diff --git a/go.mod b/go.mod
index 9bbd428739..33c89e4a43 100644
--- a/go.mod
+++ b/go.mod
@@ -26,7 +26,7 @@ require (
 	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.21.0
 	go.opentelemetry.io/otel/sdk v1.21.0
 	golang.org/x/net v0.19.0
-	google.golang.org/grpc v1.60.0
+	google.golang.org/grpc v1.60.1
 	google.golang.org/protobuf v1.31.0
 	k8s.io/api v0.28.4
 	k8s.io/apimachinery v0.28.4
diff --git a/go.sum b/go.sum
index 76088c9c45..640437938c 100644
--- a/go.sum
+++ b/go.sum
@@ -723,8 +723,8 @@ google.golang.org/grpc v1.25.1/go.mod h1:c3i+UQWmh7LiEpx4sFZnkU36qjEYZ0imhYfXVyQ
 google.golang.org/grpc v1.26.0/go.mod h1:qbnxyOmOxrQa7FizSgH+ReBfzJrCY1pSN7KXBS8abTk=
 google.golang.org/grpc v1.27.0/go.mod h1:qbnxyOmOxrQa7FizSgH+ReBfzJrCY1pSN7KXBS8abTk=
 google.golang.org/grpc v1.38.0/go.mod h1:NREThFqKR1f3iQ6oBuvc5LadQuXVGo9rkm5ZGrQdJfM=
-google.golang.org/grpc v1.60.0 h1:6FQAR0kM31P6MRdeluor2w2gPaS4SVNrD/DNTxrQ15k=
-google.golang.org/grpc v1.60.0/go.mod h1:OlCHIeLYqSSsLi6i49B5QGdzaMZK9+M7LXN2FKz4eGM=
+google.golang.org/grpc v1.60.1 h1:26+wFr+cNqSGFcOXcabYC0lUVJVRa2Sb2ortSK7VrEU=
+google.golang.org/grpc v1.60.1/go.mod h1:OlCHIeLYqSSsLi6i49B5QGdzaMZK9+M7LXN2FKz4eGM=
 google.golang.org/protobuf v0.0.0-20200109180630-ec00e32a8dfd/go.mod h1:DFci5gLYBciE7Vtevhsrf46CRTquxDuWsQurQQe4oz8=
 google.golang.org/protobuf v0.0.0-20200221191635-4d8936d0db64/go.mod h1:kwYJMbMJ01Woi6D6+Kah6886xMZcty6N08ah7+eCXa0=
 google.golang.org/protobuf v0.0.0-20200228230310-ab0ca4ff8a60/go.mod h1:cfTl7dwQJ+fmap5saPgwCLgHXTUD7jkjRqWcaiX5VyM=
diff --git a/vendor/google.golang.org/grpc/server.go b/vendor/google.golang.org/grpc/server.go
index 2fa694d555..682fa1831e 100644
--- a/vendor/google.golang.org/grpc/server.go
+++ b/vendor/google.golang.org/grpc/server.go
@@ -144,7 +144,8 @@ type Server struct {
 	channelzID *channelz.Identifier
 	czData     *channelzData
 
-	serverWorkerChannel chan func()
+	serverWorkerChannel      chan func()
+	serverWorkerChannelClose func()
 }
 
 type serverOptions struct {
@@ -623,15 +624,14 @@ func (s *Server) serverWorker() {
 // connections to reduce the time spent overall on runtime.morestack.
 func (s *Server) initServerWorkers() {
 	s.serverWorkerChannel = make(chan func())
+	s.serverWorkerChannelClose = grpcsync.OnceFunc(func() {
+		close(s.serverWorkerChannel)
+	})
 	for i := uint32(0); i < s.opts.numServerWorkers; i++ {
 		go s.serverWorker()
 	}
 }
 
-func (s *Server) stopServerWorkers() {
-	close(s.serverWorkerChannel)
-}
-
 // NewServer creates a gRPC server which has no service registered and has not
 // started to accept requests yet.
 func NewServer(opt ...ServerOption) *Server {
@@ -1898,15 +1898,19 @@ func (s *Server) stop(graceful bool) {
 		s.closeServerTransportsLocked()
 	}
 
-	if s.opts.numServerWorkers > 0 {
-		s.stopServerWorkers()
-	}
-
 	for len(s.conns) != 0 {
 		s.cv.Wait()
 	}
 	s.conns = nil
 
+	if s.opts.numServerWorkers > 0 {
+		// Closing the channel (only once, via grpcsync.OnceFunc) after all the
+		// connections have been closed above ensures that there are no
+		// goroutines executing the callback passed to st.HandleStreams (where
+		// the channel is written to).
+		s.serverWorkerChannelClose()
+	}
+
 	if s.events != nil {
 		s.events.Finish()
 		s.events = nil
diff --git a/vendor/google.golang.org/grpc/version.go b/vendor/google.golang.org/grpc/version.go
index a04793aeb5..dc2cea59c9 100644
--- a/vendor/google.golang.org/grpc/version.go
+++ b/vendor/google.golang.org/grpc/version.go
@@ -19,4 +19,4 @@
 package grpc
 
 // Version is the current grpc version.
-const Version = "1.60.0"
+const Version = "1.60.1"
diff --git a/vendor/modules.txt b/vendor/modules.txt
index a666ea5433..a50549a873 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -663,7 +663,7 @@ google.golang.org/genproto/googleapis/api/httpbody
 ## explicit; go 1.19
 google.golang.org/genproto/googleapis/rpc/errdetails
 google.golang.org/genproto/googleapis/rpc/status
-# google.golang.org/grpc v1.60.0
+# google.golang.org/grpc v1.60.1
 ## explicit; go 1.19
 google.golang.org/grpc
 google.golang.org/grpc/attributes