diff --git a/it/server/src/test/java/com/walmartlabs/concord/it/server/CryptoIT.java b/it/server/src/test/java/com/walmartlabs/concord/it/server/CryptoIT.java
index 98389eb456..7f76bc688a 100644
--- a/it/server/src/test/java/com/walmartlabs/concord/it/server/CryptoIT.java
+++ b/it/server/src/test/java/com/walmartlabs/concord/it/server/CryptoIT.java
@@ -325,7 +325,7 @@ public void testDecryptInvalidString() throws Exception {
         // ---
 
         pir = waitForCompletion(processApi, spr.getInstanceId());
-        assertEquals(ProcessEntry.StatusEnum.FAILED, pir.getStatus());
+        assertEquals(ProcessEntry.StatusEnum.FAILED, pir.getStatus(), "Process logs: " + new String(getLog(pir.getLogFileName())));
     }
 
     @Test
diff --git a/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/DefaultSynchronizationService.java b/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/DefaultSynchronizationService.java
index e327d93c11..2c1d8950fd 100644
--- a/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/DefaultSynchronizationService.java
+++ b/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/DefaultSynchronizationService.java
@@ -29,6 +29,8 @@ public class DefaultSynchronizationService implements SynchronizationService {
 
     private final List<Runnable> callbacks = new ArrayList<>();
 
+    private boolean stop;
+
     @Override
     public boolean hasPoint() {
         synchronized (this) {
@@ -43,6 +45,7 @@ public void maintain() {
         }
 
         callbacks.clear();
+        stop = false;
     }
 
     @Override
@@ -51,4 +54,14 @@ public void point(Runnable callback) {
             callbacks.add(callback);
         }
     }
+
+    @Override
+    public void stop() {
+        this.stop = true;
+    }
+
+    @Override
+    public boolean hasStop() {
+        return stop;
+    }
 }
diff --git a/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/SynchronizationService.java b/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/SynchronizationService.java
index 5975964abf..fea6b9149e 100644
--- a/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/SynchronizationService.java
+++ b/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/SynchronizationService.java
@@ -27,4 +27,8 @@ public interface SynchronizationService {
     void maintain();
 
     void point(Runnable callback);
+
+    void stop();
+
+    boolean hasStop();
 }
diff --git a/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/SynchronizationServiceListener.java b/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/SynchronizationServiceListener.java
index 87559c366d..c8f551abaf 100644
--- a/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/SynchronizationServiceListener.java
+++ b/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/SynchronizationServiceListener.java
@@ -23,6 +23,8 @@
 import com.walmartlabs.concord.svm.Runtime;
 import com.walmartlabs.concord.svm.*;
 
+import java.util.Map;
+
 public class SynchronizationServiceListener implements ExecutionListener {
 
     private final SynchronizationService delegate;
@@ -33,7 +35,7 @@ public SynchronizationServiceListener(SynchronizationService delegate) {
 
     @Override
     public Result afterCommand(Runtime runtime, VM vm, State state, ThreadId threadId, Command cmd) {
-        if (delegate.hasPoint()) {
+        if (delegate.hasPoint() || delegate.hasStop()) {
             state.setStatus(threadId, ThreadStatus.SUSPENDED);
             return Result.BREAK;
         }
@@ -43,6 +45,13 @@ public Result afterCommand(Runtime runtime, VM vm, State state, ThreadId threadI
 
     @Override
     public Result afterEval(Runtime runtime, VM vm, State state) {
+        if (delegate.hasStop()) {
+            for (Map.Entry<ThreadId, ThreadStatus> e : state.threadStatus().entrySet()) {
+                state.setStatus(e.getKey(), ThreadStatus.DONE);
+            }
+            return Result.BREAK;
+        }
+
         if (!delegate.hasPoint()) {
             return Result.BREAK;
         }
diff --git a/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/vm/ExitCommand.java b/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/vm/ExitCommand.java
index ee5722cb40..2739224fde 100644
--- a/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/vm/ExitCommand.java
+++ b/runtime/v2/runner/src/main/java/com/walmartlabs/concord/runtime/v2/runner/vm/ExitCommand.java
@@ -21,6 +21,7 @@
  */
 
 import com.walmartlabs.concord.runtime.v2.model.ExitStep;
+import com.walmartlabs.concord.runtime.v2.runner.SynchronizationService;
 import com.walmartlabs.concord.svm.Runtime;
 import com.walmartlabs.concord.svm.State;
 import com.walmartlabs.concord.svm.ThreadId;
@@ -35,6 +36,6 @@ public ExitCommand(ExitStep step) {
 
