diff --git a/src/windows/service/exe/WslCoreInstance.cpp b/src/windows/service/exe/WslCoreInstance.cpp
index 844f536cc..10b187849 100644
--- a/src/windows/service/exe/WslCoreInstance.cpp
+++ b/src/windows/service/exe/WslCoreInstance.cpp
@@ -173,13 +173,22 @@ void WslCoreInstance::CreateLxProcess(
 
     // Ensure the instance is still running.
 
-    std::lock_guard lock(m_lock);
+    std::unique_lock lock(m_lock);
     THROW_HR_IF(HCS_E_TERMINATED, (!m_initChannel || !m_consoleManager));
 
     if (m_oobeCompleteEvent && !m_oobeCompleteEvent.is_signaled())
     {
         EMIT_USER_WARNING(wsl::shared::Localization::MessageWaitingForOobe(m_configuration.Name.c_str()));
-        m_oobeCompleteEvent.wait();
+
+        const auto oobeCompleteEvent = m_oobeCompleteEvent;
+        const auto destroyingEvent = m_destroyingEvent;
+        const HANDLE waitHandles[] = {oobeCompleteEvent.get(), destroyingEvent.get()};
+        lock.unlock();
+        const DWORD waitResult = WaitForMultipleObjects(RTL_NUMBER_OF(waitHandles), waitHandles, FALSE, INFINITE);
+        THROW_LAST_ERROR_IF(waitResult == WAIT_FAILED);
+        lock.lock();
+        THROW_HR_IF(HCS_E_TERMINATED, waitResult == WAIT_OBJECT_0 + 1 || !m_initChannel || !m_consoleManager);
+        THROW_HR_IF(E_UNEXPECTED, waitResult != WAIT_OBJECT_0);
     }
 
     // Initialize the create process message.
diff --git a/src/windows/service/exe/WslCoreInstance.h b/src/windows/service/exe/WslCoreInstance.h
index bf2adc2cc..782a5c7df 100644
--- a/src/windows/service/exe/WslCoreInstance.h
+++ b/src/windows/service/exe/WslCoreInstance.h
@@ -139,6 +139,6 @@ class WslCoreInstance : public LxssRunningInstance
     DWORD m_socketTimeout{};
     HANDLE m_jobObject{};
     std::thread m_oobeThread;
-    wil::unique_event m_destroyingEvent{wil::EventOptions::ManualReset};
-    wil::unique_event m_oobeCompleteEvent;
+    wil::shared_event m_destroyingEvent{wil::EventOptions::ManualReset};
+    wil::shared_event m_oobeCompleteEvent;
 };
diff --git a/test/windows/UnitTests.cpp b/test/windows/UnitTests.cpp
index 035323b75..7f9d167c0 100644
--- a/test/windows/UnitTests.cpp
+++ b/test/windows/UnitTests.cpp
@@ -4747,6 +4747,49 @@ VERSION_ID="Invalid|Format"
         TerminateDistribution();
     }
 
+    WSL2_TEST_METHOD(ModernOOBETermination)
+    {
+        constexpr DWORD oobeDurationSeconds = 30;
+        constexpr DWORD waiterObservationTimeout = 1000;
+        constexpr DWORD terminationTimeout = 10000;
+        constexpr DWORD cleanupTimeout = 45000;
+
+        const auto lxssKey = wsl::windows::common::registry::OpenLxssUserKey();
+        const auto testDistroId = GetDistributionId(LXSS_DISTRO_NAME_TEST_L);
+        VERIFY_IS_TRUE(testDistroId.has_value());
+        const auto testDistroIdString = wsl::shared::string::GuidToString<wchar_t>(testDistroId.value());
+
+        DistroFileChange distributionconf(L"/etc/wsl-distribution.conf", false);
+        distributionconf.SetContent(
+            std::format(L"[oobe]\ncommand = /bin/bash -c 'echo OOBE_STARTED; sleep {}'\n", oobeDurationSeconds).c_str());
+
+        RegistryKeyChange<DWORD> runOOBE(lxssKey.get(), testDistroIdString.c_str(), L"RunOOBE", 1);
+        TerminateDistribution();
+
+        auto [oobeOutputRead, oobeOutputWrite] = CreateSubprocessPipe(false, true);
+        wsl::windows::common::SubProcess oobeProcessBuilder(
+            nullptr, LxssGenerateWslCommandLine(L"-d " LXSS_DISTRO_NAME_TEST_L).c_str());
+        oobeProcessBuilder.SetStdHandles(nullptr, oobeOutputWrite.get(), oobeOutputWrite.get());
+        const auto oobeProcess = oobeProcessBuilder.Start();
+        oobeOutputWrite.reset();
+
+        PartialHandleRead oobeOutput(oobeOutputRead.get());
+        oobeOutput.Expect("OOBE_STARTED\n");
+
+        wsl::windows::common::SubProcess waitingProcessBuilder(
+            nullptr, LxssGenerateWslCommandLine(L"-d " LXSS_DISTRO_NAME_TEST_L L" true").c_str());
+        const auto waitingProcess = waitingProcessBuilder.Start();
+        const DWORD waitingResult = WaitForSingleObject(waitingProcess.get(), waiterObservationTimeout);
+
+        wsl::windows::common::SubProcess terminationProcessBuilder(
+            nullptr, LxssGenerateWslCommandLine(L"--terminate " LXSS_DISTRO_NAME_TEST_L).c_str());
+        VERIFY_ARE_EQUAL(terminationProcessBuilder.Run(terminationTimeout), 0u);
+
+        VERIFY_ARE_EQUAL(waitingResult, WAIT_TIMEOUT);
+        VERIFY_ARE_EQUAL(WaitForSingleObject(waitingProcess.get(), cleanupTimeout), WAIT_OBJECT_0);
+        VERIFY_ARE_EQUAL(WaitForSingleObject(oobeProcess.get(), cleanupTimeout), WAIT_OBJECT_0);
+    }
+
     static void ValidateDistributionStarts(LPCWSTR Name)
     {
         auto [out, _] = LxsstuLaunchWslAndCaptureOutput(std::format(L"-d {} echo -n OK", Name));