diff --git a/src/operator/backend_test_runner/daemonset_manager.py b/src/operator/backend_test_runner/daemonset_manager.py
index 0a26874f7..6d0759d60 100644
--- a/src/operator/backend_test_runner/daemonset_manager.py
+++ b/src/operator/backend_test_runner/daemonset_manager.py
@@ -269,7 +269,7 @@ def delete_daemonset(self) -> None:
                             name=pod.metadata.name,
                             namespace=self.namespace,
                             body=kb_client.V1DeleteOptions(
-                                grace_period_seconds=0,
+                                grace_period_seconds=30,
                                 propagation_policy='Background'
                             )
                         )
@@ -281,6 +281,30 @@ def delete_daemonset(self) -> None:
             logging.error('Error during cleanup: %s', e)
             raise
 
+    def _wait_for_daemonset_deletion(self, timeout: int = 120) -> None:
+        """Poll until the daemonset is fully removed from the API server.
+
+        After delete_daemonset() the object may still exist with a deletionTimestamp
+        while Kubernetes garbage-collects dependents.  Attempting to create a new
+        daemonset with the same name before it is gone causes a 409 Conflict.
+
+        Args:
+            timeout: Maximum seconds to wait for the daemonset to disappear.
+        """
+        start = time.time()
+        while time.time() - start < timeout:
+            try:
+                self.apps_v1.read_namespaced_daemon_set(
+                    name=self.name, namespace=self.namespace)
+                logging.info('Waiting for daemonset %s to be fully deleted...', self.name)
+                time.sleep(2)
+            except kb_client.rest.ApiException as e:
+                if e.status == 404:
+                    logging.info('Daemonset %s fully deleted', self.name)
+                    return
+                raise
+        logging.warning('Timed out waiting for daemonset %s deletion after %ds', self.name, timeout)
+
     def deploy_and_wait(self) -> bool:
         """Deploy daemonset and wait for condition on all nodes.
 
@@ -291,6 +315,7 @@ def deploy_and_wait(self) -> bool:
         try:
             # Clean up any existing resources with this name if exists
             self.delete_daemonset()
+            self._wait_for_daemonset_deletion()
             # Create daemonset
             self.create_daemonset()
             logging.info('Waiting for daemonset and conditions at %s', time.time())
diff --git a/src/operator/utils/node_validation_test/test_base.py b/src/operator/utils/node_validation_test/test_base.py
index 6504d7212..16d559efc 100644
--- a/src/operator/utils/node_validation_test/test_base.py
+++ b/src/operator/utils/node_validation_test/test_base.py
@@ -19,6 +19,7 @@
 
 from datetime import datetime
 import logging
+import signal
 import time
 from typing import Any, Dict, List, Optional
 
@@ -28,6 +29,23 @@
 from src.lib.utils import logging as logging_utils, osmo_errors
 from src.utils import static_config
 
+
+def _sigterm_handler(signum: int, frame: Any) -> None:  # pylint: disable=unused-argument
+    """Convert SIGTERM into SystemExit so that finally blocks execute during pod termination."""
+    logging.info('Received SIGTERM (signal %d), raising SystemExit for graceful cleanup', signum)
+    raise SystemExit(128 + signum)
+
+
+def register_graceful_shutdown() -> None:
+    """Register a SIGTERM handler that triggers finally-block cleanup.
+
+    Kubernetes sends SIGTERM before SIGKILL during pod termination.
+    Python's default SIGTERM handler terminates without running finally blocks.
+    This converts SIGTERM into SystemExit, which does trigger finally blocks,
+    allowing validators to clean up resources (e.g. benchmark pods) on shutdown.
+    """
+    signal.signal(signal.SIGTERM, _sigterm_handler)
+
 DEFAULT_NODE_CONDITION_PREFIX = 'osmo.nvidia.com/'
 
 
@@ -138,6 +156,8 @@ def __init__(self, node_name: str,
         Args:
             node_name: Optional node name. If not provided, will be read from NODE_NAME env var.
         """
+        register_graceful_shutdown()
+
         # Load in-cluster config
         try:
             kb_config.load_incluster_config()