diff --git a/Dockerfile b/Dockerfile
index 65b35be024..1a96e4dae8 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -243,7 +243,7 @@ RUN set -x \
 	&& rm -rf "$GOPATH"
 
 # Install containerd
-ENV CONTAINERD_COMMIT 35a736c471ccd3ebfc7b80ceeb0ee303129acd61
+ENV CONTAINERD_COMMIT 4c21ad662f71af56c0e6b29c0afef72df441d1ff
 RUN set -x \
 	&& export GOPATH="$(mktemp -d)" \
 	&& git clone https://github.com/docker/containerd.git "$GOPATH/src/github.com/docker/containerd" \
diff --git a/Dockerfile.aarch64 b/Dockerfile.aarch64
index 212259bf02..78b1bf08b8 100644
--- a/Dockerfile.aarch64
+++ b/Dockerfile.aarch64
@@ -186,7 +186,7 @@ RUN set -x \
 	&& rm -rf "$GOPATH"
 
 # Install containerd
-ENV CONTAINERD_COMMIT 35a736c471ccd3ebfc7b80ceeb0ee303129acd61
+ENV CONTAINERD_COMMIT 4c21ad662f71af56c0e6b29c0afef72df441d1ff
 RUN set -x \
 	&& export GOPATH="$(mktemp -d)" \
 	&& git clone https://github.com/docker/containerd.git "$GOPATH/src/github.com/docker/containerd" \
diff --git a/Dockerfile.armhf b/Dockerfile.armhf
index 9722381b89..2c11144c5b 100644
--- a/Dockerfile.armhf
+++ b/Dockerfile.armhf
@@ -184,7 +184,7 @@ RUN set -x \
 	&& rm -rf "$GOPATH"
 
 # Install containerd
-ENV CONTAINERD_COMMIT 35a736c471ccd3ebfc7b80ceeb0ee303129acd61
+ENV CONTAINERD_COMMIT 4c21ad662f71af56c0e6b29c0afef72df441d1ff
 RUN set -x \
 	&& export GOPATH="$(mktemp -d)" \
 	&& git clone https://github.com/docker/containerd.git "$GOPATH/src/github.com/docker/containerd" \
diff --git a/Dockerfile.ppc64le b/Dockerfile.ppc64le
index e0e25c00d8..28ebb8a1ed 100644
--- a/Dockerfile.ppc64le
+++ b/Dockerfile.ppc64le
@@ -204,7 +204,7 @@ RUN set -x \
 	&& rm -rf "$GOPATH"
 
 # Install containerd
-ENV CONTAINERD_COMMIT 35a736c471ccd3ebfc7b80ceeb0ee303129acd61
+ENV CONTAINERD_COMMIT 4c21ad662f71af56c0e6b29c0afef72df441d1ff
 RUN set -x \
 	&& export GOPATH="$(mktemp -d)" \
 	&& git clone https://github.com/docker/containerd.git "$GOPATH/src/github.com/docker/containerd" \
diff --git a/Dockerfile.s390x b/Dockerfile.s390x
index 1d57f797c1..cf024a69bc 100644
--- a/Dockerfile.s390x
+++ b/Dockerfile.s390x
@@ -196,7 +196,7 @@ RUN set -x \
 	&& rm -rf "$GOPATH"
 
 # Install containerd
-ENV CONTAINERD_COMMIT 35a736c471ccd3ebfc7b80ceeb0ee303129acd61
+ENV CONTAINERD_COMMIT 4c21ad662f71af56c0e6b29c0afef72df441d1ff
 RUN set -x \
 	&& export GOPATH="$(mktemp -d)" \
 	&& git clone https://github.com/docker/containerd.git "$GOPATH/src/github.com/docker/containerd" \
diff --git a/Dockerfile.simple b/Dockerfile.simple
index d24a41041d..623bf43750 100644
--- a/Dockerfile.simple
+++ b/Dockerfile.simple
@@ -68,7 +68,7 @@ RUN set -x \
 	&& rm -rf "$GOPATH"
 
