diff --git a/exporters/sender/grpc-managed-channel/src/main/java/io/opentelemetry/exporter/sender/grpc/managedchannel/internal/UpstreamGrpcSender.java b/exporters/sender/grpc-managed-channel/src/main/java/io/opentelemetry/exporter/sender/grpc/managedchannel/internal/UpstreamGrpcSender.java
index 3a755be609f..1a2d75d8af4 100644
--- a/exporters/sender/grpc-managed-channel/src/main/java/io/opentelemetry/exporter/sender/grpc/managedchannel/internal/UpstreamGrpcSender.java
+++ b/exporters/sender/grpc-managed-channel/src/main/java/io/opentelemetry/exporter/sender/grpc/managedchannel/internal/UpstreamGrpcSender.java
@@ -36,8 +36,11 @@
 import java.util.Map;
 import java.util.concurrent.Executor;
 import java.util.concurrent.ExecutorService;
+import java.util.concurrent.TimeUnit;
 import java.util.function.Consumer;
 import java.util.function.Supplier;
+import java.util.logging.Level;
+import java.util.logging.Logger;
 import javax.annotation.Nullable;
 
 /**
@@ -48,6 +51,8 @@
  */
 public final class UpstreamGrpcSender implements GrpcSender {
 
+  private static final Logger logger = Logger.getLogger(UpstreamGrpcSender.class.getName());
+
   private static final MethodDescriptor.Marshaller<MessageWriter> REQUEST_MARSHALER =
       new MethodDescriptor.Marshaller<MessageWriter>() {
         @Override
@@ -231,8 +236,35 @@ private static Status fromThrowable(Throwable cause) {
   @Override
   public CompletableResultCode shutdown() {
     if (shutdownChannel) {
+      // Use shutdownNow() to cancel in flight calls immediately
       channel.shutdownNow();
+
+      // Wait for the channel to terminate in a background thread
+      CompletableResultCode result = new CompletableResultCode();
+      Thread terminationThread =
+          new Thread(
+              () -> {
+                try {
+                  // Wait up to 5 seconds for the channel to terminate
+                  // Even if timeout occurs, we succeed since these are daemon threads
+                  boolean terminated = channel.awaitTermination(5, TimeUnit.SECONDS);
+                  if (!terminated) {
+                    logger.log(
+                        Level.WARNING,
+                        "Channel did not terminate within 5 seconds, proceeding with shutdown since threads are daemon threads.");
+                  }
+                } catch (InterruptedException e) {
+                  Thread.currentThread().interrupt();
+                } finally {
+                  result.succeed();
+                }
+              },
+              "grpc-shutdown");
+      terminationThread.setDaemon(true);
+      terminationThread.start();
+      return result;
     }
+
     return CompletableResultCode.ofSuccess();
   }
 }
diff --git a/exporters/sender/grpc-managed-channel/src/test/java/io/opentelemetry/exporter/sender/grpc/managedchannel/internal/UpstreamGrpcSenderTest.java b/exporters/sender/grpc-managed-channel/src/test/java/io/opentelemetry/exporter/sender/grpc/managedchannel/internal/UpstreamGrpcSenderTest.java
new file mode 100644
index 00000000000..8204d3cddec
--- /dev/null
+++ b/exporters/sender/grpc-managed-channel/src/test/java/io/opentelemetry/exporter/sender/grpc/managedchannel/internal/UpstreamGrpcSenderTest.java
@@ -0,0 +1,146 @@
+/*
+ * Copyright The OpenTelemetry Authors
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+package io.opentelemetry.exporter.sender.grpc.managedchannel.internal;
+
+import static org.assertj.core.api.Assertions.assertThat;
+
+import io.grpc.CallOptions;
+import io.grpc.ClientCall;
+import io.grpc.ManagedChannel;
+import io.grpc.MethodDescriptor;
+import io.opentelemetry.sdk.common.CompletableResultCode;
+import java.time.Duration;
+import java.util.Collections;
+import java.util.concurrent.CountDownLatch;
+import java.util.concurrent.TimeUnit;
+import java.util.concurrent.atomic.AtomicBoolean;
+import org.junit.jupiter.api.Test;
+
+class UpstreamGrpcSenderTest {
+
+  @Test
+  void shutdown_ManagedChannel_WaitsForChannelTermination() throws Exception {
+    // The result code must only complete after the channel terminates, not as soon as
+    // shutdownNow() returns.
