diff --git a/src/nvim/channel.c b/src/nvim/channel.c
index 8b8d27affd..3a45a8aec7 100644
--- a/src/nvim/channel.c
+++ b/src/nvim/channel.c
@@ -22,19 +22,10 @@ PMap(uint64_t) *channels = NULL;
 /// 2 is reserved for stderr channel
 static uint64_t next_chan_id = CHAN_STDERR+1;
 
-
-typedef struct {
-  Channel *chan;
-  Callback *callback;
-  const char *type;
-  // if reader is set, status is ignored.
-  CallbackReader *reader;
-  int status;
-} ChannelEvent;
-
 #ifdef INCLUDE_GENERATED_DECLARATIONS
 # include "channel.c.generated.h"
 #endif
+
 /// Teardown the module
 void channel_teardown(void)
 {
@@ -179,6 +170,7 @@ static Channel *channel_alloc(ChannelStreamType type)
   }
   chan->events = multiqueue_new_child(main_loop.events);
   chan->refcount = 1;
+  chan->exit_status = -1;
   chan->streamtype = type;
   pmap_put(uint64_t)(channels, chan->id, chan);
   return chan;
@@ -234,9 +226,10 @@ void callback_reader_free(CallbackReader *reader)
   ga_clear(&reader->buffer);
 }
 
-void callback_reader_start(CallbackReader *reader)
+void callback_reader_start(CallbackReader *reader, const char *type)
 {
   ga_init(&reader->buffer, sizeof(char *), 32);
+  reader->type = type;
 }
 
 static void free_channel_event(void **argv)
@@ -246,7 +239,7 @@ static void free_channel_event(void **argv)
     rpc_free(chan);
   }
 
-  callback_reader_free(&chan->on_stdout);
+  callback_reader_free(&chan->on_data);
   callback_reader_free(&chan->on_stderr);
   callback_free(&chan->on_exit);
 
@@ -286,7 +279,7 @@ Channel *channel_job_start(char **argv, CallbackReader on_stdout,
   assert(cwd == NULL || os_isdir_executable(cwd));
 
   Channel *chan = channel_alloc(kChannelStreamProc);
-  chan->on_stdout = on_stdout;
+  chan->on_data = on_stdout;
   chan->on_stderr = on_stderr;
   chan->on_exit = on_exit;
 
@@ -326,7 +319,7 @@ Channel *channel_job_start(char **argv, CallbackReader on_stdout,
     has_out = true;
     has_err = false;
   } else {
-    has_out = rpc || callback_reader_set(chan->on_stdout);
+    has_out = rpc || callback_reader_set(chan->on_data);
     has_err = callback_reader_set(chan->on_stderr);
   }
   int status = process_spawn(proc, true, has_out, has_err);
@@ -352,13 +345,13 @@ Channel *channel_job_start(char **argv, CallbackReader on_stdout,
     rpc_start(chan);
   } else {
     if (has_out) {
-      callback_reader_start(&chan->on_stdout);
-      rstream_start(&proc->out, on_job_stdout, chan);
+      callback_reader_start(&chan->on_data, "stdout");
+      rstream_start(&proc->out, on_channel_data, chan);
     }
   }
 
   if (has_err) {
-    callback_reader_start(&chan->on_stderr);
+    callback_reader_start(&chan->on_stderr, "stderr");
     rstream_init(&proc->err, 0);
     rstream_start(&proc->err, on_job_stderr, chan);
   }
@@ -402,9 +395,9 @@ uint64_t channel_connect(bool tcp, const char *address,
   if (rpc) {
     rpc_start(channel);
   } else {
-    channel->on_stdout = on_output;
-    callback_reader_start(&channel->on_stdout);
-    rstream_start(&channel->stream.socket, on_socket_output, channel);
+    channel->on_data = on_output;
+    callback_reader_start(&channel->on_data, "data");
+    rstream_start(&channel->stream.socket, on_channel_data, channel);
   }
 
 end:
@@ -452,9 +445,9 @@ uint64_t channel_from_stdio(bool rpc, CallbackReader on_output,
   if (rpc) {
     rpc_start(channel);
   } else {
-    channel->on_stdout = on_output;
-    callback_reader_start(&channel->on_stdout);
-    rstream_start(&channel->stream.stdio.in, on_stdio_input, channel);
+    channel->on_data = on_output;
+    callback_reader_start(&channel->on_data, "stdin");
+    rstream_start(&channel->stream.stdio.in, on_channel_data, channel);
   }
 
   return channel->id;
@@ -519,55 +512,22 @@ static inline list_T *buffer_to_tv_list(const char *const buf, const size_t len)
   return l;
 }
 
