diff --git a/lib/Net/Daemon.pm b/lib/Net/Daemon.pm
index c5f76d0..6b9b821 100644
--- a/lib/Net/Daemon.pm
+++ b/lib/Net/Daemon.pm
@@ -687,8 +687,8 @@ sub Bind ($) {
             # whole group by killing the childs.
             my $childpid;
             $exit = 0;
-            $SIG{'TERM'} = sub { die };
-            $SIG{'INT'}  = sub { die };
+            $SIG{'TERM'} = sub { $exit = 1 };
+            $SIG{'INT'}  = sub { $exit = 1 };
             eval {
                 do {
                     $childpid = wait;
@@ -705,6 +705,12 @@ sub Bind ($) {
         }
     }
 
+    # Install signal handlers for graceful shutdown.  SIGTERM and SIGINT
+    # set the Done flag so the accept loop exits cleanly, allowing the
+    # "Server terminating" log message to fire and sockets to close.
+    $SIG{'TERM'} = sub { $self->Done(1) };
+    $SIG{'INT'}  = sub { $self->Done(1) };
+
     my $time = $self->{'loop-timeout'} ? ( time() + $self->{'loop-timeout'} ) : 0;
 
     my $client;
@@ -1206,6 +1212,21 @@ true work. The connection is closed when B<Run> returns and the corresponding
 thread or process exits.
 
 
+=head2 Signal Handling
+
+B<Bind> installs handlers for C<SIGTERM> and C<SIGINT> that trigger a
+graceful shutdown.  When either signal is received, the server sets the
+B<Done> flag so the accept loop exits cleanly, logs a "Server
+terminating" message, and closes the listening socket.
+
+In preforking mode (B<--childs>), the parent process catches the signal,
+terminates the wait loop, and sends C<SIGTERM> to all child processes
+before exiting.
+
+If your subclass needs custom signal handling, override B<Bind> or
+install your own handlers after calling C<SUPER::Bind>.
+
+
 =head2 Error Handling
 
 All methods are supposed to throw Perl exceptions in case of errors.
diff --git a/t/signal.t b/t/signal.t
new file mode 100644
index 0000000..c50a79b
--- /dev/null
+++ b/t/signal.t
@@ -0,0 +1,149 @@
+# -*- perl -*-
+#
+#   Test that SIGTERM/SIGINT cause graceful shutdown
+#
+
+require 5.004;
+use strict;
+use warnings;
+use Test::More;
+use POSIX qw/WNOHANG WIFEXITED WEXITSTATUS/;
+
+# Skip on systems without fork
+my $can_fork;
+eval {
+    if ( $^O ne "MSWin32" ) {
+        my $pid = fork();
+        if ( defined($pid) ) {
+            if ( !$pid ) { exit 0; }    # Child
+        }
+        waitpid( $pid, 0 );
+        $can_fork = 1;
+    }
+};
+if ( !$can_fork ) {
+    plan skip_all => 'This test requires a system with working forks';
+}
+
+plan tests => 6;
+
+use Net::Daemon ();
+
+# Subclass that records whether it reached the "Server terminating" log.
+{
+
+    package GracefulTestDaemon;
+    our @ISA = qw(Net::Daemon);
+
+    sub Log {
+        my ( $self, $level, $fmt, @args ) = @_;
+        my $msg = sprintf( $fmt, @args );
+        if ( $msg =~ /terminating/ ) {
+            $self->{'_terminated_cleanly'} = 1;
+        }
+    }
+
+    sub Fatal {
+        my ( $self, @msg ) = @_;
+        die join( ' ', @msg );
+    }
+}
+
+# Helper: spawn a child daemon, send $signal, verify graceful exit.
+# Uses a pipe for synchronization: child writes "R" after socket is
+# bound and immediately before calling Bind() (which installs signal
+# handlers before entering the accept loop).
+sub test_signal {
+    my ( $signal, $label ) = @_;
+
+    pipe( my $rd, my $wr ) or die "pipe: $!";
+
+    my $pid = fork();
+    die "Cannot fork: $!" unless defined $pid;
+
+    if ( !$pid ) {
+
+        # Child: create a daemon and enter the accept loop
+        close $rd;
+
+        my $daemon = bless {
+            'mode'     => 'single',
+            'proto'    => 'tcp',
+            'catchint' => 1,
+            'debug'    => 0,
+        }, 'GracefulTestDaemon';
+
+        require IO::Socket::INET;
+        $daemon->{'socket'} = IO::Socket::INET->new(
+            'LocalAddr' => '127.0.0.1',
+            'LocalPort' => 0,
+            'Proto'     => 'tcp',
+            'Listen'    => 1,
+            'Reuse'     => 1,
+        ) or die "Cannot create socket: $!";
+
+        # Signal parent that we're about to enter Bind().
+        # Bind() installs SIGTERM/SIGINT handlers before the accept loop,
+        # so by the time the parent reads this and sends the signal,
+        # the handlers will be in place.
+        syswrite( $wr, "R", 1 );
+        close $wr;
+
+        eval { $daemon->Bind() };
+
+        if ( $daemon->{'_terminated_cleanly'} ) {
+            exit(42);    # Magic exit code = graceful
+        }
+        exit(1);
+    }
+
+    # Parent: wait for child to be ready
+    close $wr;
+    my $buf = '';
+    sysread( $rd, $buf, 1 );    # Blocks until child signals
+    close $rd;
+
+    # Small delay to ensure Bind() has installed signal handlers.
+    # The child signals before calling Bind(), so we need a brief
+    # window for Bind() to reach the handler installation point.
+    select( undef, undef, undef, 0.2 );
+
+    # Send signal
+    kill $signal, $pid;
+
+    # Wait for child with timeout
+    my $reaped = 0;
+    for my $attempt ( 1 .. 100 ) {
+        my $ret = waitpid( $pid, WNOHANG );
+        if ( $ret > 0 ) {
+            $reaped = 1;
+            my $status = $?;
+            ok( WIFEXITED($status),
+                "$label: child exited normally (not killed by signal)" );
+            is( WEXITSTATUS($status), 42,
+                "$label: child reached graceful shutdown path" );
+            last;
+        }
+        select( undef, undef, undef, 0.1 );
+    }
+    if ( !$reaped ) {
+        kill 'KILL', $pid;
+        waitpid( $pid, 0 );
+        fail("$label: child exited normally (not killed by signal)");
+        fail("$label: child reached graceful shutdown path");
+    }
+}
+
+# Test 1-2: SIGTERM triggers graceful shutdown
+test_signal( 'TERM', 'SIGTERM' );
+
+# Test 3-4: SIGINT triggers graceful shutdown
+test_signal( 'INT', 'SIGINT' );
+
+# Test 5-6: Done() is the mechanism — verify it directly
+{
+    my $daemon = bless { 'mode' => 'single', 'debug' => 0 }, 'Net::Daemon';
+    ok( !$daemon->Done(), 'Done() starts as false' );
+    $daemon->Done(1);
+    ok( $daemon->Done(), 'Done(1) sets the flag' );
+}