diff --git a/lib/event_source.rb b/lib/event_source.rb
index 5b3d8429..7597298e 100644
--- a/lib/event_source.rb
+++ b/lib/event_source.rb
@@ -112,6 +112,27 @@ def register_subscriber(subscriber_klass)
     def register_publisher(subscriber_klass)
       boot_registry.register_publisher(subscriber_klass)
     end
+
+    def inflight_messages_count
+      @inflight_mutex ||= Mutex.new
+      @inflight_mutex.synchronize { @inflight_messages_count ||= 0 }
+    end
+
+    def increment_inflight_messages
+      @inflight_mutex ||= Mutex.new
+      @inflight_mutex.synchronize do
+        @inflight_messages_count ||= 0
+        @inflight_messages_count += 1
+      end
+    end
+
+    def decrement_inflight_messages
+      @inflight_mutex ||= Mutex.new
+      @inflight_mutex.synchronize do
+        @inflight_messages_count ||= 0
+        @inflight_messages_count = [@inflight_messages_count - 1, 0].max
+      end
+    end
   end
 
   class EventSourceLogger
diff --git a/lib/event_source/channel.rb b/lib/event_source/channel.rb
index 87ca29f0..94af0f88 100644
--- a/lib/event_source/channel.rb
+++ b/lib/event_source/channel.rb
@@ -110,5 +110,12 @@ def add_subscribe_operation(async_api_channel_item)
         )
       logger.info "  Subscribe Operation Added: #{operation_id}"
     end
+
+    def cancel_consumers
+      subscribe_operations.each_value do |sub_op|
+        subject = sub_op.subject
+        subject.cancel_consumers! if subject.respond_to?(:cancel_consumers!)
+      end
+    end
   end
 end
diff --git a/lib/event_source/configure/config.rb b/lib/event_source/configure/config.rb
index fbdea5cc..f5cd74f6 100644
--- a/lib/event_source/configure/config.rb
+++ b/lib/event_source/configure/config.rb
@@ -10,11 +10,12 @@ class Config
 
       def initialize
         @log_level = :warn
+        @shutdown_timeouts = { amqp_drain: 5, http_drain: 5 }
       end
 
       # TODO: add default for pub_sub_root
       attr_writer :pub_sub_root, :protocols, :server_configurations
-      attr_accessor :app_name, :log_level
+      attr_accessor :app_name, :log_level, :auto_shutdown, :shutdown_timeouts
 
       def load_protocols
         @protocols.each do |protocol|
diff --git a/lib/event_source/connection_manager.rb b/lib/event_source/connection_manager.rb
index 4af587f0..7d11b3b7 100644
--- a/lib/event_source/connection_manager.rb
+++ b/lib/event_source/connection_manager.rb
@@ -160,8 +160,54 @@ def drop_connection(connection_uri)
       connections
     end
 
+    def cancel_consumers_for(protocol, timeout: 5)
+      protocol_value = protocol.to_s.upcase
+      logger.info "Cancelling #{protocol_value} consumers prior to shutdown"
+      connections = connections_for(protocol)
+      any_consumers = connections.any? { |connection| connection_has_consumers?(connection) }
+      logger.info "#{protocol_value} inflight handlers (before_cancel): #{EventSource.inflight_messages_count}, any_consumers=#{any_consumers}"
+
+      connections.each do |connection|
+        connection.channels.each_value do |channel|
+          channel.cancel_consumers
+        end
+      end
+
+      wait_for_connections_to_drain(connections, timeout)
+
+      logger.info "#{protocol_value} consumer cancellation complete"
+      logger.info "#{protocol_value} inflight handlers (end): #{EventSource.inflight_messages_count}"
+    end
+
     private
 
