_OnlineServices_LobbyInterface>();
 	if (pLobbyInterface == nullptr)
 	{
@@ -1879,6 +1887,7 @@ void WOLGameSetupMenuInit( WindowLayout *layout, void *userData )
 			GSMessageBoxOk( title, body );
 			TheGameSpyInfo->reset();
 			DEBUG_LOG(("WOLGameSetupMenuInit() - game was in progress, and we were disconnected, so pop immediate back to main menu"));
+			isHandlingDisconnect = true;
 			TheShell->popImmediate();
 			return;
 		}
@@ -1887,6 +1896,7 @@ void WOLGameSetupMenuInit( WindowLayout *layout, void *userData )
 		// If we init while the game is in progress, we are really returning to the menu
 		// after the game.  So, we pop the menu and go back to the lobby.  Whee!
 		DEBUG_LOG(("WOLGameSetupMenuInit() - game was in progress, so pop immediate back to lobby"));
+		isHandlingDisconnect = true;
 		TheShell->popImmediate();
 
 		// TODO_NGMP: Only do this if still connected to service
@@ -2163,6 +2173,9 @@ static void shutdownComplete( WindowLayout *layout )
 //-------------------------------------------------------------------------------------------------
 void WOLGameSetupMenuShutdown( WindowLayout *layout, void *userData )
 {
+	// Reset the disconnect handling flag to allow the menu to reinitialize properly
+	isHandlingDisconnect = false;
+
 	NGMP_OnlineServices_LobbyInterface* pLobbyInterface = NGMP_OnlineServicesManager::GetInterface<NGMP_OnlineServices_LobbyInterface>();
 
 	if (pLobbyInterface != nullptr)