diff --git a/hazelcast/src/main/java/com/hazelcast/spi/impl/proxyservice/impl/ProxyServiceImpl.java b/hazelcast/src/main/java/com/hazelcast/spi/impl/proxyservice/impl/ProxyServiceImpl.java
index db0625f09e82..a0918f60647b 100644
--- a/hazelcast/src/main/java/com/hazelcast/spi/impl/proxyservice/impl/ProxyServiceImpl.java
+++ b/hazelcast/src/main/java/com/hazelcast/spi/impl/proxyservice/impl/ProxyServiceImpl.java
@@ -55,9 +55,11 @@
 import static com.hazelcast.internal.metrics.ProbeLevel.MANDATORY;
 import static com.hazelcast.internal.util.counters.MwCounter.newMwCounter;
 import static com.hazelcast.util.ConcurrencyUtil.getOrPutIfAbsent;
-import static com.hazelcast.util.FutureUtil.logAllExceptions;
+import static com.hazelcast.util.ExceptionUtil.peel;
 import static com.hazelcast.util.FutureUtil.waitWithDeadline;
 import static com.hazelcast.util.Preconditions.checkNotNull;
+import static java.util.logging.Level.FINEST;
+import static java.util.logging.Level.WARNING;
 
 public class ProxyServiceImpl
         implements InternalProxyService, PostJoinAwareService,
@@ -65,8 +67,6 @@ public class ProxyServiceImpl
 
     public static final String SERVICE_NAME = "hz:core:proxyService";
 
-    private static final ExceptionHandler DESTROY_PROXY_EXCEPTION_HANDLER = logAllExceptions(Level.WARNING);
-
     private static final int TRY_COUNT = 10;
     private static final long DESTROY_TIMEOUT_SECONDS = 30;
 
@@ -90,6 +90,15 @@ public ProxyRegistry createNew(String serviceName) {
     @Probe(name = "destroyedCount", level = MANDATORY)
     private final MwCounter destroyedCounter = newMwCounter();
 
+    private final ExceptionHandler destroyProxyExceptionHandler = new ExceptionHandler() {
+        @Override
+        public void handleException(Throwable throwable) {
+            boolean causedByInactiveInstance = peel(throwable) instanceof HazelcastInstanceNotActiveException;
+            Level level = causedByInactiveInstance ? FINEST : WARNING;
+            logger.log(level, "Error while destroying a proxy.", throwable);
+        }
+    };
+
     public ProxyServiceImpl(NodeEngineImpl nodeEngine) {
         this.nodeEngine = nodeEngine;
         this.logger = nodeEngine.getLogger(ProxyService.class.getName());
@@ -159,7 +168,7 @@ public void destroyDistributedObject(String serviceName, String name) {
 
         destroyLocalDistributedObject(serviceName, name, true);
 
-        waitWithDeadline(calls, DESTROY_TIMEOUT_SECONDS, TimeUnit.SECONDS, DESTROY_PROXY_EXCEPTION_HANDLER);
+        waitWithDeadline(calls, DESTROY_TIMEOUT_SECONDS, TimeUnit.SECONDS, destroyProxyExceptionHandler);
     }
 
     public void destroyLocalDistributedObject(String serviceName, String name, boolean fireEvent) {