diff --git a/gunicorn/arbiter.py b/gunicorn/arbiter.py
index b95f76eb..68b23696 100644
--- a/gunicorn/arbiter.py
+++ b/gunicorn/arbiter.py
@@ -20,7 +20,6 @@ from gunicorn.worker import Worker
 
 class Arbiter(object):
     
-    
     LISTENER = None
     WORKERS = {}    
     PIPE = []
@@ -36,7 +35,7 @@ class Arbiter(object):
         if name[:3] == "SIG" and name[3] != "_"
     )
     
-    _pidfile = None
+    
     
     def __init__(self, address, num_workers, modname, 
             **kwargs):
@@ -45,15 +44,19 @@ class Arbiter(object):
         self.modname = modname
         self.timeout = 30
         self.reexec_pid = 0
-        self.pid = os.getpid()
         self.debug = kwargs.get("debug", False)
         self.log = logging.getLogger(__name__)
+        self.opts = kwargs
+        self._pidfile = None
+        
+        
+    def start(self):
+        self.pid = os.getpid()
         self.init_signals()
         self.listen(self.address)
-        self.pidfile = kwargs.get("pidfile")
+        self.pidfile = self.opts.get("pidfile")
         self.log.info("Booted Arbiter: %s" % os.getpid())
         
-    
     def _del_pidfile(self):
         self._pidfile = None
         
@@ -180,6 +183,7 @@ class Arbiter(object):
             sock.setsockopt(socket.IPPROTO_TCP, socket.TCP_NOPUSH, 1)
 
     def run(self):
+        self.start()
         self.manage_workers()
         while True:
             try:
@@ -217,6 +221,7 @@ class Arbiter(object):
         self.log.info("Master is shutting down.")
         if self.pidfile:
             self.unlink_pidfile(self.pidfile)
+        sys.exit(0)
         
     def handle_chld(self, sig, frame):
         self.wakeup()
diff --git a/gunicorn/main.py b/gunicorn/main.py
index 4f040bf0..cbaf1f30 100644
--- a/gunicorn/main.py
+++ b/gunicorn/main.py
@@ -6,6 +6,8 @@
 
 import logging
 import optparse as op
+import os
+import sys
 
 from gunicorn.arbiter import Arbiter
 
@@ -27,6 +29,8 @@ def options():
             help='Number of workers to spawn. [%default]'),
         op.make_option('-p','--pid', dest='pidfile',
             help='set the background PID FILE'),
+        op.make_option('-D', '--daemon', dest='daemon',
+            help='Run daemonized in the background.'),
         op.make_option('--log-level', dest='loglevel', default='info',
             help='Log level below which to silence messages. [%default]'),
         op.make_option('--log-file', dest='logfile', default='-',
@@ -49,11 +53,23 @@ def configure_logging(opts):
     for h in handlers:
         h.setFormatter(logging.Formatter("%(levelname)s %(message)s"))
         logger.addHandler(h)
-
+    return logger
+        
+def daemonize(logger):
+    if not 'GUNICORN_FD' in os.environ:
+        pid = os.fork()
+        if pid != 0:
+            # Parent
+            logger.debug("arbiter daemonized; parent exiting")
+            os._exit(0)
+        os.close(0)
+        sys.stdin = sys.__stdin__ = open("/dev/null")
+        os.setsid()
+        
 def main(usage, get_app):
     parser = op.OptionParser(usage=usage, option_list=options())
     opts, args = parser.parse_args()
-    configure_logging(opts)
+    logger = configure_logging(opts)
 
     app = get_app(parser, opts, args)
     workers = opts.workers or 1
@@ -74,12 +90,16 @@ def main(usage, get_app):
         pidfile=opts.pidfile
     )
     
+
     arbiter = Arbiter((host,port), workers, app, 
                     **kwargs)
+    if opts.daemon:
+        daemonize(logger)
     arbiter.run()
     
 def paste_server(app, global_conf=None, host="127.0.0.1", port=None, 
             *args, **kwargs):
+    logger = configure_logging(opts)
     if not port:
         if ':' in host:
             host, port = host.split(':', 1)
@@ -100,10 +120,16 @@ def paste_server(app, global_conf=None, host="127.0.0.1", port=None,
     if global_conf:
         pid = global_conf.get('pid', pid)
         
+    daemon = kwargs.get("daemon")
+    if global_conf:
+        daemon = global_conf.get('daemon', daemonize)
+   
     kwargs = dict(
         debug=debug,
         pidfile=pid
     )
 
     arbiter = Arbiter(bind_addr, workers, app, **kwargs)
+    if daemon == "true":
+           daemonize(logger)
     arbiter.run()
\ No newline at end of file
diff --git a/gunicorn/worker.py b/gunicorn/worker.py
index 873e6af8..8e74c409 100644
--- a/gunicorn/worker.py
+++ b/gunicorn/worker.py
@@ -60,7 +60,7 @@ class Worker(object):
         self.alive = False
 
     def handle_exit(self, sig, frame):
-        sys.exit(0)
+        os._exit(0)
         
     def _fchmod(self, mode):
         if getattr(os, 'fchmod', None):