diff --git a/hadoop-hdds/common/src/main/java/org/apache/hadoop/hdds/utils/BackgroundService.java b/hadoop-hdds/common/src/main/java/org/apache/hadoop/hdds/utils/BackgroundService.java
index 144d1725fdb5..8301e9e15079 100644
--- a/hadoop-hdds/common/src/main/java/org/apache/hadoop/hdds/utils/BackgroundService.java
+++ b/hadoop-hdds/common/src/main/java/org/apache/hadoop/hdds/utils/BackgroundService.java
@@ -24,6 +24,7 @@
 import java.util.concurrent.Executors;
 import java.util.concurrent.ScheduledThreadPoolExecutor;
 import java.util.concurrent.ThreadFactory;
+import java.util.concurrent.ThreadPoolExecutor;
 import java.util.concurrent.TimeUnit;
 import org.apache.ratis.util.TimeDuration;
 import org.slf4j.Logger;
@@ -40,8 +41,9 @@ public abstract class BackgroundService {
   protected static final Logger LOG =
       LoggerFactory.getLogger(BackgroundService.class);
 
-  // Executor to launch child tasks
-  private ScheduledThreadPoolExecutor exec;
+  private ThreadPoolExecutor exec;
+  // Scheduler for PeriodicalTask
+  private ScheduledThreadPoolExecutor scheduler;
   private ThreadGroup threadGroup;
   private final String serviceName;
   private long interval;
@@ -86,10 +88,16 @@ public synchronized void setPoolSize(int size) {
       throw new IllegalArgumentException("Pool size must be positive.");
     }
 
-    // In ScheduledThreadPoolExecutor, maximumPoolSize is Integer.MAX_VALUE
-    // the corePoolSize will always less maximumPoolSize.
-    // So we can directly set the corePoolSize
-    exec.setCorePoolSize(size);
+    // In ThreadPoolExecutor, maximumPoolSize must always be >= corePoolSize.
+    // Update in the correct order based on whether we are increasing or decreasing.
+    final int currentCorePoolSize = exec.getCorePoolSize();
+    if (size > currentCorePoolSize) {
+      exec.setMaximumPoolSize(size);
+      exec.setCorePoolSize(size);
+    } else if (size < currentCorePoolSize) {
+      exec.setCorePoolSize(size);
+      exec.setMaximumPoolSize(size);
+    }
   }
 
   public synchronized void setServiceTimeoutInNanos(long newTimeout) {
@@ -113,12 +121,13 @@ public void runPeriodicalTaskNow() throws Exception {
 
   // start service
   public synchronized void start() {
-    if (exec == null || exec.isShutdown() || exec.isTerminated()) {
+    if (exec == null || exec.isShutdown() || exec.isTerminated()
+        || scheduler == null || scheduler.isShutdown() || scheduler.isTerminated()) {
       initExecutorAndThreadGroup();
     }
     LOG.info("Starting service {} with interval {} {}", serviceName,
         interval, unit.name().toLowerCase());
-    exec.scheduleWithFixedDelay(service, 0, interval, unit);
+    scheduler.scheduleWithFixedDelay(service, 0, interval, unit);
   }
 
   protected synchronized void setInterval(long newInterval, TimeUnit newUnit) {
@@ -141,15 +150,6 @@ protected void execTaskCompletion() { }
   public class PeriodicalTask implements Runnable {
     @Override
     public void run() {
-      // wait for previous set of tasks to complete
-      try {
-        future.join();
-      } catch (RuntimeException e) {
-        LOG.error("Background service execution failed.", e);
-      } finally {
-        execTaskCompletion();
-      }
-
       if (LOG.isDebugEnabled()) {
         LOG.debug("Running background service : {}", serviceName);
       }
@@ -187,20 +187,33 @@ public void run() {
           }, exec).exceptionally(e -> null), (Void1, Void) -> null);
         }
       }
+      // wait for all tasks to complete
+      try {
+        future.join();
+      } catch (RuntimeException e) {
+        LOG.error("Background service execution failed.", e);
+      } finally {
+        execTaskCompletion();
+      }
     }
   }
 
   // shutdown and make sure all threads are properly released.
   public synchronized void shutdown() {
     LOG.info("Shutting down service {}", this.serviceName);
+    scheduler.shutdown();
     exec.shutdown();
     try {
+      if (!scheduler.awaitTermination(60, TimeUnit.SECONDS)) {
+        scheduler.shutdownNow();
+      }
       if (!exec.awaitTermination(60, TimeUnit.SECONDS)) {
         exec.shutdownNow();
       }
     } catch (InterruptedException e) {
       // Re-interrupt the thread while catching InterruptedException
       Thread.currentThread().interrupt();
+      scheduler.shutdownNow();
       exec.shutdownNow();
     }
     if (threadGroup.activeCount() == 0 && !threadGroup.isDestroyed()) {
@@ -215,7 +228,14 @@ private void initExecutorAndThreadGroup() {
         .setDaemon(true)
         .setNameFormat(threadNamePrefix + serviceName + "#%d")
         .build();
-    exec = (ScheduledThreadPoolExecutor) Executors.newScheduledThreadPool(threadPoolSize, threadFactory);
+    exec = (ThreadPoolExecutor) Executors.newFixedThreadPool(threadPoolSize, threadFactory);
+    // Single-thread scheduler for PeriodicalTask
+    ThreadFactory schedulerThreadFactory = new ThreadFactoryBuilder()
+        .setThreadFactory(r -> new Thread(threadGroup, r))
+        .setDaemon(true)
+        .setNameFormat(threadNamePrefix + serviceName + "-scheduler")
+        .build();
+    scheduler = (ScheduledThreadPoolExecutor) Executors.newScheduledThreadPool(1, schedulerThreadFactory);
   }
 
