diff --git a/ChangeLog b/ChangeLog
index 6b112b6c7..fa9b472ce 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,6 @@
+20000913
+ - (djm) Fix server not exiting with jobs in background.
+
 20000905
  - (djm) Import OpenBSD CVS changes
    - markus@cvs.openbsd.org  2000/08/31 15:52:24
diff --git a/serverloop.c b/serverloop.c
index 00617bb81..8c17c0d56 100644
--- a/serverloop.c
+++ b/serverloop.c
@@ -86,6 +86,7 @@ sigchld_handler2(int sig)
 	int save_errno = errno;
 	debug("Received SIGCHLD.");
 	child_terminated = 1;
+	child_has_selected = 0;
 	errno = save_errno;
 }
 
@@ -652,6 +653,8 @@ server_loop2(void)
 			signal(SIGCHLD, sigchld_handler2);
 		}
 		channel_after_select(&readset, &writeset);
+		if (child_terminated && child_has_selected)
+			break;
 		process_input(&readset);
 		process_output(&writeset);
 	}