diff --git a/cmd/dranet/app.go b/cmd/dranet/app.go
index 299a869b..58a64832 100644
--- a/cmd/dranet/app.go
+++ b/cmd/dranet/app.go
@@ -26,14 +26,13 @@ import (
 	"reflect"
 	"runtime/debug"
 	"sync/atomic"
+	"syscall"
 
 	"github.com/google/cel-go/cel"
 	"github.com/google/cel-go/ext"
 	"github.com/google/dranet/pkg/driver"
 	"github.com/prometheus/client_golang/prometheus/promhttp"
 
-	"golang.org/x/sys/unix"
-
 	resourcev1beta1 "k8s.io/api/resource/v1beta1"
 	"k8s.io/client-go/kubernetes"
 	"k8s.io/client-go/rest"
@@ -119,17 +118,11 @@ func main() {
 		klog.Fatalf("can not obtain the node name, use the hostname-override flag if you want to set it to a specific value: %v", err)
 	}
 
-	// trap Ctrl+C and call cancel on the context
-	ctx := context.Background()
-	ctx, cancel := context.WithCancel(ctx)
+	ctx, cancel := context.WithCancel(context.Background())
 
-	// Enable signal handler
-	signalCh := make(chan os.Signal, 2)
-	defer func() {
-		close(signalCh)
-		cancel()
-	}()
-	signal.Notify(signalCh, os.Interrupt, unix.SIGINT)
+	// Trap signals for graceful shutdown.
+	signalCh := make(chan os.Signal, 1)
+	signal.Notify(signalCh, syscall.SIGINT, syscall.SIGTERM)
 
 	opts := []driver.Option{}
 	if celExpression != "" {
@@ -156,16 +149,17 @@ func main() {
 	if err != nil {
 		klog.Fatalf("driver failed to start: %v", err)
 	}
-	defer dranet.Stop()
+	defer dranet.Stop() // Gracefully shutdown at the end.
+
 	ready.Store(true)
 	klog.Info("driver started")
 
 	select {
-	case <-signalCh:
-		klog.Infof("Exiting: received signal")
+	case sig := <-signalCh:
+		klog.Infof("Received shutdown signal: %q. Initiating graceful shutdown...", sig)
 		cancel()
 	case <-ctx.Done():
-		klog.Infof("Exiting: context cancelled")
+		klog.Info("Context cancelled. Initiating graceful shutdown...")
 	}
 }
 
diff --git a/pkg/driver/driver.go b/pkg/driver/driver.go
index 19176cc9..aa8ca4e6 100644
--- a/pkg/driver/driver.go
+++ b/pkg/driver/driver.go
@@ -178,10 +178,8 @@ func Start(ctx context.Context, driverName string, kubeClient kubernetes.Interfa
 }
 
 func (np *NetworkDriver) Stop() {
+	// Stop NRI Plugin (it's expected that it returns when fully stopped).
 	np.nriPlugin.Stop()
+	// Stop DRA Plugin (returns only after it has fully stopped).
 	np.draPlugin.Stop()
 }
-
-func (np *NetworkDriver) Shutdown(_ context.Context) {
-	klog.Info("Runtime shutting down...")
-}
diff --git a/pkg/driver/nri_hooks.go b/pkg/driver/nri_hooks.go
index 16631005..8f21cc3e 100644
--- a/pkg/driver/nri_hooks.go
+++ b/pkg/driver/nri_hooks.go
@@ -276,6 +276,10 @@ func (np *NetworkDriver) RemovePodSandbox(_ context.Context, pod *api.PodSandbox
 	return nil
 }
 
+func (np *NetworkDriver) Shutdown(_ context.Context) {
+	klog.Info("Runtime shutting down...")
+}
+
 func getNetworkNamespace(pod *api.PodSandbox) string {
 	// get the pod network namespace
 	for _, namespace := range pod.Linux.GetNamespaces() {
diff --git a/tests/e2e.bats b/tests/e2e.bats
index f472cb05..36363ebb 100644
--- a/tests/e2e.bats
+++ b/tests/e2e.bats
@@ -295,3 +295,51 @@ load 'test_helper/bats-assert/load'
 
   kubectl delete -f "$BATS_TEST_DIRNAME"/../examples/repeatresourceclaimtemplate.yaml
 }
+
+@test "driver should gracefully shutdown when terminated" {
+  # node1 will be labeled such that it stops running the dranet pod.
+  node1=$(kubectl get nodes -l '!node-role.kubernetes.io/control-plane' -o jsonpath='{.items[0].metadata.name}')
+  kubectl label node "${node1}" e2e-test-do-not-schedule=true
+  # node 2 will continue to run the dranet pod.
+  node2=$(kubectl get nodes -l '!node-role.kubernetes.io/control-plane' -o jsonpath='{.items[1].metadata.name}')
+
+  # Add affinity to only schedule on nodes without the
+  # "e2e-test-do-not-schedule" label. This allows the pods on the specific node
+  # to be deleted (and prevents automatic recreation on it)
+  kubectl patch daemonset dranet -n kube-system --type='merge' --patch-file=<(cat <<EOF
+spec:
+  template:
+    spec:
+      affinity:
+        nodeAffinity:
+          requiredDuringSchedulingIgnoredDuringExecution:
+            nodeSelectorTerms:
+            - matchExpressions:
+              - key: e2e-test-do-not-schedule
+                operator: DoesNotExist
+EOF
+)
+  kubectl rollout status ds/dranet --namespace=kube-system
+
+  # After graceful shutdown of the driver from node1, the DRA plugin socket
+  # files should have been deleted.
+  run docker exec "${node1}" test -S /var/lib/kubelet/plugins/dra.net/dra.sock
+  assert_failure
+  run docker exec "${node1}" test -S /var/lib/kubelet/plugins_registry/dra.net-reg.sock
+  assert_failure
+
+  # For comparison, node2 should have the files present since the dranet pod is
+  # still runnning on it.
+  docker exec "${node2}" test -S /var/lib/kubelet/plugins/dra.net/dra.sock
+  docker exec "${node2}" test -S /var/lib/kubelet/plugins_registry/dra.net-reg.sock
+
+  # Remove affinity from DraNet DaemonSet to revert it back to original
+  kubectl patch daemonset dranet -n kube-system --type='merge' --patch-file=<(cat <<EOF
+spec:
+  template:
+    spec:
+      affinity:
+EOF
+)
+  kubectl rollout status ds/dranet --namespace=kube-system
+}
diff --git a/tests/setup_suite.bash b/tests/setup_suite.bash
index e61914d2..148cef1f 100644
--- a/tests/setup_suite.bash
+++ b/tests/setup_suite.bash
@@ -20,6 +20,13 @@ function setup_suite {
 
   kind load docker-image "$IMAGE_NAME":test --name "$CLUSTER_NAME"
 
+  # Creating BPF and cgroup mounts on the Kind nodes.
+  NODES=$(kind get nodes --name ${CLUSTER_NAME})
+  for node in $NODES; do
+    docker exec "$node" mount -t bpf bpffs /sys/fs/bpf
+    docker exec "$node" mount --make-shared /sys/fs/bpf
+  done
+
   _install=$(sed s#"$IMAGE_NAME".*#"$IMAGE_NAME":test# < "$BATS_TEST_DIRNAME"/../install.yaml)
   printf '%s' "${_install}" | kubectl apply -f -
   kubectl wait --for=condition=ready pods --namespace=kube-system -l k8s-app=dranet