diff --git a/CHANGELOG.md b/CHANGELOG.md
index b1c2f35..80dac74 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -19,6 +19,12 @@ All notable changes to WASM-OJ are recorded here. Releases follow
 - Accept runtime-bundle interactors (for example CPython) in `Runner.interact` on the server
   and in the browser runner Worker. Either side of an interactive session may now be a
   standalone Wasm module or a runtime bundle that provides streaming fd 0.
+- Fixed Python runtime preparation and TypeScript compilation occasionally stalling until their
+  300 s and 120 s timeouts. The Wasmer SDK can terminate its workers before stdout/stderr reach
+  EOF even though all output has arrived, so the server and browser now finish once the
+  self-delimiting archive or JSON compiler response is complete instead of waiting for
+  `Instance.wait()`. A guest that exits before completing its output still fails with its
+  stderr, about 2 s after it exits.
 
 ## 0.2.3 - 2026-10-05
 
diff --git a/src/compiler/wasmer-engine.ts b/src/compiler/wasmer-engine.ts
index ca662d7..f330317 100644
--- a/src/compiler/wasmer-engine.ts
+++ b/src/compiler/wasmer-engine.ts
@@ -1,9 +1,9 @@
 import {
   Runtime,
   Wasmer,
-  type Output,
 } from "@wasmer/sdk";
 import { WASM_OJ_CONTRACT_VERSION } from "../core/contract.ts";
+import { completeJsonObject, readProcessMessage } from "../core/process-output.ts";
 import {
   canonicalRuntimeBundleFiles,
   createRuntimeBundleManifest,
@@ -307,7 +307,7 @@ interface TypeScriptWasiResponse {
   files: Record<string, string>;
 }
 
-async function transpileScriptProject(project: Project, requestId: string): Promise<{ files: Record<string, string | Uint8Array>; output: Output; response?: TypeScriptWasiResponse }> {
+async function transpileScriptProject(project: Project, requestId: string): Promise<{ files: Record<string, string | Uint8Array>; stderr: string; response?: TypeScriptWasiResponse }> {
   const scriptFiles = scriptSourceFiles(project);
   const emittedFiles = emittedSourceFiles(project);
   const dependencyFiles = npmDependencyFiles(project);
@@ -337,15 +337,14 @@ async function transpileScriptProject(project: Project, requestId: string): Prom
       outputs: outputPaths.map((path) => `/project/build/${path}`),
     }),
   });
-  const output = await instance.wait();
-  let response: TypeScriptWasiResponse | undefined;
-  if (output.ok) {
-    try {
-      response = JSON.parse(output.stdout) as TypeScriptWasiResponse;
-    } catch {
-      response = undefined;
-    }
-  }
+  // Instance.wait() can hang after all output arrived (see readProcessMessage). It is also the only
+  // way to read the exit code, so a complete response, the driver's last write, stands in for exit 0.
