diff --git a/lmcache/v1/multiprocess/http_server.py b/lmcache/v1/multiprocess/http_server.py
index 43a382d5630..70fd5c7178f 100644
--- a/lmcache/v1/multiprocess/http_server.py
+++ b/lmcache/v1/multiprocess/http_server.py
@@ -67,7 +67,7 @@ async def lifespan(app: FastAPI):
     Manage the lifecycle of the LMCache HTTP server.
 
     On startup: Initialize ZMQ server and cache engine.
-    On shutdown: Clean up ZMQ server resources.
+    On shutdown: Clean up ZMQ server and cache engine resources.
     """
     # Startup
     logger.info(
@@ -190,6 +190,7 @@ async def lifespan(app: FastAPI):
     get_event_bus().stop()
     if hasattr(app.state, "zmq_server") and app.state.zmq_server is not None:
         app.state.zmq_server.close()
+    engine.close()
     logger.info("LMCache HTTP server stopped")
 
 
diff --git a/lmcache/v1/multiprocess/server.py b/lmcache/v1/multiprocess/server.py
index 32951751a4b..805721e145e 100644
--- a/lmcache/v1/multiprocess/server.py
+++ b/lmcache/v1/multiprocess/server.py
@@ -4,6 +4,7 @@
 # Standard
 import argparse
 import shutil
+import signal
 import sys
 import time
 
@@ -438,6 +439,7 @@ def parse_args():
 
 
 if __name__ == "__main__":
+    signal.signal(signal.SIGTERM, signal.default_int_handler)
     args = parse_args()
     mp_config = parse_args_to_mp_server_config(args)
     storage_manager_config = parse_args_to_config(args)
diff --git a/tests/v1/multiprocess/test_sigterm_cleanup.py b/tests/v1/multiprocess/test_sigterm_cleanup.py
new file mode 100644
index 00000000000..a6ea57ceada
--- /dev/null
+++ b/tests/v1/multiprocess/test_sigterm_cleanup.py
@@ -0,0 +1,155 @@
+# SPDX-License-Identifier: Apache-2.0
+"""Regression coverage for graceful MP server signal handling."""
+
+# Standard
+from pathlib import Path
+import os
+import shutil
+import signal
+import socket
+import subprocess
+import sys
+import time
+
+# Third Party
+import pytest
+import torch
+
+PROJECT_ROOT = Path(__file__).parents[3]
+STARTUP_TIMEOUT_SECONDS = 90.0
+SHUTDOWN_TIMEOUT_SECONDS = 60.0
+SHM_SIZE_BYTES = 64 << 20
+
+pytestmark = pytest.mark.skipif(
+    not sys.platform.startswith("linux") or not torch.cuda.is_available(),
+    reason="Mixed-allocator POSIX SHM requires Linux and an accelerator device",
+)
+
+
+def _unused_tcp_port() -> int:
+    """Reserve an unused local TCP port for the server subprocess."""
+    with socket.socket() as sock:
+        sock.bind(("127.0.0.1", 0))
+        return sock.getsockname()[1]
+
+
+def _run_cli_and_signal(
+    tmp_path: Path,
+    module: str,
+    ready_log: str,
+    shutdown_signal: signal.Signals,
+    extra_args: list[str] | None = None,
+) -> tuple[int, str]:
+    """Run an MP CLI, signal it after readiness, and verify SHM cleanup."""
+    shm_dir = Path("/dev/shm")
+    if shutil.disk_usage(shm_dir).free < 2 * SHM_SIZE_BYTES:
+        pytest.skip("insufficient /dev/shm capacity for the regression test")
+
+    log_path = tmp_path / f"{module.rsplit('.', 1)[-1]}-{shutdown_signal.name}.log"
+    env = os.environ.copy()
+    python_path = env.get("PYTHONPATH")
+    env["PYTHONPATH"] = os.pathsep.join(
+        part for part in (str(PROJECT_ROOT), python_path) if part
+    )
+    command = [
+        sys.executable,
+        "-m",
+        module,
+        "--host",
+        "127.0.0.1",
+        "--port",
+        str(_unused_tcp_port()),
+        "--l1-size-gb",
+        "0.0625",
+        "--no-l1-use-lazy",
+        "--supported-transfer-mode",
+        "auto",
+        "--eviction-policy",
+        "LRU",
+        "--disable-observability",
+    ]
+    if extra_args is not None:
+        command.extend(extra_args)
+
+    with log_path.open("w") as log_file:
+        process = subprocess.Popen(
+            command,
+            cwd=PROJECT_ROOT,
+            env=env,
+            stdout=log_file,
+            stderr=subprocess.STDOUT,
+        )
+
+    shm_path = shm_dir / f"lmcache_l1_pool_{process.pid}"
+    try:
+        deadline = time.monotonic() + STARTUP_TIMEOUT_SECONDS
+        while time.monotonic() < deadline:
+            if process.poll() is not None:
+                pytest.fail(
+                    f"MP server exited before becoming ready:\n"
+                    f"{log_path.read_text(errors='replace')}"
+                )
+            log = log_path.read_text(errors="replace")
+            if shm_path.exists() and ready_log in log:
+                break
+            time.sleep(0.2)
+        else:
+            pytest.fail(
+                f"MP server did not become ready:\n"
+                f"{log_path.read_text(errors='replace')}"
+            )
+
+        process.send_signal(shutdown_signal)
+        return_code = process.wait(timeout=SHUTDOWN_TIMEOUT_SECONDS)
+
+        log = log_path.read_text(errors="replace")
+        assert not shm_path.exists(), (
+            f"named SHM pool leaked after {shutdown_signal.name}:\n{log}"
+        )
+        return return_code, log
+    finally:
+        if process.poll() is None:
+            process.kill()
+            process.wait(timeout=10)
+        if shm_path.exists():
+            shm_path.unlink()
+
+
+def test_zmq_cli_sigterm_unlinks_shm_pool(tmp_path: Path) -> None:
+    """A ready ZMQ-only MP CLI must unlink its SHM pool after SIGTERM."""
+    return_code, log = _run_cli_and_signal(
+        tmp_path,
+        module="lmcache.v1.multiprocess.server",
+        ready_log="LMCache cache server is running...",
+        shutdown_signal=signal.SIGTERM,
+    )
+
+    assert return_code == 0
+    assert "MPCacheServer closed" in log
+
+
+@pytest.mark.parametrize(
+    "shutdown_signal",
+    [signal.SIGINT, signal.SIGTERM],
+    ids=["sigint", "sigterm"],
+)
+def test_http_cli_signal_unlinks_shm_pool(
+    tmp_path: Path,
+    shutdown_signal: signal.Signals,
+) -> None:
+    """A ready HTTP MP CLI must unlink its SHM pool on graceful signals."""
+    _, log = _run_cli_and_signal(
+        tmp_path,
+        module="lmcache.v1.multiprocess.http_server",
+        ready_log="LMCache HTTP server initialized",
+        shutdown_signal=shutdown_signal,
+        extra_args=[
+            "--http-host",
+            "127.0.0.1",
+            "--http-port",
+            str(_unused_tcp_port()),
+        ],
+    )
+
+    assert "MPCacheServer closed" in log
+    assert "LMCache HTTP server stopped" in log