diff --git a/kotlinx-coroutines-core/common/src/channels/Produce.kt b/kotlinx-coroutines-core/common/src/channels/Produce.kt
index 3342fb6ec9..b7eefa78bc 100644
--- a/kotlinx-coroutines-core/common/src/channels/Produce.kt
+++ b/kotlinx-coroutines-core/common/src/channels/Produce.kt
@@ -137,7 +137,7 @@ internal fun <E> CoroutineScope.produce(
     return coroutine
 }
 
-internal open class ProducerCoroutine<E>(
+private class ProducerCoroutine<E>(
     parentContext: CoroutineContext, channel: Channel<E>
 ) : ChannelCoroutine<E>(parentContext, channel, true, active = true), ProducerScope<E> {
     override val isActive: Boolean
diff --git a/kotlinx-coroutines-core/common/src/flow/internal/FlowCoroutine.kt b/kotlinx-coroutines-core/common/src/flow/internal/FlowCoroutine.kt
index b395525620..9a81eefa2d 100644
--- a/kotlinx-coroutines-core/common/src/flow/internal/FlowCoroutine.kt
+++ b/kotlinx-coroutines-core/common/src/flow/internal/FlowCoroutine.kt
@@ -51,33 +51,11 @@ internal fun <R> scopedFlow(@BuilderInference block: suspend CoroutineScope.(Flo
         flowScope { block(this@flow) }
     }
 
-internal fun <T> CoroutineScope.flowProduce(
-    context: CoroutineContext,
-    capacity: Int = 0,
-    @BuilderInference block: suspend ProducerScope<T>.() -> Unit
-): ReceiveChannel<T> {
-    val channel = Channel<T>(capacity)
-    val newContext = newCoroutineContext(context)
-    val coroutine = FlowProduceCoroutine(newContext, channel)
-    coroutine.start(CoroutineStart.ATOMIC, coroutine, block)
-    return coroutine
-}
-
 private class FlowCoroutine<T>(
     context: CoroutineContext,
     uCont: Continuation<T>
 ) : ScopeCoroutine<T>(context, uCont) {
-    public override fun childCancelled(cause: Throwable): Boolean {
-        if (cause is ChildCancelledException) return true
-        return cancelImpl(cause)
-    }
-}
-
-private class FlowProduceCoroutine<T>(
-    parentContext: CoroutineContext,
-    channel: Channel<T>
-) : ProducerCoroutine<T>(parentContext, channel) {
-    public override fun childCancelled(cause: Throwable): Boolean {
+    override fun childCancelled(cause: Throwable): Boolean {
         if (cause is ChildCancelledException) return true
         return cancelImpl(cause)
     }
diff --git a/kotlinx-coroutines-core/common/src/flow/internal/Merge.kt b/kotlinx-coroutines-core/common/src/flow/internal/Merge.kt
index 9eca8aa0c2..c18adba3b7 100644
--- a/kotlinx-coroutines-core/common/src/flow/internal/Merge.kt
+++ b/kotlinx-coroutines-core/common/src/flow/internal/Merge.kt
@@ -22,7 +22,7 @@ internal class ChannelFlowTransformLatest<T, R>(
 
     override suspend fun flowCollect(collector: FlowCollector<R>) {
         assert { collector is SendingCollector } // So cancellation behaviour is not leaking into the downstream
-        flowScope {
+        coroutineScope {
             var previousFlow: Job? = null
             flow.collect { value ->
                 previousFlow?.apply {
@@ -49,7 +49,7 @@ internal class ChannelFlowMerge<T>(
         ChannelFlowMerge(flow, concurrency, context, capacity, onBufferOverflow)
 
     override fun produceImpl(scope: CoroutineScope): ReceiveChannel<T> {
-        return scope.flowProduce(context, capacity, block = collectToFun)
+        return scope.produce(context, capacity, block = collectToFun)
     }
 
     override suspend fun collectTo(scope: ProducerScope<T>) {
@@ -87,7 +87,7 @@ internal class ChannelLimitedFlowMerge<T>(
         ChannelLimitedFlowMerge(flows, context, capacity, onBufferOverflow)
 
     override fun produceImpl(scope: CoroutineScope): ReceiveChannel<T> {
-        return scope.flowProduce(context, capacity, block = collectToFun)
+        return scope.produce(context, capacity, block = collectToFun)
     }
 
     override suspend fun collectTo(scope: ProducerScope<T>) {
diff --git a/kotlinx-coroutines-core/common/src/flow/operators/Merge.kt b/kotlinx-coroutines-core/common/src/flow/operators/Merge.kt
index 432160f340..84005a4a31 100644
--- a/kotlinx-coroutines-core/common/src/flow/operators/Merge.kt
+++ b/kotlinx-coroutines-core/common/src/flow/operators/Merge.kt
@@ -61,7 +61,7 @@ public fun <T, R> Flow<T>.flatMapConcat(transform: suspend (value: T) -> Flow<R>
  * its concurrent merging so that only one properly configured channel is used for execution of merging logic.
  *
  * @param concurrency controls the number of in-flight flows, at most [concurrency] flows are collected
- * at the same time. By default it is equal to [DEFAULT_CONCURRENCY].
+ * at the same time. By default, it is equal to [DEFAULT_CONCURRENCY].
  */
 @FlowPreview
 public fun <T, R> Flow<T>.flatMapMerge(
diff --git a/kotlinx-coroutines-core/common/test/flow/operators/FlatMapMergeFastPathTest.kt b/kotlinx-coroutines-core/common/test/flow/operators/FlatMapMergeFastPathTest.kt
index a92189c45c..f810221848 100644
--- a/kotlinx-coroutines-core/common/test/flow/operators/FlatMapMergeFastPathTest.kt
+++ b/kotlinx-coroutines-core/common/test/flow/operators/FlatMapMergeFastPathTest.kt
@@ -39,19 +39,14 @@ class FlatMapMergeFastPathTest : FlatMapMergeBaseTest() {
 