+  const output = await readProcessMessage<TypeScriptWasiResponse>(
+    instance,
+    completeJsonObject,
+    { collectStderr: true },
+  ).finally(() => instance.free());
+  const response = output.message;
   const files: Record<string, string | Uint8Array> = {};
   if (response) {
     for (const outputPath of outputPaths) {
@@ -354,7 +353,7 @@ async function transpileScriptProject(project: Project, requestId: string): Prom
     }
   }
   Object.assign(files, dependencyFiles);
-  return { files, output, response };
+  return { files, stderr: output.stderr, response };
 }
 
 async function buildScript(project: Project, cacheKey: string, requestId: string): Promise<BuildResult> {
@@ -388,11 +387,11 @@ async function buildScript(project: Project, cacheKey: string, requestId: string
     progress(requestId, "compiling", "Compiling TypeScript with TypeScript/WASI", 0.5);
     const transpiled = await transpileScriptProject(project, requestId);
     files = transpiled.files;
-    stderr = transpiled.output.stderr;
+    stderr = transpiled.stderr;
     diagnostics = parseTypeScriptDiagnostics(transpiled.response?.diagnostics ?? "");
     const emittedOutputsPresent = emittedSourceFiles(project)
       .every((file) => Object.hasOwn(files, emittedScriptPath(file.path)));
-    if (!transpiled.output.ok || !transpiled.response || transpiled.response.status !== 0 || !emittedOutputsPresent || diagnostics.some((diagnostic) => diagnostic.severity === "error")) {
+    if (!transpiled.response || transpiled.response.status !== 0 || !emittedOutputsPresent || diagnostics.some((diagnostic) => diagnostic.severity === "error")) {
       return {
         success: false,
         diagnostics: ensureFailureDiagnostic(diagnostics, {
diff --git a/src/core/process-output.test.ts b/src/core/process-output.test.ts
new file mode 100644
index 0000000..2a812f2
--- /dev/null
+++ b/src/core/process-output.test.ts
@@ -0,0 +1,81 @@
+import { describe, expect, it } from "vitest";
+import { completeJsonObject, readProcessMessage } from "./process-output";
+
+const encoder = new TextEncoder();
+
+function pipe() {
+  let controller!: ReadableStreamDefaultController<Uint8Array>;
+  const stream = new ReadableStream<Uint8Array>({ start: (value) => { controller = value; } });
+  return {
+    stream,
+    write: (text: string) => controller.enqueue(encoder.encode(text)),
+    close: () => controller.close(),
+  };
+}
+
+const delay = (ms: number) => new Promise((resolve) => setTimeout(resolve, ms));
+
+describe("process output messages", () => {
+  it("completes a JSON response without stdout or stderr EOF and keeps late stderr", async () => {
+    const stdout = pipe();
+    const stderr = pipe();
+    const result = readProcessMessage<{ status: number; text: string }>(
+      { stdout: stdout.stream, stderr: stderr.stream },
+      completeJsonObject,
+      { collectStderr: true, idleGraceMs: 50 },
+    );
+    // A chunk boundary right after a `}` inside a string must not complete the response.
+    stdout.write('{"status":0,"text":"f() {}');
+    stdout.write('"}\n');
+    await delay(10);
+    stderr.write("warning: late");
+    await expect(result).resolves.toEqual({
+      message: { status: 0, text: "f() {}" },
+      stderr: "warning: late",
+    });
+  });
+
+  it("returns as soon as stderr ends after the response completes", async () => {
+    const stdout = pipe();
+    const stderr = pipe();
+    const started = performance.now();
+    const result = readProcessMessage(
+      { stdout: stdout.stream, stderr: stderr.stream },
+      completeJsonObject,
+      { collectStderr: true, idleGraceMs: 60_000 },
+    );
+    stdout.write('{"status":0}');
+    stderr.close();
+    await expect(result).resolves.toEqual({ message: { status: 0 }, stderr: "" });
+    expect(performance.now() - started).toBeLessThan(1_000);
+  });
+
+  it("gives up after the idle grace once stdout ended without a complete response", async () => {
+    const stdout = pipe();