 # Install containerd
-ENV CONTAINERD_COMMIT 35a736c471ccd3ebfc7b80ceeb0ee303129acd61
+ENV CONTAINERD_COMMIT 4c21ad662f71af56c0e6b29c0afef72df441d1ff
 RUN set -x \
 	&& export GOPATH="$(mktemp -d)" \
 	&& git clone https://github.com/docker/containerd.git "$GOPATH/src/github.com/docker/containerd" \
diff --git a/hack/vendor.sh b/hack/vendor.sh
index 17b32ce577..5efd4a444b 100755
--- a/hack/vendor.sh
+++ b/hack/vendor.sh
@@ -141,7 +141,7 @@ clone git google.golang.org/cloud dae7e3d993bc3812a2185af60552bb6b847e52a0 https
 clone git github.com/docker/docker-credential-helpers v0.3.0
 
 # containerd
-clone git github.com/docker/containerd 35a736c471ccd3ebfc7b80ceeb0ee303129acd61
+clone git github.com/docker/containerd 4c21ad662f71af56c0e6b29c0afef72df441d1ff
 
 # cluster
 clone git github.com/docker/swarmkit 27fbaef4ceed648bb575969ccc9083a6e104a719
diff --git a/libcontainerd/remote_linux.go b/libcontainerd/remote_linux.go
index 7afe0da399..e7fcb257b6 100644
--- a/libcontainerd/remote_linux.go
+++ b/libcontainerd/remote_linux.go
@@ -25,18 +25,20 @@ import (
 	"golang.org/x/net/context"
 	"google.golang.org/grpc"
 	"google.golang.org/grpc/grpclog"
+	"google.golang.org/grpc/health/grpc_health_v1"
 	"google.golang.org/grpc/transport"
 )
 
 const (
-	maxConnectionRetryCount   = 3
-	connectionRetryDelay      = 3 * time.Second
-	containerdShutdownTimeout = 15 * time.Second
-	containerdBinary          = "docker-containerd"
-	containerdPidFilename     = "docker-containerd.pid"
-	containerdSockFilename    = "docker-containerd.sock"
-	containerdStateDir        = "containerd"
-	eventTimestampFilename    = "event.ts"
+	maxConnectionRetryCount      = 3
+	connectionRetryDelay         = 3 * time.Second
+	containerdHealthCheckTimeout = 3 * time.Second
+	containerdShutdownTimeout    = 15 * time.Second
+	containerdBinary             = "docker-containerd"
+	containerdPidFilename        = "docker-containerd.pid"
+	containerdSockFilename       = "docker-containerd.sock"
+	containerdStateDir           = "containerd"
+	eventTimestampFilename       = "event.ts"
 )
 
 type remote struct {
@@ -134,37 +136,41 @@ func (r *remote) UpdateOptions(options ...RemoteOption) error {
 
 func (r *remote) handleConnectionChange() {
 	var transientFailureCount = 0
-	state := grpc.Idle
+
+	ticker := time.NewTicker(500 * time.Millisecond)
+	defer ticker.Stop()
+	healthClient := grpc_health_v1.NewHealthClient(r.rpcConn)
+
 	for {
-		s, err := r.rpcConn.WaitForStateChange(context.Background(), state)
-		if err != nil {
-			break
+		<-ticker.C
+		ctx, cancel := context.WithTimeout(context.Background(), containerdHealthCheckTimeout)
+		_, err := healthClient.Check(ctx, &grpc_health_v1.HealthCheckRequest{})
+		cancel()
+		if err == nil {
+			continue
 		}
-		state = s
-		logrus.Debugf("libcontainerd: containerd connection state change: %v", s)
+
+		logrus.Debugf("libcontainerd: containerd health check returned error: %v", err)
 
