diff --git a/src/main/java/io/supertokens/storageLayer/StorageLayer.java b/src/main/java/io/supertokens/storageLayer/StorageLayer.java
index 967c538fc..9fe857653 100644
--- a/src/main/java/io/supertokens/storageLayer/StorageLayer.java
+++ b/src/main/java/io/supertokens/storageLayer/StorageLayer.java
@@ -242,6 +242,8 @@ public static void loadAllTenantStorage(Main main, TenantConfig[] tenants)
                 }
                 main.getResourceDistributor().clearAllResourcesWithResourceKey(RESOURCE_KEY);
 
+                Set<String> userPoolsInUse = new HashSet<>();
+
                 for (ResourceDistributor.KeyClass key : resourceKeyToStorageMap.keySet()) {
                     Storage currStorage = resourceKeyToStorageMap.get(key);
                     String userPoolId = currStorage.getUserPoolId();
@@ -256,12 +258,15 @@ public static void loadAllTenantStorage(Main main, TenantConfig[] tenants)
 
                     main.getResourceDistributor().setResource(key.getTenantIdentifier(), RESOURCE_KEY,
                             new StorageLayer(resourceKeyToStorageMap.get(key)));
+
+                    userPoolsInUse.add(userPoolId);
                 }
 
                 // TODO: should the below code be outside of this locked code cause it takes time
                 //  and any other thread that will want access to the resource distributor will have
                 //  to wait for this?
                 // we remove storage layers that are no longer being used
+
                 for (ResourceDistributor.KeyClass key : existingStorageMap.keySet()) {
                     try {
                         if (((StorageLayer) main.getResourceDistributor()
@@ -272,7 +277,11 @@ public static void loadAllTenantStorage(Main main, TenantConfig[] tenants)
                             ((StorageLayer) existingStorageMap.get(key)).storage.stopLogging();
                         }
                     } catch (TenantOrAppNotFoundException e) {
-                        throw new IllegalStateException(e);
+                        // this means a tenant has been removed but the storage may need closing
+                        if (!userPoolsInUse.contains(((StorageLayer) existingStorageMap.get(key)).storage.getUserPoolId())) {
+                            ((StorageLayer) existingStorageMap.get(key)).storage.close();
+                            ((StorageLayer) existingStorageMap.get(key)).storage.stopLogging();
+                        }
                     }
                 }
 
