diff --git a/Source/Common/FEXServerClient.cpp b/Source/Common/FEXServerClient.cpp
index f6206fac4..41c0c165a 100644
--- a/Source/Common/FEXServerClient.cpp
+++ b/Source/Common/FEXServerClient.cpp
@@ -235,7 +235,8 @@ int ConnectToAndStartServer(std::string_view InterpreterPath) {
     // We want to ignore the signal so that if FEXServer starts in daemon mode, it
     // doesn't leave a zombie process around waiting for something to get the result.
     struct sigaction action {};
-    action.sa_handler = SIG_IGN, sigaction(SIGCHLD, &action, &action);
+    action.sa_handler = SIG_IGN;
+    sigaction(SIGCHLD, &action, &action);
 
     pid_t pid = fork();
     if (pid == 0) {
diff --git a/Source/Tools/FEXServer/Main.cpp b/Source/Tools/FEXServer/Main.cpp
index 157da5b24..a22570ae8 100644
--- a/Source/Tools/FEXServer/Main.cpp
+++ b/Source/Tools/FEXServer/Main.cpp
@@ -74,9 +74,9 @@ void SetupSignals() {
 
   // Ignore SIGPIPE, we will be checking for pipe closure which could send this signal
   signal(SIGPIPE, SIG_IGN);
-  // SIGCHLD if squashfuse exits early.
-  // Ignore it for now
-  signal(SIGCHLD, SIG_IGN);
+  // Reset SIGCHLD which is likely SIG_IGN if FEXInterpreter started the server.
+  // We now wait for child processes with waitpid, newer libfuse also requires SIGCHLD to not be ignored by child processes.
+  signal(SIGCHLD, SIG_DFL);
 }
 
 /**