diff --git a/api/agent/agent.go b/api/agent/agent.go
index 13e70827e..f588fb7ef 100644
--- a/api/agent/agent.go
+++ b/api/agent/agent.go
@@ -2,7 +2,6 @@ package agent
 
 import (
 	"context"
-	"errors"
 	"io"
 	"net/http"
 	"sync"
@@ -188,7 +187,7 @@ func (a *agent) Submit(callI Call) error {
 
 	select {
 	case <-a.shutdown:
-		return errors.New("agent shut down")
+		return models.ErrCallTimeoutServerBusy
 	default:
 	}
 
@@ -266,74 +265,103 @@ func (a *agent) getSlot(ctx context.Context, call *call) (Slot, error) {
 
 	isHot := protocol.IsStreamable(protocol.Protocol(call.Format))
 	if isHot {
-		// For hot requests, we use a long lived slot queue, which we use to manage hot containers
-		call.slots = a.slotMgr.getHotSlotQueue(call)
 		start := time.Now()
 
-		call.slots.enterState(SlotQueueWaiter)
-		s, err := a.launchHot(ctx, call)
-		call.slots.exitStateWithLatency(SlotQueueWaiter, uint64(time.Now().Sub(start).Seconds()*1000))
+		// For hot requests, we use a long lived slot queue, which we use to manage hot containers
+		var isNew bool
+		call.slots, isNew = a.slotMgr.getSlotQueue(call)
+		if isNew {
+			go a.hotLauncher(ctx, call)
+		}
 
+		s, err := a.waitHot(ctx, call)
+		call.slots.exitStateWithLatency(SlotQueueWaiter, uint64(time.Now().Sub(start).Seconds()*1000))
 		return s, err
 	}
 
 	return a.launchCold(ctx, call)
 }
 
-// launchHot checks with slot queue to see if a new container needs to be launched and waits
-// for available slots in the queue for hot request execution.
-func (a *agent) launchHot(ctx context.Context, call *call) (Slot, error) {
+// hotLauncher is spawned in a go routine for each slot queue to monitor stats and launch hot
+// containers if needed. Upon shutdown or activity timeout, hotLauncher exits and during exit,
+// it destroys the slot queue.
+func (a *agent) hotLauncher(ctx context.Context, callObj *call) {
 
-	isAsync := call.Type == models.TypeAsync
+	// Let use 60 minutes or 2 * IdleTimeout as hot queue idle timeout, pick
+	// whichever is longer. If in this time, there's no activity, then
+	// we destroy the hot queue.
+	timeout := time.Duration(60) * time.Minute
+	idleTimeout := time.Duration(callObj.IdleTimeout) * time.Second * 2
+	if timeout < idleTimeout {
+		timeout = idleTimeout
+	}
+
+	logger := common.Logger(ctx)
+	logger.WithField("launcher_timeout", timeout).Info("Hot function launcher starting")
+	isAsync := callObj.Type == models.TypeAsync
 
-launchLoop:
 	for {
-		// Check/evaluate if we need to launch a new hot container
-		doLaunch, stats := call.slots.isNewContainerNeeded()
-		common.Logger(ctx).WithField("stats", stats).Debug("checking hot container launch ", doLaunch)
-
-		if doLaunch {
-			ctxToken, tokenCancel := context.WithCancel(context.Background())
-
-			// wait on token/slot/timeout whichever comes first
-			select {
-			case tok, isOpen := <-a.resources.GetResourceToken(ctxToken, call.Memory, isAsync):
-				tokenCancel()
-				if !isOpen {
-					return nil, models.ErrCallTimeoutServerBusy
-				}
-
-				a.wg.Add(1)
-				go a.runHot(ctx, call, tok)
-			case s, ok := <-call.slots.getDequeueChan():
-				tokenCancel()
-				if !ok {
-					return nil, errors.New("slot shut down while waiting for hot slot")
-				}
-				if s.acquireSlot() {
-					if s.slot.Error() != nil {
-						s.slot.Close()
-						return nil, s.slot.Error()
-					}
-					return s.slot, nil
-				}
-
-				// we failed to take ownership of the token (eg. container idle timeout)
-				// try launching again
-				continue launchLoop
-			case <-ctx.Done():
-				tokenCancel()
-				return nil, ctx.Err()
+		select {
+		case <-a.shutdown: // server shutdown
+			return
+		case <-time.After(timeout):
+			if a.slotMgr.deleteSlotQueue(callObj.slots) {
+				logger.Info("Hot function launcher timed out")
+				return
 			}
+		case <-callObj.slots.signaller:
 		}
 
