diff --git a/blockchain/reactor_test.go b/blockchain/reactor_test.go
index 26747ea69..9775d38a9 100644
--- a/blockchain/reactor_test.go
+++ b/blockchain/reactor_test.go
@@ -157,7 +157,7 @@ func makeBlock(height int64, state sm.State) *types.Block {
 
 // The Test peer
 type bcrTestPeer struct {
-	cmn.Service
+	*cmn.BaseService
 	id p2p.ID
 	ch chan interface{}
 }
@@ -165,11 +165,12 @@ type bcrTestPeer struct {
 var _ p2p.Peer = (*bcrTestPeer)(nil)
 
 func newbcrTestPeer(id p2p.ID) *bcrTestPeer {
-	return &bcrTestPeer{
-		Service: cmn.NewBaseService(nil, "bcrTestPeer", nil),
-		id:      id,
-		ch:      make(chan interface{}, 2),
+	bcr := &bcrTestPeer{
+		id: id,
+		ch: make(chan interface{}, 2),
 	}
+	bcr.BaseService = cmn.NewBaseService(nil, "bcrTestPeer", bcr)
+	return bcr
 }
 
 func (tp *bcrTestPeer) lastValue() interface{} { return <-tp.ch }
@@ -195,3 +196,4 @@ func (tp *bcrTestPeer) IsOutbound() bool                      { return false }
 func (tp *bcrTestPeer) IsPersistent() bool                    { return true }
 func (tp *bcrTestPeer) Get(s string) interface{}              { return s }
 func (tp *bcrTestPeer) Set(string, interface{})               {}
+func (tp *bcrTestPeer) QuitChan() <-chan struct{}             { return tp.Quit }
diff --git a/glide.lock b/glide.lock
index 801c9f4d6..cfb28d137 100644
--- a/glide.lock
+++ b/glide.lock
@@ -1,5 +1,5 @@
-hash: 78f23456c3ca7af06fc26e59107de92a7b208776643bda398b0a05348153da1b
-updated: 2018-02-03T03:31:46.976175875-05:00
+hash: 8aeec731d864d5d3008b4403c3229800148c9b472969ef6e5181a8c93ac1f4c8
+updated: 2018-02-05T18:46:05.226387951Z
 imports:
 - name: github.com/btcsuite/btcd
   version: 50de9da05b50eb15658bb350f6ea24368a111ab7
@@ -116,9 +116,8 @@ imports:
   version: b6fc872b42d41158a60307db4da051dd6f179415
   subpackages:
   - data
-  - nowriter/tmlegacy
 - name: github.com/tendermint/tmlibs
-  version: deaaf014d8b8d1095054380a38b1b00e293f725f
+  version: 51684dabf79c2079f32cc25d6bccb748ee098386
   subpackages:
   - autofile
   - cli
@@ -194,6 +193,8 @@ testImports:
   version: 346938d642f2ec3594ed81d874461961cd0faa76
   subpackages:
   - spew
+- name: github.com/fortytw2/leaktest
+  version: 3b724c3d7b8729a35bf4e577f71653aec6e53513
 - name: github.com/pmezard/go-difflib
   version: 792786c7400a136282c1664665ae0a8db921c6c2
   subpackages:
diff --git a/glide.yaml b/glide.yaml
index c2726708f..fe8747817 100644
--- a/glide.yaml
+++ b/glide.yaml
@@ -30,7 +30,7 @@ import:
   subpackages:
   - data
 - package: github.com/tendermint/tmlibs
-  version: develop
+  version: 51684dabf79c2079f32cc25d6bccb748ee098386
   subpackages:
   - autofile
   - cli
@@ -42,17 +42,16 @@ import:
   - log
   - merkle
   - pubsub
+  - pubsub/query
 - package: golang.org/x/crypto
   subpackages:
   - nacl/box
   - nacl/secretbox
   - ripemd160
-- package: golang.org/x/net
-  subpackages:
-  - context
 - package: google.golang.org/grpc
   version: v1.7.3
 testImport:
+- package: github.com/fortytw2/leaktest
 - package: github.com/go-kit/kit
   version: ^0.6.0
   subpackages:
diff --git a/mempool/mempool.go b/mempool/mempool.go
index 0cdd1dee3..ec4f98478 100644
--- a/mempool/mempool.go
+++ b/mempool/mempool.go
@@ -178,10 +178,17 @@ func (mem *Mempool) Flush() {
 	}
 }
 
