diff --git a/CHANGELOG.md b/CHANGELOG.md
index 277daac3d5..b8c844b755 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -64,6 +64,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 * (ante) [#227](https://github.com/crypto-org-chain/ethermint/pull/227) Reuse sender recovery result.
 * (cli) [#242](https://github.com/crypto-org-chain/ethermint/pull/242) Integrate tendermint bootstrap cmd.
 * (cli) [#246](https://github.com/crypto-org-chain/ethermint/pull/246) Call app.Close to cleanup resource on graceful shutdown.
+* (cli) [#288](https://github.com/crypto-org-chain/ethermint/pull/288) make abci handshake shutdown gracefully.
 
 ### State Machine Breaking
 
diff --git a/go.mod b/go.mod
index 187ea81e4c..85943769b3 100644
--- a/go.mod
+++ b/go.mod
@@ -35,6 +35,7 @@ require (
 	github.com/tendermint/tm-db v0.6.7
 	github.com/tyler-smith/go-bip39 v1.1.0
 	golang.org/x/net v0.9.0
+	golang.org/x/sync v0.1.0
 	golang.org/x/text v0.9.0
 	google.golang.org/genproto v0.0.0-20230306155012-7f2fa6fef1f4
 	google.golang.org/grpc v1.54.0
@@ -185,7 +186,6 @@ require (
 	golang.org/x/crypto v0.7.0 // indirect
 	golang.org/x/exp v0.0.0-20230310171629-522b1b587ee0 // indirect
 	golang.org/x/oauth2 v0.5.0 // indirect
-	golang.org/x/sync v0.1.0 // indirect
 	golang.org/x/sys v0.7.0 // indirect
 	golang.org/x/term v0.7.0 // indirect
 	golang.org/x/xerrors v0.0.0-20220907171357-04be3eba64a2 // indirect
@@ -210,7 +210,7 @@ replace (
 	github.com/miguelmota/go-ethereum-hdwallet => github.com/crypto-org-chain/go-ethereum-hdwallet v0.1.2
 	github.com/syndtr/goleveldb => github.com/syndtr/goleveldb v1.0.1-0.20210819022825-2ae1ddf74ef7
 	// use cometbft
-	github.com/tendermint/tendermint => github.com/cometbft/cometbft v0.34.28
+	github.com/tendermint/tendermint => github.com/cometbft/cometbft v0.34.30-0.20230622094628-60e431e4eef0
 	// https://github.com/crypto-org-chain/tm-db/tree/release/v0.6.x
 	github.com/tendermint/tm-db => github.com/crypto-org-chain/tm-db v0.6.8-0.20230424032152-87c7e7f4fb61
 )
diff --git a/go.sum b/go.sum
index 60c9482608..ce0c6d93ee 100644
--- a/go.sum
+++ b/go.sum
@@ -235,8 +235,8 @@ github.com/codegangsta/inject v0.0.0-20150114235600-33e0aa1cb7c0/go.mod h1:4Zcju
 github.com/coinbase/kryptology v1.8.0/go.mod h1:RYXOAPdzOGUe3qlSFkMGn58i3xUA8hmxYHksuq+8ciI=
 github.com/coinbase/rosetta-sdk-go v0.7.9 h1:lqllBjMnazTjIqYrOGv8h8jxjg9+hJazIGZr9ZvoCcA=
 github.com/coinbase/rosetta-sdk-go v0.7.9/go.mod h1:0/knutI7XGVqXmmH4OQD8OckFrbQ8yMsUZTG7FXCR2M=
-github.com/cometbft/cometbft v0.34.28 h1:gwryf55P1SWMUP4nOXpRVI2D0yPoYEzN+IBqmRBOsDc=
-github.com/cometbft/cometbft v0.34.28/go.mod h1:L9shMfbkZ8B+7JlwANEr+NZbBcn+hBpwdbeYvA5rLCw=
+github.com/cometbft/cometbft v0.34.30-0.20230622094628-60e431e4eef0 h1:AA1aC/2OGCqbnLCj/GOMRhLAcVjBLwduxrDH3k+Ulyk=
+github.com/cometbft/cometbft v0.34.30-0.20230622094628-60e431e4eef0/go.mod h1:L9shMfbkZ8B+7JlwANEr+NZbBcn+hBpwdbeYvA5rLCw=
 github.com/cometbft/cometbft-db v0.8.0 h1:vUMDaH3ApkX8m0KZvOFFy9b5DZHBAjsnEuo9AKVZpjo=
 github.com/cometbft/cometbft-db v0.8.0/go.mod h1:6ASCP4pfhmrCBpfk01/9E1SI29nD3HfVHrY4PG8x5c0=
 github.com/confio/ics23/go v0.9.0 h1:cWs+wdbS2KRPZezoaaj+qBleXgUk5WOQFMP3CQFGTr4=
diff --git a/gomod2nix.toml b/gomod2nix.toml
index bf734ff9a2..3824cb693f 100644
--- a/gomod2nix.toml
+++ b/gomod2nix.toml
@@ -483,8 +483,8 @@ schema = 3
     version = "v0.16.0"
     hash = "sha256-JW4zO/0vMzf1dXLePOqaMtiLUZgNbuIseh9GV+jQlf0="
   [mod."github.com/tendermint/tendermint"]
-    version = "v0.34.28"
-    hash = "sha256-JcV8tXlEpNSjQS34mjfB2K2LZ9AjrE6bUoUGogGK/DE="
+    version = "v0.34.30-0.20230622094628-60e431e4eef0"
+    hash = "sha256-iJUYE0kXAq6/b8JuUYAkhz6zuVDJNoHL+nJuVz2xz58="
     replaced = "github.com/cometbft/cometbft"
   [mod."github.com/tendermint/tm-db"]
     version = "v0.6.8-0.20230424032152-87c7e7f4fb61"
diff --git a/server/start.go b/server/start.go
index 72dc8e6db2..07186e6198 100644
--- a/server/start.go
+++ b/server/start.go
@@ -15,6 +15,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/codec"
 	"github.com/cosmos/cosmos-sdk/crypto/keyring"
 	"github.com/cosmos/cosmos-sdk/telemetry"
+	"golang.org/x/sync/errgroup"
 
