diff --git a/hadoop-mapreduce-project/CHANGES.txt b/hadoop-mapreduce-project/CHANGES.txt
index 13acc035992..ffebfe98e6b 100644
--- a/hadoop-mapreduce-project/CHANGES.txt
+++ b/hadoop-mapreduce-project/CHANGES.txt
@@ -292,6 +292,9 @@ Release 0.23.0 - Unreleased
     MAPREDUCE-2899. Replace major parts of ApplicationSubmissionContext with a 
     ContainerLaunchContext (Arun Murthy via mahadev)
 
+    MAPREDUCE-2966. Added ShutDown hooks for MRV2 processes so that they can
+    gracefully exit. (Abhijit Suresh Shingate via vinodkv)
+
   OPTIMIZATIONS
 
     MAPREDUCE-2026. Make JobTracker.getJobCounters() and
diff --git a/hadoop-mapreduce-project/hadoop-mapreduce-client/hadoop-mapreduce-client-app/src/main/java/org/apache/hadoop/mapreduce/v2/app/MRAppMaster.java b/hadoop-mapreduce-project/hadoop-mapreduce-client/hadoop-mapreduce-client-app/src/main/java/org/apache/hadoop/mapreduce/v2/app/MRAppMaster.java
index 4d7a9eafb5d..af04b3ff57b 100644
--- a/hadoop-mapreduce-project/hadoop-mapreduce-client/hadoop-mapreduce-client-app/src/main/java/org/apache/hadoop/mapreduce/v2/app/MRAppMaster.java
+++ b/hadoop-mapreduce-project/hadoop-mapreduce-client/hadoop-mapreduce-client-app/src/main/java/org/apache/hadoop/mapreduce/v2/app/MRAppMaster.java
@@ -559,12 +559,14 @@ public class MRAppMaster extends CompositeService {
   public static void main(String[] args) {
     try {
       //Configuration.addDefaultResource("job.xml");
-      ApplicationId applicationId = RecordFactoryProvider.getRecordFactory(null).newRecordInstance(ApplicationId.class);
-      
+      ApplicationId applicationId = RecordFactoryProvider
+          .getRecordFactory(null).newRecordInstance(ApplicationId.class);
       applicationId.setClusterTimestamp(Long.valueOf(args[0]));
       applicationId.setId(Integer.valueOf(args[1]));
       int failCount = Integer.valueOf(args[2]);
       MRAppMaster appMaster = new MRAppMaster(applicationId, failCount);
+      Runtime.getRuntime().addShutdownHook(
+          new CompositeServiceShutdownHook(appMaster));
       YarnConfiguration conf = new YarnConfiguration(new JobConf());
       conf.addResource(new Path(MRConstants.JOB_CONF_FILE));
       conf.set(MRJobConfig.USER_NAME, 
@@ -573,7 +575,7 @@ public class MRAppMaster extends CompositeService {
       appMaster.init(conf);
       appMaster.start();
     } catch (Throwable t) {
-      LOG.error("Caught throwable. Exiting:", t);
+      LOG.fatal("Error starting MRAppMaster", t);
       System.exit(1);
     }
   } 
diff --git a/hadoop-mapreduce-project/hadoop-mapreduce-client/hadoop-mapreduce-client-hs/src/main/java/org/apache/hadoop/mapreduce/v2/hs/JobHistoryServer.java b/hadoop-mapreduce-project/hadoop-mapreduce-client/hadoop-mapreduce-client-hs/src/main/java/org/apache/hadoop/mapreduce/v2/hs/JobHistoryServer.java
index 73ef9feaa26..e6a9b95734c 100644
--- a/hadoop-mapreduce-project/hadoop-mapreduce-client/hadoop-mapreduce-client-hs/src/main/java/org/apache/hadoop/mapreduce/v2/hs/JobHistoryServer.java
+++ b/hadoop-mapreduce-project/hadoop-mapreduce-client/hadoop-mapreduce-client-hs/src/main/java/org/apache/hadoop/mapreduce/v2/hs/JobHistoryServer.java
@@ -74,14 +74,15 @@ public class JobHistoryServer extends CompositeService {
 
