diff --git a/CHANGELOG.md b/CHANGELOG.md
index 293d1b7e36..092d7b380b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -17,6 +17,7 @@ No changes to highlight.
 - Fixes type in client `Status` enum by [@10zinten](https://github.com/10zinten) in [PR 3931](https://github.com/gradio-app/gradio/pull/3931)
 - Fix `gr.ChatBot` to handle image url [tye-singwa](https://github.com/tye-signwa) in [PR 3953](https://github.com/gradio-app/gradio/pull/3953)
 - Move Google Tag Manager related initialization code to analytics-enabled block by [@akx](https://github.com/akx) in [PR 3956](https://github.com/gradio-app/gradio/pull/3956)
+- Fix bug where port was not reused if the demo was closed and then re-launched by [@freddyaboulton](https://github.com/freddyaboulton) in [PR 3896](https://github.com/gradio-app/gradio/pull/3959)
 
 ## Documentation Changes:
 
diff --git a/gradio/networking.py b/gradio/networking.py
index 7bc66dd9a9..0e8e5fb48b 100644
--- a/gradio/networking.py
+++ b/gradio/networking.py
@@ -116,6 +116,7 @@ def start_server(
     else:
         try:
             s = socket.socket()
+            s.setsockopt(socket.SOL_SOCKET, socket.SO_REUSEADDR, 1)
             s.bind((LOCALHOST_NAME, server_port))
             s.close()
         except OSError:
diff --git a/test/test_blocks.py b/test/test_blocks.py
index 2f2b7577a4..0f9a833a53 100644
--- a/test/test_blocks.py
+++ b/test/test_blocks.py
@@ -263,6 +263,16 @@ class TestBlocksMethods:
                     completed = True
             assert msg["output"]["data"][0] == "Victor"
 
+    def test_socket_reuse(self):
+
+        try:
+            io = gr.Interface(lambda x: x, gr.Textbox(), gr.Textbox())
+            io.launch(server_port=9441, prevent_thread_lock=True)
+            io.close()
+            io.launch(server_port=9441, prevent_thread_lock=True)
+        finally:
+            io.close()
+
     def test_function_types_documented_in_config(self):
         def continuous_fn():
             return 42