diff --git a/lbry/lbry/extras/daemon/Daemon.py b/lbry/lbry/extras/daemon/Daemon.py
index 5552ba0a6..f54932ab7 100644
--- a/lbry/lbry/extras/daemon/Daemon.py
+++ b/lbry/lbry/extras/daemon/Daemon.py
@@ -474,6 +474,8 @@ class Daemon(metaclass=JSONRPCServerType):
                 self.component_startup_task.cancel()
         log.info("stopped api components")
         if shutdown_runner:
+            self.rpc_runner.app.on_shutdown.freeze()
+            self.streaming_runner.app.on_shutdown.freeze()
             await self.rpc_runner.shutdown()
             await self.streaming_runner.shutdown()
         await self.rpc_runner.cleanup()
diff --git a/lbry/tests/unit/test_cli.py b/lbry/tests/unit/test_cli.py
index 39fe0ee3a..7abf2dcb6 100644
--- a/lbry/tests/unit/test_cli.py
+++ b/lbry/tests/unit/test_cli.py
@@ -7,6 +7,7 @@ from io import StringIO
 from unittest import TestCase
 from types import SimpleNamespace
 from contextlib import asynccontextmanager
+from unittest.mock import patch
 
 import docopt
 from torba.testcase import AsyncioTestCase
@@ -193,6 +194,15 @@ class CLITest(AsyncioTestCase):
             "Could not connect to daemon. Are you sure it's running?"
         )
 
+    @patch.object(Daemon, 'start', spec=Daemon, wraps=Daemon.start)
+    def test_keyboard_interrupt_handling(self, mock_daemon_start):
+        def side_effect():
+            raise KeyboardInterrupt
+
+        mock_daemon_start.side_effect = side_effect
+        self.shell(["start"])
+        mock_daemon_start.assert_called_once()
+
 
 class DaemonDocsTests(TestCase):