+    def wait_for_connections_to_drain(connections, timeout)
+      return if connections.empty?
+
+      protocol = connections.first.protocol.to_s.upcase
+      start = Time.now
+
+      loop do
+        inflight = EventSource.inflight_messages_count
+        any_consumers = connections.any? { |connection| connection_has_consumers?(connection) }
+
+        logger.info "#{protocol} inflight handlers (drain): #{inflight}, any_consumers=#{any_consumers}"
+        break if inflight.zero? && !any_consumers
+        break if (Time.now - start) >= timeout
+        sleep 0.1
+      end
+    end
+
+    def connection_has_consumers?(connection)
+      connection.channels.values.any? do |channel|
+        begin
+          channel.channel_proxy.subject.any_consumers?
+        rescue StandardError
+          false
+        end
+      end
+    end
+
     # Find connection proxy class for given protocol
     # @param [Symbol] protocol the protocol name, `:http` or `:amqp`
     # @return [Class] Protocol Specific Connection Proxy Class
diff --git a/lib/event_source/protocols/amqp/bunny_queue_proxy.rb b/lib/event_source/protocols/amqp/bunny_queue_proxy.rb
index 7416dc8e..8eff6fe7 100644
--- a/lib/event_source/protocols/amqp/bunny_queue_proxy.rb
+++ b/lib/event_source/protocols/amqp/bunny_queue_proxy.rb
@@ -91,7 +91,7 @@ def spawn_thread(options)
         end
 
         def add_consumer(subscriber_klass, options)
-          @subject.subscribe(options) do |delivery_info, metadata, payload|
+          consumer = @subject.subscribe(options) do |delivery_info, metadata, payload|
             on_receive_message(
               subscriber_klass,
               delivery_info,
@@ -99,6 +99,7 @@ def add_consumer(subscriber_klass, options)
               payload
             )
           end
+          @consumers << consumer if consumer
         end
 
         def convert_to_subscribe_options(options)
@@ -124,6 +125,7 @@ def on_receive_message(
           metadata,
           payload
         )
+          EventSource.increment_inflight_messages
           logger.debug '**************************'
           logger.debug subscriber_klass.inspect
           logger.debug delivery_info.inspect
@@ -158,6 +160,7 @@ def on_receive_message(
           logger.error "Bunny Consumer Error \n  message: #{e.message} \n  backtrace: #{e.backtrace.join("\n")}"
         ensure
           subscriber = nil
+          EventSource.decrement_inflight_messages
         end
 
         # Decodes the given payload based on the `contentEncoding` specified in the AsyncAPI *_subscribe.yml message bindings.
@@ -198,6 +201,18 @@ def method_missing(name, *args)
           @subject.send(name, *args)
         end
 
+        # Cancel all registered consumers for this queue
+        def cancel_consumers!
+          @consumers.each do |consumer|
+            begin
+              consumer.cancel
+            rescue StandardError => e
+              logger.info "Consumer cancellation error: #{e.message}"
+            end
+          end
+          @consumers.clear
+        end
+
         private
 
         def subscriber_klass_name_to_suffix(subscriber_klass)
diff --git a/lib/event_source/railtie.rb b/lib/event_source/railtie.rb
index 77dcc66b..3b0e7254 100644
--- a/lib/event_source/railtie.rb
+++ b/lib/event_source/railtie.rb
@@ -1,9 +1,41 @@
 # frozen_string_literal: true
 