-// TxsFrontWait returns the first transaction in the ordered list for peer goroutines to call .NextWait() on.
-// It blocks until the mempool is not empty (ie. until the internal `mem.txs` has at least one element)
-func (mem *Mempool) TxsFrontWait() *clist.CElement {
-	return mem.txs.FrontWait()
+// TxsFront returns the first transaction in the ordered list for peer
+// goroutines to call .NextWait() on.
+func (mem *Mempool) TxsFront() *clist.CElement {
+	return mem.txs.Front()
+}
+
+// TxsWaitChan returns a channel to wait on transactions. It will be closed
+// once the mempool is not empty (ie. the internal `mem.txs` has at least one
+// element)
+func (mem *Mempool) TxsWaitChan() <-chan struct{} {
+	return mem.txs.WaitChan()
 }
 
 // CheckTx executes a new transaction against the application to determine its validity
diff --git a/mempool/reactor.go b/mempool/reactor.go
index 4e43bb0c5..98c83337c 100644
--- a/mempool/reactor.go
+++ b/mempool/reactor.go
@@ -101,8 +101,6 @@ type PeerState interface {
 }
 
 // Send new mempool txs to peer.
-// TODO: Handle mempool or reactor shutdown - as is this routine
-// may block forever if no new txs come in.
 func (memR *MempoolReactor) broadcastTxRoutine(peer p2p.Peer) {
 	if !memR.config.Broadcast {
 		return
@@ -110,15 +108,22 @@ func (memR *MempoolReactor) broadcastTxRoutine(peer p2p.Peer) {
 
 	var next *clist.CElement
 	for {
-		if !memR.IsRunning() || !peer.IsRunning() {
-			return // Quit!
-		}
+		// This happens because the CElement we were looking at got garbage
+		// collected (removed). That is, .NextWait() returned nil. Go ahead and
+		// start from the beginning.
 		if next == nil {
-			// This happens because the CElement we were looking at got
-			// garbage collected (removed).  That is, .NextWait() returned nil.
-			// Go ahead and start from the beginning.
-			next = memR.Mempool.TxsFrontWait() // Wait until a tx is available
+			select {
+			case <-memR.Mempool.TxsWaitChan(): // Wait until a tx is available
+				if next = memR.Mempool.TxsFront(); next == nil {
+					continue
+				}
+			case <-peer.QuitChan():
+				return
+			case <-memR.Quit:
+				return
+			}
 		}
+
 		memTx := next.Value.(*mempoolTx)
 		// make sure the peer is up to date
 		height := memTx.Height()
@@ -137,8 +142,15 @@ func (memR *MempoolReactor) broadcastTxRoutine(peer p2p.Peer) {
 			continue
 		}
 
-		next = next.NextWait()
-		continue
+		select {
+		case <-next.NextWaitChan():
+			// see the start of the for loop for nil check
+			next = next.Next()
+		case <-peer.QuitChan():
+			return
+		case <-memR.Quit:
+			return
+		}
 	}
 }
 
diff --git a/mempool/reactor_test.go b/mempool/reactor_test.go
index 45458a983..9f0b5b48b 100644
--- a/mempool/reactor_test.go
+++ b/mempool/reactor_test.go
@@ -91,18 +91,65 @@ func _waitForTxs(t *testing.T, wg *sync.WaitGroup, txs types.Txs, reactorIdx int
 	wg.Done()
 }
 