 	"github.com/spf13/cobra"
 
@@ -234,6 +235,11 @@ func startStandAlone(ctx *server.Context, opts StartOptions) error {
 	}
 
 	app := opts.AppCreator(ctx.Logger, db, traceWriter, ctx.Viper)
+	defer func() {
+		if err := app.Close(); err != nil {
+			ctx.Logger.Error("close application failed", "error", err.Error())
+		}
+	}()
 
 	config, err := config.GetConfig(ctx.Viper)
 	if err != nil {
@@ -261,10 +267,6 @@ func startStandAlone(ctx *server.Context, opts StartOptions) error {
 		if err = svr.Stop(); err != nil {
 			tmos.Exit(err.Error())
 		}
-
-		if err := app.Close(); err != nil {
-			tmos.Exit(err.Error())
-		}
 	}()
 
 	// Wait for SIGINT or SIGTERM signal
@@ -272,20 +274,20 @@ func startStandAlone(ctx *server.Context, opts StartOptions) error {
 }
 
 // legacyAminoCdc is used for the legacy REST API
-func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOptions) (err error) {
-	cfg := ctx.Config
+func startInProcess(svrCtx *server.Context, clientCtx client.Context, opts StartOptions) (err error) {
+	cfg := svrCtx.Config
 	home := cfg.RootDir
-	logger := ctx.Logger
+	logger := svrCtx.Logger
 
-	traceWriterFile := ctx.Viper.GetString(srvflags.TraceStore)
-	db, err := opts.DBOpener(home, server.GetAppDBBackend(ctx.Viper))
+	traceWriterFile := svrCtx.Viper.GetString(srvflags.TraceStore)
+	db, err := opts.DBOpener(home, server.GetAppDBBackend(svrCtx.Viper))
 	if err != nil {
 		logger.Error("failed to open DB", "error", err.Error())
 		return err
 	}
 	defer func() {
 		if err := db.Close(); err != nil {
-			ctx.Logger.With("error", err).Error("error closing db")
+			svrCtx.Logger.With("error", err).Error("error closing db")
 		}
 	}()
 
@@ -295,7 +297,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 		return err
 	}
 
-	config, err := config.GetConfig(ctx.Viper)
+	config, err := config.GetConfig(svrCtx.Viper)
 	if err != nil {
 		logger.Error("failed to get server config", "error", err.Error())
 		return err
@@ -303,7 +305,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 
 	if err := config.ValidateBasic(); err != nil {
 		if strings.Contains(err.Error(), "set min gas price in app.toml or flag or env variable") {
-			ctx.Logger.Error(
+			svrCtx.Logger.Error(
 				"WARNING: The minimum-gas-prices config in app.toml is set to the empty string. " +
 					"This defaults to 0 in the current version, but will error in the next version " +
 					"(SDK v0.44). Please explicitly put the desired minimum-gas-prices in your app.toml.",
@@ -313,7 +315,12 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 		}
 	}
 