diff --git a/src/test/java/io/supertokens/test/multitenant/StorageLayerTest.java b/src/test/java/io/supertokens/test/multitenant/StorageLayerTest.java
index 59785a020..99548cc5a 100644
--- a/src/test/java/io/supertokens/test/multitenant/StorageLayerTest.java
+++ b/src/test/java/io/supertokens/test/multitenant/StorageLayerTest.java
@@ -21,6 +21,7 @@
 import io.supertokens.ProcessState;
 import io.supertokens.featureflag.EE_FEATURES;
 import io.supertokens.featureflag.FeatureFlagTestContent;
+import io.supertokens.multitenancy.Multitenancy;
 import io.supertokens.pluginInterface.STORAGE_TYPE;
 import io.supertokens.pluginInterface.Storage;
 import io.supertokens.pluginInterface.exceptions.InvalidConfigException;
@@ -1819,4 +1820,107 @@ public void testThatStoragePointingToSameDbSharesThInstance() throws Exception {
         process.kill();
         assertNotNull(process.checkOrWaitForEvent(ProcessState.PROCESS_STATE.STOPPED));
     }
+
+    @Test
+    public void testThatStorageIsClosedAfterTenantDeletion() throws Exception {
+        String[] args = {"../"};
+
+        TestingProcessManager.TestingProcess process = TestingProcessManager.start(args, false);
+        FeatureFlagTestContent.getInstance(process.getProcess())
+                .setKeyValue(FeatureFlagTestContent.ENABLED_FEATURES, new EE_FEATURES[]{EE_FEATURES.MULTI_TENANCY});
+        process.startProcess();
+        assertNotNull(process.checkOrWaitForEvent(ProcessState.PROCESS_STATE.STARTED));
+
+        if (StorageLayer.getStorage(process.getProcess()).getType() != STORAGE_TYPE.SQL) {
+            return;
+        }
+
+        if (StorageLayer.isInMemDb(process.getProcess())) {
+            return;
+        }
+
+        JsonObject config = new JsonObject();
+        StorageLayer.getStorage(new TenantIdentifier(null, null, null), process.getProcess())
+                .modifyConfigToAddANewUserPoolForTesting(config, 1);
+
+        Multitenancy.addNewOrUpdateAppOrTenant(process.getProcess(), new TenantConfig(
+                new TenantIdentifier(null, null, "t1"),
+                new EmailPasswordConfig(true),
+                new ThirdPartyConfig(true, null),
+                new PasswordlessConfig(true),
+                config
+        ), false);
+
+        Storage storage = StorageLayer.getStorage(new TenantIdentifier(null, null, "t1"), process.getProcess());
+
+        Multitenancy.deleteTenant(new TenantIdentifier(null, null, "t1"), process.getProcess());
+
+        // Should not be able to query from the storage
+        try {
+            storage.getKeyValue(new TenantIdentifier(null, null, "t1"), "somekey");
+            fail();
+        } catch (IllegalStateException e) {
+            assertTrue(e.getMessage().contains("call initPool before getConnection"));
+        }
+        process.kill();
+        assertNotNull(process.checkOrWaitForEvent(ProcessState.PROCESS_STATE.STOPPED));
+    }
+
+    @Test
+    public void testThatStorageIsClosedOnlyWhenNoMoreTenantsArePointingToIt() throws Exception {
+        String[] args = {"../"};
+
+        TestingProcessManager.TestingProcess process = TestingProcessManager.start(args, false);
+        FeatureFlagTestContent.getInstance(process.getProcess())
+                .setKeyValue(FeatureFlagTestContent.ENABLED_FEATURES, new EE_FEATURES[]{EE_FEATURES.MULTI_TENANCY});
+        process.startProcess();
+        assertNotNull(process.checkOrWaitForEvent(ProcessState.PROCESS_STATE.STARTED));
+
+        if (StorageLayer.getStorage(process.getProcess()).getType() != STORAGE_TYPE.SQL) {
+            return;
+        }
+
+        if (StorageLayer.isInMemDb(process.getProcess())) {
+            return;
+        }
+
+        JsonObject config = new JsonObject();
+        StorageLayer.getStorage(new TenantIdentifier(null, null, null), process.getProcess())
+                .modifyConfigToAddANewUserPoolForTesting(config, 1);
+
+        // 2 tenants using the same storage
+        Multitenancy.addNewOrUpdateAppOrTenant(process.getProcess(), new TenantConfig(
+                new TenantIdentifier(null, null, "t1"),
+                new EmailPasswordConfig(true),
+                new ThirdPartyConfig(true, null),
+                new PasswordlessConfig(true),
+                config
+        ), false);
+        Multitenancy.addNewOrUpdateAppOrTenant(process.getProcess(), new TenantConfig(
+                new TenantIdentifier(null, null, "t2"),
+                new EmailPasswordConfig(true),
+                new ThirdPartyConfig(true, null),
+                new PasswordlessConfig(true),
+                config
+        ), false);
+
+        Storage storage = StorageLayer.getStorage(new TenantIdentifier(null, null, "t1"), process.getProcess());
+
+        Multitenancy.deleteTenant(new TenantIdentifier(null, null, "t1"), process.getProcess());
+
+        // Storage should still be active
+        storage.getKeyValue(new TenantIdentifier(null, null, "t1"), "somekey");
+
+        Multitenancy.deleteTenant(new TenantIdentifier(null, null, "t2"), process.getProcess());
+
+        // Storage should be closed now
+        try {
+            storage.getKeyValue(new TenantIdentifier(null, null, "t1"), "somekey");
+            fail();
+        } catch (IllegalStateException e) {
+            assertTrue(e.getMessage().contains("call initPool before getConnection"));
+        }
+        process.kill();
+        assertNotNull(process.checkOrWaitForEvent(ProcessState.PROCESS_STATE.STOPPED));
+    }
 }