diff --git a/tools/include/libxenvchan.h b/tools/include/libxenvchan.h
index d6010b145d..30cc73cf97 100644
--- a/tools/include/libxenvchan.h
+++ b/tools/include/libxenvchan.h
@@ -86,6 +86,11 @@ struct libxenvchan {
 	int blocking:1;
 	/* communication rings */
 	struct libxenvchan_ring read, write;
+	/**
+	 * Base xenstore path for storing ring/event data used by the server
+	 * during cleanup.
+	 * */
+	char *xs_path;
 };
 
 /**
diff --git a/tools/libs/vchan/init.c b/tools/libs/vchan/init.c
index c8510e6ce9..9195bd3b98 100644
--- a/tools/libs/vchan/init.c
+++ b/tools/libs/vchan/init.c
@@ -46,6 +46,8 @@
 #include <xen/sys/gntdev.h>
 #include <libxenvchan.h>
 
+#include "vchan.h"
+
 #ifndef PAGE_SHIFT
 #define PAGE_SHIFT 12
 #endif
@@ -251,6 +253,12 @@ static int init_xs_srv(struct libxenvchan *ctrl, int domain, const char* xs_base
 	char ref[16];
 	char* domid_str = NULL;
 	xs_transaction_t xs_trans = XBT_NULL;
+
+	/* store the base path so we can clean up on server closure */
+	ctrl->xs_path = strdup(xs_base);
+	if (!ctrl->xs_path)
+		return -1; 
+
 	xs = xs_open(0);
 	if (!xs)
 		goto fail;
@@ -298,6 +306,22 @@ retry_transaction:
 	return ret;
 }
 
+void close_xs_srv(struct libxenvchan *ctrl)
+{
+	struct xs_handle *xs;
+
+	if (!ctrl->xs_path)
+		return;
+
+	xs = xs_open(0);
+	if (xs) {
+		xs_rm(xs, XBT_NULL, ctrl->xs_path);
+		xs_close(xs);
+	}
+
+	free(ctrl->xs_path);
+}
+
 static int min_order(size_t siz)
 {
 	int rv = PAGE_SHIFT;
diff --git a/tools/libs/vchan/io.c b/tools/libs/vchan/io.c
index da303fbc01..1f201ad554 100644
--- a/tools/libs/vchan/io.c
+++ b/tools/libs/vchan/io.c
@@ -40,6 +40,8 @@
 #include <xenctrl.h>
 #include <libxenvchan.h>
 
+#include "vchan.h"
+
 #ifndef PAGE_SHIFT
 #define PAGE_SHIFT 12
 #endif
@@ -384,5 +386,7 @@ void libxenvchan_close(struct libxenvchan *ctrl)
 		if (ctrl->gnttab)
 			xengnttab_close(ctrl->gnttab);
 	}
+	if (ctrl->is_server)
+		close_xs_srv(ctrl);
 	free(ctrl);
 }
diff --git a/tools/libs/vchan/vchan.h b/tools/libs/vchan/vchan.h
new file mode 100644
index 0000000000..621016ef42
--- /dev/null
+++ b/tools/libs/vchan/vchan.h
@@ -0,0 +1,31 @@
+/**
+ * @file
+ * @section AUTHORS
+ *
+ * Copyright (C) 2021 EPAM Systems Inc.
+ *
+ * @section LICENSE
+ *
+ *  This library is free software; you can redistribute it and/or
+ *  modify it under the terms of the GNU Lesser General Public
+ *  License as published by the Free Software Foundation; either
+ *  version 2.1 of the License, or (at your option) any later version.
+ *
+ *  This library is distributed in the hope that it will be useful,
+ *  but WITHOUT ANY WARRANTY; without even the implied warranty of
+ *  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the GNU
+ *  Lesser General Public License for more details.
+ *
+ *  You should have received a copy of the GNU Lesser General Public
+ *  License along with this library; If not, see <http://www.gnu.org/licenses/>.
+ *
+ * @section DESCRIPTION
+ *
+ *  This file contains common libxenvchan declarations.
+ */
+#ifndef LIBVCHAN_H
+#define LIBVCHAN_H
+
+void close_xs_srv(struct libxenvchan *ctrl);
+
+#endif /* LIBVCHAN_H */