diff --git a/lib/amqp/gen/consumer.ex b/lib/amqp/gen/consumer.ex
index 390861e..62e4a7c 100644
--- a/lib/amqp/gen/consumer.ex
+++ b/lib/amqp/gen/consumer.ex
@@ -14,7 +14,8 @@ defmodule Amqpx.Gen.Consumer do
     prefetch_count: 50,
     backoff: 5_000,
     connection_name: Amqpx.Gen.ConnectionManager,
-    requeue_on_reject: true
+    requeue_on_reject: true,
+    cancelled?: false
   ]
 
   @type state() :: %__MODULE__{}
@@ -86,7 +87,7 @@ defmodule Amqpx.Gen.Consumer do
 
   # Confirmation sent by the broker to the consumer process after a Basic.cancel
   def handle_info({:"basic.cancel_ok", _consumer_tag}, state) do
-    {:stop, :basic_cancel_ok, state}
+    {:stop, {:shutdown, :basic_cancel_ok}, state}
   end
 
   def handle_info(
@@ -188,6 +189,8 @@ defmodule Amqpx.Gen.Consumer do
   def terminate(_, %__MODULE__{channel: nil}), do: nil
 
   def terminate(reason, %__MODULE__{channel: channel}) do
+    Logger.info("Terminating consumer with reason #{inspect(reason)}")
+
     case reason do
       :normal -> close_channel(channel)
       :shutdown -> close_channel(channel)
@@ -211,7 +214,7 @@ defmodule Amqpx.Gen.Consumer do
 
   defp handle_message(
          message,
-         %{delivery_tag: tag, redelivered: redelivered} = meta,
+         %{delivery_tag: tag, redelivered: redelivered, consumer_tag: consumer_tag} = meta,
          %__MODULE__{
            handler_module: handler_module,
            handler_state: handler_state,
@@ -219,9 +222,15 @@ defmodule Amqpx.Gen.Consumer do
            requeue_on_reject: requeue_on_reject
          } = state
        ) do
-    {:ok, handler_state} = handler_module.handle_message(message, meta, handler_state)
-    Basic.ack(state.channel, tag)
-    %{state | handler_state: handler_state}
+    case handle_signals(state, consumer_tag) do
+      {:ok, state} ->
+        {:ok, handler_state} = handler_module.handle_message(message, meta, handler_state)
+        Basic.ack(state.channel, tag)
+        %{state | handler_state: handler_state}
+
+      {:stop, state} ->
+        state
+    end
   rescue
     e in _ ->
       Logger.error(Exception.format(:error, e, __STACKTRACE__))
@@ -242,4 +251,40 @@ defmodule Amqpx.Gen.Consumer do
 
