diff --git a/changelog/60242.fixed b/changelog/60242.fixed
new file mode 100644
index 000000000000..3eb6f9ded766
--- /dev/null
+++ b/changelog/60242.fixed
@@ -0,0 +1 @@
+Exit gracefully on ctrl+c.
\ No newline at end of file
diff --git a/salt/transport/ipc.py b/salt/transport/ipc.py
index 55ed516a4c24..ca13a498e3e9 100644
--- a/salt/transport/ipc.py
+++ b/salt/transport/ipc.py
@@ -663,62 +663,68 @@ def __init__(self, socket_path, io_loop=None):
     @salt.ext.tornado.gen.coroutine
     def _read(self, timeout, callback=None):
         try:
-            yield self._read_in_progress.acquire(timeout=0.00000001)
-        except salt.ext.tornado.gen.TimeoutError:
-            raise salt.ext.tornado.gen.Return(None)
-
-        exc_to_raise = None
-        ret = None
-        try:
-            while True:
-                if self._read_stream_future is None:
-                    self._read_stream_future = self.stream.read_bytes(
-                        4096, partial=True
-                    )
-
-                if timeout is None:
-                    wire_bytes = yield self._read_stream_future
-                else:
-                    wire_bytes = yield FutureWithTimeout(
-                        self.io_loop, self._read_stream_future, timeout
-                    )
-                self._read_stream_future = None
+            try:
+                yield self._read_in_progress.acquire(timeout=0.00000001)
+            except salt.ext.tornado.gen.TimeoutError:
+                raise salt.ext.tornado.gen.Return(None)
 
-                # Remove the timeout once we get some data or an exception
-                # occurs. We will assume that the rest of the data is already
-                # there or is coming soon if an exception doesn't occur.
-                timeout = None
-
-                self.unpacker.feed(wire_bytes)
-                first_sync_msg = True
-                for framed_msg in self.unpacker:
-                    if callback:
-                        self.io_loop.spawn_callback(callback, framed_msg["body"])
-                    elif first_sync_msg:
-                        ret = framed_msg["body"]
-                        first_sync_msg = False
-                    else:
-                        self._saved_data.append(framed_msg["body"])
-                if not first_sync_msg:
-                    # We read at least one piece of data and we're on sync run
-                    break
-        except TornadoTimeoutError:
-            # In the timeout case, just return None.
-            # Keep 'self._read_stream_future' alive.
+            exc_to_raise = None
             ret = None
-        except StreamClosedError as exc:
-            log.trace("Subscriber disconnected from IPC %s", self.socket_path)
-            self._read_stream_future = None
-        except Exception as exc:  # pylint: disable=broad-except
-            log.error("Exception occurred in Subscriber while handling stream: %s", exc)
-            self._read_stream_future = None
-            exc_to_raise = exc
+            try:
+                while True:
+                    if self._read_stream_future is None:
+                        self._read_stream_future = self.stream.read_bytes(
+                            4096, partial=True
+                        )
+
+                    if timeout is None:
+                        wire_bytes = yield self._read_stream_future
+                    else:
+                        wire_bytes = yield FutureWithTimeout(
+                            self.io_loop, self._read_stream_future, timeout
+                        )
+                    self._read_stream_future = None
+
+                    # Remove the timeout once we get some data or an exception
+                    # occurs. We will assume that the rest of the data is already
+                    # there or is coming soon if an exception doesn't occur.
+                    timeout = None
+
+                    self.unpacker.feed(wire_bytes)
+                    first_sync_msg = True
+                    for framed_msg in self.unpacker:
+                        if callback:
+                            self.io_loop.spawn_callback(callback, framed_msg["body"])
+                        elif first_sync_msg:
+                            ret = framed_msg["body"]
+                            first_sync_msg = False
+                        else:
+                            self._saved_data.append(framed_msg["body"])
+                    if not first_sync_msg:
+                        # We read at least one piece of data and we're on sync run
+                        break
+            except TornadoTimeoutError:
+                # In the timeout case, just return None.
+                # Keep 'self._read_stream_future' alive.
+                ret = None
+            except StreamClosedError as exc:
+                log.trace("Subscriber disconnected from IPC %s", self.socket_path)
+                self._read_stream_future = None
+            except Exception as exc:  # pylint: disable=broad-except
+                log.error(
+                    "Exception occurred in Subscriber while handling stream: %s", exc
+                )
+                self._read_stream_future = None
+                exc_to_raise = exc
 
-        self._read_in_progress.release()
+            self._read_in_progress.release()
 
-        if exc_to_raise is not None:
-            raise exc_to_raise  # pylint: disable=E0702
-        raise salt.ext.tornado.gen.Return(ret)
+            if exc_to_raise is not None:
+                raise exc_to_raise  # pylint: disable=E0702
+            raise salt.ext.tornado.gen.Return(ret)
+        # Handle ctrl+c gracefully
+        except TypeError:
+            pass
 
     @salt.ext.tornado.gen.coroutine
     def read(self, timeout):
diff --git a/tests/pytests/integration/cli/test_salt.py b/tests/pytests/integration/cli/test_salt.py
index edb1436e3928..7d6fd93becd3 100644
--- a/tests/pytests/integration/cli/test_salt.py
+++ b/tests/pytests/integration/cli/test_salt.py
@@ -236,5 +236,8 @@ def test_interrupt_on_long_running_job(salt_cli, salt_master, salt_minion):
     ), "The command wasn't actually terminated. Took {} seconds.".format(
         round(stop - start, 2)
     )
+
+    # Make sure the ctrl+c exited gracefully
     assert "Exiting gracefully on Ctrl-c" in ret.stderr
+    assert "Exception ignored in" not in ret.stderr
     assert "This job's jid is" in ret.stderr