diff --git a/Test/DurableTask.AzureStorage.Tests/TimeoutHandlerTests.cs b/Test/DurableTask.AzureStorage.Tests/TimeoutHandlerTests.cs
new file mode 100644
index 000000000..d0d2b06e1
--- /dev/null
+++ b/Test/DurableTask.AzureStorage.Tests/TimeoutHandlerTests.cs
@@ -0,0 +1,138 @@
+using System;
+using System.Collections.Generic;
+using System.Reflection;
+using System.Text;
+using System.Threading.Tasks;
+using Microsoft.VisualStudio.TestTools.UnitTesting;
+
+namespace DurableTask.AzureStorage.Tests
+{
+    /// <summary>
+    /// Tests for <see cref="TimeoutHandler"/>.
+    /// </summary>
+    [TestClass]
+    public class TimeoutHandlerTests
+    {
+        /// <summary>
+        /// Ensures that process graceful action is executed before process is killed.
+        /// </summary>
+        /// <returns>Task tracking operation.</returns>
+        [TestMethod]
+        public async Task EnsureTimeoutHandlerRunsProcessShutdownEventsBeforeProcessKill()
+        {
+            int executionCount = 0;
+            int killCount = 0;
+            int shutdownCount = 0;
+
+            Action<string> killAction = (errorString) => killCount++;
+            typeof(TimeoutHandler)
+                .GetField("ProcessKillAction", BindingFlags.NonPublic | BindingFlags.Static)
+                .SetValue(null, killAction);
+
+            // TimeoutHandler at the moment invokes shutdown on 5th call failure.
+            await TimeoutHandler.ExecuteWithTimeout(
+                "test",
+                "account",
+                new AzureStorageOrchestrationServiceSettings
+                {
+                    OnImminentFailFast = (errorString) =>
+                    {
+                        shutdownCount++;
+                        return Task.FromResult(true);
+                    }
+                },
+                async (operationContext, cancellationToken) =>
+                {
+                    executionCount++;
+                    await Task.Delay(TimeSpan.FromMinutes(3));
+                    return 1;
+                });
+
+            Assert.AreEqual(5, executionCount);
+            Assert.AreEqual(1, shutdownCount);
+            Assert.AreEqual(1, killCount);
+        }
+
+        /// <summary>
+        /// Ensures that process graceful action is executed and failfast is skipped.
+        /// </summary>
+        /// <returns>Task tracking operation.</returns>
+        [TestMethod]
+        [ExpectedException(typeof(TimeoutException))]
+        public async Task EnsureTimeoutHandlerRunsProcessShutdownEventsAndSkipsProcessKill()
+        {
+            int executionCount = 0;
+            int killCount = 0;
+            int shutdownCount = 0;
+
+            Action<string> killAction = (errorString) => killCount++;
+            typeof(TimeoutHandler)
+                .GetField("ProcessKillAction", BindingFlags.NonPublic | BindingFlags.Static)
+                .SetValue(null, killAction);
+
+            // TimeoutHandler at the moment invokes shutdown on 5th call failure.
+            await TimeoutHandler.ExecuteWithTimeout(
+                "test",
+                "account",
+                new AzureStorageOrchestrationServiceSettings
+                {
+                    OnImminentFailFast = (errorString) =>
+                    {
+                        shutdownCount++;
+                        return Task.FromResult(false);
+                    }
+                },
+                async (operationContext, cancellationToken) =>
+                {
+                    executionCount++;
+                    await Task.Delay(TimeSpan.FromMinutes(3));
+                    return 1;
+                });
+
+            Assert.AreEqual(5, executionCount);
+            Assert.AreEqual(1, shutdownCount);
+            Assert.AreEqual(0, killCount);
+        }
+
+        /// <summary>
+        /// Ensures that process graceful action is executed before process is killed.
+        /// </summary>
+        /// <returns>Task tracking operation.</returns>
+        [TestMethod]
+        public async Task EnsureTimeoutHandlerExecutesProcessKillIfGracefulShutdownFails()
+        {
+            int executionCount = 0;
+            int killCount = 0;
+            int shutdownCount = 0;
+
+            Action<string> killAction = (errorString) => killCount++;
+            typeof(TimeoutHandler)
+                .GetField("ProcessKillAction", BindingFlags.NonPublic | BindingFlags.Static)
+                .SetValue(null, killAction);
+
+            // TimeoutHandler at the moment invokes shutdown on 5th call failure.
+            await TimeoutHandler.ExecuteWithTimeout(
+                "test",
+                "account",
+                new AzureStorageOrchestrationServiceSettings
+                {
+                    OnImminentFailFast = (errorString) =>
+                    {
+                        shutdownCount++;
+
+                        throw new Exception("Breaking graceful shutdown");
+                    }
+                },
+                async (operationContext, cancellationToken) =>
+                {
+                    executionCount++;
+                    await Task.Delay(TimeSpan.FromMinutes(3));
+                    return 1;
+                });
+
+            Assert.AreEqual(5, executionCount);
+            Assert.AreEqual(1, shutdownCount);
+            Assert.AreEqual(1, killCount);
+        }
+    }
+}
diff --git a/src/DurableTask.AzureStorage/AzureStorageOrchestrationServiceSettings.cs b/src/DurableTask.AzureStorage/AzureStorageOrchestrationServiceSettings.cs
index d2a43cfd3..c3fd2c6c8 100644
--- a/src/DurableTask.AzureStorage/AzureStorageOrchestrationServiceSettings.cs
+++ b/src/DurableTask.AzureStorage/AzureStorageOrchestrationServiceSettings.cs
@@ -21,6 +21,7 @@ namespace DurableTask.AzureStorage
     using Microsoft.WindowsAzure.Storage.Queue;
     using Microsoft.WindowsAzure.Storage.Table;
     using System.Runtime.Serialization;
+    using System.Threading.Tasks;
 
