diff --git a/sdk/storage/Azure.Storage.DataMovement.Blobs/perf/Azure.Storage.DataMovement.Blobs.Perf/Infrastructure/DirectoryTransferTest.cs b/sdk/storage/Azure.Storage.DataMovement.Blobs/perf/Azure.Storage.DataMovement.Blobs.Perf/Infrastructure/DirectoryTransferTest.cs
index e4171485e7a8..61d95c751c25 100644
--- a/sdk/storage/Azure.Storage.DataMovement.Blobs/perf/Azure.Storage.DataMovement.Blobs.Perf/Infrastructure/DirectoryTransferTest.cs
+++ b/sdk/storage/Azure.Storage.DataMovement.Blobs/perf/Azure.Storage.DataMovement.Blobs.Perf/Infrastructure/DirectoryTransferTest.cs
@@ -34,6 +34,12 @@ public DirectoryTransferTest(TOptions options) : base(options)
             _transferManager = new TransferManager(managerOptions);
         }
 
+        public override async Task CleanupAsync()
+        {
+            await ((IAsyncDisposable)_transferManager).DisposeAsync();
+            await base.CleanupAsync();
+        }
+
         protected string CreateLocalDirectory(bool populate = false)
         {
             string directory = Path.Combine(Path.GetTempPath(), Path.GetRandomFileName());
diff --git a/sdk/storage/Azure.Storage.DataMovement/src/ChannelProcessing.cs b/sdk/storage/Azure.Storage.DataMovement/src/ChannelProcessing.cs
index 172fa7e6b847..6a0b165aa8e7 100644
--- a/sdk/storage/Azure.Storage.DataMovement/src/ChannelProcessing.cs
+++ b/sdk/storage/Azure.Storage.DataMovement/src/ChannelProcessing.cs
@@ -91,6 +91,9 @@ public async Task CleanUpAsync()
         {
             _channel.Writer.TryComplete();
             await _processorTaskCompletionSource.Task.ConfigureAwait(false);
+
+            // Null out the Process delegate to release references
+            Interlocked.Exchange(ref _process, null);
         }
 
         protected abstract ValueTask NotifyOfPendingItemProcessing();
diff --git a/sdk/storage/Azure.Storage.DataMovement/src/CommitChunkHandler.cs b/sdk/storage/Azure.Storage.DataMovement/src/CommitChunkHandler.cs
index fc5ec066de68..34a4d2dd560d 100644
--- a/sdk/storage/Azure.Storage.DataMovement/src/CommitChunkHandler.cs
+++ b/sdk/storage/Azure.Storage.DataMovement/src/CommitChunkHandler.cs
@@ -83,10 +83,10 @@ public CommitChunkHandler(
             _isChunkHandlerRunning = true;
         }
 
-        public Task CleanUpAsync()
+        public async Task CleanUpAsync()
         {
             _isChunkHandlerRunning = false;
-            return _stageChunkProcessor.CleanUpAsync();
+            await _stageChunkProcessor.CleanUpAsync().ConfigureAwait(false);
         }
 
         public async ValueTask QueueChunkAsync(QueueStageChunkArgs args, CancellationToken cancellationToken = default)
@@ -137,7 +137,21 @@ await _queuePutBlockTask(
                 if (_isChunkHandlerRunning)
                 {
                     // This will trigger the job part to call Dispose on this object
-                    _ = Task.Run(() => _invokeFailedEventHandler(ex));
+                    _ = Task.Run(async () =>
+                    {
+                        try
+                        {
+                            await _invokeFailedEventHandler(ex).ConfigureAwait(false);
+                        }
+                        catch
+                        {
+                            // Log and swallow any exceptions to prevent crashing the process
+                            DataMovementEventSource.Singleton
+                                .UnexpectedTransferFailed(
+                                    nameof(CommitChunkHandler),
+                                    ex.ToString());
+                        }
+                    });
                 }
             }
         }
diff --git a/sdk/storage/Azure.Storage.DataMovement/src/DataMovementEventSource.cs b/sdk/storage/Azure.Storage.DataMovement/src/DataMovementEventSource.cs
index 6c65c77b230b..6acdcc982be3 100644
--- a/sdk/storage/Azure.Storage.DataMovement/src/DataMovementEventSource.cs
+++ b/sdk/storage/Azure.Storage.DataMovement/src/DataMovementEventSource.cs
@@ -16,6 +16,7 @@ internal class DataMovementEventSource : AzureEventSource
         private const int EnumerationCompleteEvent = 4;
         private const int ResumeTransferEvent = 5;
         private const int ResumeEnumerationCompleteEvent = 6;
+        private const int UnexpectedTransferFailedEvent = 7;
 
         private DataMovementEventSource() : base(EventSourceName) { }
 
@@ -92,5 +93,11 @@ public void ResumeEnumerationComplete(string transferId, int jobPartCount)
         {
             WriteEvent(ResumeEnumerationCompleteEvent, transferId, jobPartCount);
         }
+
+        [Event(UnexpectedTransferFailedEvent, Level = EventLevel.Error, Message = "Transfer [{0}] Transfer failed: {1}")]
+        public void UnexpectedTransferFailed(string transferId, string errorMessage)
+        {
+            WriteEvent(UnexpectedTransferFailedEvent, transferId, errorMessage);
+        }
     }
 }
diff --git a/sdk/storage/Azure.Storage.DataMovement/src/DownloadChunkHandler.cs b/sdk/storage/Azure.Storage.DataMovement/src/DownloadChunkHandler.cs
index 06c8e225f008..21445576e790 100644
--- a/sdk/storage/Azure.Storage.DataMovement/src/DownloadChunkHandler.cs
+++ b/sdk/storage/Azure.Storage.DataMovement/src/DownloadChunkHandler.cs
@@ -136,7 +136,21 @@ await _copyToDestinationFile(
                 if (_isChunkHandlerRunning)
                 {
                     // This will trigger the job part to call Dispose on this object
-                    _ = Task.Run(() => _invokeFailedEventHandler(ex));
+                    _ = Task.Run(async () =>
+                    {
+                        try
+                        {
+                            await _invokeFailedEventHandler(ex).ConfigureAwait(false);
+                        }
+                        catch
+                        {
+                            // Log and swallow any exceptions to prevent crashing the process
+                            DataMovementEventSource.Singleton
+                                .UnexpectedTransferFailed(
+                                    nameof(CommitChunkHandler),
+                                    ex.ToString());
+                        }
+                    });
                 }
             }
         }
diff --git a/sdk/storage/Azure.Storage.DataMovement/src/TransferInternalState.cs b/sdk/storage/Azure.Storage.DataMovement/src/TransferInternalState.cs
index dcbfed107715..c2d898b32faa 100644
--- a/sdk/storage/Azure.Storage.DataMovement/src/TransferInternalState.cs
+++ b/sdk/storage/Azure.Storage.DataMovement/src/TransferInternalState.cs
@@ -107,6 +107,9 @@ public bool SetTransferState(TransferState state)
                     // Tell the transfer manager to clean up the completed/paused job.
                     TransferManager.TryRemoveTransfer(_id);
 
+                    // Remove Transfer Manager reference after no longer needed.
+                    TransferManager = null;
+
                     // Once we reach a Completed/Paused, Dispose the CancellationTokenSource to release resources (since it is no longer needed).
                     DisposeCancellationTokenSource();
                 }