     @Test
     fun testCancellationExceptionDownstream() = runTest {
-        val flow = flow {
-            emit(1)
-            hang { expect(2) }
-        }.flatMapMerge {
+        val flow = flowOf(1, 2, 3).flatMapMerge {
             flow {
                 emit(it)
-                expect(1)
                 throw CancellationException("")
             }
         }.buffer(64)
 
-        assertFailsWith<CancellationException>(flow)
-        finish(3)
+        assertEquals(listOf(1, 2, 3), flow.toList())
     }
 
     @Test
diff --git a/kotlinx-coroutines-core/common/test/flow/operators/FlatMapMergeTest.kt b/kotlinx-coroutines-core/common/test/flow/operators/FlatMapMergeTest.kt
index 7470289ece..c2ce346d9b 100644
--- a/kotlinx-coroutines-core/common/test/flow/operators/FlatMapMergeTest.kt
+++ b/kotlinx-coroutines-core/common/test/flow/operators/FlatMapMergeTest.kt
@@ -69,19 +69,14 @@ class FlatMapMergeTest : FlatMapMergeBaseTest() {
 
     @Test
     fun testCancellationExceptionDownstream() = runTest {
-        val flow = flow {
-            emit(1)
-            hang { expect(2) }
-        }.flatMapMerge {
+        val flow = flowOf(1, 2, 3).flatMapMerge {
             flow {
                 emit(it)
-                expect(1)
                 throw CancellationException("")
             }
         }
 
-        assertFailsWith<CancellationException>(flow)
-        finish(3)
+        assertEquals(listOf(1, 2, 3), flow.toList())
     }
 
     @Test
diff --git a/kotlinx-coroutines-core/common/test/flow/operators/FlattenConcatTest.kt b/kotlinx-coroutines-core/common/test/flow/operators/FlattenConcatTest.kt
index 084af5b9bb..4ec7cc3cd1 100644
--- a/kotlinx-coroutines-core/common/test/flow/operators/FlattenConcatTest.kt
+++ b/kotlinx-coroutines-core/common/test/flow/operators/FlattenConcatTest.kt
@@ -36,4 +36,17 @@ class FlattenConcatTest : FlatMapBaseTest() {
         consumer.cancelAndJoin()
         finish(2)
     }
+
+    @Test
+    fun testCancellation() = runTest {
+        val flow = flow {
+            repeat(5) {
+                emit(flow {
+                    if (it == 2) throw CancellationException("")
+                    emit(1)
+                })
+            }
+        }
+        assertFailsWith<CancellationException>(flow.flattenConcat())
+    }
 }
diff --git a/kotlinx-coroutines-core/common/test/flow/operators/MergeTest.kt b/kotlinx-coroutines-core/common/test/flow/operators/MergeTest.kt
index 1248188554..f084798487 100644
--- a/kotlinx-coroutines-core/common/test/flow/operators/MergeTest.kt
+++ b/kotlinx-coroutines-core/common/test/flow/operators/MergeTest.kt
@@ -45,6 +45,64 @@ abstract class MergeTest : TestBase() {
         assertEquals(listOf("source"), result)
     }
 
+    @Test
+    fun testOneSourceCancelled() = runTest {
+        val flow = flow {
+            expect(1)
+            emit(1)
+            expect(2)
+            yield()
+            throw CancellationException("")
+        }
+
+        val otherFlow = flow {
+            repeat(5) {
+                emit(1)
+                yield()
+            }
+
+            expect(3)
+        }
+
+        val result = listOf(flow, otherFlow).merge().toList()
+        assertEquals(MutableList(6) { 1 }, result)
+        finish(4)
+    }
+
+    @Test
+    fun testOneSourceCancelledNonFused() = runTest {
+        val flow = flow {
+            expect(1)
+            emit(1)
+            expect(2)
+            yield()
+            throw CancellationException("")
+        }
+
+        val otherFlow = flow {
+            repeat(5) {
+                emit(1)
+                yield()
+            }
+
+            expect(3)
+        }
+
+        val result = listOf(flow, otherFlow).nonFuseableMerge().toList()
+        assertEquals(MutableList(6) { 1 }, result)
+        finish(4)
+    }
+
+    private fun <T> Iterable<Flow<T>>.nonFuseableMerge(): Flow<T> {
+        return channelFlow {
+            forEach { flow ->
+                launch {
+                    flow.collect { send(it) }
+                }
+            }
+        }
+    }
+
     @Test
     fun testIsolatedContext() = runTest {
         val flow = flow {