diff --git a/lib/flame/code_sync.ex b/lib/flame/code_sync.ex
index a360798..605c079 100644
--- a/lib/flame/code_sync.ex
+++ b/lib/flame/code_sync.ex
@@ -216,7 +216,7 @@ defmodule FLAME.CodeSync do
   defp trim_leading_slash([?/ | path]), do: path
   defp trim_leading_slash([_ | _] = path), do: path
 
-  def extract_packaged_stream(%PackagedStream{} = pkg) do
+  def extract_packaged_stream(%PackagedStream{} = pkg, terminator) do
     if pkg.stream do
       verbose = if pkg.verbose, do: [:verbose], else: []
       compressed = if pkg.compress, do: [:compressed], else: []
@@ -232,6 +232,9 @@ defmodule FLAME.CodeSync do
       # add code paths
       :ok = add_code_paths_from_tar(pkg, extract_dir)
 
+      # add path to clean up
+      FLAME.Terminator.watch_path(terminator, extract_dir)
+
       File.rm(target_tmp_path)
 
       # purge any deleted modules
diff --git a/lib/flame/runner.ex b/lib/flame/runner.ex
index 5dd2649..6e70a34 100644
--- a/lib/flame/runner.ex
+++ b/lib/flame/runner.ex
@@ -253,8 +253,10 @@ defmodule FLAME.Runner do
           new_state
 
         {new_state, %CodeSync.PackagedStream{} = parent_pkg} ->
+          terminator = state.runner.terminator
+
           remote_call!(state.runner, state.backend_state, state.runner.boot_timeout, false, fn ->
-            :ok = CodeSync.extract_packaged_stream(parent_pkg)
+            :ok = CodeSync.extract_packaged_stream(parent_pkg, terminator)
           end)
 
           CodeSync.rm_packaged_stream(parent_pkg)
@@ -306,8 +308,13 @@ defmodule FLAME.Runner do
                   # ensure app is fully started if parent connects before up
                   if otp_app, do: {:ok, _} = Application.ensure_all_started(otp_app)
 
-                  if base_sync_stream, do: CodeSync.extract_packaged_stream(base_sync_stream)
-                  if beams_stream, do: CodeSync.extract_packaged_stream(beams_stream)
+                  if base_sync_stream do
+                    CodeSync.extract_packaged_stream(base_sync_stream, term)
+                  end
+
+                  if beams_stream do
+                    CodeSync.extract_packaged_stream(beams_stream, term)
+                  end
 
                   :ok =
                     Terminator.schedule_idle_shutdown(term, idle_after, idle_check, single_use)
diff --git a/lib/flame/terminator.ex b/lib/flame/terminator.ex
index c0fbc29..3871123 100644
--- a/lib/flame/terminator.ex
+++ b/lib/flame/terminator.ex
@@ -32,6 +32,7 @@ defmodule FLAME.Terminator do
             single_use: false,
             calls: %{},
             watchers: %{},
+            paths: [],
             log: false,
             status: nil,
             failsafe_timer: nil,
@@ -73,6 +74,10 @@ defmodule FLAME.Terminator do
     GenServer.call(terminator, {:watch, pids})
   end
 
+  def watch_path(terminator, path) do
+    GenServer.call(terminator, {:watch_path, path})
+  end
+
   def deadline_me(terminator, timeout) do
     GenServer.call(terminator, {:deadline, timeout})
   end
@@ -263,6 +268,10 @@ defmodule FLAME.Terminator do
     {:reply, :ok, cancel_idle_shutdown(state)}
   end
 
+  def handle_call({:watch_path, path}, _from, %Terminator{watchers: paths} = state) do
+    {:reply, :ok, %{state | paths: [path | paths]}}
+  end
+
   def handle_call(:system_shutdown, _from, %Terminator{} = state) do
     {:reply, :ok,
      system_stop(state, "system shutdown instructed from parent #{inspect(state.parent.pid)}")}
@@ -288,6 +297,12 @@ defmodule FLAME.Terminator do
     {:reply, :ok, schedule_idle_shutdown(new_state)}
   end
 
+  defp clean_up_paths(paths) do
+    for path <- paths do
+      File.rm_rf(path)
+    end
+  end
+
   @impl true
   def terminate(_reason, %Terminator{} = state) do
     state =
@@ -295,6 +310,9 @@ defmodule FLAME.Terminator do
       |> cancel_idle_shutdown()
       |> system_stop("terminating")
 
+    # clean up any paths that were watched before waiting to not be killed
+    clean_up_paths(state.paths)
+
     # supervisor will force kill us if we take longer than configured shutdown_timeout
     Enum.each(state.calls, fn
       # skip callers that placed a child since they are on the remote node