diff --git a/Cargo.lock b/Cargo.lock
index 008edfcc4..4cc9dd217 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -4877,6 +4877,7 @@ dependencies = [
  "tempfile",
  "thiserror 2.0.18",
  "tokio",
+ "tokio-util",
  "tracing",
  "url",
  "url-macro",
diff --git a/crates/config/Cargo.toml b/crates/config/Cargo.toml
index 9e29af9c4..5a7ff31f0 100644
--- a/crates/config/Cargo.toml
+++ b/crates/config/Cargo.toml
@@ -24,6 +24,7 @@ secrecy = { workspace = true, features = ["serde"] }
 serde = { workspace = true, features = ["derive"] }
 serde_json.workspace = true
 tokio = { workspace = true, features = ["fs", "macros", "rt", "sync", "time"] }
+tokio-util.workspace = true
 tracing.workspace = true
 url = { workspace = true, features = ["serde"] }
 url-macro.workspace = true
diff --git a/crates/config/src/lib.rs b/crates/config/src/lib.rs
index 7c29b8108..a14aa10d4 100644
--- a/crates/config/src/lib.rs
+++ b/crates/config/src/lib.rs
@@ -57,7 +57,9 @@ use config::{File, FileFormat};
 use eyre::{Report, WrapErr};
 use notify::{RecommendedWatcher, RecursiveMode, Watcher};
 use serde::Deserialize;
-use tokio::sync::RwLock;
+use tokio::sync::{Mutex, RwLock};
+use tokio::task::JoinHandle;
+use tokio_util::sync::CancellationToken;
 use tracing::error;
 use validator::Validate;
 
@@ -530,6 +532,12 @@ pub struct ConfigManager {
     pub config: Arc<RwLock<Config>>,
     /// Notify listeners that something changed.
     pub notify_tx: tokio::sync::broadcast::Sender<()>,
+    /// Signals the background watcher to stop and run its teardown (e.g.
+    /// revoking the Vault token) on graceful shutdown.
+    shutdown: CancellationToken,
+    /// Handle to the spawned watcher task, awaited by [`Self::shutdown`] so
+    /// teardown completes before the process exits.
+    watcher_handle: Mutex<Option<JoinHandle<()>>>,
 }
 
 impl ConfigManager {
@@ -539,9 +547,24 @@ impl ConfigManager {
         Arc::new(Self {
             config: Arc::new(RwLock::new(config)),
             notify_tx,
+            shutdown: CancellationToken::new(),
+            watcher_handle: Mutex::new(None),
         })
     }
 
+    /// Gracefully stop the background watcher.
+    ///
+    /// Cancels the watch loop and awaits its completion. When the
+    /// configuration is Vault-backed, the loop revokes the Vault token as
+    /// part of its teardown before this returns. Safe to call on an
+    /// unwatched manager (no-op) and idempotent across repeated calls.
+    pub async fn shutdown(&self) {
+        self.shutdown.cancel();
+        if let Some(handle) = self.watcher_handle.lock().await.take() {
+            let _ = handle.await;
+        }
+    }
+
     /// Initializes the config, starts the background watcher,
     /// and returns the manager for the live state.
     pub async fn watched(config_path: impl Into<PathBuf>) -> Result<Arc<Self>, Report> {
@@ -551,16 +574,20 @@ impl ConfigManager {
         // Initial Load
         let initial = Config::load_all_with_vault_state(&config_path).await?;
 
+        let shutdown = CancellationToken::new();
         let manager = Arc::new(Self {
             config: Arc::new(RwLock::new(initial.config)),
             notify_tx,
+            shutdown: shutdown.clone(),
+            watcher_handle: Mutex::new(None),
         });
 
         // Spawn Background Watcher
         let manager_clone = Arc::clone(&manager);
-        tokio::spawn(async move {
-            Self::watch_loop(manager_clone, config_path, initial.vault).await;
+        let handle = tokio::spawn(async move {
+            Self::watch_loop(manager_clone, config_path, initial.vault, shutdown).await;
         });
+        *manager.watcher_handle.lock().await = Some(handle);
 
         Ok(manager)
     }
@@ -572,6 +599,7 @@ impl ConfigManager {
         manager: Arc<Self>,
         config_path: PathBuf,
         mut vault_runtime: Option<vault::VaultRuntime>,
+        shutdown: CancellationToken,
     ) {
         let (sync_tx, mut sync_rx) = tokio::sync::mpsc::channel(1);
 
