diff --git a/dbos/admin_server.go b/dbos/admin_server.go
index d25840fc..85ed8205 100644
--- a/dbos/admin_server.go
+++ b/dbos/admin_server.go
@@ -6,6 +6,7 @@ import (
 	"fmt"
 	"log/slog"
 	"net/http"
+	"sync"
 	"sync/atomic"
 	"time"
 )
@@ -27,7 +28,6 @@ const (
 	_WORKFLOW_FORK_PATTERN            = "POST /workflows/{id}/fork"
 
 	_ADMIN_SERVER_READ_HEADER_TIMEOUT = 5 * time.Second
-	_ADMIN_SERVER_SHUTDOWN_TIMEOUT    = 10 * time.Second
 )
 
 // listWorkflowsRequest represents the request structure for listing workflows
@@ -103,6 +103,7 @@ type adminServer struct {
 	logger        *slog.Logger
 	port          int
 	isDeactivated atomic.Int32
+	wg            sync.WaitGroup
 }
 
 // toListWorkflowResponse converts a WorkflowStatus to a map with all time fields in UTC
@@ -226,7 +227,10 @@ func newAdminServer(ctx *dbosContext, port int) *adminServer {
 	mux.HandleFunc(_DEACTIVATE_PATTERN, func(w http.ResponseWriter, r *http.Request) {
 		if as.isDeactivated.CompareAndSwap(0, 1) {
 			ctx.logger.Info("Deactivating DBOS executor", "executor_id", ctx.executorID, "app_version", ctx.applicationVersion)
-			// TODO: Stop queue runner, workflow scheduler, etc
+			// Stop the workflow scheduler. Note we don't wait for running jobs to complete
+			if ctx.workflowScheduler != nil {
+				ctx.workflowScheduler.Stop()
+			}
 		}
 
 		w.Header().Set("Content-Type", "text/plain")
@@ -532,7 +536,9 @@ func newAdminServer(ctx *dbosContext, port int) *adminServer {
 func (as *adminServer) Start() error {
 	as.logger.Info("Starting admin server", "port", as.port)
 
+	as.wg.Add(1)
 	go func() {
+		defer as.wg.Done()
 		if err := as.server.ListenAndServe(); err != nil && err != http.ErrServerClosed {
 			as.logger.Error("Admin server error", "error", err)
 		}
@@ -541,11 +547,10 @@ func (as *adminServer) Start() error {
 	return nil
 }
 
-func (as *adminServer) Shutdown(ctx context.Context) error {
+func (as *adminServer) Shutdown(timeout time.Duration) error {
 	as.logger.Info("Shutting down admin server")
 
-	// Note: consider moving the grace period to DBOSContext.Shutdown()
-	ctx, cancel := context.WithTimeout(ctx, _ADMIN_SERVER_SHUTDOWN_TIMEOUT)
+	ctx, cancel := context.WithTimeout(context.Background(), timeout)
 	defer cancel()
 
 	if err := as.server.Shutdown(ctx); err != nil {
@@ -553,6 +558,19 @@ func (as *adminServer) Shutdown(ctx context.Context) error {
 		return fmt.Errorf("failed to shutdown admin server: %w", err)
 	}
 
-	as.logger.Info("Admin server shutdown complete")
+	// Wait for the server goroutine to return
+	done := make(chan struct{})
+	go func() {
+		as.wg.Wait()
+		close(done)
+	}()
+
+	select {
+	case <-done:
+		as.logger.Info("Admin server shutdown complete")
+	case <-ctx.Done():
+		as.logger.Warn("Admin server shutdown timed out")
+	}
+
 	return nil
 }
diff --git a/dbos/admin_server_test.go b/dbos/admin_server_test.go
index da40359e..25e2ff8c 100644
--- a/dbos/admin_server_test.go
+++ b/dbos/admin_server_test.go
@@ -7,6 +7,7 @@ import (
 	"io"
 	"net/http"
 	"strings"
+	"sync/atomic"
 	"testing"
 	"time"
 
