diff --git a/src/shell/output.c b/src/shell/output.c
index 2f9a1002feb6..bd3f95af7513 100644
--- a/src/shell/output.c
+++ b/src/shell/output.c
@@ -1123,6 +1123,7 @@ struct shell_output *shell_output_create (flux_shell_t *shell)
     if (!(out->pending_writes = zlist_new ()))
         goto error;
     if (shell->info->shell_rank == 0) {
+        int ntasks = out->shell->info->rankinfo.ntasks;
         if (output_type_requires_service (out->stdout_type)
             || output_type_requires_service (out->stderr_type)) {
             if (flux_shell_service_register (shell,
@@ -1132,16 +1133,17 @@ struct shell_output *shell_output_create (flux_shell_t *shell)
                 goto error;
 
             /*  The shell.output.write service needs to wait for all
-             *   *remote* shells before output destination can be closed.
-             *   Therefore, set a reference counter for size - 1, and
-             *   if the refcount is > 0 then add a completion reference
-             *   so that the shell won't leave the reactor until the
-             *   all remote shells have sent an "eof" sentinel.
+             *   remote shells and local tasks before the output destination
+             *   can be closed. Therefore, set a reference counter for
+             *   the number of remote shells (shell_size - 1), plus the
+             *   number of tasks on the leader shell.
+             *
+             *  Remote shells and local tasks will cause the refcount
+             *   to be decremented as they send EOF or exit.
              */
-            if ((out->refcount = shell->info->shell_size - 1) > 0) {
-                if (flux_shell_add_completion_ref (shell, "output.write") < 0)
-                    goto error;
-            }
+            out->refcount = (shell->info->shell_size - 1 + ntasks);
+            if (flux_shell_add_completion_ref (shell, "output.write") < 0)
+                goto error;
             if (!(out->output = json_array ())) {
                 errno = ENOMEM;
                 goto error;
@@ -1282,6 +1284,21 @@ static int shell_output_task_init (flux_plugin_t *p,
     return 0;
 }
 
+static int shell_output_task_exit (flux_plugin_t *p,
+                                   const char *topic,
+                                   flux_plugin_arg_t *args,
+                                   void *data)
+{
+    struct shell_output *out = flux_plugin_aux_get (p, "builtin.output");
+
+    /*  Leader shell: decrement output.write refcount for each exiting
+     *   task (in lieu of counting EOFs separately from stderr/out)
+     */
+    if (out->shell->info->shell_rank == 0)
+        shell_output_decref (out, NULL);
+    return 0;
+}
+
 static int shell_output_init (flux_plugin_t *p,
                               const char *topic,
                               flux_plugin_arg_t *args,
@@ -1320,7 +1337,8 @@ static int shell_output_init (flux_plugin_t *p,
 struct shell_builtin builtin_output = {
     .name = FLUX_SHELL_PLUGIN_NAME,
     .init = shell_output_init,
-    .task_init = shell_output_task_init
+    .task_init = shell_output_task_init,
+    .task_exit = shell_output_task_exit,
 };
 
 /*