+require 'logger'
+
 module EventSource
   # :nodoc:
   module Railtie
     Rails::Application::Finisher.initializer "event_source.boot", after: :finisher_hook do
+      logger = Logger.new($stdout)
+      logger.progname = 'EventSource graceful shutdown'
+      timeouts = EventSource.config.shutdown_timeouts || {}
+      amqp_timeout = timeouts[:amqp_drain] || 5
+
+      # Perform shutdown work outside of trap/at_exit context to avoid
+      # ThreadError from mutex operations within Bunny (AMQP client).
+      shutdown = lambda do |reason|
+        Thread.new do
+          begin
+            logger.info "#{reason}, starting graceful shutdown"
+            logger.info "AMQP inflight handlers at shutdown start: #{EventSource.inflight_messages_count}"
+            cm = EventSource::ConnectionManager.instance
+
+            # Stop consuming and allow in-flight handlers to drain briefly
+            cm.cancel_consumers_for(:amqp, timeout: amqp_timeout)
+            cm.drop_connections_for(:amqp)
+          rescue => e
+            logger.error "graceful shutdown error: #{e.class}: #{e.message}"
+          end
+        end.join
+      end
+
+      if EventSource.config.auto_shutdown
+        at_exit { shutdown.call('at_exit received') }
+
+        %w[TERM INT].each do |sig|
+          Signal.trap(sig) { shutdown.call("signal=#{sig} received") }
+        end
+      end
       EventSource.initialize!
     end
   end
diff --git a/spec/event_source/channel_spec.rb b/spec/event_source/channel_spec.rb
index 3f1020cc..ada8f37e 100644
--- a/spec/event_source/channel_spec.rb
+++ b/spec/event_source/channel_spec.rb
@@ -92,5 +92,23 @@
       expect(audit_log_queue.pop.last).to eq 'test message from enterprise events!!'
       expect(audit_log_queue.pop.last).to eq 'test message from enrollment events!!'
     end
+
+    context '.cancel_consumers' do
+      before do
+        subject.subscribe_operations.values.each do |sub_op|
+          subscriber_klass = double('SubscriberKlass')
+          sub_op.subscribe(subscriber_klass)
+        end
+      end
+
+      it 'cancels consumers via channel' do
+        channel = subject
+        expect(channel.channel_proxy.any_consumers?).to be_truthy
+        expect(channel.subscribe_operations.values.first.subject.consumers.count).to be > 0
+        channel.cancel_consumers
+        expect(channel.channel_proxy.any_consumers?).to be_falsey
+        expect(channel.subscribe_operations.values.first.subject.consumers.count).to eq 0
+      end
+    end
   end
 end
diff --git a/spec/event_source/connection_manager_spec.rb b/spec/event_source/connection_manager_spec.rb
index 10100d71..3d6f14bb 100644
--- a/spec/event_source/connection_manager_spec.rb
+++ b/spec/event_source/connection_manager_spec.rb
@@ -92,6 +92,70 @@
               ).to eq Hash.new
             end
           end
+
+          context '.cancel_consumers_for' do
+            let(:connection) { connection_manager.connections[connection_url] }
+
+            let(:async_api_file) do
+              Pathname.pwd.join('spec', 'support', 'asyncapi', 'polypress_amqp.yml')
+            end
+
+            let(:async_api_channels) do
+              EventSource::AsyncApi::Operations::AsyncApiConf::LoadPath
+                .new
+                .call(path: async_api_file)
+                .success
+                .channels
+            end
+
+            let(:channel) do
+              connection.channels[:'on_polypress.magi_medicaid.mitc.eligibilities']
+            end
+
+            before do
+              connection.start unless connection.active?
+              connection.add_channels(async_api_channels)
+              channel.subscribe_operations.values.each do |sub_op|
+                subscriber_klass = double('SubscriberKlass')
+                sub_op.subscribe(subscriber_klass)
+              end
+            end
+
+            after { connection.disconnect if connection.active? }
+
+            context 'when inflight messages are present' do
+              before do
+                allow(EventSource).to receive(:inflight_messages_count).and_return(5)
+              end
+
+              it 'waits for timeout' do
+                expect(channel).to receive(:cancel_consumers).and_call_original
+                connection_manager.cancel_consumers_for(protocol, timeout: 1)
+              end
+            end
+
+            context 'when inflight messages are draining' do
+              before do
+                allow(EventSource).to receive(:inflight_messages_count).and_return(1, 0)
+              end
+
+              it 'waits for drain' do
+                expect(channel).to receive(:cancel_consumers).and_call_original
+                connection_manager.cancel_consumers_for(protocol, timeout: 5)
+              end
+            end
+
+            context 'when no inflight messages are present' do
+              before do
+                allow(EventSource).to receive(:inflight_messages_count).and_return(0)
+              end
+
+              it 'cancels AMQP consumers on each channel without waiting' do
+                expect(channel).to receive(:cancel_consumers).and_call_original
+                connection_manager.cancel_consumers_for(protocol, timeout: 1)
+              end
+            end
+          end
         end
       end
     end
@@ -163,5 +227,31 @@
         end
       end
     end
+
+    context 'when no connections are present
+    - .cancel_consumers_for' do
+      let(:protocol) { :amqp }
+      let(:connection) { instance_double('EventSource::Connection', protocol: protocol, channels: { default: channel }) }
+      let(:channel) { instance_double('EventSource::Channel') }
+
+      before do
+        allow(EventSource).to receive(:inflight_messages_count).and_return(0)
+      end
+
+      context 'does not raise error' do
+        before do
+          allow(connection_manager).to receive(:connections_for).with(protocol).and_return([])
+          allow(connection_manager).to receive(:wait_for_connections_to_drain)
+        end
+
+        it 'and still calls drain helper' do
+          expect do
+            connection_manager.cancel_consumers_for(protocol, timeout: 1)
+          end.not_to raise_error
+
+          expect(connection_manager).to have_received(:wait_for_connections_to_drain).with([], 1)
+        end
+      end
+    end
   end
 end
diff --git a/spec/rails_app/spec/railtie_spec.rb b/spec/rails_app/spec/railtie_spec.rb
index 7c93c25f..ce6c8a1f 100644
--- a/spec/rails_app/spec/railtie_spec.rb
+++ b/spec/rails_app/spec/railtie_spec.rb
@@ -1,11 +1,97 @@
 # frozen_string_literal: true
 
