The boundary between magnetic field lines directed towards and away from the Sun creates a sheet of plasma called the heliospheric current sheet (HCS). Inside this region, which extends throughout the solar system, a process called magnetic reconnection can reorganise the magnetic field lines and release stored energy. At Earth, observations of this are rare, but close to the Sun evidence suggests the process is occuring near-continuously. Studying HCS reconnection is important to understand how the nature and dynamics of the solar wind, as well as how particles are accelerated to very high energies. We present direct measurements of plasma flowing away from an HCS reconnection site made by Parker Solar Probe (PSP) during a close approach to the Sun. Signatures are indicative of an island of disconnected magnetic field flowing away from the Sun, called a plasmoid. Direct measurements are complemented by fortuitous remote observations of material breaking off from the Sun along the same orientation as the HCS. The event provides new insight into the formation and evolution of plasmoid structures associated with the HCS.