 		if r.daemonPid != -1 {
-			switch state {
-			case grpc.TransientFailure:
-				// Reset state to be notified of next failure
-				transientFailureCount++
-				if transientFailureCount >= maxConnectionRetryCount {
-					transientFailureCount = 0
-					if utils.IsProcessAlive(r.daemonPid) {
-						utils.KillProcess(r.daemonPid)
-					}
-					<-r.daemonWaitCh
-					if err := r.runContainerdDaemon(); err != nil { //FIXME: Handle error
-						logrus.Errorf("libcontainerd: error restarting containerd: %v", err)
-					}
-				} else {
-					state = grpc.Idle
-					time.Sleep(connectionRetryDelay)
-				}
-			case grpc.Shutdown:
+			if strings.Contains(err.Error(), "is closing") {
 				// Well, we asked for it to stop, just return
 				return
 			}
+			// all other errors are transient
+			// Reset state to be notified of next failure
+			transientFailureCount++
+			if transientFailureCount >= maxConnectionRetryCount {
+				transientFailureCount = 0
+				if utils.IsProcessAlive(r.daemonPid) {
+					utils.KillProcess(r.daemonPid)
+				}
+				<-r.daemonWaitCh
+				if err := r.runContainerdDaemon(); err != nil { //FIXME: Handle error
+					logrus.Errorf("libcontainerd: error restarting containerd: %v", err)
+				}
+				continue
+			}
 		}
 	}
 }
diff --git a/vendor/src/google.golang.org/grpc/health/grpc_health_v1/health.pb.go b/vendor/src/google.golang.org/grpc/health/grpc_health_v1/health.pb.go
new file mode 100644
index 0000000000..d9550c728b
--- /dev/null
+++ b/vendor/src/google.golang.org/grpc/health/grpc_health_v1/health.pb.go
@@ -0,0 +1,172 @@
+// Code generated by protoc-gen-go.
+// source: health/grpc_health_v1/health.proto
+// DO NOT EDIT!
+
+/*
+Package grpc_health_v1 is a generated protocol buffer package.
+
+It is generated from these files:
+	health/grpc_health_v1/health.proto
+
+It has these top-level messages:
+	HealthCheckRequest
+	HealthCheckResponse
+*/
+package grpc_health_v1
+
+import proto "github.com/golang/protobuf/proto"
+import fmt "fmt"
+import math "math"
+
+import (
+	context "golang.org/x/net/context"
+	grpc "google.golang.org/grpc"
+)
+
+// Reference imports to suppress errors if they are not otherwise used.
+var _ = proto.Marshal
+var _ = fmt.Errorf
+var _ = math.Inf
+
+// This is a compile-time assertion to ensure that this generated file
+// is compatible with the proto package it is being compiled against.
+const _ = proto.ProtoPackageIsVersion1
+
+type HealthCheckResponse_ServingStatus int32
+
+const (
+	HealthCheckResponse_UNKNOWN     HealthCheckResponse_ServingStatus = 0
+	HealthCheckResponse_SERVING     HealthCheckResponse_ServingStatus = 1
+	HealthCheckResponse_NOT_SERVING HealthCheckResponse_ServingStatus = 2
+)
+
+var HealthCheckResponse_ServingStatus_name = map[int32]string{
+	0: "UNKNOWN",
+	1: "SERVING",
+	2: "NOT_SERVING",
+}
+var HealthCheckResponse_ServingStatus_value = map[string]int32{
