diff --git a/packages/js/src/executors/tsc/tsc.impl.ts b/packages/js/src/executors/tsc/tsc.impl.ts
index 0340a6d88ce6e..c871385d58aa4 100644
--- a/packages/js/src/executors/tsc/tsc.impl.ts
+++ b/packages/js/src/executors/tsc/tsc.impl.ts
@@ -144,22 +144,6 @@ export async function* tscExecutor(
     assets: _options.assets,
   });
 
-  if (options.watch) {
-    const disposeWatchAssetChanges =
-      await assetHandler.watchAndProcessOnAssetChange();
-    const disposePackageJsonChanges = await watchForSingleFileChanges(
-      join(context.root, projectRoot),
-      'package.json',
-      () => updatePackageJson(options, context, target, dependencies)
-    );
-    const handleTermination = async () => {
-      await disposeWatchAssetChanges();
-      await disposePackageJsonChanges();
-    };
-    process.on('SIGINT', () => handleTermination());
-    process.on('SIGTERM', () => handleTermination());
-  }
-
   const tsCompilationOptions = createTypeScriptCompilationOptions(
     options,
     context
@@ -175,7 +159,7 @@ export async function* tscExecutor(
     tsCompilationOptions.rootDir = '.';
   }
 
-  return yield* compileTypeScriptFiles(
+  const typescriptCompilation = compileTypeScriptFiles(
     options,
     tsCompilationOptions,
     async () => {
@@ -188,6 +172,26 @@ export async function* tscExecutor(
       );
     }
   );
+
+  if (options.watch) {
+    const disposeWatchAssetChanges =
+      await assetHandler.watchAndProcessOnAssetChange();
+    const disposePackageJsonChanges = await watchForSingleFileChanges(
+      join(context.root, projectRoot),
+      'package.json',
+      () => updatePackageJson(options, context, target, dependencies)
+    );
+    const handleTermination = async (exitCode: number) => {
+      await disposeWatchAssetChanges();
+      await disposePackageJsonChanges();
+      await typescriptCompilation.close();
+      process.exit(exitCode);
+    };
+    process.on('SIGINT', () => handleTermination(128 + 2));
+    process.on('SIGTERM', () => handleTermination(128 + 15));
+  }
+
+  return yield* typescriptCompilation.iterator;
 }
 
 export default tscExecutor;
diff --git a/packages/js/src/utils/typescript/compile-typescript-files.ts b/packages/js/src/utils/typescript/compile-typescript-files.ts
index 3c5c68e8c2df4..1dde8e35f840c 100644
--- a/packages/js/src/utils/typescript/compile-typescript-files.ts
+++ b/packages/js/src/utils/typescript/compile-typescript-files.ts
@@ -16,33 +16,58 @@ function getErrorCountFromMessage(messageText: string) {
   return Number.parseInt(ERROR_COUNT_REGEX.exec(messageText)[1]);
 }
 
-export async function* compileTypeScriptFiles(
+export interface TypescriptCompilationResult {
+  success: boolean;
+  outfile: string;
+}
+
+export function compileTypeScriptFiles(
   normalizedOptions: NormalizedExecutorOptions,
   tscOptions: TypeScriptCompilationOptions,
   postCompilationCallback: () => void | Promise<void>
-) {
+): {
+  iterator: AsyncIterable<TypescriptCompilationResult>;
+  close: () => void | Promise<void>;
+} {
   const getResult = (success: boolean) => ({
     success,
     outfile: normalizedOptions.mainOutputPath,
   });
 
-  return yield* createAsyncIterable<{ success: boolean; outfile: string }>(
-    async ({ next, done }) => {
-      if (normalizedOptions.watch) {
-        compileTypeScriptWatcher(tscOptions, async (d: Diagnostic) => {
-          if (d.code === TYPESCRIPT_FOUND_N_ERRORS_WATCHING_FOR_FILE_CHANGES) {
-            await postCompilationCallback();
-            next(
-              getResult(getErrorCountFromMessage(d.messageText as string) === 0)
-            );
-          }
-        });
-      } else {
-        const { success } = compileTypeScript(tscOptions);
-        await postCompilationCallback();
-        next(getResult(success));
-        done();
+  let tearDown: (() => void) | undefined;
+
+  return {
+    iterator: createAsyncIterable<TypescriptCompilationResult>(
+      async ({ next, done }) => {
+        if (normalizedOptions.watch) {
+          const host = compileTypeScriptWatcher(
+            tscOptions,
+            async (d: Diagnostic) => {
+              if (
+                d.code === TYPESCRIPT_FOUND_N_ERRORS_WATCHING_FOR_FILE_CHANGES
+              ) {
+                await postCompilationCallback();
+                next(
+                  getResult(
+                    getErrorCountFromMessage(d.messageText as string) === 0
+                  )
+                );
+              }
+            }
+          );
+
+          tearDown = () => {
+            host.close();
+            done();
+          };
+        } else {
+          const { success } = compileTypeScript(tscOptions);
+          await postCompilationCallback();
+          next(getResult(success));
+          done();
+        }
       }
-    }
-  );
+    ),
+    close: () => tearDown?.(),
+  };
 }