   public static void main(String[] args) {
     StringUtils.startupShutdownMessage(JobHistoryServer.class, args, LOG);
-    JobHistoryServer server = null;
     try {
-      server = new JobHistoryServer();
+      JobHistoryServer jobHistoryServer = new JobHistoryServer();
+      Runtime.getRuntime().addShutdownHook(
+          new CompositeServiceShutdownHook(jobHistoryServer));
       YarnConfiguration conf = new YarnConfiguration(new JobConf());
-      server.init(conf);
-      server.start();
-    } catch (Throwable e) {
-      LOG.fatal(StringUtils.stringifyException(e));
+      jobHistoryServer.init(conf);
+      jobHistoryServer.start();
+    } catch (Throwable t) {
+      LOG.fatal("Error starting JobHistoryServer", t);
       System.exit(-1);
     }
   }
diff --git a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-common/src/main/java/org/apache/hadoop/yarn/service/CompositeService.java b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-common/src/main/java/org/apache/hadoop/yarn/service/CompositeService.java
index 973ecc0eece..6e2ef330143 100644
--- a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-common/src/main/java/org/apache/hadoop/yarn/service/CompositeService.java
+++ b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-common/src/main/java/org/apache/hadoop/yarn/service/CompositeService.java
@@ -67,28 +67,59 @@ public class CompositeService extends AbstractService {
         Service service = serviceList.get(i);
         service.start();
       }
-    } catch(Throwable e) {
+      super.start();
+    } catch (Throwable e) {
       LOG.error("Error starting services " + getName(), e);
-      for (int j = i-1; j >= 0; j--) {
-        Service service = serviceList.get(j);
-        try {
-          service.stop();
-        } catch(Throwable t) {
-          LOG.info("Error stopping " + service.getName(), t);
-        }
-      }
+      // Note that the state of the failed service is still INITED and not
+      // STARTED. Even though the last service is not started completely, still
+      // call stop() on all services including failed service to make sure cleanup
+      // happens.
+      stop(i);
       throw new YarnException("Failed to Start " + getName(), e);
     }
-    super.start();
+
   }
 
   public synchronized void stop() {
-    //stop in reserve order of start
-    for (int i = serviceList.size() - 1; i >= 0; i--) {
-      Service service = serviceList.get(i);
-      service.stop();
+    if (serviceList.size() > 0) {
+      stop(serviceList.size() - 1);
     }
     super.stop();
   }
 