@@ -616,6 +644,9 @@ impl ConfigManager {
                 }
             };
             tokio::select! {
+                () = shutdown.cancelled() => {
+                    break;
+                }
                 event = sync_rx.recv() => {
                     if event.is_none() {
                         break;
@@ -667,6 +698,16 @@ impl ConfigManager {
                 }
             }
         }
+
+        // The loop exited (graceful shutdown or the watcher channel closing).
+        // For a Vault-backed configuration, revoke the token so it is
+        // invalidated immediately instead of lingering valid until its TTL
+        // expires.
+        if let Some(runtime) = &vault_runtime
+            && runtime.revoke().await.is_err()
+        {
+            error!("Vault token revocation on shutdown failed");
+        }
     }
 
     async fn apply_loaded(
@@ -702,7 +743,7 @@ mod tests {
     use tokio::time::{Duration, sleep, timeout};
 
     use super::*;
-    use crate::vault::tests::{mock_lookup, mock_metadata, mock_renew, mock_secret};
+    use crate::vault::tests::{mock_lookup, mock_metadata, mock_renew, mock_revoke, mock_secret};
 
     // `Config::new` is async, but these tests drive it from the synchronous
     // `temp_env::with_var` closure API, so run it to completion on a local
@@ -972,6 +1013,38 @@ mod tests {
         );
     }
 
+    #[tokio::test]
+    #[parallel]
+    async fn test_vault_token_revoked_on_shutdown() {
+        let server = MockServer::start();
+        let _lookup = mock_lookup(&server, false, 60);
+        let _metadata = mock_metadata(&server, 1);
+        let _secret = mock_secret(&server, 1, json!({"password": "version-one"}));
+        let revoke = mock_revoke(&server);
+        let mut config_file = NamedTempFile::with_suffix(".conf").unwrap();
+        write_vault_config(&mut config_file, &server, 60);
+
+        let manager = ConfigManager::watched(config_file.path()).await.unwrap();
+        manager.shutdown().await;
+
+        assert_eq!(revoke.calls(), 1);
+    }
+
+    #[tokio::test]
+    #[parallel]
+    async fn test_shutdown_without_vault_is_noop() {
+        let mut config_file = NamedTempFile::with_suffix(".conf").unwrap();
+        writeln!(
+            config_file,
+            "[auth]\nmethods = []\n[database]\nconnection = sqlite://\n"
+        )
+        .unwrap();
+
+        let manager = ConfigManager::watched(config_file.path()).await.unwrap();
+        // Must return promptly and not panic for a non-Vault configuration.
+        manager.shutdown().await;
+    }
+
     #[tokio::test]
     #[parallel]
     async fn test_vault_version_reload_and_last_known_good_retention() {
diff --git a/crates/config/src/vault.rs b/crates/config/src/vault.rs
index 9019ab61f..f409dad51 100644
--- a/crates/config/src/vault.rs
+++ b/crates/config/src/vault.rs
@@ -84,6 +84,8 @@ pub(crate) enum VaultConfigError {
     MetadataRead,
     #[error("Vault token renewal failed")]
     TokenRenewal,
+    #[error("Vault token revocation failed")]
+    TokenRevocation,
     #[error("configuration is invalid after resolving Vault references")]
     ResolvedConfigurationInvalid,
 }
@@ -111,6 +113,19 @@ impl VaultRuntime {
             .unwrap_or(self.next_poll)
     }
 
+    /// Revoke the Vault token via `auth/token/revoke-self`.
+    ///
+    /// Called during graceful shutdown to invalidate the token (and any
+    /// leases created with it) immediately, rather than leaving it valid
+    /// until its TTL expires. Best-effort: the process is stopping, so a
+    /// failure is surfaced to the caller for logging but cannot be retried.
+    pub(crate) async fn revoke(&self) -> Result<(), VaultConfigError> {
+        self.client
+            .revoke()
+            .await
+            .map_err(|_| VaultConfigError::TokenRevocation)
+    }
+
     pub(crate) async fn renew_if_due(&mut self) -> Result<(), VaultConfigError> {
         let Some(renewal) = &self.renewal else {
             return Ok(());
@@ -470,6 +485,13 @@ pub(crate) mod tests {
         })
     }
 
+    pub(crate) fn mock_revoke(server: &MockServer) -> Mock<'_> {
+        server.mock(|when, then| {
+            when.method(POST).path("/v1/auth/token/revoke-self");
+            then.status(204);
+        })
+    }
+
     fn test_vault(server: &MockServer, refresh_interval_seconds: u64) -> VaultSection {
         VaultSection {
             address: Url::parse(&server.base_url()).unwrap(),
diff --git a/crates/core/src/keystone.rs b/crates/core/src/keystone.rs
index fe5adffe7..48ea97b43 100644
--- a/crates/core/src/keystone.rs
+++ b/crates/core/src/keystone.rs
@@ -227,6 +227,9 @@ impl Service {
     /// - `Err(KeystoneError)` if an error occurred during termination.
     pub async fn terminate(&self) -> Result<(), KeystoneError> {
         info!("Terminating Keystone");
+        // Stop the config watcher and, for a Vault-backed configuration,
+        // revoke the Vault token before the process exits.
+        self.config_manager.shutdown().await;
         Ok(())
     }
 }