diff --git a/lnd.go b/lnd.go
index 7a9dda12a..cca450679 100644
--- a/lnd.go
+++ b/lnd.go
@@ -879,6 +879,7 @@ func waitForWalletPassword(grpcEndpoints, restEndpoints []net.Addr,
 	// Set up a new PasswordService, which will listen for passwords
 	// provided over RPC.
 	grpcServer := grpc.NewServer(serverOpts...)
+	defer grpcServer.GracefulStop()
 
 	chainConfig := cfg.Bitcoin
 	if registeredChains.PrimaryChain() == litecoinChain {