+    const stderr = pipe();
+    const result = readProcessMessage(
+      { stdout: stdout.stream, stderr: stderr.stream },
+      completeJsonObject,
+      { idleGraceMs: 30 },
+    );
+    stdout.write('{"status":');
+    stderr.write("panic: out of memory");
+    stdout.close();
+    await expect(result).resolves.toEqual({ message: undefined, stderr: "panic: out of memory" });
+  });
+
+  it("keeps waiting while both streams are open", async () => {
+    const stdout = pipe();
+    const stderr = pipe();
+    const result = readProcessMessage(
+      { stdout: stdout.stream, stderr: stderr.stream },
+      completeJsonObject,
+      { idleGraceMs: 10 },
+    );
+    stdout.write('{"status":');
+    const early = await Promise.race([result, delay(100).then(() => "pending")]);
+    expect(early).toBe("pending");
+    stdout.write("0}");
+    await expect(result).resolves.toEqual({ message: { status: 0 }, stderr: "" });
+  });
+});
diff --git a/src/core/process-output.ts b/src/core/process-output.ts
new file mode 100644
index 0000000..a15ae37
--- /dev/null
+++ b/src/core/process-output.ts
@@ -0,0 +1,119 @@
+/** How long a read waits for new bytes once the guest has exited or the message is complete. */
+export const PROCESS_OUTPUT_IDLE_GRACE_MS = 2_000;
+
+export interface StreamingProcess {
+  readonly stdin?: WritableStream | undefined;
+  readonly stdout: ReadableStream<Uint8Array>;
+  readonly stderr: ReadableStream<Uint8Array>;
+}
+
+export interface ProcessMessageOptions {
+  readonly idleGraceMs?: number | undefined;
+  /** Keep reading stderr after the message completes, until EOF or the idle grace. */
+  readonly collectStderr?: boolean | undefined;
+}
+
+export interface ProcessMessage<T> {
+  /** The parsed stdout message, or undefined when the process stopped before completing it. */
+  readonly message: T | undefined;
+  readonly stderr: string;
+}
+
+type ReadEvent = { readonly source: "stdout" | "stderr"; readonly chunk?: Uint8Array } | { readonly source: "idle" };
+
+/**
+ * Read stdout until `parse` recognizes one complete self-delimiting message.
+ *
+ * `@wasmer/sdk` 0.10 `Instance.wait()` joins stdout EOF, stderr EOF and the exit code, and its
+ * thread-pool teardown can drop either EOF after all output arrived, so `wait()` never settles.
+ * Completion therefore comes from the message itself. Either EOF means the guest exited, so the
+ * other stream then gets `idleGraceMs` without new bytes before the read stops. If both EOFs are
+ * lost before the message completes, the caller's own deadline still bounds the read.
+ */
+export async function readProcessMessage<T>(
+  child: StreamingProcess,
+  parse: (stdout: Uint8Array) => T | undefined,
+  options: ProcessMessageOptions = {},
+): Promise<ProcessMessage<T>> {
+  const idleGraceMs = options.idleGraceMs ?? PROCESS_OUTPUT_IDLE_GRACE_MS;
+  await child.stdin?.close().catch(() => undefined);
+  const stdoutReader = child.stdout.getReader();
+  const stderrReader = child.stderr.getReader();
+  const nextStdout = () => stdoutReader.read()
+    .then(({ done, value }): ReadEvent => ({ source: "stdout", chunk: done ? undefined : value }));
+  const nextStderr = () => stderrReader.read()
+    .then(({ done, value }): ReadEvent => ({ source: "stderr", chunk: done ? undefined : value }))
+    .catch((): ReadEvent => ({ source: "stderr" }));
+  const stdout = byteBuffer();
+  const stderr = byteBuffer();
+  let stdoutRead: Promise<ReadEvent> | undefined = nextStdout();
+  let stderrRead: Promise<ReadEvent> | undefined = nextStderr();
+  let message: T | undefined;
+  try {
+    while (true) {
+      const complete = message !== undefined;
+      const reads = complete ? [options.collectStderr ? stderrRead : undefined] : [stdoutRead, stderrRead];
+      const pending = reads.filter((read): read is Promise<ReadEvent> => read !== undefined);
+      if (pending.length === 0) break;
+      // While both streams are open and the message is incomplete, the guest may still be running.
