diff --git a/hadoop-mapreduce-project/CHANGES.txt b/hadoop-mapreduce-project/CHANGES.txt
index 0b1dbb98850..13acc035992 100644
--- a/hadoop-mapreduce-project/CHANGES.txt
+++ b/hadoop-mapreduce-project/CHANGES.txt
@@ -1318,6 +1318,9 @@ Release 0.23.0 - Unreleased
    MAPREDUCE-2995. Fixed race condition in ContainerLauncher. (vinodkv via 
    acmurthy) 
 
+   MAPREDUCE-2949. Fixed NodeManager to shut-down correctly if a service
+   startup fails. (Ravi Teja via vinodkv)
+
 Release 0.22.0 - Unreleased
 
   INCOMPATIBLE CHANGES
diff --git a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/ResourceLocalizationService.java b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/ResourceLocalizationService.java
index d120b5ccdf9..ead650fab89 100644
--- a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/ResourceLocalizationService.java
+++ b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/containermanager/localizer/ResourceLocalizationService.java
@@ -107,9 +107,10 @@ import org.apache.hadoop.yarn.server.nodemanager.containermanager.localizer.even
 import org.apache.hadoop.yarn.server.nodemanager.containermanager.localizer.security.LocalizerSecurityInfo;
 import org.apache.hadoop.yarn.server.nodemanager.containermanager.localizer.security.LocalizerTokenSecretManager;
 import org.apache.hadoop.yarn.service.AbstractService;
+import org.apache.hadoop.yarn.service.CompositeService;
 import org.apache.hadoop.yarn.util.ConverterUtils;
 
-public class ResourceLocalizationService extends AbstractService
+public class ResourceLocalizationService extends CompositeService
     implements EventHandler<LocalizationEvent>, LocalizationProtocol {
 
   private static final Log LOG = LogFactory.getLog(ResourceLocalizationService.class);
@@ -201,9 +202,8 @@ public class ResourceLocalizationService extends AbstractService
     localizationServerAddress = NetUtils.createSocketAddr(
       conf.get(YarnConfiguration.NM_LOCALIZER_ADDRESS, YarnConfiguration.DEFAULT_NM_LOCALIZER_ADDRESS));
     localizerTracker = createLocalizerTracker(conf);
+    addService(localizerTracker);
     dispatcher.register(LocalizerEventType.class, localizerTracker);
-    cacheCleanup.scheduleWithFixedDelay(new CacheCleanup(dispatcher),
-        cacheCleanupPeriod, cacheCleanupPeriod, TimeUnit.MILLISECONDS);
     super.init(conf);
   }
 
@@ -214,6 +214,8 @@ public class ResourceLocalizationService extends AbstractService
 
   @Override
   public void start() {
+    cacheCleanup.scheduleWithFixedDelay(new CacheCleanup(dispatcher),
+        cacheCleanupPeriod, cacheCleanupPeriod, TimeUnit.MILLISECONDS);
     server = createServer();
     LOG.info("Localizer started on port " + server.getPort());
     server.start();
@@ -247,9 +249,7 @@ public class ResourceLocalizationService extends AbstractService
     if (server != null) {
       server.close();
     }
-    if (localizerTracker != null) {
-      localizerTracker.stop();
-    }
+    cacheCleanup.shutdown();
     super.stop();
   }
 
@@ -403,7 +403,7 @@ public class ResourceLocalizationService extends AbstractService
   /**
    * Sub-component handling the spawning of {@link ContainerLocalizer}s
    */
-  class LocalizerTracker implements EventHandler<LocalizerEvent> {
+  class LocalizerTracker extends AbstractService implements EventHandler<LocalizerEvent>  {
 
     private final PublicLocalizer publicLocalizer;
     private final Map<String,LocalizerRunner> privLocalizers;
@@ -414,9 +414,15 @@ public class ResourceLocalizationService extends AbstractService
 
     LocalizerTracker(Configuration conf,
         Map<String,LocalizerRunner> privLocalizers) {
+      super(LocalizerTracker.class.getName());
       this.publicLocalizer = new PublicLocalizer(conf);
       this.privLocalizers = privLocalizers;
+    }
+    
+    @Override
+    public synchronized void start() {
       publicLocalizer.start();
+      super.start();
     }
 
     public LocalizerHeartbeatResponse processHeartbeat(LocalizerStatus status) {
@@ -435,12 +441,14 @@ public class ResourceLocalizationService extends AbstractService
         return localizer.update(status.getResources());
       }
     }
-
+    
+    @Override
     public void stop() {
       for (LocalizerRunner localizer : privLocalizers.values()) {
         localizer.interrupt();
       }
       publicLocalizer.interrupt();
+      super.stop();
     }
 
     @Override