-	app := opts.AppCreator(ctx.Logger, db, traceWriter, ctx.Viper)
+	app := opts.AppCreator(svrCtx.Logger, db, traceWriter, svrCtx.Viper)
+	defer func() {
+		if err := app.Close(); err != nil {
+			logger.Error("close application failed", "error", err.Error())
+		}
+	}()
 
 	nodeKey, err := p2p.LoadOrGenNodeKey(cfg.NodeKeyFile())
 	if err != nil {
@@ -321,17 +328,24 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 		return err
 	}
 
+	ctx, cancelFn := context.WithCancel(context.Background())
+	g, ctx := errgroup.WithContext(ctx)
+
+	// listen for quit signals so the calling parent process can gracefully exit
+	ListenForQuitSignals(g, true, cancelFn, svrCtx.Logger)
+
 	genDocProvider := node.DefaultGenesisDocProviderFunc(cfg)
 	var (
 		tmNode   *node.Node
-		gRPCOnly = ctx.Viper.GetBool(srvflags.GRPCOnly)
+		gRPCOnly = svrCtx.Viper.GetBool(srvflags.GRPCOnly)
 	)
 	if gRPCOnly {
-		ctx.Logger.Info("starting node in query only mode; Tendermint is disabled")
+		svrCtx.Logger.Info("starting node in query only mode; Tendermint is disabled")
 		config.GRPC.Enable = true
 		config.JSONRPC.EnableIndexer = false
 	} else {
-		tmNode, err = node.NewNode(
+		tmNode, err = node.NewNodeWithContext(
+			ctx,
 			cfg,
 			pvm.LoadOrGenFilePV(cfg.PrivValidatorKeyFile(), cfg.PrivValidatorStateFile()),
 			nodeKey,
@@ -339,7 +353,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 			genDocProvider,
 			node.DefaultDBProvider,
 			node.DefaultMetricsProvider(cfg.Instrumentation),
-			ctx.Logger.With("server", "node"),
+			svrCtx.Logger.With("server", "node"),
 		)
 		if err != nil {
 			logger.Error("failed init node", "error", err.Error())
@@ -354,7 +368,6 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 		defer func() {
 			if tmNode.IsRunning() {
 				_ = tmNode.Stop()
-				_ = app.Close()
 			}
 			logger.Info("Bye!")
 		}()
@@ -372,18 +385,18 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 
 	// Enable metrics if JSONRPC is enabled and --metrics is passed
 	// Flag not added in config to avoid user enabling in config without passing in CLI
-	if config.JSONRPC.Enable && ctx.Viper.GetBool(srvflags.JSONRPCEnableMetrics) {
+	if config.JSONRPC.Enable && svrCtx.Viper.GetBool(srvflags.JSONRPCEnableMetrics) {
 		ethmetricsexp.Setup(config.JSONRPC.MetricsAddress)
 	}
 
 	var idxer ethermint.EVMTxIndexer
 	if config.JSONRPC.EnableIndexer {
-		idxDB, err := OpenIndexerDB(home, server.GetAppDBBackend(ctx.Viper))
+		idxDB, err := OpenIndexerDB(home, server.GetAppDBBackend(svrCtx.Viper))
 		if err != nil {
 			logger.Error("failed to open evm indexer DB", "error", err.Error())
 			return err
 		}
-		idxLogger := ctx.Logger.With("module", "evmindex")
+		idxLogger := svrCtx.Logger.With("module", "evmindex")
 		idxer = indexer.NewKVIndexer(idxDB, idxLogger, clientCtx)
 		indexerService := NewEVMIndexerService(idxer, clientCtx.Client)
 		indexerService.SetLogger(idxLogger)
@@ -447,7 +460,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 			}
 
 			clientCtx = clientCtx.WithGRPCClient(grpcClient)
-			ctx.Logger.Debug("gRPC client assigned to client context", "address", grpcAddress)
+			svrCtx.Logger.Debug("gRPC client assigned to client context", "address", grpcAddress)
 		}
 	}
 