-var (
+const (
 	NUM_TXS = 1000
 	TIMEOUT = 120 * time.Second // ridiculously high because CircleCI is slow
 )
 
 func TestReactorBroadcastTxMessage(t *testing.T) {
 	config := cfg.TestConfig()
-	N := 4
+	const N = 4
 	reactors := makeAndConnectMempoolReactors(config, N)
+	defer func() {
+		for _, r := range reactors {
+			r.Stop()
+		}
+	}()
 
 	// send a bunch of txs to the first reactor's mempool
 	// and wait for them all to be received in the others
 	txs := checkTxs(t, reactors[0].Mempool, NUM_TXS)
 	waitForTxs(t, txs, reactors)
 }
+
+// func TestBroadcastTxForPeerStopsWhenPeerStops(t *testing.T) {
+// 	if testing.Short() {
+// 		t.Skip("skipping test in short mode.")
+// 	}
+
+// 	config := cfg.TestConfig()
+// 	const N = 2
+// 	reactors := makeAndConnectMempoolReactors(config, N)
+// 	defer func() {
+// 		for _, r := range reactors {
+// 			r.Stop()
+// 		}
+// 	}()
+
+// 	// stop peer
+// 	sw := reactors[1].Switch
+// 	sw.StopPeerForError(sw.Peers().List()[0], errors.New("some reason"))
+
+// 	// check that we are not leaking any go-routines
+// 	// i.e. broadcastTxRoutine finishes when peer is stopped
+// 	leaktest.CheckTimeout(t, 10*time.Second)()
+// }
+
+// func TestBroadcastTxForPeerStopsWhenReactorStops(t *testing.T) {
+// 	if testing.Short() {
+// 		t.Skip("skipping test in short mode.")
+// 	}
+
+// 	config := cfg.TestConfig()
+// 	const N = 2
+// 	reactors := makeAndConnectMempoolReactors(config, N)
+
+// 	// stop reactors
+// 	for _, r := range reactors {
+// 		r.Stop()
+// 	}
+
+// 	// check that we are not leaking any go-routines
+// 	// i.e. broadcastTxRoutine finishes when reactor is stopped
+// 	leaktest.CheckTimeout(t, 10*time.Second)()
+// }
diff --git a/p2p/peer.go b/p2p/peer.go
index 67ce411cd..cff99ad1f 100644
--- a/p2p/peer.go
+++ b/p2p/peer.go
@@ -18,6 +18,7 @@ import (
 // Peer is an interface representing a peer connected on a reactor.
 type Peer interface {
 	cmn.Service
+	QuitChan() <-chan struct{}
 
 	ID() ID             // peer's cryptographic ID
 	IsOutbound() bool   // did we dial the peer
@@ -331,6 +332,11 @@ func (p *peer) String() string {
 	return fmt.Sprintf("Peer{%v %v in}", p.mconn, p.ID())
 }
 
+// QuitChan returns a channel, which will be closed once peer is stopped.
+func (p *peer) QuitChan() <-chan struct{} {
+	return p.Quit
+}
+
 //------------------------------------------------------------------
 // helper funcs
 
diff --git a/p2p/pex/pex_reactor_test.go b/p2p/pex/pex_reactor_test.go
index 82dafecd4..6aeb7a3c7 100644
--- a/p2p/pex/pex_reactor_test.go
+++ b/p2p/pex/pex_reactor_test.go
@@ -368,3 +368,4 @@ func (mp mockPeer) Send(byte, interface{}) bool    { return false }
 func (mp mockPeer) TrySend(byte, interface{}) bool { return false }
 func (mp mockPeer) Set(string, interface{})        {}
 func (mp mockPeer) Get(string) interface{}         { return nil }
+func (mp mockPeer) QuitChan() <-chan struct{}      { return mp.Quit }