diff --git a/init.cpp b/init.cpp
index 8c70ba2eb..00e64a7a9 100644
--- a/init.cpp
+++ b/init.cpp
@@ -78,7 +78,9 @@ int main(int argc, char* argv[])
     fRet = AppInit(argc, argv);
 
     if (fRet && fDaemon)
-        pthread_exit((void*)0);
+        return 0;
+
+    return 1;
 }
 #endif
 
@@ -160,6 +162,8 @@ bool AppInit2(int argc, char* argv[])
             "  -paytxfee=<amt>  \t  "   + _("Fee per KB to add to transactions you send\n") +
 #ifdef GUI
             "  -server          \t\t  " + _("Accept command line and JSON-RPC commands\n") +
+#endif
+#ifndef __WXMSW__
             "  -daemon          \t\t  " + _("Run in the background as a daemon and accept commands\n") +
 #endif
             "  -testnet         \t\t  " + _("Use the test network\n") +
@@ -196,17 +200,20 @@ bool AppInit2(int argc, char* argv[])
 
     fDebug = GetBoolArg("-debug");
 
+#ifndef __WXMSW__
     fDaemon = GetBoolArg("-daemon");
+#else
+    fDaemon = false;
+#endif
 
     if (fDaemon)
         fServer = true;
     else
         fServer = GetBoolArg("-server");
 
-    /* force fServer and fDaemon when running without GUI */
+    /* force fServer when running without GUI */
 #ifndef GUI
     fServer = true;
-    fDaemon = true;
 #endif
 
     fPrintToConsole = GetBoolArg("-printtoconsole");
@@ -226,7 +233,7 @@ bool AppInit2(int argc, char* argv[])
         exit(ret);
     }
 
-#ifndef GUI
+#ifndef __WXMSW__
     if (fDaemon)
     {
         // Daemonize
@@ -472,10 +479,11 @@ bool AppInit2(int argc, char* argv[])
     if (fFirstRun)
         SetStartOnSystemStartup(true);
 #endif
-    
-    if (fDaemon)
-        while (!fShutdown)
-            Sleep(5000);
+
+#ifndef GUI
+    while (1)
+        Sleep(5000);
+#endif
 
     return true;
 }
diff --git a/ui.cpp b/ui.cpp
index f4c0c4d74..9ae19e8a6 100644
--- a/ui.cpp
+++ b/ui.cpp
@@ -2808,6 +2808,10 @@ bool CMyApp::Initialize(int& argc, wxChar** argv)
             }
             if (pid > 0)
                 pthread_exit((void*)0);
+
+            pid_t sid = setsid();
+            if (sid < 0)
+                fprintf(stderr, "Error: setsid() returned %d errno %d\n", sid, errno);
         }
 
         return true;