   protected String getServiceName() {
diff --git a/hadoop-hdds/common/src/test/java/org/apache/hadoop/util/TestBackgroundService.java b/hadoop-hdds/common/src/test/java/org/apache/hadoop/util/TestBackgroundService.java
index 2c5ed1bfea5a..865e9e8fbb80 100644
--- a/hadoop-hdds/common/src/test/java/org/apache/hadoop/util/TestBackgroundService.java
+++ b/hadoop-hdds/common/src/test/java/org/apache/hadoop/util/TestBackgroundService.java
@@ -19,9 +19,11 @@
 
 import static org.junit.jupiter.api.Assertions.assertEquals;
 import static org.junit.jupiter.api.Assertions.assertTrue;
+import static org.junit.jupiter.api.Assertions.fail;
 
 import java.util.ArrayList;
 import java.util.Arrays;
+import java.util.Collections;
 import java.util.HashMap;
 import java.util.List;
 import java.util.Map;
@@ -134,11 +136,11 @@ public void testBackgroundServiceRunWaitsForTasks() throws InterruptedException,
     // Verify that even index tasks have not run even after serviceTimeout.
     assertEquals(expValuesWithEvenLocks, IntStream.range(0, nTasks).boxed().map(map::get).collect(Collectors.toList()));
     // Background service is still waiting for all tasks to complete.
-    assertEquals(0, runCount.get());
+    assertEquals(-1, runCount.get());
     // Release the locks on even index tasks.
     lockList.forEach(Lock::unlock);
     // Wait for current run of BackgroundService to complete.
-    GenericTestUtils.waitFor(() -> runCount.get() == 1, interval / 5, serviceTimeout);
+    GenericTestUtils.waitFor(() -> runCount.get() >= 0, interval / 5, serviceTimeout);
     // Verify that all tasks have completed.
     assertEquals(expFinalValues, IntStream.range(0, nTasks).boxed().map(map::get).collect(Collectors.toList()));
     assertTrue(queue.isEmpty());
@@ -159,9 +161,61 @@ public void testSingleWorkerThread() throws InterruptedException, TimeoutExcepti
         1, serviceTimeout);
     backgroundService.start();
     // Wait till current run of BackgroundService completes.
-    GenericTestUtils.waitFor(() -> runCount.get() == 1, interval / 5, serviceTimeout);
+    GenericTestUtils.waitFor(() -> runCount.get() >= 0, interval / 5, serviceTimeout);
     // Verify that all tasks have completed.
     assertEquals(expFinalValues, IntStream.range(0, nTasks).boxed().map(map::get).collect(Collectors.toList()));
     assertTrue(queue.isEmpty());
   }
+
+  @Test
+  public void testRunWaitsForTaskCompletion() throws TimeoutException, InterruptedException {
+    int interval = 100;
+    int serviceTimeout = 5000;
+    // Lock to control when the task can complete.
+    Lock taskLock = new ReentrantLock();
+    List<Long> runStartTimes = Collections.synchronizedList(new ArrayList<>());
+    List<Long> taskEndTimes = Collections.synchronizedList(new ArrayList<>());
+
+    backgroundService = new BackgroundService("testFixedDelay", interval,
+        TimeUnit.MILLISECONDS, 1, serviceTimeout) {
+      @Override
+      public BackgroundTaskQueue getTasks() {
+        BackgroundTaskQueue taskQueue = new BackgroundTaskQueue();
+        runStartTimes.add(System.currentTimeMillis());
+        taskQueue.add(() -> {
+          taskLock.lock();
+          try {
+            taskEndTimes.add(System.currentTimeMillis());
+          } finally {
+            taskLock.unlock();
+          }
+          return BackgroundTaskResult.EmptyTaskResult.newResult();
+        });
+        return taskQueue;
+      }
+
+      @Override
+      public void execTaskCompletion() {
+        runCount.incrementAndGet();
+      }
+    };
+
+    // Hold the lock so the first task blocks, the task cannot complete before release lock
+    taskLock.lock();
+    try {
+      backgroundService.start();
+      // Wait for the first run to start.
+      GenericTestUtils.waitFor(() -> !runStartTimes.isEmpty(), 100, serviceTimeout);
+      try {
+        // Task cannot complete before release lock
+        GenericTestUtils.waitFor(() -> runCount.get() >= 0, 100, 2000);
+        fail("BackgroundService should not complete task");
+      } catch (TimeoutException e) {
+      }
+    } finally {
+      taskLock.unlock();
+    }
+    // Wait for first run to complete after unlock
+    GenericTestUtils.waitFor(() -> runCount.get() >= 0, 10, serviceTimeout);
+  }
 }