Network connection recovery after virtual machine transition in an on-demand network code execution system

Systems and methods are described for enabling graceful recovery of network connections in a virtual machine instance that has been migrated or temporarily halted. To prevent the virtual machine instance from attempting to reuse open connections, which might fail due to migration or halting, a host device identifies open connections just prior to halting the virtual machine instance on the host, and transmits to the virtual machine instance termination signals for the open connections. The host device may further transmit termination signals to the other parties to such connections. Each termination signal may be formatted so as to appear to originate from the other party to the connection, causing both parties to synchronize their knowledge of the connection. On reactivation, the virtual machine instance can recovery the connections without errors associated with attempted utilization of broken connections.