-// vimscript job callbacks must be executed on Nvim main loop
-static inline void process_channel_event(Channel *chan, Callback *callback,
-                                         const char *type,
-                                         CallbackReader *reader, int status)
-{
-  assert(callback);
-  ChannelEvent *event_data = xmalloc(sizeof(*event_data));
-  event_data->reader = reader;
-  event_data->status = status;
-  channel_incref(chan);  // Hold on ref to callback
-  event_data->chan = chan;
-  event_data->callback = callback;
-  event_data->type = type;
-
-  multiqueue_put(chan->events, on_channel_event, 1, event_data);
-}
-
-void on_job_stdout(Stream *stream, RBuffer *buf, size_t count,
-                   void *data, bool eof)
+void on_channel_data(Stream *stream, RBuffer *buf, size_t count,
+                     void *data, bool eof)
 {
   Channel *chan = data;
-  on_channel_output(stream, chan, buf, count, eof, &chan->on_stdout, "stdout");
+  on_channel_output(stream, chan, buf, count, eof, &chan->on_data);
 }
 
 void on_job_stderr(Stream *stream, RBuffer *buf, size_t count,
                    void *data, bool eof)
 {
   Channel *chan = data;
-  on_channel_output(stream, chan, buf, count, eof, &chan->on_stderr, "stderr");
+  on_channel_output(stream, chan, buf, count, eof, &chan->on_stderr);
 }
 
-static void on_socket_output(Stream *stream, RBuffer *buf, size_t count,
-                             void *data, bool eof)
-{
-  Channel *chan = data;
-  on_channel_output(stream, chan, buf, count, eof, &chan->on_stdout, "data");
-}
-
-static void on_stdio_input(Stream *stream, RBuffer *buf, size_t count,
-                           void *data, bool eof)
-{
-  Channel *chan = data;
-  on_channel_output(stream, chan, buf, count, eof, &chan->on_stdout, "stdin");
-}
-
-/// @param type must have static lifetime
 static void on_channel_output(Stream *stream, Channel *chan, RBuffer *buf,
-                              size_t count, bool eof, CallbackReader *reader,
-                              const char *type)
+                              size_t count, bool eof, CallbackReader *reader)
 {
   // stub variable, to keep reading consistent with the order of events, only
   // consider the count parameter.
@@ -575,57 +535,93 @@ static void on_channel_output(Stream *stream, Channel *chan, RBuffer *buf,
   char *ptr = rbuffer_read_ptr(buf, &r);
 
   if (eof) {
-    if (reader->buffered) {
-      if (reader->cb.type != kCallbackNone) {
-        process_channel_event(chan, &reader->cb, type, reader, 0);
-      } else if (reader->self) {
-        if (tv_dict_find(reader->self, type, -1) == NULL) {
-          list_T *data = buffer_to_tv_list(reader->buffer.ga_data,
-                                           (size_t)reader->buffer.ga_len);
-          tv_dict_add_list(reader->self, type, strlen(type), data);
-        } else {
-            // can't display error message now, defer it.
-            channel_incref(chan);
-            multiqueue_put(chan->events, on_buffered_error, 2, chan, type);
-        }
-        ga_clear(&reader->buffer);
-      } else {
-        abort();
-      }
-    } else if (reader->cb.type != kCallbackNone) {
-      process_channel_event(chan, &reader->cb, type, reader, 0);
+    reader->eof = true;
+  } else {
+    if (chan->term) {
+      terminal_receive(chan->term, ptr, count);
+      terminal_flush_output(chan->term);
+    }
+
+    rbuffer_consumed(buf, count);
+
+    if (callback_reader_set(*reader)) {
+      ga_concat_len(&reader->buffer, ptr, count);
     }
-    return;
   }
 
-  // The order here matters, the terminal must receive the data first because
-  // process_channel_event will modify the read buffer(convert NULs into NLs)
-  if (chan->term) {
-    terminal_receive(chan->term, ptr, count);
-    terminal_flush_output(chan->term);
-  }
-
-  rbuffer_consumed(buf, count);
-
-  if (callback_reader_set(*reader) || reader->buffered) {
-    // if buffer wasn't consumed, a pending callback is stalled. Aggregate the
-    // received data and avoid a "burst" of multiple callbacks.
-    bool buffer_set = reader->buffer.ga_len > 0;
-    ga_concat_len(&reader->buffer, ptr, count);
-    if (callback_reader_set(*reader) && !reader->buffered && !buffer_set) {
-      process_channel_event(chan, &reader->cb, type, reader, 0);
-    }
+  if (callback_reader_set(*reader)) {
+    schedule_channel_event(chan);
   }
 }
 
