diff --git a/internal/component/loki/process/process.go b/internal/component/loki/process/process.go
index ecc863762fc4..e7429f618e57 100644
--- a/internal/component/loki/process/process.go
+++ b/internal/component/loki/process/process.go
@@ -85,17 +85,24 @@ func New(o component.Options, args Arguments) (*Component, error) {
 
 // Run implements component.Component.
 func (c *Component) Run(ctx context.Context) error {
+	shutdownCh := make(chan struct{})
+	wgOut := &sync.WaitGroup{}
 	defer func() {
 		c.mut.RLock()
 		if c.entryHandler != nil {
 			c.entryHandler.Stop()
+			// Stop handleOut only after the entryHandler has stopped.
+			// If handleOut stops first, entryHandler might get stuck on a channel send.
+			close(shutdownCh)
+			wgOut.Wait()
 		}
 		c.mut.RUnlock()
 	}()
 	wg := &sync.WaitGroup{}
-	wg.Add(2)
+	wg.Add(1)
 	go c.handleIn(ctx, wg)
-	go c.handleOut(ctx, wg)
+	wgOut.Add(1)
+	go c.handleOut(shutdownCh, wgOut)
 
 	wg.Wait()
 	return nil
@@ -158,11 +165,11 @@ func (c *Component) handleIn(ctx context.Context, wg *sync.WaitGroup) {
 	}
 }
 
-func (c *Component) handleOut(ctx context.Context, wg *sync.WaitGroup) {
+func (c *Component) handleOut(shutdownCh chan struct{}, wg *sync.WaitGroup) {
 	defer wg.Done()
 	for {
 		select {
-		case <-ctx.Done():
+		case <-shutdownCh:
 			return
 		case entry := <-c.processOut:
 			c.fanoutMut.RLock()
@@ -170,7 +177,7 @@ func (c *Component) handleOut(ctx context.Context, wg *sync.WaitGroup) {
 			c.fanoutMut.RUnlock()
 			for _, f := range fanout {
 				select {
-				case <-ctx.Done():
+				case <-shutdownCh:
 					return
 				case f.Chan() <- entry:
 					// no-op
diff --git a/internal/component/loki/process/process_test.go b/internal/component/loki/process/process_test.go
index da9998b49d9b..c2099456950b 100644
--- a/internal/component/loki/process/process_test.go
+++ b/internal/component/loki/process/process_test.go
@@ -409,10 +409,11 @@ type testFrequentUpdate struct {
 	receiver2 loki.LogsReceiver
 
 	keepSending   atomic.Bool
-	keepReceiving atomic.Bool
+	stopReceiving chan struct{}
 	keepUpdating  atomic.Bool
 
-	wgLogSend sync.WaitGroup
+	wgSend    sync.WaitGroup
+	wgReceive sync.WaitGroup
 	wgRun     sync.WaitGroup
 	wgUpdate  sync.WaitGroup
 
@@ -423,15 +424,15 @@ type testFrequentUpdate struct {
 
 func startTestFrequentUpdate(t *testing.T, cfg string) *testFrequentUpdate {
 	res := testFrequentUpdate{
-		t:         t,
-		receiver1: loki.NewLogsReceiver(),
-		receiver2: loki.NewLogsReceiver(),
+		t:             t,
+		receiver1:     loki.NewLogsReceiver(),
+		receiver2:     loki.NewLogsReceiver(),
+		stopReceiving: make(chan struct{}),
 	}
 
 	ctx, cancel := context.WithCancel(context.Background())
 
 	res.keepSending.Store(true)
-	res.keepReceiving.Store(true)
 	res.keepUpdating.Store(true)
 
 	res.stop = func() {
@@ -439,11 +440,14 @@ func startTestFrequentUpdate(t *testing.T, cfg string) *testFrequentUpdate {
 		res.wgUpdate.Wait()
 
 		res.keepSending.Store(false)
-		res.wgLogSend.Wait()
+		res.wgSend.Wait()
 
 		cancel()
 		res.wgRun.Wait()
 
+		close(res.stopReceiving)
+		res.wgReceive.Wait()
+
 		close(res.receiver1.Chan())
 		close(res.receiver2.Chan())
 	}
@@ -478,23 +482,25 @@ func (r *testFrequentUpdate) drainLogs() {
 		r.lastSend.Store(time.Now())
 	}
 
-	r.wgLogSend.Add(1)
+	r.wgReceive.Add(1)
 	go func() {
-		for r.keepReceiving.Load() {
+		for {
 			select {
+			case <-r.stopReceiving:
+				r.wgReceive.Done()
+				return
 			case <-r.receiver1.Chan():
 				drainLogs()
 			case <-r.receiver2.Chan():
 				drainLogs()
 			}
 		}
-		r.wgLogSend.Done()
 	}()
 }
 
 // Continuously send entries to both channels
 func (r *testFrequentUpdate) sendLogs() {
-	r.wgLogSend.Add(1)
+	r.wgSend.Add(1)
 	go func() {
 		for r.keepSending.Load() {
 			ts := time.Now()
@@ -511,8 +517,7 @@ func (r *testFrequentUpdate) sendLogs() {
 				// continue
 			}
 		}
-		r.keepReceiving.Store(false)
-		r.wgLogSend.Done()
+		r.wgSend.Done()
 	}()
 }