       state
   end
+
+  @type signal_status :: :stopping | :draining | :running
+
+  @spec get_signal_status :: signal_status()
+  defp get_signal_status do
+    cond do
+      signal_handler().stopping?() -> :stopping
+      signal_handler().draining?() -> :draining
+      true -> :running
+    end
+  end
+
+  @spec handle_signals(signal_status(), state(), String.t()) :: {:ok | :stop, state()}
+  defp handle_signals(signal_status \\ get_signal_status(), state, consumer_tag)
+
+  # Close channel when we we need to stop.
+  defp handle_signals(:stopping, state, _) do
+    close_channel(state.channel)
+    {:stop, state}
+  end
+
+  # Continue processing prefetched messages while draining
+  defp handle_signals(:draining, %{cancelled?: true} = state, _), do: {:ok, state}
+
+  # Stop consuming new messages and move to cancelled state
+  # to continue processing prefetched messages
+  defp handle_signals(:draining, state, consumer_tag) do
+    Logger.info("Cancelling consumer #{consumer_tag}")
+    Basic.cancel(state.channel, consumer_tag)
+    {:ok, %{state | cancelled?: true}}
+  end
+
+  # No signals received run as normal
+  defp handle_signals(:running, state, _), do: {:ok, state}
+
+  defp signal_handler, do: Application.get_env(:amqpx, :signal_handler, Amqpx.NoSignalHandler)
 end
diff --git a/lib/amqp/no_signal_handler.ex b/lib/amqp/no_signal_handler.ex
new file mode 100644
index 0000000..dd1df1c
--- /dev/null
+++ b/lib/amqp/no_signal_handler.ex
@@ -0,0 +1,16 @@
+defmodule Amqpx.NoSignalHandler do
+  @moduledoc """
+  Dummy signal handler module that does not handle the graceful termination.
+
+  It always returns `false` for `draining?/0` and `stopping?/0`.
+  I.e. the comsumer will continue without handling signals.
+  """
+
+  @behaviour Amqpx.SignalHandler
+
+  @impl true
+  def draining?, do: false
+
+  @impl true
+  def stopping?, do: false
+end
diff --git a/lib/amqp/signal_handler.ex b/lib/amqp/signal_handler.ex
new file mode 100644
index 0000000..2eb4ff2
--- /dev/null
+++ b/lib/amqp/signal_handler.ex
@@ -0,0 +1,20 @@
+defmodule Amqpx.SignalHandler do
+  @moduledoc """
+  Signal handler behaviour is used to catch the SIGTERM signal and gracefully stop the application.
+  In the context of Rabbitmq, it will:
+    cancel the channel when we are in draining mode to stop prefetch new messages.
+    close the channel when we are in stopping mode to reject all the unacked messages that we did't start to consume.
+
+  Check in Peano how to use it.
+
+  """
+  @doc """
+  Check if the application is in draining mode.
+  """
+  @callback draining? :: boolean
+
+  @doc """
+  Check if the application is in stopping mode.
+  """
+  @callback stopping? :: boolean
+end
diff --git a/mix.exs b/mix.exs
index 59cac84..07ec337 100644
--- a/mix.exs
+++ b/mix.exs
@@ -5,7 +5,7 @@ defmodule Amqpx.MixProject do
     [
       app: :amqpx,
       name: "amqpx",
-      version: "6.0.4",
+      version: "6.1.0",
       elixir: "~> 1.7",
       elixirc_paths: elixirc_paths(Mix.env()),
       start_permanent: Mix.env() == :production,
diff --git a/test/gen_test.exs b/test/gen_test.exs
index fe81ee7..113cbef 100644
--- a/test/gen_test.exs
+++ b/test/gen_test.exs
@@ -522,6 +522,41 @@ defmodule Amqpx.Test.AmqpxTest do
     end
   end
 
+  test "should handle stop signal by not consuming any more messages" do
+    start_connection1!()
+    start_consumer_by_name!(Consumer1)
+    start_producer!(:producer)
+
+    payload = %{test: 1}
+
+    with_mocks [
+      {Amqpx.NoSignalHandler, [], stopping?: fn -> true end},
+      {Consumer1, [], []}
+    ] do
+      Producer1.send_payload(payload)
+      :timer.sleep(50)
+      refute called(Consumer1.handle_message(Jason.encode!(payload), :_, :_))
+    end
+  end
+
+  test "should continue to handle messages while draining but not while stopping" do
+    start_connection1!()
+    start_consumer_by_name!(Consumer1)
+    start_producer!(:producer)
+
+    payload = %{test: 1}
+
+    with_mocks [
+      {Amqpx.NoSignalHandler, [], stopping?: [in_series([], [false, true])], draining?: fn -> true end},
+      {Consumer1, [], [handle_message: fn _, _, state -> {:ok, state} end]}
+    ] do
+      Producer1.send_payload(payload)
+      Producer1.send_payload(payload)
+      :timer.sleep(50)
+      assert_called_exactly(Consumer1.handle_message(Jason.encode!(payload), :_, :_), 1)
+    end
+  end
+
   test "the consumer should stop gracefully" do
     start_connection1!()