diff --git a/nats/src/nats/js/client.py b/nats/src/nats/js/client.py
index d516a6e2..43936e56 100644
--- a/nats/src/nats/js/client.py
+++ b/nats/src/nats/js/client.py
@@ -165,8 +165,13 @@ async def _handle_async_reply(self, msg: Msg) -> None:
         try:
             resp = json.loads(msg.data)
             if "error" in resp:
-                err = nats.js.errors.APIError.from_error(resp["error"])
-                future.set_exception(err)
+                # APIError.from_error raises rather than returning, so capture
+                # the constructed error and attach it to the future instead of
+                # letting it escape and leave the future pending forever.
+                try:
+                    raise nats.js.errors.APIError.from_error(resp["error"])
+                except nats.js.errors.APIError as err:
+                    future.set_exception(err)
                 return
 
             ack = api.PubAck.from_response(resp)
diff --git a/nats/tests/test_js.py b/nats/tests/test_js.py
index fd5bc1ce..31325499 100644
--- a/nats/tests/test_js.py
+++ b/nats/tests/test_js.py
@@ -193,6 +193,23 @@ async def test_publish_async(self):
 
         await nc.close()
 
+    @async_test
+    async def test_publish_async_error_ack_is_raised(self):
+        # Regression for #985: a server error ack must be raised on the
+        # returned future rather than being swallowed (logged and left
+        # pending forever).
+        nc = NATS()
+        await nc.connect()
+        js = nc.jetstream()
+        await js.add_stream(name="AERR", subjects=["aerr"])
+
+        # Expected-stream mismatch forces the server to return an error ack.
+        future = await js.publish_async("aerr", b"data", stream="WRONGSTREAM")
+        with pytest.raises(nats.js.errors.APIError):
+            await asyncio.wait_for(future, timeout=2)
+
+        await nc.close()
+
     @async_test
     async def test_publish_msg_ttl(self):
         """Test per-message TTL feature (requires NATS Server 2.11+)"""