diff --git a/chromadb/api/shared_system_client.py b/chromadb/api/shared_system_client.py
index d5c8b76fb6c..d60be980ca2 100644
--- a/chromadb/api/shared_system_client.py
+++ b/chromadb/api/shared_system_client.py
@@ -1,4 +1,5 @@
 from typing import ClassVar, Dict
+import threading
 import uuid
 
 from chromadb.api import ServerAPI
@@ -9,7 +10,10 @@
 
 class SharedSystemClient:
     _identifier_to_system: ClassVar[Dict[str, System]] = {}
+    _identifier_to_clientcount: ClassVar[Dict[str, int]] = {}
+    _count_lock: ClassVar[threading.Lock] = threading.Lock()
     _identifier: str
+    _closed: bool
 
     def __init__(
         self,
@@ -17,29 +21,37 @@ def __init__(
     ) -> None:
         self._identifier = SharedSystemClient._get_identifier_from_settings(settings)
         SharedSystemClient._create_system_if_not_exists(self._identifier, settings)
+        with SharedSystemClient._count_lock:
+            SharedSystemClient._identifier_to_clientcount[self._identifier] = (
+                SharedSystemClient._identifier_to_clientcount.get(self._identifier, 0)
+                + 1
+            )
+        self._closed = False
 
     @classmethod
     def _create_system_if_not_exists(
         cls, identifier: str, settings: Settings
     ) -> System:
-        if identifier not in cls._identifier_to_system:
-            new_system = System(settings)
-            cls._identifier_to_system[identifier] = new_system
+        with cls._count_lock:
+            if identifier not in cls._identifier_to_system:
+                new_system = System(settings)
+                cls._identifier_to_system[identifier] = new_system
+                cls._identifier_to_clientcount[identifier] = 0
 
-            new_system.instance(ProductTelemetryClient)
-            new_system.instance(ServerAPI)
+                new_system.instance(ProductTelemetryClient)
+                new_system.instance(ServerAPI)
 
-            new_system.start()
-        else:
-            previous_system = cls._identifier_to_system[identifier]
+                new_system.start()
+            else:
+                previous_system = cls._identifier_to_system[identifier]
 
-            # For now, the settings must match
-            if previous_system.settings != settings:
-                raise ValueError(
-                    f"An instance of Chroma already exists for {identifier} with different settings"
-                )
+                # For now, the settings must match
+                if previous_system.settings != settings:
+                    raise ValueError(
+                        f"An instance of Chroma already exists for {identifier} with different settings"
+                    )
 
-        return cls._identifier_to_system[identifier]
+            return cls._identifier_to_system[identifier]
 
     @staticmethod
     def _get_identifier_from_settings(settings: Settings) -> str:
@@ -72,7 +84,8 @@ def _get_identifier_from_settings(settings: Settings) -> str:
     @staticmethod
     def _populate_data_from_system(system: System) -> str:
         identifier = SharedSystemClient._get_identifier_from_settings(system.settings)
-        SharedSystemClient._identifier_to_system[identifier] = system
+        with SharedSystemClient._count_lock:
+            SharedSystemClient._identifier_to_system[identifier] = system
         return identifier
 
     @classmethod
@@ -83,13 +96,60 @@ def from_system(cls, system: System) -> "SharedSystemClient":
         instance = cls(system.settings)
         return instance
 
+    def close(self) -> None:
+        """Explicitly cleanup this client's system reference."""
+        if hasattr(self, "_identifier") and not self._closed:
+            identifier = self._identifier
+            SharedSystemClient._decrement_refcount(identifier)
+            self._closed = True
+            # Prevent double-cleanup by removing identifier
+            delattr(self, "_identifier")
+
+    def __enter__(self) -> "SharedSystemClient":
+        return self
+
+    def __exit__(self, *args) -> None:  # type: ignore
+        self.close()
+
+    def __del__(self) -> None:
+        """Fallback cleanup - prefer using close() or context manager."""
+        try:
+            if hasattr(self, "_identifier") and not getattr(self, "_closed", False):
+                SharedSystemClient._decrement_refcount(self._identifier)
+        except Exception:
+            pass
+
+    @classmethod
+    def _decrement_refcount(cls, identifier: str) -> None:
+        """Decrement reference count for a System and cleanup if no clients remain."""
+        with cls._count_lock:
+            if identifier not in cls._identifier_to_clientcount:
+                return
+
+            cls._identifier_to_clientcount[identifier] -= 1
+
+            if cls._identifier_to_clientcount[identifier] <= 0:
+                # since no more client using this system, can stop it and remove from cache
+                if identifier in cls._identifier_to_system:
+                    system = cls._identifier_to_system[identifier]
+                    system.stop()
+                    del cls._identifier_to_system[identifier]
+                del cls._identifier_to_clientcount[identifier]
+
     @staticmethod
     def clear_system_cache() -> None:
-        SharedSystemClient._identifier_to_system = {}
+        """Clear the system cache so that new systems can be created for an existing path.
+        This should only be used for testing purposes."""
+        with SharedSystemClient._count_lock:
+            for system in SharedSystemClient._identifier_to_system.values():
+                system.stop()
+            SharedSystemClient._identifier_to_system = {}
+            SharedSystemClient._identifier_to_clientcount = {}
 
     @property
     def _system(self) -> System:
-        return SharedSystemClient._identifier_to_system[self._identifier]
+        with SharedSystemClient._count_lock:
+            return SharedSystemClient._identifier_to_system[self._identifier]
 
     def _submit_client_start_event(self) -> None:
         telemetry_client = self._system.instance(ProductTelemetryClient)