+	"UNKNOWN":     0,
+	"SERVING":     1,
+	"NOT_SERVING": 2,
+}
+
+func (x HealthCheckResponse_ServingStatus) String() string {
+	return proto.EnumName(HealthCheckResponse_ServingStatus_name, int32(x))
+}
+func (HealthCheckResponse_ServingStatus) EnumDescriptor() ([]byte, []int) {
+	return fileDescriptor0, []int{1, 0}
+}
+
+type HealthCheckRequest struct {
+	Service string `protobuf:"bytes,1,opt,name=service" json:"service,omitempty"`
+}
+
+func (m *HealthCheckRequest) Reset()                    { *m = HealthCheckRequest{} }
+func (m *HealthCheckRequest) String() string            { return proto.CompactTextString(m) }
+func (*HealthCheckRequest) ProtoMessage()               {}
+func (*HealthCheckRequest) Descriptor() ([]byte, []int) { return fileDescriptor0, []int{0} }
+
+type HealthCheckResponse struct {
+	Status HealthCheckResponse_ServingStatus `protobuf:"varint,1,opt,name=status,enum=grpc.health.v1.HealthCheckResponse_ServingStatus" json:"status,omitempty"`
+}
+
+func (m *HealthCheckResponse) Reset()                    { *m = HealthCheckResponse{} }
+func (m *HealthCheckResponse) String() string            { return proto.CompactTextString(m) }
+func (*HealthCheckResponse) ProtoMessage()               {}
+func (*HealthCheckResponse) Descriptor() ([]byte, []int) { return fileDescriptor0, []int{1} }
+
+func init() {
+	proto.RegisterType((*HealthCheckRequest)(nil), "grpc.health.v1.HealthCheckRequest")
+	proto.RegisterType((*HealthCheckResponse)(nil), "grpc.health.v1.HealthCheckResponse")
+	proto.RegisterEnum("grpc.health.v1.HealthCheckResponse_ServingStatus", HealthCheckResponse_ServingStatus_name, HealthCheckResponse_ServingStatus_value)
+}
+
+// Reference imports to suppress errors if they are not otherwise used.
+var _ context.Context
+var _ grpc.ClientConn
+
+// This is a compile-time assertion to ensure that this generated file
+// is compatible with the grpc package it is being compiled against.
+const _ = grpc.SupportPackageIsVersion2
+
+// Client API for Health service
+
+type HealthClient interface {
+	Check(ctx context.Context, in *HealthCheckRequest, opts ...grpc.CallOption) (*HealthCheckResponse, error)
+}
+
+type healthClient struct {
+	cc *grpc.ClientConn
+}
+
+func NewHealthClient(cc *grpc.ClientConn) HealthClient {
+	return &healthClient{cc}
+}
+
+func (c *healthClient) Check(ctx context.Context, in *HealthCheckRequest, opts ...grpc.CallOption) (*HealthCheckResponse, error) {
+	out := new(HealthCheckResponse)
+	err := grpc.Invoke(ctx, "/grpc.health.v1.Health/Check", in, out, c.cc, opts...)
+	if err != nil {
+		return nil, err
+	}
+	return out, nil
+}
+
+// Server API for Health service
+
+type HealthServer interface {
+	Check(context.Context, *HealthCheckRequest) (*HealthCheckResponse, error)
+}
+
+func RegisterHealthServer(s *grpc.Server, srv HealthServer) {
+	s.RegisterService(&_Health_serviceDesc, srv)
+}
+