-		// After launching (if it was necessary) a container, now wait for slot/timeout
-		// or periodically reevaluate the launchHot() logic from beginning.
+		isNeeded, stats := callObj.slots.isNewContainerNeeded()
+		logger.WithField("stats", stats).Debug("Hot function launcher stats")
+		if !isNeeded {
+			continue
+		}
+
+		resourceCtx, cancel := context.WithCancel(context.Background())
+		logger.WithField("stats", stats).Info("Hot function launcher starting hot container")
+
 		select {
-		case s, ok := <-call.slots.getDequeueChan():
-			if !ok {
-				return nil, errors.New("slot shut down while waiting for hot slot")
+		case tok, isOpen := <-a.resources.GetResourceToken(resourceCtx, callObj.Memory, isAsync):
+			cancel()
+			if isOpen {
+				a.wg.Add(1)
+				go func(ctx context.Context, call *call, tok ResourceToken) {
+					a.runHot(ctx, call, tok)
+					a.wg.Done()
+				}(ctx, callObj, tok)
+			} else {
+				// this means the resource was impossible to reserve (eg. memory size we can never satisfy)
+				callObj.slots.queueSlot(&hotSlot{done: make(chan struct{}), err: models.ErrCallTimeoutServerBusy})
 			}
+		case <-time.After(timeout):
+			cancel()
+			if a.slotMgr.deleteSlotQueue(callObj.slots) {
+				logger.Info("Hot function launcher timed out")
+				return
+			}
+		case <-a.shutdown: // server shutdown
+			cancel()
+			return
+		}
+	}
+}
+
+// waitHot pings and waits for a hot container from the slot queue
+func (a *agent) waitHot(ctx context.Context, call *call) (Slot, error) {
+
+	ch, cancel := call.slots.startDequeuer(ctx)
+	defer cancel()
+
+	for {
+		// send a notification to launcHot()
+		select {
+		case call.slots.signaller <- true:
+		default:
+		}
+
+		select {
+		case s := <-ch:
 			if s.acquireSlot() {
 				if s.slot.Error() != nil {
 					s.slot.Close()
@@ -341,13 +369,13 @@ launchLoop:
 				}
 				return s.slot, nil
 			}
-
-			// we failed to take ownership of the token (eg. container idle timeout)
-			// try launching again
+			// we failed to take ownership of the token (eg. container idle timeout) => try again
 		case <-ctx.Done():
 			return nil, ctx.Err()
 		case <-time.After(time.Duration(200) * time.Millisecond):
-			// reevaluate
+			// ping dequeuer again
+		case <-a.shutdown: // server shutdown
+			return nil, models.ErrCallTimeoutServerBusy
 		}
 	}
 }
@@ -506,7 +534,6 @@ func (a *agent) prepCold(ctx context.Context, call *call, tok ResourceToken, ch
 
 func (a *agent) runHot(ctxArg context.Context, call *call, tok ResourceToken) {
 	// We must be careful to only use ctxArg for logs/spans
-	defer a.wg.Done()
 
 	// create a span from ctxArg but ignore the new Context
 	// instead we will create a new Context below and explicitly set its span
diff --git a/api/agent/slots.go b/api/agent/slots.go
index cae779988..c37d87b11 100644
--- a/api/agent/slots.go
+++ b/api/agent/slots.go
@@ -23,7 +23,7 @@ type Slot interface {
 
