diff --git a/qrexec/qrexec_client.c b/qrexec/qrexec_client.c
index 81550c2c..b4d1835b 100644
--- a/qrexec/qrexec_client.c
+++ b/qrexec/qrexec_client.c
@@ -116,8 +116,24 @@ void handle_input(int s)
 		}
 	}
 	if (!write_all(s, buf, ret)) {
-		perror("write daemon");
-		do_exit(1);
+		if (errno == EPIPE) {
+			// daemon disconnected its end of socket, so no future data will be
+			// send there; there is no sense to read from child stdout
+			//
+			// since AF_UNIX socket is buffered it doesn't mean all data was
+			// received from the agent
+			close(local_stdout_fd);
+			local_stdout_fd = -1;
+			if (local_stdin_fd == -1) {
+				// since child does no longer accept data on its stdin, doesn't
+				// make sense to process the data from the daemon
+				//
+				// we don't know real exit VM process code (exiting here, before
+				// MSG_SERVER_TO_CLIENT_EXIT_CODE message)
+				do_exit(1);
+			}
+		} else
+			perror("write daemon");
 	}
 }
 
diff --git a/qrexec/qrexec_daemon.c b/qrexec/qrexec_daemon.c
index ef69289b..14e5cbcc 100644
--- a/qrexec/qrexec_daemon.c
+++ b/qrexec/qrexec_daemon.c
@@ -38,8 +38,10 @@ enum client_flags {
 	CLIENT_INVALID = 0,	// table slot not used
 	CLIENT_CMDLINE = 1,	// waiting for cmdline from client
 	CLIENT_DATA = 2,	// waiting for data from client
-	CLIENT_DONT_READ = 4,	// don't read from the client, the other side pipe is full, or EOF
-	CLIENT_OUTQ_FULL = 8	// don't write to client, its stdin pipe is full
+	CLIENT_DONT_READ = 4,	// don't read from the client, the other side pipe is full, or EOF (additionally marked with CLIENT_EOF)
+	CLIENT_OUTQ_FULL = 8,	// don't write to client, its stdin pipe is full
+	CLIENT_EOF = 16,	// got EOF
+	CLIENT_EXITED = 32	// only send remaining data from client and remove from list
 };
 
 struct _client {
@@ -170,7 +172,7 @@ void terminate_client_and_flush_data(int fd)
 	int i;
 	struct server_header s_hdr;
 
-	if (fork_and_flush_stdin(fd, &clients[fd].buffer))
+	if (!(clients[fd].state & CLIENT_EXITED) && fork_and_flush_stdin(fd, &clients[fd].buffer))
 		children_count++;
 	close(fd);
 	clients[fd].state = CLIENT_INVALID;
@@ -266,7 +268,10 @@ void handle_message_from_client(int fd)
 	write_all_vchan_ext(&s_hdr, sizeof(s_hdr));
 	write_all_vchan_ext(buf, ret);
 	if (ret == 0)		// EOF - so don't select() on this client
-		clients[fd].state |= CLIENT_DONT_READ;
+		clients[fd].state |= CLIENT_DONT_READ | CLIENT_EOF;
+	if (clients[fd].state & CLIENT_EXITED)
+		//client already exited and all data sent - cleanup now
+		terminate_client_and_flush_data(fd);
 }
 
 /* 
@@ -282,7 +287,14 @@ void write_buffered_data_to_client(int client_id)
 		clients[client_id].state &= ~CLIENT_OUTQ_FULL;
 		break;
 	case WRITE_STDIN_ERROR:
-		terminate_client_and_flush_data(client_id);
+		// do not write to this fd anymore
+		clients[client_id].state |= CLIENT_EXITED;
+		if (clients[client_id].state & CLIENT_EOF)
+			terminate_client_and_flush_data(client_id);
+		else
+			// client will be removed when read returns 0 (EOF)
+			// clear CLIENT_OUTQ_FULL flag to no select on this fd anymore
+			clients[client_id].state &= ~CLIENT_OUTQ_FULL;
 		break;
 	case WRITE_STDIN_BUFFERED:	// no room for all data, don't clear CLIENT_OUTQ_FULL flag
 		break;
@@ -305,6 +317,9 @@ void get_packet_data_from_agent_and_pass_to_client(int client_id, struct client_
 	/* make both the header and data be consecutive in the buffer */
 	*(struct client_header *) buf = *hdr;
 	read_all_vchan_ext(buf + sizeof(*hdr), len);
+	if (clients[client_id].state & CLIENT_EXITED)
+		// ignore data for no longer running client
+		return;
 
 	switch (write_stdin
 		(client_id, client_id, buf, len + sizeof(*hdr),
@@ -315,7 +330,11 @@ void get_packet_data_from_agent_and_pass_to_client(int client_id, struct client_
 		clients[client_id].state |= CLIENT_OUTQ_FULL;
 		break;
 	case WRITE_STDIN_ERROR:
-		terminate_client_and_flush_data(client_id);
+		// do not write to this fd anymore
+		clients[client_id].state |= CLIENT_EXITED;
+		// if already got EOF, remove client
+		if (clients[client_id].state & CLIENT_EOF)
+			terminate_client_and_flush_data(client_id);
 		break;
 	default:
 		fprintf(stderr, "unknown write_stdin?\n");