diff --git a/crates/derive/src/stages/channel_reader.rs b/crates/derive/src/stages/channel_reader.rs
index c847784c1..9d7cd6052 100644
--- a/crates/derive/src/stages/channel_reader.rs
+++ b/crates/derive/src/stages/channel_reader.rs
@@ -264,6 +264,17 @@ mod test {
         data.into()
     }
 
+    #[tokio::test]
+    async fn test_reset_channel_reader() {
+        let mock = MockChannelReaderProvider::new(vec![Ok(None)]);
+        let mut reader = ChannelReader::new(mock, Arc::new(RollupConfig::default()));
+        reader.next_batch = Some(BatchReader::from(vec![0x00, 0x01, 0x02]));
+        assert!(!reader.prev.reset);
+        reader.reset(BlockInfo::default(), &SystemConfig::default()).await.unwrap();
+        assert!(reader.next_batch.is_none());
+        assert!(reader.prev.reset);
+    }
+
     #[tokio::test]
     async fn test_next_batch_batch_reader_set_fails() {
         let mock = MockChannelReaderProvider::new(vec![Err(PipelineError::Eof.temp())]);
diff --git a/crates/derive/src/stages/test_utils/channel_reader.rs b/crates/derive/src/stages/test_utils/channel_reader.rs
index df7461d49..8d43e75ce 100644
--- a/crates/derive/src/stages/test_utils/channel_reader.rs
+++ b/crates/derive/src/stages/test_utils/channel_reader.rs
@@ -18,12 +18,14 @@ pub struct MockChannelReaderProvider {
     pub data: Vec<PipelineResult<Option<Bytes>>>,
     /// The origin block info
     pub block_info: Option<BlockInfo>,
+    /// Tracks if the channel reader provider has been reset.
+    pub reset: bool,
 }
 
 impl MockChannelReaderProvider {
     /// Creates a new [MockChannelReaderProvider] with the given data.
     pub fn new(data: Vec<PipelineResult<Option<Bytes>>>) -> Self {
-        Self { data, block_info: Some(BlockInfo::default()) }
+        Self { data, block_info: Some(BlockInfo::default()), reset: false }
     }
 }
 
@@ -50,6 +52,7 @@ impl ChannelReaderProvider for MockChannelReaderProvider {
 #[async_trait]
 impl ResettableStage for MockChannelReaderProvider {
     async fn reset(&mut self, _base: BlockInfo, _cfg: &SystemConfig) -> PipelineResult<()> {
+        self.reset = true;
         Ok(())
     }
 }