diff --git a/lib/net.js b/lib/net.js
index 89688b1f03..32a6ec2b26 100644
--- a/lib/net.js
+++ b/lib/net.js
@@ -177,7 +177,7 @@ Socket.prototype._sendString = function (data, encoding) {
                                      buffer.length - buffer.used);
     bytesWritten = charsWritten;
   }
-  
+
   buffer.used += bytesWritten;
   self.sendQueueSize += bytesWritten;
 
diff --git a/src/node_net2.cc b/src/node_net2.cc
index 1cebd86761..cab14bb987 100644
--- a/src/node_net2.cc
+++ b/src/node_net2.cc
@@ -54,11 +54,16 @@ static inline Local<Value> ErrnoException(int errorno,
   return e;
 }
 
+static inline bool SetCloseOnExec(int fd) {
+  return (fcntl(fd, F_SETFD, FD_CLOEXEC) != -1);
+}
+
 static inline bool SetNonBlock(int fd) {
-  int flags = fcntl(fd, F_GETFL, 0);
-  if (flags == -1) return false;
-  flags |= O_NONBLOCK;
-  return (fcntl(fd, F_SETFL, flags) != -1);
+  return (fcntl(fd, F_SETFL, O_NONBLOCK) != -1);
+}
+
+static inline bool SetSockFlags(int fd) {
+  return SetNonBlock(fd) && SetCloseOnExec(fd);
 }
 
 // Creates nonblocking pipe
@@ -68,7 +73,7 @@ static Handle<Value> Pipe(const Arguments& args) {
 
   if (pipe(fds) < 0) return ThrowException(ErrnoException(errno, "pipe"));
 
-  if(!SetNonBlock(fds[0]) || !SetNonBlock(fds[1])) {
+  if (!SetSockFlags(fds[0]) || !SetSockFlags(fds[1])) {
     int fcntl_errno = errno;
     close(fds[0]);
     close(fds[1]);
@@ -92,7 +97,7 @@ static Handle<Value> SocketPair(const Arguments& args) {
     return ThrowException(ErrnoException(errno, "socketpair"));
   }
 
-  if (!SetNonBlock(fds[0]) || !SetNonBlock(fds[1])) {
+  if (!SetSockFlags(fds[0]) || !SetSockFlags(fds[1])) {
     int fcntl_errno = errno;
     close(fds[0]);
     close(fds[1]);
@@ -137,7 +142,7 @@ static Handle<Value> Socket(const Arguments& args) {
 
   if (fd < 0) return ThrowException(ErrnoException(errno, "socket"));
 
-  if (!SetNonBlock(fd)) {
+  if (!SetSockFlags(fd)) {
     int fcntl_errno = errno;
     close(fd);
     return ThrowException(ErrnoException(fcntl_errno, "fcntl"));
@@ -387,10 +392,10 @@ static Handle<Value> Accept(const Arguments& args) {
     return ThrowException(ErrnoException(errno, "accept"));
   }
 
-  if (!SetNonBlock(peer_fd)) {
+  if (!SetSockFlags(peer_fd)) {
     int fcntl_errno = errno;
     close(peer_fd);
-    return ThrowException(ErrnoException(fcntl_errno, "fcntl", "Cannot make peer non-blocking"));
+    return ThrowException(ErrnoException(fcntl_errno, "fcntl"));
   }
 
   Local<Object> peer_info = Object::New();
diff --git a/test-net-server.js b/test-net-server.js
index 76f10574ed..114cb67a85 100644
--- a/test-net-server.js
+++ b/test-net-server.js
@@ -42,7 +42,11 @@ c.addListener('drain', function () {
   sys.puts("!!!client drain");
 });
 
-c.addListener('receive', function (d) {
+c.addListener('data', function (d) {
   sys.puts("!!!client got: " + JSON.stringify(d.toString()));
+  c.close();
 });
 
+c.addListener('dataEnd', function (d) {
+  sys.puts("!!!client eof");
+});