@@ -29,7 +30,7 @@ func TestAdminServer(t *testing.T) {
 		// Ensure cleanup
 		defer func() {
 			if ctx != nil {
-				ctx.Cancel()
+				ctx.Shutdown(1 * time.Minute)
 			}
 		}()
 
@@ -65,7 +66,7 @@ func TestAdminServer(t *testing.T) {
 		// Ensure cleanup
 		defer func() {
 			if ctx != nil {
-				ctx.Cancel()
+				ctx.Shutdown(1 * time.Minute)
 			}
 		}()
 
@@ -252,7 +253,7 @@ func TestAdminServer(t *testing.T) {
 		// Ensure cleanup
 		defer func() {
 			if ctx != nil {
-				ctx.Cancel()
+				ctx.Shutdown(1 * time.Minute)
 			}
 		}()
 
@@ -379,7 +380,7 @@ func TestAdminServer(t *testing.T) {
 		// Ensure cleanup
 		defer func() {
 			if ctx != nil {
-				ctx.Cancel()
+				ctx.Shutdown(1 * time.Minute)
 			}
 		}()
 
@@ -530,8 +531,74 @@ func TestAdminServer(t *testing.T) {
 		}
 		assert.True(t, foundIDs4[workflowID1], "Expected to find first workflow ID in empty body results")
 		assert.True(t, foundIDs4[workflowID2], "Expected to find second workflow ID in empty body results")
+	})
+
+	t.Run("TestDeactivate", func(t *testing.T) {
+		t.Run("Deactivate stops workflow scheduler", func(t *testing.T) {
+			resetTestDatabase(t, databaseURL)
+			ctx, err := NewDBOSContext(Config{
+				DatabaseURL: databaseURL,
+				AppName:     "test-app",
+				AdminServer: true,
+			})
+			require.NoError(t, err)
+
+			// Track scheduled workflow executions
+			var executionCount atomic.Int32
+
+			// Register a scheduled workflow that runs every second
+			RegisterWorkflow(ctx, func(dbosCtx DBOSContext, scheduledTime time.Time) (string, error) {
+				executionCount.Add(1)
+				return fmt.Sprintf("executed at %v", scheduledTime), nil
+			}, WithSchedule("* * * * * *")) // Every second
 
-		return // Skip the normal test flow
+			err = ctx.Launch()
+			require.NoError(t, err)
+
+			client := &http.Client{Timeout: 5 * time.Second}
+
+			// Ensure cleanup
+			defer func() {
+				if ctx != nil {
+					ctx.Shutdown(1 * time.Minute)
+				}
+				if client.Transport != nil {
+					client.Transport.(*http.Transport).CloseIdleConnections()
+				}
+			}()
+
+			// Wait for 2-3 executions to verify scheduler is running
+			require.Eventually(t, func() bool {
+				return executionCount.Load() >= 2
+			}, 3*time.Second, 100*time.Millisecond, "Expected at least 2 scheduled workflow executions")
+
+			// Call deactivate endpoint
+			endpoint := fmt.Sprintf("http://localhost:3001/%s", strings.TrimPrefix(_DEACTIVATE_PATTERN, "GET /"))
+			req, err := http.NewRequest("GET", endpoint, nil)
+			require.NoError(t, err, "Failed to create deactivate request")
+
+			resp, err := client.Do(req)
+			require.NoError(t, err, "Failed to call deactivate endpoint")
+			defer resp.Body.Close()
+
+			// Verify endpoint returned 200 OK
+			assert.Equal(t, http.StatusOK, resp.StatusCode, "Expected 200 OK from deactivate endpoint")
+
+			// Verify response body
+			body, err := io.ReadAll(resp.Body)
+			require.NoError(t, err, "Failed to read response body")
+			assert.Equal(t, "deactivated", string(body), "Expected 'deactivated' response body")
+
+			// Record count after deactivate and wait
+			countAfterDeactivate := executionCount.Load()
+			time.Sleep(4 * time.Second) // Wait long enough for multiple executions if scheduler was still running
+
+			// Verify no new executions occurred
+			finalCount := executionCount.Load()
+			assert.Equal(t, countAfterDeactivate, finalCount,
+				"Expected no new scheduled workflows after deactivate (had %d before, %d after)",
+				countAfterDeactivate, finalCount)
+		})
 	})
 