 // slotQueueMgr manages hot container slotQueues
 type slotQueueMgr struct {
-	hMu sync.RWMutex // protects hot
+	hMu sync.Mutex // protects hot
 	hot map[string]*slotQueue
 }
 
@@ -57,8 +57,7 @@ type slotQueue struct {
 	cond      *sync.Cond
 	slots     []*slotToken
 	nextId    uint64
-	output    chan *slotToken
-	isClosed  bool
+	signaller chan bool
 	statsLock sync.Mutex // protects stats below
 	stats     slotQueueStats
 }
@@ -72,49 +71,12 @@ func NewSlotQueueMgr() *slotQueueMgr {
 
 func NewSlotQueue(key string) *slotQueue {
 	obj := &slotQueue{
-		key:    key,
-		cond:   sync.NewCond(new(sync.Mutex)),
-		slots:  make([]*slotToken, 0),
-		output: make(chan *slotToken),
+		key:       key,
+		cond:      sync.NewCond(new(sync.Mutex)),
+		slots:     make([]*slotToken, 0),
+		signaller: make(chan bool, 1),
 	}
 
-	// producer go routine to pick LIFO slots and
-	// push them into output channel
-	go func() {
-		for {
-			obj.cond.L.Lock()
-			for len(obj.slots) <= 0 && !obj.isClosed {
-				obj.cond.Wait()
-			}
-
-			// cleanup and exit
-			if obj.isClosed {
-
-				purge := obj.slots
-				obj.slots = obj.slots[:0]
-				obj.cond.L.Unlock()
-
-				close(obj.output)
-
-				for _, val := range purge {
-					if val.acquireSlot() {
-						val.slot.Close()
-					}
-				}
-
-				return
-			}
-
-			// pop
-			item := obj.slots[len(obj.slots)-1]
-			obj.slots = obj.slots[:len(obj.slots)-1]
-			obj.cond.L.Unlock()
-
-			// block
-			obj.output <- item
-		}
-	}()
-
 	return obj
 }
 
@@ -135,19 +97,13 @@ func (a *slotQueue) ejectSlot(s *slotToken) bool {
 		return false
 	}
 
-	isFound := false
-
 	a.cond.L.Lock()
-	for idx, val := range a.slots {
-		if val.id == s.id {
-			a.slots[0], a.slots[idx] = a.slots[idx], a.slots[0]
-			isFound = true
+	for i := 0; i < len(a.slots); i++ {
+		if a.slots[i].id == s.id {
+			a.slots = append(a.slots[:i], a.slots[i+1:]...)
 			break
 		}
 	}
-	if isFound {
-		a.slots = a.slots[1:]
-	}
 	a.cond.L.Unlock()
 
 	s.slot.Close()
@@ -156,44 +112,73 @@ func (a *slotQueue) ejectSlot(s *slotToken) bool {
 	return true
 }
 
-func (a *slotQueue) destroySlotQueue() {
-	doSignal := false
-	a.cond.L.Lock()
-	if !a.isClosed {
-		a.isClosed = true
-		doSignal = true
-	}
-	a.cond.L.Unlock()
-	if doSignal {
-		a.cond.Signal()
-	}
-}
+func (a *slotQueue) startDequeuer(ctx context.Context) (chan *slotToken, context.CancelFunc) {
 
-func (a *slotQueue) getDequeueChan() chan *slotToken {
-	return a.output
+	ctx, cancel := context.WithCancel(ctx)
+
+	myCancel := func() {
+		cancel()
+		a.cond.Broadcast()
+	}
+
+	output := make(chan *slotToken)
+
+	go func() {
+		for {
+			a.cond.L.Lock()
+			for len(a.slots) <= 0 && (ctx.Err() == nil) {
+				a.cond.Wait()
+			}
+
+			if ctx.Err() != nil {
+				a.cond.L.Unlock()
+				return
+			}
+
+			// pop
+			item := a.slots[len(a.slots)-1]
+			a.slots = a.slots[:len(a.slots)-1]
+			a.cond.L.Unlock()
+
+			select {
+			case output <- item: // good case (dequeued)
+			case <-item.trigger: // ejected (eject handles cleanup)
+			case <-ctx.Done(): // time out or cancel from caller
+				// consume slot, we let the hot container queue the slot again
+				if item.acquireSlot() {
+					item.slot.Close()
+				}
+			}
+		}
+	}()
+
+	return output, myCancel
 }
 