+    FakeManagedChannel channel = new FakeManagedChannel(/* terminates= */ true);
+    UpstreamGrpcSender sender = newSender(channel, /* shutdownChannel= */ true);
+
+    CompletableResultCode result = sender.shutdown();
+
+    assertThat(channel.awaitTerminationEntered.await(10, TimeUnit.SECONDS)).isTrue();
+    assertThat(channel.shutdownNowCalled()).isTrue();
+    assertThat(result.isDone())
+        .describedAs("result should not complete before the channel terminates")
+        .isFalse();
+
+    channel.releaseAwaitTermination.countDown();
+
+    assertThat(result.join(10, TimeUnit.SECONDS).isSuccess()).isTrue();
+  }
+
+  @Test
+  void shutdown_UnmanagedChannel_ReturnsImmediatelyAndLeavesChannelOpen() {
+    // A caller supplied channel is not ours to close.
+    FakeManagedChannel channel = new FakeManagedChannel(/* terminates= */ true);
+    UpstreamGrpcSender sender = newSender(channel, /* shutdownChannel= */ false);
+
+    CompletableResultCode result = sender.shutdown();
+
+    assertThat(result.isDone()).isTrue();
+    assertThat(result.isSuccess()).isTrue();
+    assertThat(channel.shutdownNowCalled()).isFalse();
+    assertThat(channel.awaitTerminationCalled()).isFalse();
+  }
+
+  @Test
+  void shutdown_ChannelDoesNotTerminateInTime_Succeeds() {
+    // Termination timing out must not hang or fail the shutdown.
+    FakeManagedChannel channel = new FakeManagedChannel(/* terminates= */ false);
+    channel.releaseAwaitTermination.countDown();
+    UpstreamGrpcSender sender = newSender(channel, /* shutdownChannel= */ true);
+
+    CompletableResultCode result = sender.shutdown();
+
+    assertThat(result.join(10, TimeUnit.SECONDS).isSuccess()).isTrue();
+  }
+
+  private static UpstreamGrpcSender newSender(ManagedChannel channel, boolean shutdownChannel) {
+    return new UpstreamGrpcSender(
+        channel,
+        "opentelemetry.proto.collector.trace.v1.TraceService/Export",
+        /* compressor= */ null,
+        shutdownChannel,
+        Duration.ofSeconds(10),
+        Collections::emptyMap,
+        /* executorService= */ null);
+  }
+
+  /**
+   * A {@link ManagedChannel} which records shutdown interactions and lets the test control when
+   * {@link #awaitTermination(long, TimeUnit)} returns.
+   */
+  private static class FakeManagedChannel extends ManagedChannel {
+
+    final CountDownLatch awaitTerminationEntered = new CountDownLatch(1);
+    final CountDownLatch releaseAwaitTermination = new CountDownLatch(1);
+
+    private final boolean terminates;
+    private final AtomicBoolean shutdownNow = new AtomicBoolean();
+    private final AtomicBoolean awaitTermination = new AtomicBoolean();
+
+    FakeManagedChannel(boolean terminates) {
+      this.terminates = terminates;
+    }
+
+    boolean shutdownNowCalled() {
+      return shutdownNow.get();
+    }
+
+    boolean awaitTerminationCalled() {
+      return awaitTermination.get();
+    }
+
+    @Override
+    public ManagedChannel shutdown() {
+      return this;
+    }
+
+    @Override
+    public ManagedChannel shutdownNow() {
+      shutdownNow.set(true);
+      return this;
+    }
+
+    @Override
+    public boolean isShutdown() {
+      return shutdownNow.get();
+    }
+
+    @Override
+    public boolean isTerminated() {
+      return terminates && shutdownNow.get();
+    }
+
+    @Override
+    public boolean awaitTermination(long timeout, TimeUnit unit) throws InterruptedException {
+      awaitTermination.set(true);
+      awaitTerminationEntered.countDown();
+      releaseAwaitTermination.await(10, TimeUnit.SECONDS);
+      return terminates;
+    }
+
+    @Override
+    public <RequestT, ResponseT> ClientCall<RequestT, ResponseT> newCall(
+        MethodDescriptor<RequestT, ResponseT> methodDescriptor, CallOptions callOptions) {
+      throw new UnsupportedOperationException();
+    }
+
+    @Override
+    public String authority() {
+      return "fake";
+    }
+  }
+}