 }
diff --git a/dbos/dbos.go b/dbos/dbos.go
index f3c35e08..8b08bfad 100644
--- a/dbos/dbos.go
+++ b/dbos/dbos.go
@@ -71,8 +71,8 @@ type DBOSContext interface {
 	context.Context
 
 	// Context Lifecycle
-	Launch() error // Launch the DBOS runtime including system database, queues, admin server, and workflow recovery
-	Cancel()       // Gracefully shutdown the DBOS runtime, waiting for workflows to complete and cleaning up resources
+	Launch() error                  // Launch the DBOS runtime including system database, queues, admin server, and workflow recovery
+	Shutdown(timeout time.Duration) // Gracefully shutdown all DBOS runtime components with ordered cleanup sequence
 
 	// Workflow operations
 	RunAsStep(_ DBOSContext, fn StepFunc, opts ...StepOption) (any, error)                                        // Execute a function as a durable step within a workflow
@@ -239,7 +239,7 @@ func (c *dbosContext) GetApplicationID() string {
 }
 
 // NewDBOSContext creates a new DBOS context with the provided configuration.
-// The context must be launched with Launch() before use and should be shut down with Cancel().
+// The context must be launched with Launch() before use and should be shut down with Shutdown().
 // This function initializes the DBOS system database, sets up the queue sub-system,
 // and prepares the workflow registry.
 //
@@ -253,7 +253,7 @@ func (c *dbosContext) GetApplicationID() string {
 //	if err != nil {
 //	    log.Fatal(err)
 //	}
-//	defer ctx.Cancel()
+//	defer ctx.Shutdown(30*time.Second)
 //
 //	if err := ctx.Launch(); err != nil {
 //	    log.Fatal(err)
@@ -372,62 +372,86 @@ func (c *dbosContext) Launch() error {
 	return nil
 }
 
-// Cancel gracefully shuts down the DBOS runtime by canceling the context, waiting for
-// all workflows to complete, and cleaning up system resources including the database
-// connection pool, queue runner, workflow scheduler, and admin server.
-// All workflows and steps contexts will be canceled, which one can check using their context's Done() method.
+// Shutdown gracefully shuts down the DBOS runtime by performing a complete, ordered cleanup
+// of all system components. The shutdown sequence includes:
 //
-// This method blocks until all workflows finish and all resources are properly cleaned up.
-// It should be called when the application is shutting down to ensure data consistency.
-func (c *dbosContext) Cancel() {
+// 1. Calls Cancel to stop workflows and cancel the context
+// 2. Waits for the queue runner to complete processing
+// 3. Stops the workflow scheduler and waits for scheduled jobs to finish
+// 4. Shuts down the system database connection pool and notification listener
+// 5. Shuts down the admin server
+// 6. Marks the context as not launched
+//
+// Each step respects the provided timeout. If any component doesn't shut down within the timeout,
+// a warning is logged and the shutdown continues to the next component.
+//
+// Shutdown is a permanent operation and should be called when the application is terminating.
+func (c *dbosContext) Shutdown(timeout time.Duration) {
 	c.logger.Info("Shutting down DBOS context")
 
 	// Cancel the context to signal all resources to stop
-	c.ctxCancelFunc(errors.New("DBOS shutdown initiated"))
+	c.ctxCancelFunc(errors.New("DBOS cancellation initiated"))
 
 	// Wait for all workflows to finish
 	c.logger.Info("Waiting for all workflows to finish")
-	c.workflowsWg.Wait()
-	c.logger.Info("All workflows completed")
+	done := make(chan struct{})
+	go func() {
+		c.workflowsWg.Wait()
+		close(done)
+	}()
+	select {
+	case <-done:
+		c.logger.Info("All workflows completed")
+	case <-time.After(timeout):
+		// For now just log a warning: eventually we might want Cancel to return an error.
+		c.logger.Warn("Timeout waiting for workflows to complete", "timeout", timeout)
+	}
 
