diff --git a/lib/actions/header.js b/lib/actions/header.js
index c0ec61d6fab5..a6debbe90e26 100644
--- a/lib/actions/header.js
+++ b/lib/actions/header.js
@@ -1,7 +1,7 @@
 import { CLOSE_TAB, CHANGE_TAB } from '../constants/tabs';
 import { UI_WINDOW_MAXIMIZE, UI_WINDOW_UNMAXIMIZE } from '../constants/ui';
 import rpc from '../rpc';
-import { exitTermGroup, setActiveGroup } from './term-groups';
+import { userExitTermGroup, setActiveGroup } from './term-groups';
 
 export function closeTab (uid) {
   return (dispatch, getState) => {
@@ -9,7 +9,7 @@ export function closeTab (uid) {
       type: CLOSE_TAB,
       uid,
       effect () {
-        dispatch(exitTermGroup(uid));
+        dispatch(userExitTermGroup(uid));
       }
     });
   };
diff --git a/lib/actions/sessions.js b/lib/actions/sessions.js
index 84bf4da6b9f2..fd7559cd2f99 100644
--- a/lib/actions/sessions.js
+++ b/lib/actions/sessions.js
@@ -78,15 +78,16 @@ export function addSessionData (uid, data) {
   };
 }
 
-export function sessionExit (uid) {
-  return (dispatch, getState) => {
+function createExitAction (type) {
+  return (uid) => (dispatch, getState) => {
     return dispatch({
-      type: SESSION_PTY_EXIT,
+      type,
       uid,
       effect () {
-        // we reiterate the same logic as below
-        // for SESSION_USER_EXIT since the exit
-        // could happen pty side or optimistic
+        if (type === SESSION_USER_EXIT) {
+          rpc.emit('exit', { uid });
+        }
+
         const sessions = keys(getState().sessions.sessions);
         if (!sessions.length) {
           window.close();
@@ -98,21 +99,8 @@ export function sessionExit (uid) {
 
 // we want to distinguish an exit
 // that's UI initiated vs pty initiated
-export function userExitSession (uid) {
-  return (dispatch, getState) => {
-    return dispatch({
-      type: SESSION_USER_EXIT,
-      uid,
-      effect () {
-        rpc.emit('exit', { uid });
-        const sessions = keys(getState().sessions.sessions);
-        if (!sessions.length) {
-          window.close();
-        }
-      }
-    });
-  };
-}
+export const userExitSession = createExitAction(SESSION_USER_EXIT);
+export const ptyExitSession = createExitAction(SESSION_PTY_EXIT);
 
 export function setActiveSession (uid) {
   return (dispatch, getState) => {
diff --git a/lib/actions/term-groups.js b/lib/actions/term-groups.js
index 6389bf8eb0db..37998c2839dc 100644
--- a/lib/actions/term-groups.js
+++ b/lib/actions/term-groups.js
@@ -7,7 +7,7 @@ import {
   TERM_GROUP_EXIT_ACTIVE
 } from '../constants/term-groups';
 import { SESSION_REQUEST } from '../constants/sessions';
-import { setActiveSession, userExitSession } from './sessions';
+import { setActiveSession, ptyExitSession, userExitSession } from './sessions';
 import { findBySession } from '../utils/term-groups';
 import { getRootGroups } from '../selectors';
 
@@ -97,7 +97,29 @@ const findNextSessionUid = (state, group) => {
   return findFirstSession(state, state.termGroups[nextUid]);
 };
 
-export function exitTermGroup (uid) {
+export function ptyExitTermGroup (sessionUid) {
+  return (dispatch, getState) => {
+    const { termGroups } = getState();
+    const group = findBySession(termGroups, sessionUid);
+    // This might have already been closed:
+    if (!group) return dispatch(ptyExitSession(sessionUid));
+    dispatch({
+      type: TERM_GROUP_EXIT,
+      uid: group.uid,
+      effect: () => {
+        const activeSessionUid = termGroups.activeSessions[termGroups.activeRootGroup];
+        if (Object.keys(termGroups.termGroups).length > 1 && activeSessionUid === sessionUid) {
+          const nextSessionUid = findNextSessionUid(termGroups, group);
+          dispatch(setActiveSession(nextSessionUid));
+        }
+
+        dispatch(ptyExitSession(sessionUid));
+      }
+    });
+  };
+}
+
+export function userExitTermGroup (uid) {
   return (dispatch, getState) => {
     const { termGroups } = getState();
     dispatch({
@@ -121,7 +143,7 @@ export function exitTermGroup (uid) {
           dispatch(userExitSession(group.sessionUid));
         } else {
           group.children.forEach(childUid => {
-            dispatch(exitTermGroup(childUid));
+            dispatch(userExitTermGroup(childUid));
           });
         }
       }
@@ -129,14 +151,14 @@ export function exitTermGroup (uid) {
   };
 }
 
-export function exitActiveTermGroup (uid) {
+export function exitActiveTermGroup () {
   return (dispatch, getState) => {
     dispatch({
       type: TERM_GROUP_EXIT_ACTIVE,
       effect () {
         const { sessions, termGroups } = getState();
         const { uid } = findBySession(termGroups, sessions.activeUid);
-        dispatch(exitTermGroup(uid));
+        dispatch(userExitTermGroup(uid));
       }
     });
   };
diff --git a/lib/index.js b/lib/index.js
index 6949b42da728..25b8fb4d2369 100644
--- a/lib/index.js
+++ b/lib/index.js
@@ -66,7 +66,7 @@ rpc.on('session title', ({ uid, title }) => {
 });
 
 rpc.on('session exit', ({ uid }) => {
-  store_.dispatch(sessionActions.sessionExit(uid));
+  store_.dispatch(termGroupActions.ptyExitTermGroup(uid));
 });
 
 rpc.on('termgroup close req', () => {