+func _Health_Check_Handler(srv interface{}, ctx context.Context, dec func(interface{}) error, interceptor grpc.UnaryServerInterceptor) (interface{}, error) {
+	in := new(HealthCheckRequest)
+	if err := dec(in); err != nil {
+		return nil, err
+	}
+	if interceptor == nil {
+		return srv.(HealthServer).Check(ctx, in)
+	}
+	info := &grpc.UnaryServerInfo{
+		Server:     srv,
+		FullMethod: "/grpc.health.v1.Health/Check",
+	}
+	handler := func(ctx context.Context, req interface{}) (interface{}, error) {
+		return srv.(HealthServer).Check(ctx, req.(*HealthCheckRequest))
+	}
+	return interceptor(ctx, in, info, handler)
+}
+
+var _Health_serviceDesc = grpc.ServiceDesc{
+	ServiceName: "grpc.health.v1.Health",
+	HandlerType: (*HealthServer)(nil),
+	Methods: []grpc.MethodDesc{
+		{
+			MethodName: "Check",
+			Handler:    _Health_Check_Handler,
+		},
+	},
+	Streams: []grpc.StreamDesc{},
+}
+
+var fileDescriptor0 = []byte{
+	// 209 bytes of a gzipped FileDescriptorProto
+	0x1f, 0x8b, 0x08, 0x00, 0x00, 0x09, 0x6e, 0x88, 0x02, 0xff, 0xe2, 0x52, 0xca, 0x48, 0x4d, 0xcc,
+	0x29, 0xc9, 0xd0, 0x4f, 0x2f, 0x2a, 0x48, 0x8e, 0x87, 0xb0, 0xe3, 0xcb, 0x0c, 0xf5, 0x21, 0x2c,
+	0xbd, 0x82, 0xa2, 0xfc, 0x92, 0x7c, 0x21, 0x3e, 0x90, 0xa4, 0x1e, 0x54, 0xa8, 0xcc, 0x50, 0x49,
+	0x95, 0x4b, 0xc8, 0x03, 0xcc, 0x71, 0xce, 0x48, 0x4d, 0xce, 0x0e, 0x4a, 0x2d, 0x2c, 0x4d, 0x2d,
+	0x2e, 0x11, 0xe2, 0xe7, 0x62, 0x2f, 0x4e, 0x2d, 0x2a, 0xcb, 0x4c, 0x4e, 0x95, 0x60, 0x54, 0x60,
+	0xd4, 0xe0, 0x54, 0x9a, 0xc2, 0xc8, 0x25, 0x8c, 0xa2, 0xae, 0xb8, 0x20, 0x3f, 0xaf, 0x38, 0x55,
+	0xc8, 0x91, 0x8b, 0xad, 0xb8, 0x24, 0xb1, 0xa4, 0xb4, 0x18, 0xac, 0x8e, 0xcf, 0xc8, 0x50, 0x0f,
+	0xd5, 0x7c, 0x3d, 0x2c, 0x9a, 0xf4, 0x82, 0x41, 0x46, 0xe7, 0xa5, 0x07, 0x83, 0x35, 0x2a, 0x59,
+	0x71, 0xf1, 0xa2, 0x08, 0x08, 0x71, 0x73, 0xb1, 0x87, 0xfa, 0x79, 0xfb, 0xf9, 0x87, 0xfb, 0x09,
+	0x30, 0x80, 0x38, 0xc1, 0xae, 0x41, 0x61, 0x9e, 0x7e, 0xee, 0x02, 0x8c, 0x40, 0x67, 0x71, 0xfb,
+	0xf9, 0x87, 0xc4, 0xc3, 0x04, 0x98, 0x8c, 0xa2, 0xb8, 0xd8, 0x20, 0x16, 0x08, 0x05, 0x70, 0xb1,
+	0x82, 0x2d, 0x11, 0x52, 0xc2, 0xeb, 0x02, 0xb0, 0xf7, 0xa4, 0x94, 0x89, 0x70, 0x65, 0x12, 0x1b,
+	0x38, 0xc0, 0x8c, 0x01, 0x01, 0x00, 0x00, 0xff, 0xff, 0xa9, 0xf7, 0x2e, 0x1f, 0x56, 0x01, 0x00,
+	0x00,
+}
diff --git a/vendor/src/google.golang.org/grpc/health/grpc_health_v1/health.proto b/vendor/src/google.golang.org/grpc/health/grpc_health_v1/health.proto
new file mode 100644
index 0000000000..e2dc088925
--- /dev/null
+++ b/vendor/src/google.golang.org/grpc/health/grpc_health_v1/health.proto
@@ -0,0 +1,20 @@
+syntax = "proto3";
+
+package grpc.health.v1;
+
+message HealthCheckRequest {
+  string service = 1;
+}
+
+message HealthCheckResponse {
+  enum ServingStatus {
+ 	UNKNOWN = 0;
+	SERVING = 1;
+	NOT_SERVING = 2;
+  }
+  ServingStatus status = 1;
+}
+
+service Health{
+  rpc Check(HealthCheckRequest) returns (HealthCheckResponse);
+}