+  private synchronized void stop(int numOfServicesStarted) {
+    // stop in reserve order of start
+    for (int i = numOfServicesStarted; i >= 0; i--) {
+      Service service = serviceList.get(i);
+      try {
+        service.stop();
+      } catch (Throwable t) {
+        LOG.info("Error stopping " + service.getName(), t);
+      }
+    }
+  }
+
+  /**
+   * JVM Shutdown hook for CompositeService which will stop the give
+   * CompositeService gracefully in case of JVM shutdown.
+   */
+  public static class CompositeServiceShutdownHook extends Thread {
+
+    private CompositeService compositeService;
+
+    public CompositeServiceShutdownHook(CompositeService compositeService) {
+      this.compositeService = compositeService;
+    }
+
+    @Override
+    public void run() {
+      try {
+        // Stop the Composite Service
+        compositeService.stop();
+      } catch (Throwable t) {
+        LOG.info("Error stopping " + compositeService.getName(), t);
+      }
+    }
+  }
+  
 }
diff --git a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-common/src/test/java/org/apache/hadoop/yarn/util/TestCompositeService.java b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-common/src/test/java/org/apache/hadoop/yarn/util/TestCompositeService.java
new file mode 100644
index 00000000000..9ca0e4b42c9
--- /dev/null
+++ b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-common/src/test/java/org/apache/hadoop/yarn/util/TestCompositeService.java
@@ -0,0 +1,247 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.apache.hadoop.yarn.util;
+
+import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.fail;
+
+import org.apache.hadoop.conf.Configuration;
+import org.apache.hadoop.yarn.YarnException;
+import org.apache.hadoop.yarn.service.CompositeService;
+import org.apache.hadoop.yarn.service.Service.STATE;
+import org.junit.Test;
+
+public class TestCompositeService {
+
+  private static final int NUM_OF_SERVICES = 5;
+
+  private static final int FAILED_SERVICE_SEQ_NUMBER = 2;
+
+  @Test
+  public void testCallSequence() {
+    ServiceManager serviceManager = new ServiceManager("ServiceManager");
+
+    // Add services
+    for (int i = 0; i < NUM_OF_SERVICES; i++) {
+      CompositeServiceImpl service = new CompositeServiceImpl(i);
+      serviceManager.addTestService(service);
+    }
+
+    CompositeServiceImpl[] services = serviceManager.getServices().toArray(
+        new CompositeServiceImpl[0]);
+
+    assertEquals("Number of registered services ", NUM_OF_SERVICES,
+        services.length);
+
+    Configuration conf = new Configuration();
+    // Initialise the composite service
+    serviceManager.init(conf);
+
+    // Verify the init() call sequence numbers for every service
+    for (int i = 0; i < NUM_OF_SERVICES; i++) {
+      assertEquals("For " + services[i]
+          + " service, init() call sequence number should have been ", i,
+          services[i].getCallSequenceNumber());
+    }
+
+    // Reset the call sequence numbers
+    for (int i = 0; i < NUM_OF_SERVICES; i++) {
+      services[i].reset();
+    }
+
+    serviceManager.start();
+
+    // Verify the start() call sequence numbers for every service
+    for (int i = 0; i < NUM_OF_SERVICES; i++) {
+      assertEquals("For " + services[i]
+          + " service, start() call sequence number should have been ", i,
+          services[i].getCallSequenceNumber());
+    }
+
+    // Reset the call sequence numbers
+    for (int i = 0; i < NUM_OF_SERVICES; i++) {
+      services[i].reset();
+    }
+
+    serviceManager.stop();
+
+    // Verify the stop() call sequence numbers for every service
+    for (int i = 0; i < NUM_OF_SERVICES; i++) {
+      assertEquals("For " + services[i]
+          + " service, stop() call sequence number should have been ",
+          ((NUM_OF_SERVICES - 1) - i), services[i].getCallSequenceNumber());
+    }
+
+  }
+
+  @Test
+  public void testServiceStartup() {
+    ServiceManager serviceManager = new ServiceManager("ServiceManager");
+
+    // Add services
+    for (int i = 0; i < NUM_OF_SERVICES; i++) {
+      CompositeServiceImpl service = new CompositeServiceImpl(i);
+      if (i == FAILED_SERVICE_SEQ_NUMBER) {
+        service.setThrowExceptionOnStart(true);
+      }
+      serviceManager.addTestService(service);
+    }
+
+    CompositeServiceImpl[] services = serviceManager.getServices().toArray(
