diff --git a/src/index.ts b/src/index.ts
index 4233e8a67..406fede8f 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -598,7 +598,18 @@ async function main() {
     await indexPersistence.save().catch((err) => {
       console.warn(`[agentmemory] Failed to save index on shutdown:`, err);
     });
-    await sdk.shutdown();
+    // #909 / iii-hq/iii#1835: defensive timeout prevents an indefinite hang when
+    // the OTel exporter is stuck retrying; un-flushed telemetry is dropped on exit.
+    const shutdownPromise = sdk.shutdown().catch((err) => {
+      console.warn(`[agentmemory] sdk.shutdown() errored:`, err);
+    });
+    const timeoutPromise = new Promise<void>((resolve) =>
+      setTimeout(() => {
+        console.warn(`[agentmemory] sdk.shutdown() exceeded 3s timeout, proceeding to exit`);
+        resolve();
+      }, 3000),
+    );
+    await Promise.race([shutdownPromise, timeoutPromise]);
     clearWorkerPidfile();
     process.exit(0);
   };