diff --git a/source/isaaclab/changelog.d/orderly-runtime-shutdown.fixed.rst b/source/isaaclab/changelog.d/orderly-runtime-shutdown.fixed.rst
new file mode 100644
index 000000000000..4f5c624f560c
--- /dev/null
+++ b/source/isaaclab/changelog.d/orderly-runtime-shutdown.fixed.rst
@@ -0,0 +1,2 @@
+* Stopped simulations and released their resources before shutting down the enclosing runtime,
+  preserving failure exit codes and contexts owned by an outer launch scope.
diff --git a/source/isaaclab/isaaclab/app/sim_launcher.py b/source/isaaclab/isaaclab/app/sim_launcher.py
index 8cf8b8cfd8d8..2ab983fb2d47 100644
--- a/source/isaaclab/isaaclab/app/sim_launcher.py
+++ b/source/isaaclab/isaaclab/app/sim_launcher.py
@@ -541,6 +541,9 @@ def launch_simulation(
     needed), then starts the launcher each required runtime's config names (closed on exit) or
     does nothing for kitless ones. Cameras are auto-enabled for Kit-renderer sensors.
 
+    On exit, stops and releases a simulation context created inside the scope before closing
+    its runtimes. An existing context owned by the caller is preserved.
+
     The run's visualizers and device are decided here, once: they are written to the
     :class:`~isaaclab.sim.SimulationCfg` in *cfg* (``visualizer_cfgs`` and ``device``), which
     every later consumer reads. ``--visualizer`` selects the visualizers that run, none without it;
@@ -629,12 +632,21 @@ def launch_simulation(
     settings.set("/isaaclab/visualizer/types", ",".join(args["visualizer"]) if sim_cfg is None else "")
     settings.set("/isaaclab/visualizer/max_visible_envs", -1 if max_visible_envs is None else int(max_visible_envs))
 
+    from ..sim.simulation_context import SimulationContext
+
+    previous_context = SimulationContext.instance()
     exit_code = 0
     try:
         # With no selected profile this is a no-op; with one, it installs process-wide OmniClient
         # routing before user code runs.
-        configure_storage_profile()
-        yield physics_cfg
+        try:
+            configure_storage_profile()
+            yield physics_cfg
+        finally:
+            # Release runtime consumers before a launcher can terminate the process.
+            context = SimulationContext.instance()
+            if context is not None and context is not previous_context:
+                SimulationContext.clear_instance()
     except KeyboardInterrupt:
         exit_code = 130
         raise
diff --git a/source/isaaclab/isaaclab/sim/simulation_context.py b/source/isaaclab/isaaclab/sim/simulation_context.py
index 0bd6f4ffa41b..e47ff9cf4b84 100644
--- a/source/isaaclab/isaaclab/sim/simulation_context.py
+++ b/source/isaaclab/isaaclab/sim/simulation_context.py
@@ -790,7 +790,7 @@ def close_backend(self, backend: Any) -> None:
 
     @classmethod
     def clear_instance(cls) -> None:
-        """Clean up resources and clear the singleton instance."""
+        """Stop the simulation, clean up resources, and clear the singleton instance."""
         instance = cls._instance
         if instance is not None:
             teardown_errors: list[Exception] = []
@@ -802,7 +802,9 @@ def run_cleanup(callback: Callable[[], Any]) -> None:
                     teardown_errors.append(exc)
 
             try:
-                # Close physics manager FIRST to detach PhysX from the stage.
+                # Stop task producers and deliver STOP before releasing their resources.
+                run_cleanup(instance.stop)
+                # Detach PhysX before any stage-bound resource or prim is deleted.
                 run_cleanup(instance.physics_manager.close)
 
                 # Close camera renderers after STOP invalidates camera-owned render data and
@@ -935,6 +937,4 @@ def build_simulation_context(
         raise
     finally:
         if sim is not None:
-            if not sim.has_gui:
-                sim.stop()
             sim.clear_instance()
diff --git a/source/isaaclab/test/sim/test_physics_manager_lifecycle.py b/source/isaaclab/test/sim/test_physics_manager_lifecycle.py
index c112e0ff393d..8cf50376e6be 100644
--- a/source/isaaclab/test/sim/test_physics_manager_lifecycle.py
+++ b/source/isaaclab/test/sim/test_physics_manager_lifecycle.py
@@ -267,17 +267,26 @@ def test_clear_instance_closes_renderers_before_native_backends(monkeypatch, ren
     events = []
 
     class Manager:
+        @classmethod
+        def stop(cls):
+            events.append("stop")
+            if fail_cleanup:
+                raise RuntimeError("STOP failed")
+
         @classmethod
         def close(cls):
             events.append("physics")
             if fail_cleanup:
-                raise RuntimeError("STOP failed")
+                raise RuntimeError("physics close failed")
 
     class Resource:
         def __init__(self, name, error=None):
             self.name = name
             self.error = error
 
+        def stop(self):
+            events.append(f"{self.name}_stop")
+
         def close(self):
             events.append(self.name)
             if fail_cleanup and self.error is not None:
@@ -307,12 +316,12 @@ def close(self):
     monkeypatch.setattr(context_module.gc, "collect", lambda: events.append("gc"))
 
     if fail_cleanup:
-        with pytest.raises(RuntimeError, match=r"4 error\(s\) occurred during teardown") as exc_info:
+        with pytest.raises(RuntimeError, match=r"5 error\(s\) occurred during teardown") as exc_info:
             SimulationContext.clear_instance()
         assert str(exc_info.value) == (
-            "SimulationContext.clear_instance(): 4 error(s) occurred during teardown: "
-            "RuntimeError: STOP failed; OSError: renderer failed; ValueError: visualizer failed; "
-            "LookupError: backend failed"
+            "SimulationContext.clear_instance(): 5 error(s) occurred during teardown: "
+            "RuntimeError: STOP failed; RuntimeError: physics close failed; OSError: renderer failed; "
+            "ValueError: visualizer failed; LookupError: backend failed"
         )
         assert str(exc_info.value.__cause__) == "STOP failed"
     else:
@@ -320,6 +329,8 @@ def close(self):
 
     SimulationContext.clear_instance()
     assert events == [
+        "stop",
+        *([] if fail_cleanup else ["visualizer_failed_stop", "visualizer_last_stop"]),
         "physics",
         "writers",
         "renderer_failed",
@@ -356,7 +367,8 @@ def close(self):
             pass
 
     class Context:
-        pass
+        def stop(self):
+            pass
 
     context = Context()
     context.physics_manager = Manager