-	// Close the pool and the notification listener if started
-	if c.systemDB != nil {
-		c.logger.Info("Shutting down system database")
-		c.systemDB.shutdown(c)
-		c.systemDB = nil
+	// Wait for queue runner to finish
+	if c.queueRunner != nil && c.launched.Load() {
+		c.logger.Info("Waiting for queue runner to complete")
+		select {
+		case <-c.queueRunner.completionChan:
+			c.logger.Info("Queue runner completed")
+			c.queueRunner = nil
+		case <-time.After(timeout):
+			c.logger.Warn("Timeout waiting for queue runner to complete", "timeout", timeout)
+		}
 	}
 
-	if c.launched.Load() {
-		// Wait for queue runner to finish
-		<-c.queueRunner.completionChan
-		c.logger.Info("Queue runner completed")
-
-		if c.workflowScheduler != nil {
-			c.logger.Info("Stopping workflow scheduler")
-			ctx := c.workflowScheduler.Stop()
-			// Wait for all running jobs to complete with 5-second timeout
-			timeoutCtx, cancel := context.WithTimeout(ctx, 5*time.Second)
-			defer cancel()
-
-			select {
-			case <-ctx.Done():
-				c.logger.Info("All scheduled jobs completed")
-			case <-timeoutCtx.Done():
-				c.logger.Warn("Timeout waiting for jobs to complete. Moving on", "timeout", "5s")
-			}
+	// Stop the workflow scheduler and wait until all scheduled workflows are done
+	if c.workflowScheduler != nil && c.launched.Load() {
+		c.logger.Info("Stopping workflow scheduler")
+		ctx := c.workflowScheduler.Stop()
+
+		select {
+		case <-ctx.Done():
+			c.logger.Info("All scheduled jobs completed")
+			c.workflowScheduler = nil
+		case <-time.After(timeout):
+			c.logger.Warn("Timeout waiting for jobs to complete. Moving on", "timeout", timeout)
 		}
+	}
 
-		if c.adminServer != nil {
-			c.logger.Info("Shutting down admin server")
-			err := c.adminServer.Shutdown(c)
-			if err != nil {
-				c.logger.Error("Failed to shutdown admin server", "error", err)
-			} else {
-				c.logger.Info("Admin server shutdown complete")
-			}
-			c.adminServer = nil
+	// Shutdown the admin server
+	if c.adminServer != nil && c.launched.Load() {
+		c.logger.Info("Shutting down admin server")
+		err := c.adminServer.Shutdown(timeout)
+		if err != nil {
+			c.logger.Error("Failed to shutdown admin server", "error", err)
+		} else {
+			c.logger.Info("Admin server shutdown complete")
 		}
+		c.adminServer = nil
 	}
+
+	// Close the system database
+	if c.systemDB != nil {
+		c.logger.Info("Shutting down system database")
+		c.systemDB.shutdown(c, timeout)
+		c.systemDB = nil
+	}
+
 	c.launched.Store(false)
 }
 
diff --git a/dbos/dbos_test.go b/dbos/dbos_test.go
index f65c314c..98ef59b4 100644
--- a/dbos/dbos_test.go
+++ b/dbos/dbos_test.go
@@ -2,6 +2,7 @@ package dbos
 
 import (
 	"testing"
+	"time"
 
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
@@ -21,7 +22,7 @@ func TestConfigValidationErrorTypes(t *testing.T) {
 		require.NoError(t, err)
 		defer func() {
 			if ctx != nil {
-				ctx.Cancel()
+				ctx.Shutdown(1*time.Minute)
 			}
 		}() // Clean up executor
 
diff --git a/dbos/logger_test.go b/dbos/logger_test.go
index 4921b294..dd305dbd 100644
--- a/dbos/logger_test.go
+++ b/dbos/logger_test.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"log/slog"
 	"testing"
+	"time"
 