 func (a *slotQueue) queueSlot(slot Slot) *slotToken {
 
 	token := &slotToken{slot, make(chan struct{}), 0, 0}
-	isClosed := false
 
 	a.cond.L.Lock()
-	if !a.isClosed {
-		token.id = a.nextId
-		a.slots = append(a.slots, token)
-		a.nextId += 1
-	} else {
-		isClosed = true
-	}
+	token.id = a.nextId
+	a.slots = append(a.slots, token)
+	a.nextId += 1
 	a.cond.L.Unlock()
 
-	if !isClosed {
-		a.cond.Signal()
-		return token
-	}
+	a.cond.Broadcast()
+	return token
+}
 
-	return nil
+// isIdle() returns true is there's no activity for this slot queue. This
+// means no one is waiting, running or starting.
+func (a *slotQueue) isIdle() bool {
+	var partySize uint64
+
+	a.statsLock.Lock()
+	partySize = a.stats.states[SlotQueueWaiter] + a.stats.states[SlotQueueStarter] + a.stats.states[SlotQueueRunner]
+	a.statsLock.Unlock()
+
+	return partySize == 0
 }
 
 func (a *slotQueue) getStats() slotQueueStats {
@@ -296,32 +281,35 @@ func (a *slotQueue) exitStateWithLatency(metricIdx SlotQueueMetricType, latency
 
 // getSlot must ensure that if it receives a slot, it will be returned, otherwise
 // a container will be locked up forever waiting for slot to free.
-func (a *slotQueueMgr) getHotSlotQueue(call *call) *slotQueue {
+func (a *slotQueueMgr) getSlotQueue(call *call) (*slotQueue, bool) {
 
 	key := getSlotQueueKey(call)
 
-	a.hMu.RLock()
+	a.hMu.Lock()
 	slots, ok := a.hot[key]
-	a.hMu.RUnlock()
 	if !ok {
-		a.hMu.Lock()
-		slots, ok = a.hot[key]
-		if !ok {
-			slots = NewSlotQueue(key)
-			a.hot[key] = slots
-		}
-		a.hMu.Unlock()
+		slots = NewSlotQueue(key)
+		a.hot[key] = slots
 	}
-	return slots
+	slots.enterState(SlotQueueWaiter)
+	a.hMu.Unlock()
+
+	return slots, !ok
 }
 
 // currently unused. But at some point, we need to age/delete old
 // slotQueues.
-func (a *slotQueueMgr) destroySlotQueue(slots *slotQueue) {
-	slots.destroySlotQueue()
+func (a *slotQueueMgr) deleteSlotQueue(slots *slotQueue) bool {
+	isDeleted := false
+
 	a.hMu.Lock()
-	delete(a.hot, slots.key)
+	if slots.isIdle() {
+		delete(a.hot, slots.key)
+		isDeleted = true
+	}
 	a.hMu.Unlock()
+
+	return isDeleted
 }
 
