diff --git a/common/resource/params.go b/common/resource/params.go
index 633575420df..9d667d7b346 100644
--- a/common/resource/params.go
+++ b/common/resource/params.go
@@ -101,5 +101,11 @@ type (
 
 		// ShardDistributorMatchingConfig is the config for shard distributor executor client in matching service
 		ShardDistributorMatchingConfig clientcommon.Config
+
+		// DrainObserver is an optional observer that signals when this instance is
+		// drained from service discovery.
+		// It is used by shard-distributor executor clients to
+		// gracefully stop processing during drains.
+		DrainObserver clientcommon.DrainSignalObserver
 	}
 )
diff --git a/service/matching/handler/engine.go b/service/matching/handler/engine.go
index 6998fccca99..e028f843619 100644
--- a/service/matching/handler/engine.go
+++ b/service/matching/handler/engine.go
@@ -111,6 +111,7 @@ type (
 		timeSource                     clock.TimeSource
 		failoverNotificationVersion    int64
 		ShardDistributorMatchingConfig clientcommon.Config
+		drainObserver                  clientcommon.DrainSignalObserver
 	}
 )
 
@@ -140,6 +141,7 @@ func NewEngine(
 	timeSource clock.TimeSource,
 	shardDistributorClient executorclient.Client,
 	ShardDistributorMatchingConfig clientcommon.Config,
+	drainObserver clientcommon.DrainSignalObserver,
 ) Engine {
 	e := &matchingEngineImpl{
 		taskListRegistry:               tasklist.NewTaskListRegistry(metricsClient),
@@ -161,6 +163,7 @@ func NewEngine(
 		isolationState:                 isolationState,
 		timeSource:                     timeSource,
 		ShardDistributorMatchingConfig: ShardDistributorMatchingConfig,
+		drainObserver:                  drainObserver,
 	}
 
 	e.setupExecutor(shardDistributorClient)
@@ -215,6 +218,7 @@ func (e *matchingEngineImpl) setupExecutor(shardDistributorExecutorClient execut
 			"grpc":     fmt.Sprintf("%d", e.config.RPCConfig.GRPCPort),
 			"hostIP":   hostIP.String(),
 		},
+		DrainObserver: e.drainObserver,
 	}
 	executor, err := executorclient.NewExecutor[tasklist.ShardProcessor](params)
 	if err != nil {
diff --git a/service/matching/handler/engine_integration_test.go b/service/matching/handler/engine_integration_test.go
index 7649d2ddf60..c47e71a6027 100644
--- a/service/matching/handler/engine_integration_test.go
+++ b/service/matching/handler/engine_integration_test.go
@@ -194,6 +194,7 @@ func (s *matchingEngineSuite) newMatchingEngine(
 		s.mockTimeSource,
 		s.mockShardExecutorClient,
 		defaultSDExecutorConfig(),
+		nil,
 	).(*matchingEngineImpl)
 }
 
diff --git a/service/matching/handler/membership_test.go b/service/matching/handler/membership_test.go
index 3be1cb422fb..644a45e1f9c 100644
--- a/service/matching/handler/membership_test.go
+++ b/service/matching/handler/membership_test.go
@@ -139,6 +139,7 @@ func TestGetTaskListManager_OwnerShip(t *testing.T) {
 				mockTimeSource,
 				mockShardDistributorExecutorClient,
 				defaultSDExecutorConfig(),
+				nil,
 			).(*matchingEngineImpl)
 
 			resolverMock.EXPECT().Lookup(gomock.Any(), gomock.Any()).Return(
diff --git a/service/matching/service.go b/service/matching/service.go
index 82512c6c918..782a2d5caee 100644
--- a/service/matching/service.go
+++ b/service/matching/service.go
@@ -45,6 +45,7 @@ type Service struct {
 	stopC                          chan struct{}
 	config                         *config.Config
 	ShardDistributorMatchingConfig clientcommon.Config
+	drainObserver                  clientcommon.DrainSignalObserver
 }
 
 // NewService builds a new cadence-matching service
@@ -84,6 +85,7 @@ func NewService(
 		config:                         serviceConfig,
 		stopC:                          make(chan struct{}),
 		ShardDistributorMatchingConfig: params.ShardDistributorMatchingConfig,
+		drainObserver:                  params.DrainObserver,
 	}, nil
 }
 
@@ -111,6 +113,7 @@ func (s *Service) Start() {
 		s.GetTimeSource(),
 		s.GetShardDistributorExecutorClient(),
 		s.ShardDistributorMatchingConfig,
+		s.drainObserver,
 	)
 
 	s.handler = handler.NewHandler(engine, s.config, s.GetDomainCache(), s.GetMetricsClient(), s.GetLogger(), s.GetThrottledLogger())