diff --git a/packages/daemon/src/daemon-node-powers.js b/packages/daemon/src/daemon-node-powers.js
index 683da6a79b..c425518aca 100644
--- a/packages/daemon/src/daemon-node-powers.js
+++ b/packages/daemon/src/daemon-node-powers.js
@@ -233,7 +233,7 @@ export const makeSocketPowers = ({ net }) => {
     );
 
   /** @type {import('./types.js').SocketPowers['connectPort']} */
-  const connectPort = ({ port, host, cancelled }) =>
+  const connectPort = ({ port, host }) =>
     new Promise((resolve, reject) => {
       const conn = net.connect(port, host, err => {
         if (err) {
diff --git a/packages/daemon/src/daemon.js b/packages/daemon/src/daemon.js
index 451940d136..710a5cdbb0 100644
--- a/packages/daemon/src/daemon.js
+++ b/packages/daemon/src/daemon.js
@@ -53,6 +53,10 @@ const makeInspector = (type, number, record) =>
     list: () => Object.keys(record),
   });
 
+/**
+ * @param {import('./types.js').Context} context - The context to make far.
+ * @returns {import('./types.js').FarContext} The far context.
+ */
 const makeFarContext = context =>
   Far('Context', {
     cancel: context.cancel,
@@ -65,7 +69,6 @@ const makeFarContext = context =>
  * @param {import('./types.js').DaemonicPowers} powers
  * @param {Promise<number>} webletPortP
  * @param {object} args
- * @param {Promise<never>} args.cancelled
  * @param {(error: Error) => void} args.cancel
  * @param {number} args.gracePeriodMs
  * @param {Promise<never>} args.gracePeriodElapsed
@@ -73,7 +76,7 @@ const makeFarContext = context =>
 const makeEndoBootstrap = async (
   powers,
   webletPortP,
-  { cancelled, cancel, gracePeriodMs, gracePeriodElapsed },
+  { cancel, gracePeriodMs, gracePeriodElapsed },
 ) => {
   const {
     crypto: cryptoPowers,
@@ -862,7 +865,6 @@ export const makeDaemon = async (powers, daemonLabel, cancel, cancelled) => {
     );
 
   const endoBootstrap = makeEndoBootstrap(powers, assignedWebletPortP, {
-    cancelled,
     cancel,
     gracePeriodMs,
     gracePeriodElapsed,
diff --git a/packages/daemon/src/types.d.ts b/packages/daemon/src/types.d.ts
index e6e1cdde0d..731effa9b7 100644
--- a/packages/daemon/src/types.d.ts
+++ b/packages/daemon/src/types.d.ts
@@ -169,6 +169,7 @@ export interface FarContext {
   cancel: (reason: string) => Promise<never>;
   whenCancelled: () => Promise<never>;
   whenDisposed: () => Promise<void>;
+  addDisposalHook: Context['onCancel'];
 }
 
 export interface InternalExternal<External = unknown, Internal = unknown> {
diff --git a/packages/daemon/test/context-consumer.js b/packages/daemon/test/context-consumer.js
new file mode 100644
index 0000000000..cb26df4041
--- /dev/null
+++ b/packages/daemon/test/context-consumer.js
@@ -0,0 +1,12 @@
+import { E, Far } from '@endo/far';
+
+export const make = async (_powers, context) => {
+  return Far('Context consumer', {
+    async awaitCancellation() {
+      await E(context).whenCancelled();
+      // await E(context).whenDisposed();
+      // await new Promise(r => E(context).addDisposalHook(r));
+      return 'cancelled';
+    },
+  });
+};
diff --git a/packages/daemon/test/test-endo.js b/packages/daemon/test/test-endo.js
index 5b92e8d936..e0556ccbb2 100644
--- a/packages/daemon/test/test-endo.js
+++ b/packages/daemon/test/test-endo.js
@@ -566,11 +566,11 @@ test('guest facet receives a message for host', async t => {
   await stop(locator);
 });
 
-test('direct termination', async t => {
+test('direct cancellation', async t => {
   const { promise: cancelled, reject: cancel } = makePromiseKit();
   t.teardown(() => cancel(Error('teardown')));
 
-  const locator = makeLocator('tmp', 'termination-direct');
+  const locator = makeLocator('tmp', 'cancellation-direct');
 
   await start(locator);
   t.teardown(() => stop(locator));
@@ -643,15 +643,13 @@ test('direct termination', async t => {
       ['counter'],
     ),
   );
-
-  t.pass();
 });
 
-test('indirect termination', async t => {
+test('indirect cancellation', async t => {
   const { promise: cancelled, reject: cancel } = makePromiseKit();
   t.teardown(() => cancel(Error('teardown')));
 
-  const locator = makeLocator('tmp', 'termination-indirect');
+  const locator = makeLocator('tmp', 'cancellation-indirect');
 
   await start(locator);
   t.teardown(() => stop(locator));
@@ -731,7 +729,7 @@ test('cancel because of requested capability', async t => {
   const { promise: cancelled, reject: cancel } = makePromiseKit();
   t.teardown(() => cancel(Error('teardown')));
 
-  const locator = makeLocator('tmp', 'termination-via-request');
+  const locator = makeLocator('tmp', 'cancellation-via-request');
 
   await start(locator);
   t.teardown(() => stop(locator));
@@ -815,6 +813,44 @@ test('cancel because of requested capability', async t => {
   );
 });
 
+test('unconfined service can respond to cancellation', async t => {
+  const { promise: cancelled, reject: cancel } = makePromiseKit();
+  t.teardown(() => cancel(Error('teardown')));
+
+  const locator = makeLocator('tmp', 'cancellation-unconfined-response');
+
+  await start(locator);
+  t.teardown(() => stop(locator));
+
+  const { getBootstrap } = await makeEndoClient(
+    'client',
+    locator.sockPath,
+    cancelled,
+  );
+  const bootstrap = getBootstrap();
+  const host = E(bootstrap).host();
+  await E(host).provideWorker('worker');
+
+  const capletPath = path.join(dirname, 'test', 'context-consumer.js');
+  const capletLocation = url.pathToFileURL(capletPath).href;
+  await E(host).makeUnconfined(
+    'worker',
+    capletLocation,
+    'NONE',
+    'context-consumer',
+  );
+
+  const result = E(host).evaluate(
+    'worker',
+    'E(caplet).awaitCancellation()',
+    ['caplet'],
+    ['context-consumer'],
+  );
+  // await E(host).cancel('context-consumer');
+  await E(host).cancel('worker');
+  t.is(await result, 'cancelled');
+});
+
 test('make a host', async t => {
   const { promise: cancelled, reject: cancel } = makePromiseKit();
   t.teardown(() => cancel(Error('teardown')));