diff --git a/lib/runtime/src/pipeline/network/ingress/push_endpoint.rs b/lib/runtime/src/pipeline/network/ingress/push_endpoint.rs
index f7d71c110dae..1796934e649f 100644
--- a/lib/runtime/src/pipeline/network/ingress/push_endpoint.rs
+++ b/lib/runtime/src/pipeline/network/ingress/push_endpoint.rs
@@ -58,11 +58,6 @@ impl PushEndpoint {
             let req = tokio::select! {
                 biased;
 
-                // await on service request
-                req = endpoint.next() => {
-                    req
-                }
-
                 // process shutdown
                 _ = self.cancellation_token.cancelled() => {
                     tracing::info!("PushEndpoint received cancellation signal, shutting down service");
@@ -71,6 +66,11 @@ impl PushEndpoint {
                     }
                     break;
                 }
+
+                // Cancellation wins even when the request queue stays ready.
+                req = endpoint.next() => {
+                    req
+                }
             };
 
             if let Some(req) = req {
diff --git a/lib/runtime/tests/nats_shutdown.rs b/lib/runtime/tests/nats_shutdown.rs
new file mode 100644
index 000000000000..90b67605bf76
--- /dev/null
+++ b/lib/runtime/tests/nats_shutdown.rs
@@ -0,0 +1,111 @@
+// SPDX-FileCopyrightText: Copyright (c) 2026 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+// SPDX-License-Identifier: Apache-2.0
+
+//! Requires a NATS server at NATS_SERVER (default: nats://127.0.0.1:4222).
+#![cfg(feature = "integration")]
+
+use std::sync::{
+    Arc,
+    atomic::{AtomicU64, Ordering},
+};
+use std::time::Duration;
+
+use async_nats::service::ServiceExt;
+use dynamo_runtime::pipeline::{
+    PipelineError,
+    network::{PushWorkHandler, ingress::push_endpoint::PushEndpoint},
+};
+use dynamo_runtime::{SystemHealth, config::HealthStatus};
+use futures::StreamExt;
+use parking_lot::Mutex;
+use tokio::sync::Notify;
+use tokio_util::sync::CancellationToken;
+
+#[derive(Default)]
+struct Handler {
+    calls: AtomicU64,
+    started: Notify,
+    release: Notify,
+}
+
+#[async_trait::async_trait]
+impl PushWorkHandler for Handler {
+    async fn handle_payload(
+        &self,
+        _: bytes::Bytes,
+        _: Option<String>,
+    ) -> Result<(), PipelineError> {
+        self.calls.fetch_add(1, Ordering::SeqCst);
+        self.started.notify_one();
+        self.release.notified().await;
+        Ok(())
+    }
+
+    fn add_metrics(
+        &self,
+        _: &dynamo_runtime::component::Endpoint,
+        _: Option<&[(&str, &str)]>,
+    ) -> anyhow::Result<()> {
+        Ok(())
+    }
+}
+
+#[tokio::test]
+async fn cancellation_rejects_queued_requests_and_drains_accepted_work() {
+    tokio::time::timeout(Duration::from_secs(10), async {
+        let server = std::env::var(dynamo_runtime::config::environment_names::nats::NATS_SERVER)
+            .unwrap_or_else(|_| "nats://127.0.0.1:4222".into());
+        let client = async_nats::connect(server).await.unwrap();
+        let service = client.service_builder()
+            .start("shutdown_test", "0.0.1").await.unwrap();
+        for accepted in [false, true] {
+            let subject = format!("shutdown.{}", uuid::Uuid::new_v4().simple());
+            let endpoint = service.endpoint(&subject).await.unwrap();
+            let handler = Arc::new(Handler::default());
+            let cancellation = CancellationToken::new();
+            let health = Arc::new(Mutex::new(SystemHealth::new(
+                HealthStatus::Ready, vec![subject.clone()], false,
+                "/health".into(), "/live".into(),
+            )));
+            let push = PushEndpoint::builder()
+                .service_handler(handler.clone())
+                .cancellation_token(cancellation.clone())
+                .build().unwrap();
+            let run = push.start(
+                endpoint, "test".into(), "worker".into(), subject.clone(), 1, health.clone(),
+            );
+            // Receiving a later message on the same connection ensures the
+            // endpoint request has been delivered before we poll its receive loop.
+            let barrier_subject = client.new_inbox();
+            let mut barrier = client.subscribe(barrier_subject.clone()).await.unwrap();
+            client.publish_with_reply(subject.clone(), client.new_inbox(), "request".into())
+                .await.unwrap();
+            client.publish(barrier_subject, "barrier".into()).await.unwrap();
+            barrier.next().await.unwrap();
+            if !accepted {
+                cancellation.cancel();
+            }
+            tokio::pin!(run);
+            if accepted {
+                tokio::select! {
+                    _ = handler.started.notified() => {},
+                    result = &mut run => panic!("endpoint stopped before accepting work: {result:?}"),
+                }
+                cancellation.cancel();
+                // Poll shutdown until it marks the endpoint not-ready and waits
+                // for the already accepted handler. Unsubscribing must not stop it.
+                tokio::select! {
+                    _ = async {
+                        while health.lock().get_endpoint_health_status(&subject) != Some(HealthStatus::NotReady) {
+                            tokio::task::yield_now().await;
+                        }
+                    } => {},
+                    result = &mut run => panic!("endpoint stopped before draining: {result:?}"),
+                }
+            }
+            handler.release.notify_one();
+            run.await.unwrap();
+            assert_eq!(handler.calls.load(Ordering::SeqCst), u64::from(accepted));
+        }
+    }).await.expect("NATS shutdown did not complete");
+}