diff --git a/bin/webpack-dev-server.js b/bin/webpack-dev-server.js
index f8a5ed20dc..23a788fb5a 100755
--- a/bin/webpack-dev-server.js
+++ b/bin/webpack-dev-server.js
@@ -22,7 +22,10 @@ let server;
 const serverData = {
   server: null,
 };
-
+// we must pass an object that contains the server object as a property so that
+// we can update this server property later, and setupExitSignals will be able to 
+// recognize that the server has been instantiated, because we will set
+// serverData.server to the new server object.
 setupExitSignals(serverData);
 
 // Prefer the local installation of webpack-dev-server
diff --git a/test/server/utils/setupExitSignals.test.js b/test/server/utils/setupExitSignals.test.js
new file mode 100644
index 0000000000..774b88cb9d
--- /dev/null
+++ b/test/server/utils/setupExitSignals.test.js
@@ -0,0 +1,57 @@
+'use strict';
+
+const setupExitSignals = require('../../../lib/utils/setupExitSignals');
+
+describe('setupExitSignals', () => {
+  let server;
+  let exitSpy;
+  const signals = ['SIGINT', 'SIGTERM'];
+
+  beforeAll(() => {
+    exitSpy = jest.spyOn(process, 'exit').mockImplementation(() => { });
+    server = {
+      close: jest.fn((callback) => {
+        callback();
+      }),
+    };
+  });
+
+  afterEach(() => {
+    exitSpy.mockReset();
+    server.close.mockClear();
+    signals.forEach((signal) => {
+      process.removeAllListeners(signal);
+    });
+  });
+
+  signals.forEach((signal) => {
+    it(`should exit process (${signal}, server never defined)`, (done) => {
+      setupExitSignals({
+        server: null,
+      });
+      process.emit(signal);
+      setTimeout(() => {
+        expect(exitSpy.mock.calls.length).toEqual(1);
+        done();
+      }, 1000);
+    });
+
+    it(`should close server, then exit process (${signal}, server defined before signal)`, (done) => {
+      const serverData = {
+        server: null,
+      };
+      setupExitSignals(serverData);
+  
+      setTimeout(() => {
+        serverData.server = server;
+        process.emit(signal);
+      }, 500);
+  
+      setTimeout(() => {
+        expect(server.close.mock.calls.length).toEqual(1);
+        expect(exitSpy.mock.calls.length).toEqual(1);
+        done();
+      }, 1500);
+    });
+  });
+});