diff --git a/daemon/cmld.c b/daemon/cmld.c
index 57198d19..9a5f8546 100644
--- a/daemon/cmld.c
+++ b/daemon/cmld.c
@@ -586,6 +586,15 @@ cmld_container_config_sync_cb(container_t *container, container_callback_t *cb,
 	mem_free0(c_uuid);
 }
 
+static void
+cmld_reload_delayed_free(void *data)
+{
+	ASSERT(data);
+
+	container_t *c = data;
+	container_free(c);
+}
+
 container_t *
 cmld_reload_container(const uuid_t *uuid, const char *path)
 {
@@ -619,7 +628,8 @@ cmld_reload_container(const uuid_t *uuid, const char *path)
 		      container_get_name(c_current));
 
 		cmld_containers_list = list_remove(cmld_containers_list, c_current);
-		container_free(c_current);
+		// delayed free to allow all observers to finish up
+		container_finish_observers(c_current, cmld_reload_delayed_free, c_current);
 	}
 
 	DEBUG("Loaded config for container %s", container_get_name(c));
diff --git a/daemon/compartment.c b/daemon/compartment.c
index 5a4655c1..222da41d 100644
--- a/daemon/compartment.c
+++ b/daemon/compartment.c
@@ -105,6 +105,10 @@ struct compartment {
 	char *debug_log_dir; /* log for output of compartment child */
 
 	list_t *observer_list; /* list of function callbacks to be called when the state changes */
+	void (*observer_finish_cb)(
+		void *); /* finisher called after all observers run during state change */
+	void *observer_finish_cb_data; /* data pointer as paramenter for finisher callback */
+
 	event_timer_t *stop_timer;  /* timer to handle compartment stop timeout */
 	event_timer_t *start_timer; /* timer to handle a compartment start timeout */
 
@@ -697,8 +701,8 @@ compartment_sigchld_handle_helpers(compartment_t *compartment, event_signal_t *s
 		compartment_state_t state = compartment->is_rebooting ?
 						    COMPARTMENT_STATE_REBOOTING :
 						    COMPARTMENT_STATE_STOPPED;
-		compartment_set_state(compartment, state);
 		compartment->is_rebooting = false;
+		compartment_set_state(compartment, state);
 	}
 }
 
@@ -803,6 +807,7 @@ compartment_sigchld_early_cb(UNUSED int signum, event_signal_t *sig, void *data)
 		/* remove the sigchld callback for this early child from the event loop */
 		event_remove_signal(sig);
 		event_signal_free(sig);
+		compartment->pid_early = -1;
 		// cleanup if early child returned with an error
 		if ((WIFEXITED(status) && WEXITSTATUS(status)) || WIFSIGNALED(status)) {
 			if (compartment->pid == -1)
@@ -810,7 +815,6 @@ compartment_sigchld_early_cb(UNUSED int signum, event_signal_t *sig, void *data)
 
 			compartment_set_state(compartment, COMPARTMENT_STATE_STOPPED);
 		}
-		compartment->pid_early = -1;
 	}
 
 	// reap any open helper child and set state accordingly
@@ -1682,6 +1686,11 @@ compartment_notify_observers(compartment_t *compartment)
 			l = l->next;
 		}
 	}
+
+	if (compartment->observer_finish_cb) {
+		DEBUG("all observers handled, observer_finish_cb is set, execute it!");
+		compartment->observer_finish_cb(compartment->observer_finish_cb_data);
+	}
 }
 
 void
@@ -1763,6 +1772,15 @@ compartment_unregister_observer(compartment_t *compartment, compartment_callback
 	}
 }
 
+void
+compartment_finish_observers(compartment_t *compartment, void (*cb)(void *), void *data)
+{
+	ASSERT(compartment);
+
+	compartment->observer_finish_cb = cb;
+	compartment->observer_finish_cb_data = data;
+}
+
 const char *
 compartment_get_key(const compartment_t *compartment)
 {
diff --git a/daemon/compartment.h b/daemon/compartment.h
index a233d077..72726181 100644
--- a/daemon/compartment.h
+++ b/daemon/compartment.h
@@ -399,6 +399,12 @@ compartment_register_observer(compartment_t *compartment,
 void
 compartment_unregister_observer(compartment_t *compartment, compartment_callback_t *cb);
 
+/**
+ * Set observer finishiner callback.
+ */
+void
+compartment_finish_observers(compartment_t *compartment, void (*cb)(void *), void *data);
+
 /**
  * Gets the compartment's key previously set by compartment_set_key or NULL if no key
  * has been set.
diff --git a/daemon/container.c b/daemon/container.c
index a0d169b4..2583b6e6 100644
--- a/daemon/container.c
+++ b/daemon/container.c
@@ -313,6 +313,15 @@ container_unregister_observer(container_t *container, container_callback_t *cont
 	mem_free0(container_cb);
 }
 
+void
+container_finish_observers(container_t *container, void (*cb)(void *), void *data)
+{
+	ASSERT(container);
+	ASSERT(cb);
+
+	compartment_finish_observers(container->compartment, cb, data);
+}
+
 void
 container_init_env_prepend(container_t *container, char **init_env, size_t init_env_len)
 {
diff --git a/daemon/container.h b/daemon/container.h
index da1c33c0..3dd059a1 100644
--- a/daemon/container.h
+++ b/daemon/container.h
@@ -393,6 +393,9 @@ container_register_observer(container_t *container,
 void
 container_unregister_observer(container_t *container, container_callback_t *cb);
 
+void
+container_finish_observers(container_t *container, void (*cb)(void *), void *data);
+
 void
 container_init_env_prepend(container_t *container, char **init_env, size_t init_env_len);