diff --git a/ballerina-tests/http-interceptor-tests/tests/interceptors_special_test.bal b/ballerina-tests/http-interceptor-tests/tests/interceptors_special_test.bal
index ddcbcb8c1b..a03849c532 100644
--- a/ballerina-tests/http-interceptor-tests/tests/interceptors_special_test.bal
+++ b/ballerina-tests/http-interceptor-tests/tests/interceptors_special_test.bal
@@ -259,10 +259,9 @@ service http:InterceptableService / on responseInterceptorWithoutCtxNextServerEP
 @test:Config{}
 function testResponseInterceptorWithoutCtxNext() returns error? {
     http:Response res = check responseInterceptorWithoutCtxNextClientEP->get("/");
-    common:assertHeaderValue(check res.getHeader("last-interceptor"), "response-interceptor-without-ctx-next");
-    common:assertHeaderValue(check res.getHeader("default-response-interceptor"), "true");
-    common:assertHeaderValue(check res.getHeader("response-interceptor-without-ctx-next"), "true");
-    common:assertTextPayload(check res.getTextPayload(), "Response from response interceptor");
+    common:assertHeaderValue(check res.getHeader("last-interceptor"), "default-response-interceptor");
+    common:assertHeaderValue(check res.getHeader("last-response-interceptor"), "true");
+    test:assertEquals(res.statusCode, 202);
 }
 
 final http:Client requestInterceptorSkipClientEP = check new("http://localhost:" + requestInterceptorSkipTestPort.toString(), httpVersion = http:HTTP_1_1);
diff --git a/changelog.md b/changelog.md
index e3986ef987..bcdc283c69 100644
--- a/changelog.md
+++ b/changelog.md
@@ -14,6 +14,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 ### Fixed
 
 - [Address CVE-2024-29025 netty's vulnerability](https://github.com/ballerina-platform/ballerina-library/issues/6242)
+- [Fix interceptor pipeline getting exited when there is a `nil` return](https://github.com/ballerina-platform/ballerina-library/issues/6278)
 
 ## [2.10.12] - 2024-03-21
 
diff --git a/native/src/main/java/io/ballerina/stdlib/http/api/HttpResponseInterceptorUnitCallback.java b/native/src/main/java/io/ballerina/stdlib/http/api/HttpResponseInterceptorUnitCallback.java
index f9e8d76fff..7c601addb5 100644
--- a/native/src/main/java/io/ballerina/stdlib/http/api/HttpResponseInterceptorUnitCallback.java
+++ b/native/src/main/java/io/ballerina/stdlib/http/api/HttpResponseInterceptorUnitCallback.java
@@ -114,8 +114,7 @@ private void validateResponseAndProceed(Object result) {
             return;
         }
 
-        if (result == null) {
-            requestMessage.setProperty(HttpConstants.RESPONSE_INTERCEPTOR_INDEX, -1);
+        if (result == null && interceptorId == -1) {
             sendResponseToNextService();
             return;
         }
diff --git a/native/src/main/java/io/ballerina/stdlib/http/api/nativeimpl/ExternRequestContext.java b/native/src/main/java/io/ballerina/stdlib/http/api/nativeimpl/ExternRequestContext.java
index fe0daded1f..bb34ec6149 100644
--- a/native/src/main/java/io/ballerina/stdlib/http/api/nativeimpl/ExternRequestContext.java
+++ b/native/src/main/java/io/ballerina/stdlib/http/api/nativeimpl/ExternRequestContext.java
@@ -95,6 +95,7 @@ private static Object getNextInterceptor(BObject requestCtx, BArray interceptors
                     "no next service to be returned");
         }
         if (interceptorIndex < 0) {
+            requestCtx.addNativeData(HttpConstants.RESPONSE_INTERCEPTOR_INDEX, -1);
             return null;
         }
         updateInterceptorIndex(requestCtx, requiredInterceptorType, interceptorIndex);