diff --git a/main-command/src/main/scala/sbt/internal/client/NetworkClient.scala b/main-command/src/main/scala/sbt/internal/client/NetworkClient.scala
index 233ca0526..ea42ec597 100644
--- a/main-command/src/main/scala/sbt/internal/client/NetworkClient.scala
+++ b/main-command/src/main/scala/sbt/internal/client/NetworkClient.scala
@@ -166,6 +166,8 @@ class NetworkClient(
                   console.appendLog(Level.Error, "sbt server disconnected")
                   exitClean.set(false)
                 }
+              } else {
+                console.appendLog(Level.Info, "sbt server disconnected")
               }
               stdinBytes.offer(-1)
               Option(inputThread.get).foreach(_.close())
diff --git a/main/src/main/scala/sbt/internal/CommandExchange.scala b/main/src/main/scala/sbt/internal/CommandExchange.scala
index a4e048edc..aa35b0cf6 100644
--- a/main/src/main/scala/sbt/internal/CommandExchange.scala
+++ b/main/src/main/scala/sbt/internal/CommandExchange.scala
@@ -422,9 +422,14 @@ private[sbt] final class CommandExchange {
                   case _                                     => mt.channel.prompt(ConsolePromptEvent(lastState.get))
                 }
                 commandQueue.add(Exec(t, None, None))
-              case "exit"     => exit(mt)
-              case "shutdown" => shutdown(mt.channel.name)
-              case _          =>
+              case "exit" => exit(mt)
+              case "shutdown" =>
+                channels.find(_.name == mt.channel.name) match {
+                  case Some(c: NetworkChannel) => c.shutdown(false)
+                  case _                       =>
+                }
+                shutdown(mt.channel.name)
+              case _ =>
             }
         }
         if (!isStopped.get) impl()
diff --git a/main/src/main/scala/sbt/internal/server/NetworkChannel.scala b/main/src/main/scala/sbt/internal/server/NetworkChannel.scala
index 7259478ef..4fa5a37a5 100644
--- a/main/src/main/scala/sbt/internal/server/NetworkChannel.scala
+++ b/main/src/main/scala/sbt/internal/server/NetworkChannel.scala
@@ -549,6 +549,15 @@ final class NetworkChannel(
     shutdown(true)
   }
   import sjsonnew.BasicJsonProtocol.BooleanJsonFormat
+
+  /**
+   * Closes down the channel. Before closing the socket, it sends a notification to
+   * the client to shutdown. If the client initiated the shutdown, we don't want the
+   * client to display an error or return a non-zero exit code so we send it a
+   * notification that tells it whether or not to log the shutdown. This can't
+   * easily be done client side because when the client is in interactive session,
+   * it doesn't know commands it has sent to the server.
+   */
   override def shutdown(logShutdown: Boolean): Unit = {
     terminal.close()
     StandardMain.exchange.removeChannel(this)