+      let timer: ReturnType<typeof setTimeout> | undefined;
+      if (complete || pending.length === 1) {
+        pending.push(new Promise((resolve) => {
+          timer = setTimeout(() => resolve({ source: "idle" }), idleGraceMs);
+        }));
+      }
+      const event = await Promise.race(pending).finally(() => clearTimeout(timer));
+      if (event.source === "idle") break;
+      if (event.source === "stdout") {
+        if (!event.chunk) {
+          stdoutRead = undefined;
+          continue;
+        }
+        stdout.append(event.chunk);
+        message = parse(stdout.bytes());
+        stdoutRead = message === undefined ? nextStdout() : undefined;
+      } else if (!event.chunk) {
+        stderrRead = undefined;
+      } else {
+        stderr.append(event.chunk);
+        stderrRead = nextStderr();
+      }
+    }
+  } finally {
+    await Promise.allSettled([stdoutReader.cancel(), stderrReader.cancel()]);
+  }
+  return { message, stderr: new TextDecoder().decode(stderr.bytes()) };
+}
+
+const JSON_WHITESPACE = new Set([0x09, 0x0a, 0x0d, 0x20]);
+
+/** Parse stdout once it holds one complete JSON object, optionally followed by whitespace. */
+export function completeJsonObject<T>(stdout: Uint8Array): T | undefined {
+  let end = stdout.byteLength;
+  while (end > 0 && JSON_WHITESPACE.has(stdout[end - 1])) end -= 1;
+  // Only output ending in `}` can hold the whole object, which keeps parse attempts rare.
+  if (end === 0 || stdout[end - 1] !== 0x7d) return undefined;
+  try {
+    return JSON.parse(new TextDecoder().decode(stdout.subarray(0, end))) as T;
+  } catch {
+    return undefined;
+  }
+}
+
+/** An append-only byte buffer that grows geometrically, so appending chunks stays linear. */
+function byteBuffer() {
+  let buffer = new Uint8Array(0);
+  let length = 0;
+  return {
+    append(chunk: Uint8Array): void {
+      if (length + chunk.byteLength > buffer.byteLength) {
+        const grown = new Uint8Array(Math.max(length + chunk.byteLength, buffer.byteLength * 2));
+        grown.set(buffer.subarray(0, length));
+        buffer = grown;
+      }
+      buffer.set(chunk, length);
+      length += chunk.byteLength;
+    },
+    bytes: (): Uint8Array => buffer.subarray(0, length),
+  };
+}
diff --git a/src/runner/runtime-files.test.ts b/src/runner/runtime-files.test.ts
index 318731f..20ba179 100644
--- a/src/runner/runtime-files.test.ts
+++ b/src/runner/runtime-files.test.ts
@@ -1,6 +1,10 @@
 import { describe, expect, it } from "vitest";
 import { sha256Hex } from "../core/hash";
-import { decodeRuntimeFiles, verifyAndDecodeRuntimeFiles } from "./runtime-files";
+import {
+  decodeRuntimeFiles,
+  readRuntimeFilesExport,
+  verifyAndDecodeRuntimeFiles,
+} from "./runtime-files";
 
 const encoder = new TextEncoder();
 
@@ -59,3 +63,95 @@ describe("runtime file archives", () => {
     );
   });
 });
+
+function outputStream(chunks: readonly Uint8Array[], end: boolean) {
+  const state = { cancelled: false };
+  const stream = new ReadableStream<Uint8Array>({
+    start(controller) {
+      for (const chunk of chunks) controller.enqueue(chunk);
+      if (end) controller.close();
+    },
+    cancel() {
+      state.cancelled = true;
+    },
+  });
+  return { stream, state };
+}
+
+function split(bytes: Uint8Array, size: number): Uint8Array[] {
+  const chunks: Uint8Array[] = [];
+  for (let offset = 0; offset < bytes.byteLength; offset += size) {
+    chunks.push(bytes.slice(offset, offset + size));
+  }
+  return chunks;
+}
+
+describe("runtime file exports", () => {
+  it("returns a complete archive even when stdout and stderr never reach EOF", async () => {