+        new CompositeServiceImpl[0]);
+
+    Configuration conf = new Configuration();
+
+    // Initialise the composite service
+    serviceManager.init(conf);
+
+    // Start the composite service
+    try {
+      serviceManager.start();
+      fail("Exception should have been thrown due to startup failure of last service");
+    } catch (YarnException e) {
+      for (int i = 0; i < NUM_OF_SERVICES - 1; i++) {
+        if (i >= FAILED_SERVICE_SEQ_NUMBER) {
+          // Failed service state should be INITED
+          assertEquals("Service state should have been ", STATE.INITED,
+              services[NUM_OF_SERVICES - 1].getServiceState());
+        } else {
+          assertEquals("Service state should have been ", STATE.STOPPED,
+              services[i].getServiceState());
+        }
+      }
+
+    }
+  }
+
+  @Test
+  public void testServiceStop() {
+    ServiceManager serviceManager = new ServiceManager("ServiceManager");
+
+    // Add services
+    for (int i = 0; i < NUM_OF_SERVICES; i++) {
+      CompositeServiceImpl service = new CompositeServiceImpl(i);
+      if (i == FAILED_SERVICE_SEQ_NUMBER) {
+        service.setThrowExceptionOnStop(true);
+      }
+      serviceManager.addTestService(service);
+    }
+
+    CompositeServiceImpl[] services = serviceManager.getServices().toArray(
+        new CompositeServiceImpl[0]);
+
+    Configuration conf = new Configuration();
+
+    // Initialise the composite service
+    serviceManager.init(conf);
+
+    serviceManager.start();
+
+    // Start the composite service
+    try {
+      serviceManager.stop();
+    } catch (YarnException e) {
+      for (int i = 0; i < NUM_OF_SERVICES - 1; i++) {
+        assertEquals("Service state should have been ", STATE.STOPPED,
+            services[NUM_OF_SERVICES].getServiceState());
+      }
+    }
+  }
+
+  public static class CompositeServiceImpl extends CompositeService {
+
+    private static int counter = -1;
+
+    private int callSequenceNumber = -1;
+
+    private boolean throwExceptionOnStart;
+
+    private boolean throwExceptionOnStop;
+
+    public CompositeServiceImpl(int sequenceNumber) {
+      super(Integer.toString(sequenceNumber));
+    }
+
+    @Override
+    public synchronized void init(Configuration conf) {
+      counter++;
+      callSequenceNumber = counter;
+      super.init(conf);
+    }
+
+    @Override
+    public synchronized void start() {
+      if (throwExceptionOnStart) {
+        throw new YarnException("Fake service start exception");
+      }
+      counter++;
+      callSequenceNumber = counter;
+      super.start();
+    }
+
+    @Override
+    public synchronized void stop() {
+      counter++;
+      callSequenceNumber = counter;
+      if (throwExceptionOnStop) {
+        throw new YarnException("Fake service stop exception");
+      }
+      super.stop();
+    }
+
+    public static int getCounter() {
+      return counter;
+    }
+
+    public int getCallSequenceNumber() {
+      return callSequenceNumber;
+    }
+
+    public void reset() {
+      callSequenceNumber = -1;
+      counter = -1;
+    }
+
+    public void setThrowExceptionOnStart(boolean throwExceptionOnStart) {
+      this.throwExceptionOnStart = throwExceptionOnStart;
+    }
+
+    public void setThrowExceptionOnStop(boolean throwExceptionOnStop) {
+      this.throwExceptionOnStop = throwExceptionOnStop;
+    }
+
+    @Override
+    public String toString() {
+      return "Service " + getName();
+    }
+
+  }
+
+  public static class ServiceManager extends CompositeService {
+
+    public void addTestService(CompositeService service) {
+      addService(service);
+    }
+
+    public ServiceManager(String name) {
+      super(name);
+    }
+  }
+
+}
diff --git a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/NodeManager.java b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/NodeManager.java
index b5249440c75..8dc16e97df8 100644
--- a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/NodeManager.java
+++ b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-nodemanager/src/main/java/org/apache/hadoop/yarn/server/nodemanager/NodeManager.java
@@ -133,13 +133,6 @@ public class NodeManager extends CompositeService {
     dispatcher.register(ContainerManagerEventType.class, containerManager);
     addService(dispatcher);
 