-require_relative './rails_helper'
+require_relative 'rails_helper'
 
 RSpec.describe EventSource::Railtie do
-  it "runs when invoked" do
-    manager = EventSource::ConnectionManager.instance
-    connection = manager.connections_for(:amqp).first
-    expect(connection).not_to be_nil
+  before do
+    @original_auto_shutdown = EventSource.config.auto_shutdown
+    EventSource.config.auto_shutdown = auto_shutdown_enabled
+    @at_exit_handler = nil
+    allow_any_instance_of(Object).to receive(:at_exit) do |_, &blk|
+      @at_exit_handler = blk
+    end
+    initializer = Rails.application.initializers.find { |i| i.name == 'event_source.boot' }
+    initializer.run(Rails.application)
+  end
+
+  context '.auto_shutdown' do
+    let(:protocol) { :amqp }
+    let(:url) { 'amqp://localhost:5672/' }
+    let(:protocol_version) { '0.9.1' }
+    let(:description) { 'Development RabbitMQ Server' }
+    let(:server_config) do
+      {
+        ref: url,
+        url: url,
+        protocol: protocol,
+        protocol_version: protocol_version,
+        description: description
+      }
+    end
+
+    let(:connection_manager) { EventSource::ConnectionManager.instance }
+    let(:connection) do
+      connection_manager.add_connection(server_config)
+      connection_manager.connections_for(:amqp).first
+    end
+
+    let(:async_api_file) do
+      Pathname.new(__dir__).join('..', '..', 'support', 'asyncapi', 'polypress_amqp.yml').expand_path
+    end
+
+    let(:async_api_channels) do
+      EventSource::AsyncApi::Operations::AsyncApiConf::LoadPath
+        .new
+        .call(path: async_api_file)
+        .success
+        .channels
+    end
+
+    let(:channel) do
+      connection.channels[:'on_polypress.magi_medicaid.mitc.eligibilities']
+    end
+
+    before do
+      connection_manager.drop_connections_for(:amqp)
+      connection_manager.drop_connections_for(:http)
+      connection.start unless connection.active?
+      connection.add_channels(async_api_channels)
+
+      channel.subscribe_operations.each_value do |subscribe_operation|
+        subscriber_klass = double('SubscriberKlass')
+        subscribe_operation.subscribe(subscriber_klass)
+      end
+
+      @original_timeouts = EventSource.config.shutdown_timeouts
+      EventSource.config.shutdown_timeouts = { amqp_drain: 2 }
+      allow(EventSource).to receive(:inflight_messages_count).and_return(0)
+    end
+
+    after do
+      EventSource.config.shutdown_timeouts = @original_timeouts
+      EventSource.config.auto_shutdown = @original_auto_shutdown
+    end
+
+    context 'when auto_shutdown is enabled' do
+      let(:auto_shutdown_enabled) { true }
+
+      it 'cancels AMQP consumers and drops AMQP connections on shutdown' do
+        expect(connection_manager.connections_for(:amqp)).not_to be_empty
+        expect(connection.channels).not_to be_empty
+        expect(channel.subscribe_operations.values.first.subject.consumers).not_to be_empty
+        expect(@at_exit_handler).not_to be_nil
+        @at_exit_handler.call
+
+        expect(connection_manager.connections_for(:amqp)).to be_empty
+      end
+    end
+
+    context 'when auto_shutdown is disabled' do
+      let(:auto_shutdown_enabled) { false }
+
+      it 'does not register at_exit handler' do
+        expect(connection_manager.connections_for(:amqp)).not_to be_empty
+      end
+    end
   end
 end