diff --git a/swift/common/daemon.py b/swift/common/daemon.py
index 9a14024310..7e30075184 100644
--- a/swift/common/daemon.py
+++ b/swift/common/daemon.py
@@ -14,7 +14,6 @@
 # limitations under the License.
 
 import os
-import sys
 import time
 import signal
 from re import sub
@@ -46,9 +45,10 @@ class Daemon(object):
         utils.capture_stdio(self.logger, **kwargs)
 
         def kill_children(*args):
+            self.logger.info('SIGTERM received')
             signal.signal(signal.SIGTERM, signal.SIG_IGN)
             os.killpg(0, signal.SIGTERM)
-            sys.exit()
+            os._exit(0)
 
         signal.signal(signal.SIGTERM, kill_children)
         if once:
diff --git a/test/probe/test_wsgi_servers.py b/test/probe/test_signals.py
similarity index 73%
rename from test/probe/test_wsgi_servers.py
rename to test/probe/test_signals.py
index 46175cf458..ea475c0d35 100644
--- a/test/probe/test_wsgi_servers.py
+++ b/test/probe/test_signals.py
@@ -17,6 +17,9 @@
 import unittest
 
 import random
+from contextlib import contextmanager
+
+import eventlet
 
 from six.moves import http_client as httplib
 
@@ -101,5 +104,52 @@ class TestWSGIServerProcessHandling(unittest.TestCase):
             self._check_reload(server, node['ip'], node['port'])
 
 
+@contextmanager
+def spawn_services(ip_ports, timeout=10):
+    q = eventlet.Queue()
+
+    def service(sock):
+        try:
+            conn, address = sock.accept()
+            q.put(address)
+            eventlet.sleep(timeout)
+            conn.close()
+        finally:
+            sock.close()
+
+    pool = eventlet.GreenPool()
+    for ip, port in ip_ports:
+        sock = eventlet.listen((ip, port))
+        pool.spawn(service, sock)
+
+    try:
+        yield q
+    finally:
+        for gt in list(pool.coroutines_running):
+            gt.kill()
+
+
+class TestHungDaemon(unittest.TestCase):
+
+    def setUp(self):
+        resetswift()
+        self.ip_ports = [
+            (dev['ip'], dev['port'])
+            for dev in Ring('/etc/swift', ring_name='account').devs
+            if dev
+        ]
+
+    def test_main(self):
+        reconciler = Manager(['container-reconciler'])
+        with spawn_services(self.ip_ports) as q:
+            reconciler.start()
+            # wait for the reconciler to connect
+            q.get()
+            # once it's hung in our connection - send it sig term
+            print('Attempting to stop reconciler!')
+            reconciler.stop()
+        self.assertEqual(1, reconciler.status())
+
+
 if __name__ == '__main__':
     unittest.main()
diff --git a/test/unit/common/test_daemon.py b/test/unit/common/test_daemon.py
index bae3a146ad..a42d643471 100644
--- a/test/unit/common/test_daemon.py
+++ b/test/unit/common/test_daemon.py
@@ -22,7 +22,8 @@ import unittest
 from getpass import getuser
 import logging
 from test.unit import tmpfile
-from mock import patch
+import mock
+import signal
 
 from swift.common import daemon, utils
 
@@ -83,10 +84,26 @@ class TestRunDaemon(unittest.TestCase):
         d.run(once=True)
         self.assertEqual(d.once_called, True)
 
+    def test_signal(self):
+        d = MyDaemon({})
+        with mock.patch('swift.common.daemon.signal') as mock_signal:
+            mock_signal.SIGTERM = signal.SIGTERM
+            d.run()
+        signal_args, kwargs = mock_signal.signal.call_args
+        sig, func = signal_args
+        self.assertEqual(sig, signal.SIGTERM)
+        with mock.patch('swift.common.daemon.os') as mock_os:
+            func()
+        self.assertEqual(mock_os.method_calls, [
+            mock.call.killpg(0, signal.SIGTERM),
+            # hard exit because bare except handlers can trap SystemExit
+            mock.call._exit(0)
+        ])
+
     def test_run_daemon(self):
         sample_conf = "[my-daemon]\nuser = %s\n" % getuser()
         with tmpfile(sample_conf) as conf_file:
-            with patch.dict('os.environ', {'TZ': ''}):
+            with mock.patch.dict('os.environ', {'TZ': ''}):
                 daemon.run_daemon(MyDaemon, conf_file)
                 self.assertEqual(MyDaemon.forever_called, True)
                 self.assertTrue(os.environ['TZ'] is not '')
@@ -94,17 +111,17 @@ class TestRunDaemon(unittest.TestCase):
             self.assertEqual(MyDaemon.once_called, True)
 
             # test raise in daemon code
-            MyDaemon.run_once = MyDaemon.run_raise
-            self.assertRaises(OSError, daemon.run_daemon, MyDaemon,
-                              conf_file, once=True)
+            with mock.patch.object(MyDaemon, 'run_once', MyDaemon.run_raise):
+                self.assertRaises(OSError, daemon.run_daemon, MyDaemon,
+                                  conf_file, once=True)
 
             # test user quit
-            MyDaemon.run_forever = MyDaemon.run_quit
             sio = StringIO()
             logger = logging.getLogger('server')
             logger.addHandler(logging.StreamHandler(sio))
             logger = utils.get_logger(None, 'server', log_route='server')
-            daemon.run_daemon(MyDaemon, conf_file, logger=logger)
+            with mock.patch.object(MyDaemon, 'run_forever', MyDaemon.run_quit):
+                daemon.run_daemon(MyDaemon, conf_file, logger=logger)
             self.assertTrue('user quit' in sio.getvalue().lower())