diff --git a/tools/cosmovisor/process_test.go b/tools/cosmovisor/process_test.go
index e019c8b98f..988bcf0a80 100644
--- a/tools/cosmovisor/process_test.go
+++ b/tools/cosmovisor/process_test.go
@@ -25,7 +25,7 @@ import (
 func TestLaunchProcess(t *testing.T) {
 	// binaries from testdata/validate directory
 	home := copyTestData(t, "validate")
-	cfg := &cosmovisor.Config{Home: home, Name: "dummyd", PollInterval: 20, UnsafeSkipBackup: true}
+	cfg := &cosmovisor.Config{Home: home, Name: "dummyd", PollInterval: 15, UnsafeSkipBackup: true}
 	logger := log.NewTestLogger(t).With(log.ModuleKey, "cosmosvisor")
 
 	// should run the genesis binary and produce expected output
@@ -145,7 +145,7 @@ func TestLaunchProcessWithRestartDelay(t *testing.T) {
 func TestPlanShutdownGrace(t *testing.T) {
 	// binaries from testdata/validate directory
 	home := copyTestData(t, "dontdie")
-	cfg := &cosmovisor.Config{Home: home, Name: "dummyd", PollInterval: 20, UnsafeSkipBackup: true, ShutdownGrace: 2 * time.Second}
+	cfg := &cosmovisor.Config{Home: home, Name: "dummyd", PollInterval: 15, UnsafeSkipBackup: true, ShutdownGrace: 2 * time.Second}
 	logger := log.NewTestLogger(t).With(log.ModuleKey, "cosmosvisor")
 
 	// should run the genesis binary and produce expected output
diff --git a/tools/cosmovisor/scanner.go b/tools/cosmovisor/scanner.go
index a5bfdf2cc0..6b46f85baf 100644
--- a/tools/cosmovisor/scanner.go
+++ b/tools/cosmovisor/scanner.go
@@ -16,7 +16,7 @@ import (
 )
 
 type fileWatcher struct {
-	deamonHome string
+	daemonHome string
 	filename   string // full path to a watched file
 	interval   time.Duration
 
@@ -53,7 +53,7 @@ func newUpgradeFileWatcher(cfg *Config) (*fileWatcher, error) {
 	}
 
 	return &fileWatcher{
-		deamonHome:    cfg.Home,
+		daemonHome:    cfg.Home,
 		currentBin:    bin,
 		filename:      filenameAbs,
 		interval:      cfg.PollInterval,
@@ -109,7 +109,32 @@ func (fw *fileWatcher) CheckUpdate(currentUpgrade upgradetypes.Plan) bool {
 
 	stat, err := os.Stat(fw.filename)
 	if err != nil {
-		// file doesn't exists
+		if os.IsNotExist(err) {
+			return false
+		} else {
+			panic(fmt.Errorf("failed to stat upgrade info file: %w", err))
+		}
+	}
+
+	// check https://github.com/cosmos/cosmos-sdk/issues/21086
+	// If new file is still empty, wait a small amount of time for write to complete
+	if stat.Size() == 0 {
+		for range 10 {
+			time.Sleep(2 * time.Millisecond)
+			stat, err = os.Stat(fw.filename)
+			if err != nil {
+				if os.IsNotExist(err) {
+					return false
+				} else {
+					panic(fmt.Errorf("failed to stat upgrade info file: %w", err))
+				}
+			}
+			if stat.Size() == 0 {
+				break
+			}
+		}
+	}
+	if stat.Size() == 0 {
 		return false
 	}
 
@@ -118,13 +143,6 @@ func (fw *fileWatcher) CheckUpdate(currentUpgrade upgradetypes.Plan) bool {
 		return false
 	}
 
-	// if fw.lastModTime.IsZero() { // check https://github.com/cosmos/cosmos-sdk/issues/21086
-	// 	// first initialization or daemon restart while upgrading-info.json exists.
-	// 	// it could be that it was just created and not fully written to disk.
-	// 	// wait tiniest bit of time to allow the file to be fully written.
-	// 	time.Sleep(2 * time.Millisecond)
-	// }
-
 	info, err := parseUpgradeInfoFile(fw.filename, fw.disableRecase)
 	if err != nil {
 		panic(fmt.Errorf("failed to parse upgrade info file: %w", err))
@@ -167,7 +185,7 @@ func (fw *fileWatcher) checkHeight() (int64, error) {
 		return 0, nil
 	}
 
-	result, err := exec.Command(fw.currentBin, "status", "--home", fw.deamonHome).CombinedOutput() //nolint:gosec // we want to execute the status command
+	result, err := exec.Command(fw.currentBin, "status", "--home", fw.daemonHome).CombinedOutput() //nolint:gosec // we want to execute the status command
 	if err != nil {
 		return 0, err
 	}
diff --git a/tools/cosmovisor/testdata/dontdie/cosmovisor/genesis/bin/dummyd b/tools/cosmovisor/testdata/dontdie/cosmovisor/genesis/bin/dummyd
index 49e60a1e20..8694ec8e8e 100755
--- a/tools/cosmovisor/testdata/dontdie/cosmovisor/genesis/bin/dummyd
+++ b/tools/cosmovisor/testdata/dontdie/cosmovisor/genesis/bin/dummyd
@@ -11,7 +11,10 @@ sleep 1
 test -z $4 && exit 1001
 echo 'UPGRADE "Chain2" NEEDED at height: 49: {}'
 echo '{"name":"Chain2","height":49,"info":""}' > $4
+# Shutdown grace test waits 2 seconds for flush
+# Flush within 1 second
 sleep 1
 echo 'Flushed'
-sleep 1
+# Now chain is halted for shutdown grace test.
+sleep 2
 echo Did not kill in time. Never should be printed!!!