diff --git a/cmd/ipfs/daemon.go b/cmd/ipfs/daemon.go
index 556d6c8c1..e0a6663cf 100644
--- a/cmd/ipfs/daemon.go
+++ b/cmd/ipfs/daemon.go
@@ -158,27 +158,27 @@ func listenAndServeAPI(node *core.IpfsNode, req cmds.Request, addr ma.Multiaddr)
 	ifpsHandler := &ipfsHandler{node}
 	mux.Handle("/ipfs/", ifpsHandler)
 
-	done := make(chan struct{}, 1)
-	defer func() {
-		done <- struct{}{}
-	}()
+	// if the server exits beforehand
+	var serverError error
+	serverExited := make(chan struct{})
 
-	// go wait until the node dies
 	go func() {
-		select {
-		case <-node.Closed():
-		case <-done:
-			return
-		}
-
-		log.Infof("terminating daemon at %s...", addr)
-		server.Shutdown <- true
+		fmt.Printf("daemon listening on %s\n", addr)
+		serverError = server.ListenAndServe(host, mux)
+		close(serverExited)
 	}()
 
-	fmt.Printf("daemon listening on %s\n", addr)
-	if err := server.ListenAndServe(host, mux); err != nil {
-		return err
+	// wait for server to exit.
+	select {
+	case <-serverExited:
+
+	// if node being closed before server exits, close server
+	case <-node.Closing():
+		log.Infof("daemon at %s terminating...", addr)
+		server.Shutdown <- true
+		<-serverExited // now, DO wait until server exits
 	}
 
-	return nil
+	log.Infof("daemon at %s terminated", addr)
+	return serverError
 }
diff --git a/cmd/ipfs/main.go b/cmd/ipfs/main.go
index fb0076e12..4d7f4350c 100644
--- a/cmd/ipfs/main.go
+++ b/cmd/ipfs/main.go
@@ -490,25 +490,32 @@ func (i *cmdInvocation) setupInterruptHandler() {
 	sig := allInterruptSignals()
 
 	go func() {
+		// first time, try to shut down.
 
-		for {
-			// first time, try to shut down.
+		// loop because we may be
+		for count := 0; ; count++ {
 			<-sig
-			log.Critical("Received interrupt signal, shutting down...")
 
 			n, err := ctx.GetNode()
-			if err == nil {
-				go n.Close()
-				select {
-				case <-n.Closed():
-				case <-sig:
-					log.Critical("Received another interrupt signal, terminating...")
-				}
+			if err != nil {
+				log.Error(err)
+				log.Critical("Received interrupt signal, terminating...")
+				os.Exit(-1)
 			}
 
-			os.Exit(0)
-		}
+			switch count {
+			case 0:
+				log.Critical("Received interrupt signal, shutting down...")
+				go func() {
+					n.Close()
+					log.Info("Gracefully shut down.")
+				}()
 
+			default:
+				log.Critical("Received another interrupt before graceful shutdown, terminating...")
+				os.Exit(-1)
+			}
+		}
 	}()
 }