diff --git a/.chloggen/memory-queue-data-loss-docs.yaml b/.chloggen/memory-queue-data-loss-docs.yaml
new file mode 100644
index 00000000000..d6d86c650df
--- /dev/null
+++ b/.chloggen/memory-queue-data-loss-docs.yaml
@@ -0,0 +1,25 @@
+# Use this changelog template to create an entry for release notes.
+
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: enhancement
+
+# The name of the component, or a single word describing the area of concern, (e.g. receiver/otlp)
+component: exporter/exporterhelper
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Add documentation analyzing memory queue silent data loss during graceful shutdown
+
+# One or more tracking issues or pull requests related to the change
+issues: [14447]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext:
+
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: []
diff --git a/.github/workflows/utils/cspell.json b/.github/workflows/utils/cspell.json
index f31f6dda219..bea0a89e817 100644
--- a/.github/workflows/utils/cspell.json
+++ b/.github/workflows/utils/cspell.json
@@ -25,6 +25,7 @@
       "Drutu",
       "Dynatrace",
       "Excalidraw",
+      "experr",
       "Expvar",
       "Fanout",
       "FIPS",
@@ -312,6 +313,7 @@
       "mowies",
       "muehle",
       "multiclient",
+      "multierr",
       "multimod",
       "mycert",
       "mycomponent",
diff --git a/BUG_ANALYSIS_MEMORY_QUEUE_DATA_LOSS.md b/BUG_ANALYSIS_MEMORY_QUEUE_DATA_LOSS.md
new file mode 100644
index 00000000000..067d03a16c9
--- /dev/null
+++ b/BUG_ANALYSIS_MEMORY_QUEUE_DATA_LOSS.md
@@ -0,0 +1,97 @@
+# Critical Bug: Memory Queue Silent Data Loss During Graceful Shutdown
+
+## Summary
+
+The memory queue silently drops telemetry data when export fails during graceful shutdown due to a missing shutdown error check that the persistent queue correctly implements.
+
+## Affected Components
+
+- **Component type:** Core / Exporter Helper
+- **Package and file paths:**
+  - `exporter/exporterhelper/internal/queue/memory_queue.go`
+  - `exporter/exporterhelper/internal/base_exporter.go`
+  - `exporter/exporterhelper/internal/retry_sender.go`
+  - `exporter/exporterhelper/internal/queue_sender.go`
+- **Function or method names:**
+  - `memoryQueue.onDone()` - lines 161-172
+  - `BaseExporter.Shutdown()` - lines 135-150
+  - `retrySender.Send()` - lines 141-148
+
+## Exact Problem
+
+### Code Path During Shutdown
+
+1. `BaseExporter.Shutdown()` (base_exporter.go:139-141) shuts down the retry sender **first**:
+
+```go
+// First shutdown the retry sender, so the queue sender can flush the queue without retries.
+if be.RetrySender != nil {
+    err = multierr.Append(err, be.RetrySender.Shutdown(ctx))  // Closes stopCh
+}
+```
+
+2. When the queue drains and any export fails, `retrySender.Send()` (retry_sender.go:144-145) immediately returns a shutdown error:
+
+```go
+case <-rs.stopCh:
+    return experr.NewShutdownErr(err)  // stopCh already closed!
+```
+
+3. The error propagates to `memoryQueue.onDone()` (memory_queue.go:161-172):
+
+```go
+func (mq *memoryQueue[T]) onDone(bd *blockingDone, err error) {
+    mq.mu.Lock()
+    defer mq.mu.Unlock()
+    mq.size -= bd.elSize
+    mq.hasMoreSpace.Signal()
+    if mq.waitForResult {
+        bd.ch <- err
+        return
+    }
+    blockingDonePool.Put(bd)  // ERROR IS COMPLETELY IGNORED!
+}
+```
+
+When `waitForResult=false` (the **default**), the `err` parameter is never checked. Data is removed from the queue regardless of export success or failure.
+
+### Comparison with Persistent Queue
+
+The persistent queue correctly handles this (persistent_queue.go:405-408):
+
+```go
+if experr.IsShutdownErr(consumeErr) {
+    // The queue is shutting down, don't mark the item as dispatched,
+    // so it's picked up again after restart.
+    return
+}
+```
+
+The memory queue has **no equivalent check**, creating an inconsistency:
+- **Persistent queue:** shutdown failures -> data preserved for restart
+- **Memory queue:** shutdown failures -> **data silently lost**
+
+## Why This Is Critical
+
+### Telemetry Affected
+All signal types (traces, metrics, logs) when using the default memory queue configuration (`waitForResult=false`, no `storage:` configured).
+
+### Who Is Impacted
+- Production users performing graceful shutdowns (rolling deployments, pod scaling)
+- Any deployment where transient network issues occur during shutdown
+- Users who configure `retry_on_failure: enabled` expecting data protection
+
+### Why Difficult to Detect
+- Error is logged at `queue_sender.go:50-51` as "Exporting failed. Dropping data." but then silently discarded
+- Users expect `retry_on_failure` to protect against transient failures, but retries are disabled during shutdown
+- Persistent queue handles this correctly, creating false sense of coverage
+- No metric emitted for "data lost during shutdown"
+
+### Realistic Scenarios
+1. **Kubernetes rolling deployment:** Pod receives SIGTERM, begins graceful shutdown. Brief network hiccup occurs. All queued telemetry is silently dropped.
+2. **Cloud autoscaling:** Instance terminates during high load. Backend returns HTTP 503 temporarily. Thousands of queued spans/metrics are lost.
+3. **Shutdown under load:** Any transient failure during drain = permanent data loss.
+
+## Suggested Fix
+
+Add shutdown error handling in `memoryQueue.onDone()` similar to persistent queue, or at minimum emit a clear metric/log indicating data was lost specifically due to shutdown timing.