-    Runtime.getRuntime().addShutdownHook(new Thread() {
-          @Override
-          public void run() {
-            NodeManager.this.stop();
-          }
-        });
-
     DefaultMetricsSystem.initialize("NodeManager");
 
     // StatusUpdater should be added last so that it get started last 
@@ -200,10 +193,17 @@ public class NodeManager extends CompositeService {
 
   public static void main(String[] args) {
     StringUtils.startupShutdownMessage(NodeManager.class, args, LOG);
-    NodeManager nodeManager = new NodeManager();
-    YarnConfiguration conf = new YarnConfiguration();
-    nodeManager.init(conf);
-    nodeManager.start();
+    try {
+      NodeManager nodeManager = new NodeManager();
+      Runtime.getRuntime().addShutdownHook(
+          new CompositeServiceShutdownHook(nodeManager));
+      YarnConfiguration conf = new YarnConfiguration();
+      nodeManager.init(conf);
+      nodeManager.start();
+    } catch (Throwable t) {
+      LOG.fatal("Error starting NodeManager", t);
+      System.exit(-1);
+    }
   }
 
 }
diff --git a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/ResourceManager.java b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/ResourceManager.java
index b578fee818e..179b56a4af4 100644
--- a/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/ResourceManager.java
+++ b/hadoop-mapreduce-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/ResourceManager.java
@@ -22,7 +22,6 @@ package org.apache.hadoop.yarn.server.resourcemanager;
 import java.io.IOException;
 import java.util.concurrent.BlockingQueue;
 import java.util.concurrent.LinkedBlockingQueue;
-import java.util.concurrent.atomic.AtomicBoolean;
 
 import org.apache.commons.logging.Log;
 import org.apache.commons.logging.LogFactory;
@@ -45,8 +44,8 @@ import org.apache.hadoop.yarn.security.client.ClientToAMSecretManager;
 import org.apache.hadoop.yarn.server.resourcemanager.amlauncher.ApplicationMasterLauncher;
 import org.apache.hadoop.yarn.server.resourcemanager.recovery.Recoverable;
 import org.apache.hadoop.yarn.server.resourcemanager.recovery.Store;
-import org.apache.hadoop.yarn.server.resourcemanager.recovery.Store.RMState;
 import org.apache.hadoop.yarn.server.resourcemanager.recovery.StoreFactory;
+import org.apache.hadoop.yarn.server.resourcemanager.recovery.Store.RMState;
 import org.apache.hadoop.yarn.server.resourcemanager.rmapp.RMApp;
 import org.apache.hadoop.yarn.server.resourcemanager.rmapp.RMAppEvent;
 import org.apache.hadoop.yarn.server.resourcemanager.rmapp.RMAppEventType;
@@ -101,7 +100,6 @@ public class ResourceManager extends CompositeService implements Recoverable {
   private SchedulerEventDispatcher schedulerDispatcher;
   protected RMAppManager rmAppManager;
 
-  private final AtomicBoolean shutdown = new AtomicBoolean(false);
   private WebApp webApp;
   private RMContext rmContext;
   private final Store store;
@@ -490,20 +488,19 @@ public class ResourceManager extends CompositeService implements Recoverable {
   
   public static void main(String argv[]) {
     StringUtils.startupShutdownMessage(ResourceManager.class, argv, LOG);
-    ResourceManager resourceManager = null;
     try {
       Configuration conf = new YarnConfiguration();
       Store store =  StoreFactory.getStore(conf);
-      resourceManager = new ResourceManager(store);
+      ResourceManager resourceManager = new ResourceManager(store);
+      Runtime.getRuntime().addShutdownHook(
+          new CompositeServiceShutdownHook(resourceManager));
       resourceManager.init(conf);
       //resourceManager.recover(store.restore());
       //store.doneWithRecovery();
       resourceManager.start();
-    } catch (Throwable e) {
-      LOG.error("Error starting RM", e);
-      if (resourceManager != null) {
-        resourceManager.stop();
-      }
+    } catch (Throwable t) {
+      LOG.fatal("Error starting ResourceManager", t);
+      System.exit(-1);
     }
   }
 }