diff --git a/.changelog/14916.txt b/.changelog/14916.txt
new file mode 100644
index 000000000..201242489
--- /dev/null
+++ b/.changelog/14916.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+server: fix goroutine/memory leaks in the xDS subsystem (these were present regardless of whether or not xDS was in-use)
+```
diff --git a/agent/consul/xdscapacity/capacity.go b/agent/consul/xdscapacity/capacity.go
index 2e24a09e0..f1974b964 100644
--- a/agent/consul/xdscapacity/capacity.go
+++ b/agent/consul/xdscapacity/capacity.go
@@ -79,7 +79,7 @@ func NewController(cfg Config) *Controller {
 func (c *Controller) Run(ctx context.Context) {
 	defer close(c.doneCh)
 
-	ws, numProxies, err := c.countProxies(ctx)
+	watchCh, numProxies, err := c.countProxies(ctx)
 	if err != nil {
 		return
 	}
@@ -90,8 +90,8 @@ func (c *Controller) Run(ctx context.Context) {
 		case s := <-c.serverCh:
 			numServers = s
 			c.updateMaxSessions(numServers, numProxies)
-		case <-ws.WatchCh(ctx):
-			ws, numProxies, err = c.countProxies(ctx)
+		case <-watchCh:
+			watchCh, numProxies, err = c.countProxies(ctx)
 			if err != nil {
 				return
 			}
@@ -170,7 +170,7 @@ func (c *Controller) updateMaxSessions(numServers, numProxies uint32) {
 
 // countProxies counts the number of registered proxy services, retrying on
 // error until the given context is cancelled.
-func (c *Controller) countProxies(ctx context.Context) (memdb.WatchSet, uint32, error) {
+func (c *Controller) countProxies(ctx context.Context) (<-chan error, uint32, error) {
 	retryWaiter := &retry.Waiter{
 		MinFailures: 1,
 		MinWait:     1 * time.Second,
@@ -200,7 +200,7 @@ func (c *Controller) countProxies(ctx context.Context) (memdb.WatchSet, uint32,
 				count += uint32(kindCount)
 			}
 		}
-		return ws, count, nil
+		return ws.WatchCh(ctx), count, nil
 	}
 }
 
diff --git a/agent/proxycfg-sources/catalog/config_source.go b/agent/proxycfg-sources/catalog/config_source.go
index 56f222fcd..6a49e2812 100644
--- a/agent/proxycfg-sources/catalog/config_source.go
+++ b/agent/proxycfg-sources/catalog/config_source.go
@@ -141,10 +141,17 @@ func (m *ConfigSource) startSync(closeCh <-chan chan struct{}, proxyID proxycfg.
 	}
 
 	syncLoop := func(ws memdb.WatchSet) {
+		// Cancel the context on return to clean up the goroutine started by WatchCh.
+		ctx, cancel := context.WithCancel(context.Background())
+		defer cancel()
+
 		for {
 			select {
-			case <-ws.WatchCh(context.Background()):
+			case <-ws.WatchCh(ctx):
 				// Something changed, unblock and re-run the query.
+				//
+				// It is expected that all other branches of this select will return and
+				// cancel the context given to WatchCh (to clean up its goroutine).
 			case doneCh := <-closeCh:
 				// All watchers of this service (xDS streams) have gone away, so it's time
 				// to free its resources.