@@ -458,7 +471,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 
 	var apiSrv *api.Server
 	if config.API.Enable {
-		apiSrv = api.New(clientCtx, ctx.Logger.With("server", "api"))
+		apiSrv = api.New(clientCtx, svrCtx.Logger.With("server", "api"))
 		app.RegisterAPIRoutes(apiSrv, config.API)
 		if config.Telemetry.Enabled {
 			apiSrv.SetTelemetry(metrics)
@@ -491,7 +504,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 		if config.GRPCWeb.Enable {
 			grpcWebSrv, err = servergrpc.StartGRPCWeb(grpcSrv, config.Config)
 			if err != nil {
-				ctx.Logger.Error("failed to start grpc-web http server", "error", err)
+				svrCtx.Logger.Error("failed to start grpc-web http server", "error", err)
 				return err
 			}
 			defer func() {
@@ -517,7 +530,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 
 		tmEndpoint := "/websocket"
 		tmRPCAddr := cfg.RPC.ListenAddress
-		httpSrv, httpSrvDone, err = StartJSONRPC(ctx, clientCtx, tmRPCAddr, tmEndpoint, &config, idxer)
+		httpSrv, httpSrvDone, err = StartJSONRPC(svrCtx, clientCtx, tmRPCAddr, tmEndpoint, &config, idxer)
 		if err != nil {
 			return err
 		}
@@ -540,7 +553,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 	// we do not need to start Rosetta or handle any Tendermint related processes.
 	if gRPCOnly {
 		// wait for signal capture and gracefully return
-		return server.WaitForQuitSignals()
+		return g.Wait()
 	}
 
 	var rosettaSrv crgserver.Server
@@ -553,7 +566,7 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 		conf := &rosetta.Config{
 			Blockchain:    config.Rosetta.Blockchain,
 			Network:       config.Rosetta.Network,
-			TendermintRPC: ctx.Config.RPC.ListenAddress,
+			TendermintRPC: svrCtx.Config.RPC.ListenAddress,
 			GRPCEndpoint:  config.GRPC.Address,
 			Addr:          config.Rosetta.Address,
 			Retries:       config.Rosetta.Retries,
@@ -578,8 +591,8 @@ func startInProcess(ctx *server.Context, clientCtx client.Context, opts StartOpt
 		case <-time.After(types.ServerStartTime): // assume server started successfully
 		}
 	}
-	// Wait for SIGINT or SIGTERM signal
-	return server.WaitForQuitSignals()
+
+	return g.Wait()
 }
 
 func openDB(rootDir string, backendType dbm.BackendType) (dbm.DB, error) {
@@ -640,17 +653,5 @@ func wrapCPUProfile(ctx *server.Context, callback func() error) error {
 		}()
 	}
 
-	errCh := make(chan error)
-	go func() {
-		errCh <- callback()
-	}()
-
-	select {
-	case err := <-errCh:
-		return err
-
-	case <-time.After(types.ServerStartTime):
-	}
-
-	return server.WaitForQuitSignals()
+	return callback()
 }
diff --git a/server/util.go b/server/util.go
index 68922bae0c..e41c1eec36 100644
--- a/server/util.go
+++ b/server/util.go
@@ -1,8 +1,12 @@
 package server
 
 import (
+	"context"
 	"net"
 	"net/http"
+	"os"
+	"os/signal"
+	"syscall"
 	"time"
 
 	"github.com/evmos/ethermint/server/config"
@@ -10,6 +14,7 @@ import (
 	"github.com/improbable-eng/grpc-web/go/grpcweb"
 	"github.com/spf13/cobra"
 	"golang.org/x/net/netutil"
+	"golang.org/x/sync/errgroup"
 
 	sdkserver "github.com/cosmos/cosmos-sdk/server"
 	"github.com/cosmos/cosmos-sdk/server/types"
@@ -124,3 +129,30 @@ func Listen(addr string, config *config.Config) (net.Listener, error) {
 	}
 	return ln, err
 }
+
+// ListenForQuitSignals listens for SIGINT and SIGTERM. When a signal is received,
+// the cleanup function is called, indicating the caller can gracefully exit or
+// return.
+//
+// Note, the blocking behavior of this depends on the block argument.
+// The caller must ensure the corresponding context derived from the cancelFn is used correctly.
+func ListenForQuitSignals(g *errgroup.Group, block bool, cancelFn context.CancelFunc, logger tmlog.Logger) {
+	sigCh := make(chan os.Signal, 1)
+	signal.Notify(sigCh, syscall.SIGINT, syscall.SIGTERM)
+
+	f := func() {
+		sig := <-sigCh
+		cancelFn()
+
+		logger.Info("caught signal", "signal", sig.String())
+	}
+
+	if block {
+		g.Go(func() error {
+			f()
+			return nil
+		})
+	} else {
+		go f()
+	}
+}