     @Override
     protected void execute(Runtime runtime, State state, ThreadId threadId) {
-        state.dropAllFrames();
+        runtime.getService(SynchronizationService.class).stop();
     }
 }
diff --git a/runtime/v2/runner/src/test/java/com/walmartlabs/concord/runtime/v2/runner/MainTest.java b/runtime/v2/runner/src/test/java/com/walmartlabs/concord/runtime/v2/runner/MainTest.java
index 1880b9b580..666c697db8 100644
--- a/runtime/v2/runner/src/test/java/com/walmartlabs/concord/runtime/v2/runner/MainTest.java
+++ b/runtime/v2/runner/src/test/java/com/walmartlabs/concord/runtime/v2/runner/MainTest.java
@@ -1577,6 +1577,43 @@ public void testUuidFunc() throws Exception {
         assertLog(log, ".*uuid: [0-9a-f]{8}-[0-9a-f]{4}-[0-9a-f]{4}-[0-9a-f]{4}-[0-9a-f]{12}.*");
     }
 
+    @Test
+    public void testExitFromParallelLoop() throws Exception {
+        deploy("parallelLoopExit");
+
+        save(ProcessConfiguration.builder()
+                .build());
+
+        byte[] log = run();
+
+        assertNoLog(log, ".*should not reach here.*");
+
+        // thread in loop should execute at least one step
+        assertLog(log, ".*inner start: one.*");
+        assertLog(log, ".*inner start: two.*");
+        assertLog(log, ".*inner start: three.*");
+    }
+
+    @Test
+    public void testExitFromSerialLoop() throws Exception {
+        deploy("serialLoopExit");
+
+        save(ProcessConfiguration.builder()
+                .build());
+
+        byte[] log = run();
+
+        assertNoLog(log, ".*should not reach here.*");
+
+        assertLog(log, ".*inner start: one.*");
+        assertLog(log, ".*inner end: one.*");
+        assertLog(log, ".*inner start: two.*");
+
+        assertNoLog(log, ".*inner end: two.*");
+        assertNoLog(log, ".*inner start: three.*");
+        assertNoLog(log, ".*inner start: four.*");
+    }
+
     private void deploy(String resource) throws URISyntaxException, IOException {
         Path src = Paths.get(MainTest.class.getResource(resource).toURI());
         IOUtils.copy(src, workDir);
diff --git a/runtime/v2/runner/src/test/resources/com/walmartlabs/concord/runtime/v2/runner/parallelLoopExit/concord.yml b/runtime/v2/runner/src/test/resources/com/walmartlabs/concord/runtime/v2/runner/parallelLoopExit/concord.yml
new file mode 100644
index 0000000000..51ca7005f8
--- /dev/null
+++ b/runtime/v2/runner/src/test/resources/com/walmartlabs/concord/runtime/v2/runner/parallelLoopExit/concord.yml
@@ -0,0 +1,33 @@
+configuration:
+  debug: true
+  runtime: concord-v2
+
+flows:
+  default:
+    - call: "inner"
+      loop:
+        items:
+          - "one"
+          - "two"
+          - "three"
+          - "four"
+        mode: parallel
+
+    - log: "should not reach here"
+
+  inner:
+    - log: "inner start: ${item}"
+
+    - if: ${item == "four"}
+      then:
+        - checkpoint: "${item}"
+
+    - if: ${item == "two"}
+      then:
+        - exit
+
+    - if: ${item == "three"}
+      then:
+        - expr: ${sleep.ms(1000)}
+
+    - log: "inner end: ${item}"
diff --git a/runtime/v2/runner/src/test/resources/com/walmartlabs/concord/runtime/v2/runner/serialLoopExit/concord.yml b/runtime/v2/runner/src/test/resources/com/walmartlabs/concord/runtime/v2/runner/serialLoopExit/concord.yml
new file mode 100644
index 0000000000..06d97138e5
--- /dev/null
+++ b/runtime/v2/runner/src/test/resources/com/walmartlabs/concord/runtime/v2/runner/serialLoopExit/concord.yml
@@ -0,0 +1,32 @@
+configuration:
+  debug: true
+  runtime: concord-v2
+
+flows:
+  default:
+    - call: "inner"
+      loop:
+        items:
+          - "one"
+          - "two"
+          - "three"
+          - "four"
+
+    - log: "should not reach here"
+
+  inner:
+    - log: "inner start: ${item}"
+
+    - if: ${item == "four"}
+      then:
+        - checkpoint: "${item}"
+
+    - if: ${item == "two"}
+      then:
+        - exit
+
+    - if: ${item == "three"}
+      then:
+        - expr: ${sleep.ms(1000)}
+
+    - log: "inner end: ${item}"