diff --git a/app/jobs/queues.rb b/app/jobs/queues.rb
index cc7df33c60f..2fa144fa1a3 100644
--- a/app/jobs/queues.rb
+++ b/app/jobs/queues.rb
@@ -12,6 +12,10 @@ def self.local(config)
       def self.generic
         'cc-generic'
       end
+
+      def self.local?(queue_name)
+        queue_name.start_with?('cc-') && queue_name != 'cc-generic'
+      end
     end
   end
 end
diff --git a/lib/delayed_job/local_worker_drain_plugin.rb b/lib/delayed_job/local_worker_drain_plugin.rb
new file mode 100644
index 00000000000..1b951cfcac5
--- /dev/null
+++ b/lib/delayed_job/local_worker_drain_plugin.rb
@@ -0,0 +1,21 @@
+require 'jobs/queues'
+
+# Local workers process jobs that require access to local filesystem resources (e.g. buildpack, droplet,
+# and package uploads via nginx). The 'delayed_job' gem's default SIGTERM handler calls stop(), which
+# exits the worker after the current job finishes - leaving the rest of the queue unprocessed.
+# This plugin replaces the gem's SIGTERM handler for local workers so that all remaining jobs in the
+# queue are worked off before the worker exits, ensuring no jobs are left dangling when draining.
+class LocalWorkerDrainPlugin < Delayed::Plugin
+  callbacks do |lifecycle|
+    lifecycle.before(:execute) do |worker|
+      next unless worker.class.queues.length == 1 && VCAP::CloudController::Jobs::Queues.local?(worker.class.queues.first)
+
+      trap('TERM') do
+        Thread.new { worker.say 'Exiting...' }
+        worker.class.exit_on_complete = true
+      end
+    end
+  end
+end
+
+Delayed::Worker.plugins << LocalWorkerDrainPlugin
diff --git a/lib/tasks/jobs.rake b/lib/tasks/jobs.rake
index df59d9a48eb..c408bacec2e 100644
--- a/lib/tasks/jobs.rake
+++ b/lib/tasks/jobs.rake
@@ -1,4 +1,5 @@
 require 'delayed_job/quit_trap'
+require 'delayed_job/local_worker_drain_plugin'
 require 'delayed_job/delayed_worker'
 
 namespace :jobs do
diff --git a/spec/unit/jobs/queues_spec.rb b/spec/unit/jobs/queues_spec.rb
index ded3e5c6c7e..cafe2e34ab0 100644
--- a/spec/unit/jobs/queues_spec.rb
+++ b/spec/unit/jobs/queues_spec.rb
@@ -38,6 +38,25 @@ module Jobs
           expect(Queues.generic).to eq('cc-generic')
         end
       end
+
+      describe '.local?' do
+        it 'returns true for a local queue name' do
+          expect(Queues.local?('cc-some-host')).to be(true)
+        end
+
+        it 'returns true for a local queue name with index' do
+          expect(Queues.local?('cc-cloud_controller_ng-0')).to be(true)
+        end
+
+        it 'returns false for cc-generic' do
+          expect(Queues.local?('cc-generic')).to be(false)
+        end
+
+        it 'returns false for named clock queues' do
+          expect(Queues.local?('app_usage_events')).to be(false)
+          expect(Queues.local?('pending_builds')).to be(false)
+        end
+      end
     end
   end
 end
diff --git a/spec/unit/lib/delayed_job/local_worker_drain_plugin_spec.rb b/spec/unit/lib/delayed_job/local_worker_drain_plugin_spec.rb
new file mode 100644
index 00000000000..42f396c99e5
--- /dev/null
+++ b/spec/unit/lib/delayed_job/local_worker_drain_plugin_spec.rb
@@ -0,0 +1,76 @@
+require 'spec_helper'
+require 'delayed_job/local_worker_drain_plugin'
+require 'jobs/queues'
+
+RSpec.describe LocalWorkerDrainPlugin do
+  let(:worker) { Delayed::Worker.new }
+
+  before do
+    @original_queues = Delayed::Worker.queues
+    Delayed::Worker.exit_on_complete = false
+    allow(worker).to receive(:reload!)
+    allow(worker).to receive(:say)
+  end
+
+  after do
+    Delayed::Worker.queues = @original_queues
+    Delayed::Worker.exit_on_complete = false
+  end
+
+  describe 'TERM signal handling' do
+    context 'when the worker is processing a local queue' do
+      before do
+        Delayed::Worker.queues = ['cc-api_worker.cloud_controller_ng.0.1']
+        Delayed::Worker.sleep_delay = 0
+      end
+
+      after { Delayed::Worker.sleep_delay = Delayed::Worker::DEFAULT_SLEEP_DELAY }
+
+      it 'works off all remaining jobs in the queue before exiting' do
+        work_off_calls = Queue.new
+        allow(worker).to receive(:work_off) do
+          work_off_calls.push(:called)
+          work_off_calls.size < 3 ? [1, 0] : [0, 0]
+        end
+
+        worker_thread = Thread.new { worker.start }
+        work_off_calls.pop # wait until worker has started
+        Process.kill('TERM', Process.pid)
+        worker_thread.join(5)
+
+        expect(worker_thread.alive?).to be(false)
+        expect(work_off_calls.size).to eq(3)
+      end
+    end
+
+    context 'when the worker is processing the generic queue' do
+      before do
+        Delayed::Worker.queues = ['cc-generic']
+        allow(worker).to receive(:trap).with('QUIT')
+        allow(worker).to receive(:trap).with('INT')
+        allow(worker).to receive(:trap).with('TERM').and_yield
+        allow(worker).to receive_messages(work_off: [0, 0], stop?: true)
+      end
+
+      it 'does not set exit_on_complete' do
+        worker.start
+        expect(Delayed::Worker.exit_on_complete).to be(false)
+      end
+    end
+
+    context 'when the worker is processing a named clock queue' do
+      before do
+        Delayed::Worker.queues = ['app_usage_events']
+        allow(worker).to receive(:trap).with('QUIT')
+        allow(worker).to receive(:trap).with('INT')
+        allow(worker).to receive(:trap).with('TERM').and_yield
+        allow(worker).to receive_messages(work_off: [0, 0], stop?: true)
+      end
+
+      it 'does not set exit_on_complete' do
+        worker.start
+        expect(Delayed::Worker.exit_on_complete).to be(false)
+      end
+    end
+  end
+end