-static void on_buffered_error(void **args)
+/// schedule the necessary callbacks to be invoked as a deferred event
+static void schedule_channel_event(Channel *chan)
+{
+  if (!chan->callback_scheduled) {
+    if (!chan->callback_busy) {
+      multiqueue_put(chan->events, on_channel_event, 1, chan);
+      channel_incref(chan);
+    }
+    chan->callback_scheduled = true;
+  }
+}
+
+static void on_channel_event(void **args)
 {
   Channel *chan = (Channel *)args[0];
-  const char *stream = (const char *)args[1];
-  EMSG3(_(e_streamkey), stream, chan->id);
+
+  chan->callback_busy = true;
+  chan->callback_scheduled = false;
+
+  int exit_status = chan->exit_status;
+  channel_reader_callbacks(chan, &chan->on_data);
+  channel_reader_callbacks(chan, &chan->on_stderr);
+  if (exit_status > -1) {
+    channel_callback_call(chan, NULL);
+    chan->exit_status = -1;
+  }
+
+  chan->callback_busy = false;
+  if (chan->callback_scheduled) {
+    // further callback was deferred to avoid recursion.
+    multiqueue_put(chan->events, on_channel_event, 1, chan);
+    channel_incref(chan);
+  }
+
   channel_decref(chan);
 }
 
+void channel_reader_callbacks(Channel *chan, CallbackReader *reader)
+{
+  if (reader->buffered) {
+    if (reader->eof) {
+      if (reader->self) {
+        if (tv_dict_find(reader->self, reader->type, -1) == NULL) {
+          list_T *data = buffer_to_tv_list(reader->buffer.ga_data,
+                                           (size_t)reader->buffer.ga_len);
+          tv_dict_add_list(reader->self, reader->type, strlen(reader->type),
+                           data);
+        } else {
+          EMSG3(_(e_streamkey), reader->type, chan->id);
+        }
+      } else {
+        channel_callback_call(chan, reader);
+      }
+      reader->eof = false;
+    }
+  } else {
+    bool is_eof = reader->eof;
+    if (reader->buffer.ga_len > 0) {
+      channel_callback_call(chan, reader);
+    }
+    // if the stream reached eof, invoke extra callback with no data
+    if (is_eof) {
+      channel_callback_call(chan, reader);
+      reader->eof = false;
+    }
+  }
+}
+
 static void channel_process_exit_cb(Process *proc, int status, void *data)
 {
   Channel *chan = data;
@@ -637,45 +633,46 @@ static void channel_process_exit_cb(Process *proc, int status, void *data)
 
   // If process did not exit, we only closed the handle of a detached process.
   bool exited = (status >= 0);
-  if (exited) {
-    process_channel_event(chan, &chan->on_exit, "exit", NULL, status);
+  if (exited && chan->on_exit.type != kCallbackNone) {
+    schedule_channel_event(chan);
+    chan->exit_status = status;
   }
 
   channel_decref(chan);
 }
 
-static void on_channel_event(void **args)
+static void channel_callback_call(Channel *chan, CallbackReader *reader)
 {
-  ChannelEvent *ev = (ChannelEvent *)args[0];
-
+  Callback *cb;
   typval_T argv[4];
 
   argv[0].v_type = VAR_NUMBER;
   argv[0].v_lock = VAR_UNLOCKED;
-  argv[0].vval.v_number = (varnumber_T)ev->chan->id;
+  argv[0].vval.v_number = (varnumber_T)chan->id;
 
-  if (ev->reader) {
+  if (reader) {
     argv[1].v_type = VAR_LIST;
     argv[1].v_lock = VAR_UNLOCKED;
-    argv[1].vval.v_list = buffer_to_tv_list(ev->reader->buffer.ga_data,
-                                            (size_t)ev->reader->buffer.ga_len);
+    argv[1].vval.v_list = buffer_to_tv_list(reader->buffer.ga_data,
+                                            (size_t)reader->buffer.ga_len);
     tv_list_ref(argv[1].vval.v_list);
-    ga_clear(&ev->reader->buffer);
+    ga_clear(&reader->buffer);
+    cb = &reader->cb;
+    argv[2].vval.v_string = (char_u *)reader->type;
   } else {
     argv[1].v_type = VAR_NUMBER;
     argv[1].v_lock = VAR_UNLOCKED;
-    argv[1].vval.v_number = ev->status;
+    argv[1].vval.v_number = chan->exit_status;
+    cb = &chan->on_exit;
+    argv[2].vval.v_string = (char_u *)"exit";
   }
 
   argv[2].v_type = VAR_STRING;
   argv[2].v_lock = VAR_UNLOCKED;
-  argv[2].vval.v_string = (uint8_t *)ev->type;
 
   typval_T rettv = TV_INITIAL_VALUE;
-  callback_call(ev->callback, 3, argv, &rettv);
+  callback_call(cb, 3, argv, &rettv);
   tv_clear(&rettv);
-  channel_decref(ev->chan);
-  xfree(ev);
 }
 
 
diff --git a/src/nvim/channel.h b/src/nvim/channel.h
index b856d197f1..c733e276be 100644
--- a/src/nvim/channel.h
+++ b/src/nvim/channel.h
@@ -42,13 +42,16 @@ typedef struct {
   Callback cb;
   dict_T *self;
   garray_T buffer;
+  bool eof;
   bool buffered;
+  const char *type;
 } CallbackReader;
 
