diff --git a/wallet/chainntfns.go b/wallet/chainntfns.go
index b719cf9..58e83ec 100644
--- a/wallet/chainntfns.go
+++ b/wallet/chainntfns.go
@@ -35,17 +35,6 @@ func (w *Wallet) handleChainNotifications() {
 		return
 	}
 
-	sync := func(w *Wallet, birthdayStamp *waddrmgr.BlockStamp) {
-		// At the moment there is no recourse if the rescan fails for
-		// some reason, however, the wallet will not be marked synced
-		// and many methods will error early since the wallet is known
-		// to be out of date.
-		err := w.syncWithChain(birthdayStamp)
-		if err != nil && !w.ShuttingDown() {
-			log.Warnf("Unable to synchronize wallet to chain: %v", err)
-		}
-	}
-
 	catchUpHashes := func(w *Wallet, client chain.Interface,
 		height int32) error {
 		// TODO(aakselrod): There's a race conditon here, which
@@ -119,14 +108,16 @@ func (w *Wallet) handleChainNotifications() {
 					chainClient, birthdayStore,
 				)
 				if err != nil && !waddrmgr.IsError(err, waddrmgr.ErrBirthdayBlockNotSet) {
-					err := fmt.Errorf("unable to sanity "+
+					panic(fmt.Errorf("Unable to sanity "+
 						"check wallet birthday block: %v",
-						err)
-					log.Error(err)
-					panic(err)
+						err))
 				}
 
-				go sync(w, birthdayBlock)
+				err = w.syncWithChain(birthdayBlock)
+				if err != nil && !w.ShuttingDown() {
+					panic(fmt.Errorf("Unable to synchronize "+
+						"wallet to chain: %v", err))
+				}
 			case chain.BlockConnected:
 				err = walletdb.Update(w.db, func(tx walletdb.ReadWriteTx) error {
 					return w.connectBlock(tx, wtxmgr.BlockMeta(n))
diff --git a/wallet/rescan.go b/wallet/rescan.go
index e3deb5d..1e5dbf4 100644
--- a/wallet/rescan.go
+++ b/wallet/rescan.go
@@ -56,7 +56,11 @@ type rescanBatch struct {
 func (w *Wallet) SubmitRescan(job *RescanJob) <-chan error {
 	errChan := make(chan error, 1)
 	job.err = errChan
-	w.rescanAddJob <- job
+	select {
+	case w.rescanAddJob <- job:
+	case <-w.quitChan():
+		errChan <- ErrWalletShuttingDown
+	}
 	return errChan
 }
 
@@ -103,10 +107,11 @@ func (b *rescanBatch) done(err error) {
 // submissions, and possibly batching many waiting requests together so they
 // can be handled by a single rescan after the current one completes.
 func (w *Wallet) rescanBatchHandler() {
+	defer w.wg.Done()
+
 	var curBatch, nextBatch *rescanBatch
 	quit := w.quitChan()
 
-out:
 	for {
 		select {
 		case job := <-w.rescanAddJob:
@@ -114,7 +119,12 @@ out:
 				// Set current batch as this job and send
 				// request.
 				curBatch = job.batch()
-				w.rescanBatch <- curBatch
+				select {
+				case w.rescanBatch <- curBatch:
+				case <-quit:
+					job.err <- ErrWalletShuttingDown
+					return
+				}
 			} else {
 				// Create next batch if it doesn't exist, or
 				// merge the job.
@@ -134,9 +144,16 @@ out:
 						"currently running")
 					continue
 				}
-				w.rescanProgress <- &RescanProgressMsg{
+				select {
+				case w.rescanProgress <- &RescanProgressMsg{
 					Addresses:    curBatch.addrs,
 					Notification: n,
+				}:
+				case <-quit:
+					for _, errChan := range curBatch.errChans {
+						errChan <- ErrWalletShuttingDown
+					}
+					return
 				}
 
 			case *chain.RescanFinished:
@@ -146,15 +163,29 @@ out:
 						"currently running")
 					continue
 				}
-				w.rescanFinished <- &RescanFinishedMsg{
+				select {
+				case w.rescanFinished <- &RescanFinishedMsg{
 					Addresses:    curBatch.addrs,
 					Notification: n,
+				}:
+				case <-quit:
+					for _, errChan := range curBatch.errChans {
+						errChan <- ErrWalletShuttingDown
+					}
+					return
 				}
 
 				curBatch, nextBatch = nextBatch, nil
 
 				if curBatch != nil {
-					w.rescanBatch <- curBatch
+					select {
+					case w.rescanBatch <- curBatch:
+					case <-quit:
+						for _, errChan := range curBatch.errChans {
+							errChan <- ErrWalletShuttingDown
+						}
+						return
+					}
 				}
 
 			default:
@@ -163,11 +194,9 @@ out:
 			}
 
 		case <-quit:
-			break out
+			return
 		}
 	}
-
-	w.wg.Done()
 }
 
 // rescanProgressHandler handles notifications for partially and fully completed
@@ -280,5 +309,10 @@ func (w *Wallet) rescanWithTarget(addrs []btcutil.Address,
 	}
 
 	// Submit merged job and block until rescan completes.
-	return <-w.SubmitRescan(job)
+	select {
+	case err := <-w.SubmitRescan(job):
+		return err
+	case <-w.quitChan():
+		return ErrWalletShuttingDown
+	}
 }
diff --git a/wallet/wallet.go b/wallet/wallet.go
index 1c5755f..9622bee 100644
--- a/wallet/wallet.go
+++ b/wallet/wallet.go
@@ -54,13 +54,18 @@ const (
 	recoveryBatchSize = 2000
 )
 
-// ErrNotSynced describes an error where an operation cannot complete
-// due wallet being out of sync (and perhaps currently syncing with)
-// the remote chain server.
-var ErrNotSynced = errors.New("wallet is not synchronized with the chain server")
-
-// Namespace bucket keys.
 var (
+	// ErrNotSynced describes an error where an operation cannot complete
+	// due wallet being out of sync (and perhaps currently syncing with)
+	// the remote chain server.
+	ErrNotSynced = errors.New("wallet is not synchronized with the chain server")
+
+	// ErrWalletShuttingDown is an error returned when we attempt to make a
+	// request to the wallet but it is in the process of or has already shut
+	// down.
+	ErrWalletShuttingDown = errors.New("wallet shutting down")
+
+	// Namespace bucket keys.
 	waddrmgrNamespaceKey = []byte("waddrmgr")
 	wtxmgrNamespaceKey   = []byte("wtxmgr")
 )