+    const expected = archive([
+      ["/cpython/lib/python314.zip", "stdlib".repeat(100)],
+      ["/cpython/lib/python3.14/os.py", "os"],
+    ]);
+    const stdout = outputStream(split(expected, 7), false);
+    const stderr = outputStream([], false);
+    let stdinClosed = false;
+
+    const bytes = await readRuntimeFilesExport({
+      stdin: new WritableStream({ close: () => { stdinClosed = true; } }),
+      stdout: stdout.stream,
+      stderr: stderr.stream,
+    });
+
+    expect(bytes).toEqual(expected);
+    expect(stdinClosed).toBe(true);
+    expect(stdout.state.cancelled).toBe(true);
+    expect(stderr.state.cancelled).toBe(true);
+  });
+
+  it("reports stderr when stdout ends before the archive is complete", async () => {
+    const complete = archive([["/cpython/lib/python314.zip", "stdlib"]]);
+    await expect(readRuntimeFilesExport({
+      stdout: outputStream([complete.subarray(0, complete.byteLength - 1)], true).stream,
+      stderr: outputStream([encoder.encode("Traceback: boom")], true).stream,
+    })).rejects.toThrow("Traceback: boom");
+  });
+
+  it("reports stderr after the idle grace when only stderr reaches EOF", async () => {
+    const complete = archive([["/cpython/lib/python314.zip", "stdlib"]]);
+    const stdout = outputStream([complete.subarray(0, 20)], false);
+    await expect(readRuntimeFilesExport({
+      stdout: stdout.stream,
+      stderr: outputStream([encoder.encode("MemoryError")], true).stream,
+    }, 30)).rejects.toThrow("ended before its archive was complete: MemoryError");
+    expect(stdout.state.cancelled).toBe(true);
+  });
+
+  it("keeps reading while stdout still delivers after stderr reached EOF", async () => {
+    const expected = archive([["/cpython/lib/python314.zip", "stdlib".repeat(100)]]);
+    const chunks = split(expected, 32);
+    const stdout = new ReadableStream<Uint8Array>({
+      async pull(controller) {
+        await new Promise((resolve) => setTimeout(resolve, 15));
+        const chunk = chunks.shift();
+        if (chunk) controller.enqueue(chunk);
+      },
+    });
+    // The 100 ms grace is shorter than the whole delivery but longer than each gap between chunks.
+    await expect(readRuntimeFilesExport({
+      stdout,
+      stderr: outputStream([], true).stream,
+    }, 100)).resolves.toEqual(expected);
+  });
+
+  it("returns exactly the framed archive whatever trails it in the same chunk", async () => {
+    const expected = archive([["/cpython/lib/python314.zip", "stdlib"]]);
+    const trailing = new Uint8Array([...expected, ...encoder.encode("TRAILING")]);
+    for (const chunks of [[trailing], split(trailing, 5)]) {
+      const bytes = await readRuntimeFilesExport({
+        stdout: outputStream(chunks, false).stream,
+        stderr: outputStream([], false).stream,
+      });
+      expect(bytes).toEqual(expected);
+    }
+  });
+});
diff --git a/src/runner/runtime-files.ts b/src/runner/runtime-files.ts
index 49551b9..6134759 100644
--- a/src/runner/runtime-files.ts
+++ b/src/runner/runtime-files.ts
@@ -1,5 +1,6 @@
 import { WASM_OJ_STORAGE } from "../core/contract.ts";
 import { sha256Hex } from "../core/hash.ts";
+import { readProcessMessage, type StreamingProcess } from "../core/process-output.ts";
 
 const MAGIC = new TextEncoder().encode("WOJFS002");
 const HEADER_BYTES = 12;
@@ -96,6 +97,34 @@ export function decodeRuntimeFiles(archive: Uint8Array): Record<string, Uint8Arr
   return files;
 }
 
+/**
+ * Read an export until stdout holds a complete archive and return exactly its framed bytes.
+ * `@wasmer/sdk` `Instance.wait()` can hang after all output arrived; see readProcessMessage.
