diff --git a/Cargo.lock b/Cargo.lock
index 1d54ab34b..66c95ac38 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -26,7 +26,7 @@ dependencies = [
  "memchr",
  "pin-project-lite 0.2.9",
  "tokio 1.27.0",
- "tokio-util 0.7.7",
+ "tokio-util 0.7.8",
 ]
 
 [[package]]
@@ -61,7 +61,7 @@ dependencies = [
  "sha1",
  "smallvec",
  "tokio 1.27.0",
- "tokio-util 0.7.7",
+ "tokio-util 0.7.8",
  "tracing",
 ]
 
@@ -512,7 +512,7 @@ dependencies = [
  "futures-util",
  "http-body 0.4.5",
  "serde_json",
- "tokio-util 0.7.7",
+ "tokio-util 0.7.8",
  "tower-service",
 ]
 
@@ -2988,6 +2988,7 @@ dependencies = [
  "sqlx",
  "thiserror",
  "tokio 1.27.0",
+ "tokio-util 0.7.8",
  "tracing",
  "wasmer",
  "wasmer-compiler-cranelift",
@@ -3781,7 +3782,7 @@ dependencies = [
  "indexmap",
  "slab",
  "tokio 1.27.0",
- "tokio-util 0.7.7",
+ "tokio-util 0.7.8",
  "tracing",
 ]
 
@@ -7269,7 +7270,7 @@ dependencies = [
  "futures-core",
  "pin-project-lite 0.2.9",
  "tokio 1.27.0",
- "tokio-util 0.7.7",
+ "tokio-util 0.7.8",
 ]
 
 [[package]]
@@ -7300,9 +7301,9 @@ dependencies = [
 
 [[package]]
 name = "tokio-util"
-version = "0.7.7"
+version = "0.7.8"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "5427d89453009325de0d8f342c9490009f76e999cb7672d77e46267448f7e6b2"
+checksum = "806fe8c2c87eccc8b3267cbae29ed3ab2d0bd37fca70ab622e46aaa9375ddb7d"
 dependencies = [
  "bytes 1.4.0",
  "futures-core",
@@ -7374,7 +7375,7 @@ dependencies = [
  "percent-encoding",
  "pin-project-lite 0.2.9",
  "tokio 1.27.0",
- "tokio-util 0.7.7",
+ "tokio-util 0.7.8",
  "tower",
  "tower-layer",
  "tower-service",
diff --git a/Cargo.toml b/Cargo.toml
index f851ff500..c64864240 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -82,4 +82,5 @@ fuels = { version = "0.40", default-features = false }
 serde = { version = "1.0", default-features = false }
 thiserror = "1.0"
 tokio = "1.17"
+tokio-util = "0.7.8"
 tracing = "0.1"
diff --git a/packages/fuel-indexer/Cargo.toml b/packages/fuel-indexer/Cargo.toml
index 615af5a70..e8b179466 100644
--- a/packages/fuel-indexer/Cargo.toml
+++ b/packages/fuel-indexer/Cargo.toml
@@ -37,6 +37,7 @@ tokio = { features = [
     "sync",
     "process",
 ], workspace = true }
+tokio-util = { workspace = true }
 tracing = { workspace = true }
 wasmer = "2.3"
 wasmer-compiler-cranelift = { version = "2.3" }
diff --git a/packages/fuel-indexer/src/commands/run.rs b/packages/fuel-indexer/src/commands/run.rs
index d23c26662..a0fa05f44 100644
--- a/packages/fuel-indexer/src/commands/run.rs
+++ b/packages/fuel-indexer/src/commands/run.rs
@@ -100,6 +100,10 @@ pub async fn exec(args: IndexerArgs) -> anyhow::Result<()> {
 
     let service_handle = tokio::spawn(service.run());
 
+    // for graceful shutdown
+    let token = tokio_util::sync::CancellationToken::new();
+    let cloned_token = token.clone();
+
     #[cfg(feature = "api-server")]
     {
         let gql_handle =
@@ -117,11 +121,19 @@ pub async fn exec(args: IndexerArgs) -> anyhow::Result<()> {
                 };
                 let node_handle = tokio::spawn(FuelService::new_node(config));
 
-                let _ = tokio::join!(service_handle, node_handle, gql_handle);
+                tokio::spawn(async move {
+                    let _ = tokio::join!(service_handle, node_handle, gql_handle);
+                    token.cancel();
+                });
 
                 return Ok(());
             }
         }
+
+        tokio::spawn(async move {
+            let _ = tokio::join!(service_handle, gql_handle);
+            token.cancel();
+        });
     }
 
     #[cfg(not(feature = "api-server"))]
@@ -138,13 +150,19 @@ pub async fn exec(args: IndexerArgs) -> anyhow::Result<()> {
                 };
                 let node_handle = tokio::spawn(FuelService::new_node(config));
 
-                let _ = tokio::join!(service_handle, node_handle);
+                tokio::spawn(async move {
+                    let _ = tokio::join!(service_handle, node_handle);
+                    token.cancel();
+                });
 
                 return Ok(());
             }
         }
 
-        let _ = service_handle.await?;
+        tokio::spawn(async move {
+            let _ = service_handle.await?;
+            token.cancel();
+        });
 
         Ok(())
     }
@@ -165,6 +183,9 @@ pub async fn exec(args: IndexerArgs) -> anyhow::Result<()> {
         _ = sigint.recv() => {
             info!("Received SIGINT. Stopping services");
         }
+        _ = cloned_token.cancelled() => {
+            info!("Received cancellation. Stopping services");
+        }
     }
 
     // stop embedded postgres