 #define CALLBACK_READER_INIT ((CallbackReader){ .cb = CALLBACK_NONE, \
                                                 .self = NULL, \
                                                 .buffer = GA_EMPTY_INIT_VALUE, \
-                                                .buffered = false })
+                                                .buffered = false, \
+                                                .type = NULL })
 static inline bool callback_reader_set(CallbackReader reader)
 {
   return reader.cb.type != kCallbackNone || reader.self;
@@ -73,9 +76,13 @@ struct Channel {
   RpcState rpc;
   Terminal *term;
 
-  CallbackReader on_stdout;
+  CallbackReader on_data;
   CallbackReader on_stderr;
   Callback on_exit;
+  int exit_status;
+
+  bool callback_busy;
+  bool callback_scheduled;
 };
 
 EXTERN PMap(uint64_t) *channels;
diff --git a/src/nvim/eval.c b/src/nvim/eval.c
index 15fc994957..42ff6ceef2 100644
--- a/src/nvim/eval.c
+++ b/src/nvim/eval.c
@@ -5165,7 +5165,7 @@ bool garbage_collect(bool testing)
   {
     Channel *data;
     map_foreach_value(channels, data, {
-      set_ref_in_callback_reader(&data->on_stdout, copyID, NULL, NULL);
+      set_ref_in_callback_reader(&data->on_data, copyID, NULL, NULL);
       set_ref_in_callback_reader(&data->on_stderr, copyID, NULL, NULL);
       set_ref_in_callback(&data->on_exit, copyID, NULL, NULL);
     })
diff --git a/test/functional/core/job_spec.lua b/test/functional/core/job_spec.lua
index eb02610df0..86466415e5 100644
--- a/test/functional/core/job_spec.lua
+++ b/test/functional/core/job_spec.lua
@@ -439,16 +439,66 @@ describe('jobs', function()
         call add(self.data, Normalize(a:data))
         sleep 200m
       endfunction
+      function! d.on_exit(job, data, event) dict
+        let g:exit_data = copy(self.data)
+      endfunction
       if has('win32')
         let cmd = 'for /L %I in (1,1,5) do @(echo %I& ping -n 2 127.0.0.1 > nul)'
       else
         let cmd = ['sh', '-c', 'for i in $(seq 1 5); do echo $i; sleep 0.1; done']
       endif
-      call jobwait([jobstart(cmd, d)])
+      let g:id = jobstart(cmd, d)
+      sleep 1500m
+      call jobwait([g:id])
     ]])
 
     local expected = {'1', '2', '3', '4', '5', ''}
     local chunks = eval('d.data')
+    -- check nothing was received after exit, including EOF
+    eq(eval('g:exit_data'), chunks)
+    local received = {''}
+    for i, chunk in ipairs(chunks) do
+      if i < #chunks then
+        -- if chunks got joined, a spurious [''] callback was not sent
+        neq({''}, chunk)
+      else
+        -- but EOF callback is still sent
+        eq({''}, chunk)
+      end
+      received[#received] = received[#received]..chunk[1]
+      for j = 2, #chunk do
+        received[#received+1] = chunk[j]
+      end
+    end
+    eq(expected, received)
+  end)
+
+  it('does not invoke callbacks recursively', function()
+    source([[
+      let d = {'data': []}
+      function! d.on_stdout(job, data, event) dict
+        " if callbacks were invoked recursively, this would cause on_stdout
+        " to be invoked recursively and the data reversed on the call stack
+        sleep 200m
+        call add(self.data, Normalize(a:data))
+      endfunction
+      function! d.on_exit(job, data, event) dict
+        let g:exit_data = copy(self.data)
+      endfunction
+      if has('win32')
+        let cmd = 'for /L %I in (1,1,5) do @(echo %I& ping -n 2 127.0.0.1 > nul)'
+      else
+        let cmd = ['sh', '-c', 'for i in $(seq 1 5); do echo $i; sleep 0.1; done']
+      endif
+      let g:id = jobstart(cmd, d)
+      sleep 1500m
+      call jobwait([g:id])
+    ]])
+
+    local expected = {'1', '2', '3', '4', '5', ''}
+    local chunks = eval('d.data')
+    -- check nothing was received after exit, including EOF
+    eq(eval('g:exit_data'), chunks)
     local received = {''}
     for i, chunk in ipairs(chunks) do
       if i < #chunks then