     /// <summary>
     /// Settings that impact the runtime behavior of the <see cref="AzureStorageOrchestrationService"/>.
@@ -214,6 +215,17 @@ public class AzureStorageOrchestrationServiceSettings
         /// </summary>
         public ILoggerFactory LoggerFactory { get; set; } = NoOpLoggerFactory.Instance;
 
+        /// <summary>
+        /// Gets or sets an optional function to be executed before the app is recycled. Reason for shutdown is passed as a string parameter.
+        /// This can be used to perform any pending cleanup tasks or just do a graceful shutdown.
+        /// The function returns a <see cref="bool"/>. If 'true' is returned <see cref="Environment.FailFast(string)"/> is executed, if 'false' is returned,
+        /// process kill is skipped.
+        /// A wait time of 35 seconds will be given for the task to finish, if the task does not finish in required time, <see cref="Environment.FailFast(string)"/> will be executed.
+        /// </summary>
+        /// <remarks>Skipping process kill by returning false might have negative consequences if since Storage SDK might be in deadlock. Ensure if you return
+        /// false a process shutdown is executed by you.</remarks>
+        public Func<string, Task<bool>> OnImminentFailFast { get; set; } = (message) => Task.FromResult(true);
+
         /// <summary>
         /// Returns bool indicating is the TrackingStoreStorageAccount has been set.
         /// </summary>
diff --git a/src/DurableTask.AzureStorage/TimeoutHandler.cs b/src/DurableTask.AzureStorage/TimeoutHandler.cs
index 9348510a8..b0ca864b8 100644
--- a/src/DurableTask.AzureStorage/TimeoutHandler.cs
+++ b/src/DurableTask.AzureStorage/TimeoutHandler.cs
@@ -31,6 +31,11 @@ internal static class TimeoutHandler
 
         private static int NumTimeoutsHit = 0;
 
+        /// <summary>
+        /// Process kill action. This is exposed here to allow override from tests.
+        /// </summary>
+        private static Action<string> ProcessKillAction = (errorMessage) => Environment.FailFast(errorMessage);
+
         public static async Task<T> ExecuteWithTimeout<T>(
             string operationName,
             string account,
@@ -72,10 +77,37 @@ public static async Task<T> ExecuteWithTimeout<T>(
 
                             // Delay to ensure the ETW event gets written
                             await Task.Delay(TimeSpan.FromSeconds(3));
-                            Environment.FailFast(message);
 
-                            // Should never be hit, due to above FailFast() call.
-                            return default(T);
+                            bool executeFailFast = true;
+                            Task<bool> gracefulShutdownTask = Task.Run(async () =>
+                            {
+                                try
+                                {
+                                    return await settings.OnImminentFailFast(message);
+                                }
+                                catch (Exception)
+                                {
+                                    return true;
+                                }
+                            });
+
+                            await Task.WhenAny(gracefulShutdownTask, Task.Delay(TimeSpan.FromSeconds(35)));
+
+                            if (gracefulShutdownTask.IsCompleted)
+                            {
+                                executeFailFast = gracefulShutdownTask.Result;
+                            }
+
+                            if (executeFailFast)
+                            {
+                                TimeoutHandler.ProcessKillAction(message);
+                            }
+                            else
+                            {
+                                // Technically we don't need else as the action above would have killed the process.
+                                // However tests don't kill the process so putting in else.
+                                throw new TimeoutException(message);
+                            }
                         }
 
                     }