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
@@ -22,7 +23,7 @@ func TestLogger(t *testing.T) {
 		require.NoError(t, err)
 		t.Cleanup(func() {
 			if dbosCtx != nil {
-				dbosCtx.Cancel()
+				dbosCtx.Shutdown(10*time.Second)
 			}
 		})
 
@@ -55,7 +56,7 @@ func TestLogger(t *testing.T) {
 		require.NoError(t, err)
 		t.Cleanup(func() {
 			if dbosCtx != nil {
-				dbosCtx.Cancel()
+				dbosCtx.Shutdown(10*time.Second)
 			}
 		})
 
diff --git a/dbos/queue.go b/dbos/queue.go
index 88035ff2..290ba7f3 100644
--- a/dbos/queue.go
+++ b/dbos/queue.go
@@ -158,7 +158,7 @@ func newQueueRunner() *queueRunner {
 		jitterMin:             0.95,
 		jitterMax:             1.05,
 		workflowQueueRegistry: make(map[string]WorkflowQueue),
-		completionChan:        make(chan struct{}),
+		completionChan:        make(chan struct{}, 1),
 	}
 }
 
diff --git a/dbos/system_database.go b/dbos/system_database.go
index 94496daa..0086d589 100644
--- a/dbos/system_database.go
+++ b/dbos/system_database.go
@@ -26,7 +26,7 @@ import (
 type systemDatabase interface {
 	// SysDB management
 	launch(ctx context.Context)
-	shutdown(ctx context.Context)
+	shutdown(ctx context.Context, timeout time.Duration)
 	resetSystemDB(ctx context.Context) error
 
 	// Workflows
@@ -235,7 +235,7 @@ func (s *sysDB) launch(ctx context.Context) {
 	s.launched = true
 }
 
-func (s *sysDB) shutdown(ctx context.Context) {
+func (s *sysDB) shutdown(ctx context.Context, timeout time.Duration) {
 	s.logger.Info("DBOS: Closing system database connection pool")
 	if s.pool != nil {
 		s.pool.Close()
@@ -251,7 +251,12 @@ func (s *sysDB) shutdown(ctx context.Context) {
 
 	if s.launched {
 		// Wait for the notification loop to exit
-		<-s.notificationLoopDone
+		s.logger.Info("DBOS: Waiting for notification listener loop to finish")
+		select {
+		case <-s.notificationLoopDone:
+		case <-time.After(timeout):
+			s.logger.Warn("DBOS: Notification listener loop did not finish in time", "timeout", timeout)
+		}
 	}
 
 	s.notificationsMap.Clear()
diff --git a/dbos/utils_test.go b/dbos/utils_test.go
index fc82954c..df7e0412 100644
--- a/dbos/utils_test.go
+++ b/dbos/utils_test.go
@@ -70,7 +70,7 @@ func setupDBOS(t *testing.T, dropDB bool, checkLeaks bool) DBOSContext {
 		fmt.Println("Cleaning up DBOS instance...")
 		dbosCtx.(*dbosContext).logger.Info("Cleaning up DBOS instance...")
 		if dbosCtx != nil {
-			dbosCtx.Cancel()
+			dbosCtx.Shutdown(30 * time.Second) // Wait for workflows to finish and shutdown admin server and system database
 		}
 		dbosCtx = nil
 		if checkLeaks {
diff --git a/dbos/workflows_test.go b/dbos/workflows_test.go
index 19eceac4..f9d6df0f 100644
--- a/dbos/workflows_test.go
+++ b/dbos/workflows_test.go
@@ -351,7 +351,7 @@ func TestWorkflowsRegistration(t *testing.T) {
 		// Launch DBOS context
 		err := freshCtx.Launch()
 		require.NoError(t, err)
-		defer freshCtx.Cancel()
+		defer freshCtx.Shutdown(10 * time.Second)
 
 		// Attempting to register after launch should panic
 		defer func() {