 func getSlotQueueKey(call *call) string {
diff --git a/api/agent/slots_test.go b/api/agent/slots_test.go
new file mode 100644
index 000000000..7939552bf
--- /dev/null
+++ b/api/agent/slots_test.go
@@ -0,0 +1,280 @@
+package agent
+
+import (
+	"context"
+	"fmt"
+	"sync"
+	"testing"
+	"time"
+)
+
+type testSlot struct {
+	id       uint64
+	err      error
+	isClosed bool
+}
+
+func (a *testSlot) exec(ctx context.Context, call *call) error {
+	return nil
+}
+
+func (a *testSlot) Close() error {
+	if a.isClosed {
+		panic(fmt.Errorf("id=%d already closed %v", a.id, a))
+	}
+	a.isClosed = true
+	return nil
+}
+
+func (a *testSlot) Error() error {
+	return a.err
+}
+
+func NewTestSlot(id uint64) Slot {
+	mySlot := &testSlot{
+		id: id,
+	}
+	return mySlot
+}
+
+func TestSlotQueueBasic1(t *testing.T) {
+
+	maxId := uint64(10)
+	slotName := "test1"
+
+	slots := make([]Slot, 0, maxId)
+	tokens := make([]*slotToken, 0, maxId)
+
+	obj := NewSlotQueue(slotName)
+
+	outChan, cancel := obj.startDequeuer(context.Background())
+	select {
+	case z := <-outChan:
+		t.Fatalf("Should not get anything from queue: %#v", z)
+	case <-time.After(time.Duration(500) * time.Millisecond):
+	}
+	cancel()
+
+	// create slots
+	for id := uint64(0); id < maxId; id += 1 {
+		slots = append(slots, NewTestSlot(id))
+	}
+
+	// queue a few slots here
+	for id := uint64(0); id < maxId; id += 1 {
+		tok := obj.queueSlot(slots[id])
+
+		innerTok := tok.slot.(*testSlot)
+
+		// check for slot id match
+		if innerTok != slots[id] {
+			t.Fatalf("queued testSlot does not match with slotToken.slot %#v vs %#v", innerTok, slots[id])
+		}
+
+		tokens = append(tokens, tok)
+	}
+
+	// Now according to LIFO semantics, we should get 9,8,7,6,5,4,3,2,1,0 if we dequeued right now.
+	// but let's eject 9
+	if !obj.ejectSlot(tokens[9]) {
+		t.Fatalf("Cannot eject slotToken: %#v", tokens[9])
+	}
+	// let eject 0
+	if !obj.ejectSlot(tokens[0]) {
+		t.Fatalf("Cannot eject slotToken: %#v", tokens[0])
+	}
+	// let eject 5
+	if !obj.ejectSlot(tokens[5]) {
+		t.Fatalf("Cannot eject slotToken: %#v", tokens[5])
+	}
+	// try ejecting 5 again, it should fail
+	if obj.ejectSlot(tokens[5]) {
+		t.Fatalf("Shouldn't be able to eject slotToken: %#v", tokens[5])
+	}
+
+	outChan, cancel = obj.startDequeuer(context.Background())
+
+	// now we should get 8
+	select {
+	case z := <-outChan:
+		if z.id != 8 {
+			t.Fatalf("Bad slotToken received: %#v", z)
+		}
+
+		if !z.acquireSlot() {
+			t.Fatalf("Cannot acquire slotToken received: %#v", z)
+		}
+
+		// second acquire shoudl fail
+		if z.acquireSlot() {
+			t.Fatalf("Should not be able to acquire twice slotToken: %#v", z)
+		}
+
+		z.slot.Close()
+
+	case <-time.After(time.Duration(1) * time.Second):
+		t.Fatal("timeout in waiting slotToken")
+	}
+
+	// now we should get 7
+	select {
+	case z := <-outChan:
+		if z.id != 7 {
+			t.Fatalf("Bad slotToken received: %#v", z)
+		}
+
+		// eject it before we can consume
+		if !obj.ejectSlot(tokens[7]) {
+			t.Fatalf("Cannot eject slotToken: %#v", tokens[2])
+		}
+
+		// we shouldn't be able to consume an ejected slotToken
+		if z.acquireSlot() {
+			t.Fatalf("We should not be able to acquire slotToken received: %#v", z)
+		}
+
+	case <-time.After(time.Duration(1) * time.Second):