+ */
+export async function readRuntimeFilesExport(
+  exporter: StreamingProcess,
+  idleGraceMs?: number,
+): Promise<Uint8Array> {
+  const { message, stderr } = await readProcessMessage(exporter, completeArchive, { idleGraceMs });
+  if (message === undefined) {
+    throw new Error(`The runtime file export ended before its archive was complete: ${stderr}`);
+  }
+  return message;
+}
+
+function completeArchive(bytes: Uint8Array): Uint8Array | undefined {
+  const view = new DataView(bytes.buffer, bytes.byteOffset, bytes.byteLength);
+  let offset = MAGIC.byteLength;
+  while (offset + HEADER_BYTES <= bytes.byteLength) {
+    const pathLength = view.getUint32(offset, true);
+    const dataLength = Number(view.getBigUint64(offset + 4, true));
+    offset += HEADER_BYTES;
+    if (pathLength === 0 && dataLength === 0) return bytes.slice(0, offset);
+    offset += pathLength + dataLength;
+  }
+  return undefined;
+}
+
 export async function verifyAndDecodeRuntimeFiles(
   archive: Uint8Array,
   expectedSha256: string,
diff --git a/src/runtime/runner.worker.ts b/src/runtime/runner.worker.ts
index ebeb2f8..e0c7cc8 100644
--- a/src/runtime/runner.worker.ts
+++ b/src/runtime/runner.worker.ts
@@ -46,6 +46,7 @@ import {
   openOptionalRuntimeFilesCache,
   restoreOrExportRuntimeFiles,
 } from "@/src/runtime/runtime-files-cache";
+import { readRuntimeFilesExport } from "@/src/runner/runtime-files";
 import {
   PackageHandleCache,
   WasmerPackageHandle,
@@ -275,7 +276,7 @@ async function exportPackageFileSystem(
       },
       async () => {
         const lease = await acquirePackage(request.packageSpecifier);
-        const output = await withHandleLease(
+        return withHandleLease(
           lease,
           (pkg) => withWasmerCommand(pkg, request.command, async (command) => {
             const instance = await command.run({
@@ -286,15 +287,17 @@ async function exportPackageFileSystem(
                 PYTHONDONTWRITEBYTECODE: "1",
               },
             });
-            return instance.wait();
+            try {
+              return await readRuntimeFilesExport(instance);
+            } catch (error) {
+              throw new Error(
+                `Unable to export runtime files from ${request.packageSpecifier}: ${error instanceof Error ? error.message : String(error)}`,
+              );
+            } finally {
+              instance.free();
+            }
           }),
         );
-        if (!output.ok) {
-          throw new Error(
-            `Unable to export runtime files from ${request.packageSpecifier}: exit ${output.code}: ${output.stderr}`,
-          );
-        }
-        return output.stdoutBytes.slice();
       },
     );
   })();
diff --git a/src/server/server-runner-stage.mjs b/src/server/server-runner-stage.mjs
index a3eb1ff..57d45b8 100644
--- a/src/server/server-runner-stage.mjs
+++ b/src/server/server-runner-stage.mjs
@@ -11,6 +11,7 @@ import {
   PYTHON_PACKAGE,
   PYTHON_PACKAGE_SHA256,
 } from "../core/toolchains.ts";
+import { readRuntimeFilesExport } from "../runner/runtime-files.ts";
 
 const MAX_INPUT_BYTES = 1024 * 1024;
 const MAX_RESULT_BYTES = 256 * 1024 * 1024;
@@ -59,14 +60,15 @@ try {
         PYTHONDONTWRITEBYTECODE: "1",
       },
     }));
-    const output = await withProcessKeepalive(instance.wait());
-    if (!output.ok) {
+    try {
+      bytes = await withProcessKeepalive(readRuntimeFilesExport(instance));
+    } catch (error) {
       throw new Error(
-        `Unable to export runtime files from ${input.request.packageSpecifier}: `
-        + `exit ${output.code}: ${boundedText(output.stderr)}`,
+        `Unable to export runtime files from ${input.request.packageSpecifier}: ${boundedText(errorText(error))}`,
       );
+    } finally {
+      instance.free();
     }
-    bytes = output.stdoutBytes.slice();
   }
 
   if (bytes.byteLength > MAX_RESULT_BYTES) {