diff --git a/client/rpc/src/integration-test/kotlin/net/corda/client/rpcreconnect/CordaRPCClientReconnectionTest.kt b/client/rpc/src/integration-test/kotlin/net/corda/client/rpcreconnect/CordaRPCClientReconnectionTest.kt
index 031b990b0a..70ae13731f 100644
--- a/client/rpc/src/integration-test/kotlin/net/corda/client/rpcreconnect/CordaRPCClientReconnectionTest.kt
+++ b/client/rpc/src/integration-test/kotlin/net/corda/client/rpcreconnect/CordaRPCClientReconnectionTest.kt
@@ -293,4 +293,27 @@ class CordaRPCClientReconnectionTest {
                     .isInstanceOf(RPCException::class.java)
         }
     }
+
+    @Test(timeout=300_000)
+    fun `rpc client does not attempt to reconnect after shutdown`() {
+        driver(DriverParameters(cordappsForAllNodes = emptyList())) {
+            val address = NetworkHostAndPort("localhost", portAllocator.nextPort())
+            fun startNode(): NodeHandle {
+                return startNode(
+                        providedName = CHARLIE_NAME,
+                        rpcUsers = listOf(CordaRPCClientTest.rpcUser),
+                        customOverrides = mapOf("rpcSettings.address" to address.toString())
+                ).getOrThrow()
+            }
+
+            val node = startNode()
+            val client = CordaRPCClient(node.rpcAddress, config)
+            (client.start(rpcUser.username, rpcUser.password, gracefulReconnect = gracefulReconnect)).use {
+                val rpcOps = it.proxy as ReconnectingCordaRPCOps
+                rpcOps.shutdown()
+                // If we get here we know we're not stuck in a reconnect cycle with a node that's been shut down
+                assertThat(rpcOps.reconnectingRPCConnection.isClosed())
+            }
+        }
+    }
 }
diff --git a/client/rpc/src/main/kotlin/net/corda/client/rpc/internal/ReconnectingCordaRPCOps.kt b/client/rpc/src/main/kotlin/net/corda/client/rpc/internal/ReconnectingCordaRPCOps.kt
index 9fdfa6089a..7db8597ba3 100644
--- a/client/rpc/src/main/kotlin/net/corda/client/rpc/internal/ReconnectingCordaRPCOps.kt
+++ b/client/rpc/src/main/kotlin/net/corda/client/rpc/internal/ReconnectingCordaRPCOps.kt
@@ -292,6 +292,7 @@ class ReconnectingCordaRPCOps private constructor(
     }
     private class ErrorInterceptingHandler(val reconnectingRPCConnection: ReconnectingRPCConnection) : InvocationHandler {
         private fun Method.isStartFlow() = name.startsWith("startFlow") || name.startsWith("startTrackedFlow")
+        private fun Method.isShutdown() = name == "shutdown" || name == "gracefulShutdown" || name == "terminate"
 
         private fun checkIfIsStartFlow(method: Method, e: InvocationTargetException) {
             if (method.isStartFlow()) {
@@ -306,12 +307,12 @@ class ReconnectingCordaRPCOps private constructor(
          *
          * A negative number for [maxNumberOfAttempts] means an unlimited number of retries will be performed.
          */
-        @Suppress("ThrowsCount", "ComplexMethod")
+        @Suppress("ThrowsCount", "ComplexMethod", "NestedBlockDepth")
         private fun doInvoke(method: Method, args: Array<out Any>?, maxNumberOfAttempts: Int): Any? {
             checkIfClosed()
             var remainingAttempts = maxNumberOfAttempts
             var lastException: Throwable? = null
-            while (remainingAttempts != 0) {
+            while (remainingAttempts != 0 && !reconnectingRPCConnection.isClosed()) {
                 try {
                     log.debug { "Invoking RPC $method..." }
                     return method.invoke(reconnectingRPCConnection.proxy, *(args ?: emptyArray())).also {
@@ -324,9 +325,14 @@ class ReconnectingCordaRPCOps private constructor(
                             reconnectingRPCConnection.reconnectOnError(e)
                         }
                         is ConnectionFailureException -> {
-                            log.warn("Failed to perform operation ${method.name}. Connection dropped. Retrying....", e)
-                            reconnectingRPCConnection.reconnectOnError(e)
-                            checkIfIsStartFlow(method, e)
+                            if (method.isShutdown()) {
+                                log.debug("Shutdown invoked, stop reconnecting.", e)
+                                reconnectingRPCConnection.notifyServerAndClose()
+                            } else {
+                                log.warn("Failed to perform operation ${method.name}. Connection dropped. Retrying....", e)
+                                reconnectingRPCConnection.reconnectOnError(e)
+                                checkIfIsStartFlow(method, e)
+                            }
                         }
                         is RPCException -> {
                             rethrowIfUnrecoverable(e.targetException as RPCException)
@@ -349,6 +355,7 @@ class ReconnectingCordaRPCOps private constructor(
                 }
             }
 
+            if (reconnectingRPCConnection.isClosed()) return null
             throw MaxRpcRetryException(maxNumberOfAttempts, method, lastException)
         }
 
diff --git a/tools/shell/src/main/kotlin/net/corda/tools/shell/InteractiveShell.kt b/tools/shell/src/main/kotlin/net/corda/tools/shell/InteractiveShell.kt
index bc00b7b53a..d78f4be24f 100644
--- a/tools/shell/src/main/kotlin/net/corda/tools/shell/InteractiveShell.kt
+++ b/tools/shell/src/main/kotlin/net/corda/tools/shell/InteractiveShell.kt
@@ -111,6 +111,8 @@ object InteractiveShell {
         YAML
     }
 
+    private fun isShutdownCmd(cmd: String) = cmd == "shutdown" || cmd == "gracefulShutdown" || cmd == "terminate"
+
     fun startShell(configuration: ShellConfiguration, classLoader: ClassLoader? = null, standalone: Boolean = false) {
         makeRPCConnection = { username: String, password: String ->
             val connection = if (standalone) {
@@ -623,6 +625,10 @@ object InteractiveShell {
                     throw e.rootCause
                 }
             }
+            if (isShutdownCmd(cmd)) {
+                out.println("Called 'shutdown' on the node.\nQuitting the shell now.").also { out.flush() }
+                onExit.invoke()
+            }
         } catch (e: StringToMethodCallParser.UnparseableCallException) {
             out.println(e.message, Decoration.bold, Color.red)
             if (e !is StringToMethodCallParser.UnparseableCallException.NoSuchFile) {
@@ -634,10 +640,6 @@ object InteractiveShell {
             InputStreamSerializer.invokeContext = null
             InputStreamDeserializer.closeAll()
         }
-        if (cmd == "shutdown") {
-            out.println("Called 'shutdown' on the node.\nQuitting the shell now.").also { out.flush() }
-            onExit.invoke()
-        }
         return result
     }