diff --git a/samcli/lib/observability/observability_info_puller.py b/samcli/lib/observability/observability_info_puller.py
index e0691a0433..f658195f6e 100644
--- a/samcli/lib/observability/observability_info_puller.py
+++ b/samcli/lib/observability/observability_info_puller.py
@@ -88,6 +88,9 @@ def load_events(self, event_ids: Union[List[Any], Dict]):
             List of event ids that will be pulled
         """
 
+    def stop_tailing(self):
+        self.cancelled = True
+
 
 # pylint: disable=fixme
 # fixme add ABC parent class back once we bump the pylint to a version 2.8.2 or higher
@@ -187,8 +190,7 @@ def tail(self, start_time: Optional[datetime] = None, filter_pattern: Optional[s
             async_context.run_async()
         except KeyboardInterrupt:
             LOG.info(" CTRL+C received, cancelling...")
-            for puller in self._pullers:
-                puller.cancelled = True
+            self.stop_tailing()
 
     def load_time_period(
         self,
@@ -218,3 +220,9 @@ def load_events(self, event_ids: Union[List[Any], Dict]):
             async_context.add_async_task(puller.load_events, event_ids)
         LOG.debug("Running all 'load_time_period' tasks in parallel")
         async_context.run_async()
+
+    def stop_tailing(self):
+        # if ObservabilityCombinedPuller A is a child puller in other ObservabilityCombinedPuller B, make sure A's child
+        # pullers stop as well when B stops.
+        for puller in self._pullers:
+            puller.stop_tailing()
diff --git a/tests/unit/lib/observability/test_observability_info_puller.py b/tests/unit/lib/observability/test_observability_info_puller.py
index 2b3b6b2016..a050533fc9 100644
--- a/tests/unit/lib/observability/test_observability_info_puller.py
+++ b/tests/unit/lib/observability/test_observability_info_puller.py
@@ -85,8 +85,11 @@ def test_tail_cancel(self, patched_async_context):
 
         mock_puller_1 = Mock()
         mock_puller_2 = Mock()
+        mock_puller_3 = Mock()
 
-        combined_puller = ObservabilityCombinedPuller([mock_puller_1, mock_puller_2])
+        child_combined_puller = ObservabilityCombinedPuller([mock_puller_3])
+
+        combined_puller = ObservabilityCombinedPuller([mock_puller_1, mock_puller_2, child_combined_puller])
 
         given_start_time = Mock()
         given_filter_pattern = Mock()
@@ -97,12 +100,14 @@ def test_tail_cancel(self, patched_async_context):
             [
                 call.add_async_task(mock_puller_1.tail, given_start_time, given_filter_pattern),
                 call.add_async_task(mock_puller_2.tail, given_start_time, given_filter_pattern),
+                call.add_async_task(child_combined_puller.tail, given_start_time, given_filter_pattern),
                 call.run_async(),
             ]
         )
 
-        self.assertTrue(mock_puller_1.cancelled)
-        self.assertTrue(mock_puller_2.cancelled)
+        self.assertTrue(mock_puller_1.stop_tailing.called)
+        self.assertTrue(mock_puller_2.stop_tailing.called)
+        self.assertTrue(mock_puller_3.stop_tailing.called)
 
     @patch("samcli.lib.observability.observability_info_puller.AsyncContext")
     def test_load_time_period(self, patched_async_context):