+		t.Fatal("timeout in waiting slotToken")
+	}
+
+	cancel()
+
+	// we should get nothing or 6
+	select {
+	case z, ok := <-outChan:
+		if ok {
+			if z.id != 6 {
+				t.Fatalf("Should not get anything except for 6 from queue: %#v", z)
+			}
+			if !z.acquireSlot() {
+				t.Fatalf("cannot acquire token: %#v", z)
+			}
+		}
+	case <-time.After(time.Duration(500) * time.Millisecond):
+	}
+
+	stats1 := obj.getStats()
+	isNeeded, stats2 := obj.isNewContainerNeeded()
+
+	if stats1 != stats2 {
+		t.Fatalf("Faulty stats %#v != %#v", stats1, stats2)
+	}
+
+	// there are no waiters.
+	if isNeeded {
+		t.Fatalf("Shouldn't need a container")
+	}
+}
+
+func TestSlotQueueBasic2(t *testing.T) {
+
+	obj := NewSlotQueue("test2")
+
+	if !obj.isIdle() {
+		t.Fatalf("Should be idle")
+	}
+	if ok, _ := obj.isNewContainerNeeded(); ok {
+		t.Fatalf("Should not need a new container")
+	}
+
+	outChan, cancel := obj.startDequeuer(context.Background())
+	select {
+	case z := <-outChan:
+		t.Fatalf("Should not get anything from queue: %#v", z)
+	case <-time.After(time.Duration(500) * time.Millisecond):
+	}
+
+	cancel()
+}
+
+func TestSlotQueueBasic3(t *testing.T) {
+
+	slotName := "test3"
+
+	obj := NewSlotQueue(slotName)
+	_, cancel1 := obj.startDequeuer(context.Background())
+
+	slot1 := NewTestSlot(1)
+	slot2 := NewTestSlot(2)
+	token1 := obj.queueSlot(slot1)
+	obj.queueSlot(slot2)
+
+	// now our slot must be ready in outChan, but let's cancel it
+	// to cause a requeue. This should cause [1, 2] ordering to [2, 1]
+	cancel1()
+
+	outChan, cancel2 := obj.startDequeuer(context.Background())
+
+	// we should get '2' since cancel1() reordered the queue
+	select {
+	case item, ok := <-outChan:
+		if !ok {
+			t.Fatalf("outChan should be open")
+		}
+
+		inner := item.slot.(*testSlot)
+		outer := slot2.(*testSlot)
+
+		if inner.id != outer.id {
+			t.Fatalf("item should be 2")
+		}
+		if inner.isClosed {
+			t.Fatalf("2 should not yet be closed")
+		}
+
+		if !item.acquireSlot() {
+			t.Fatalf("2 acquire should not fail")
+		}
+
+		item.slot.Close()
+
+	case <-time.After(time.Duration(1) * time.Second):
+		t.Fatal("timeout in waiting slotToken")
+	}
+
+	// let's eject 1
+	if !obj.ejectSlot(token1) {
+		t.Fatalf("failed to eject 1")
+	}
+	if !slot1.(*testSlot).isClosed {
+		t.Fatalf("1 should be closed")
+	}
+
+	// spin up bunch of go routines, where each should get a non-acquirable
+	// token or timeout due the imminent obj.destroySlotQueue()
+	var wg sync.WaitGroup
+	goMax := 10
+	wg.Add(goMax)
+	for i := 0; i < goMax; i += 1 {
+		go func(id int) {
+			ch, cancl := obj.startDequeuer(context.Background())
+			defer cancl()
+			defer wg.Done()
+
+			select {
+			case z := <-ch:
+				t.Fatalf("%v we shouldn't get anything from queue %#v", id, z)
+			case <-time.After(time.Duration(500) * time.Millisecond):
+			}
+		}(i)
+	}
+
+	// let's cancel after destroy this time
+	cancel2()
+
+	wg.Wait()
+
+	select {
+	case z := <-outChan:
+		t.Fatalf("Should not get anything from queue: %#v", z)
+	case <-time.After(time.Duration(500) * time.Millisecond):
+	}
+
+	// both should be closed
+	if !slot1.(*testSlot).isClosed {
+		t.Fatalf("item1 should be closed")
+	}
+	if !slot2.(*testSlot).isClosed {
+		t.Fatalf("item2 should be closed")
+	}
+}