diff --git a/CHANGELOG.md b/CHANGELOG.md
index ce18bf33725..349a2c58558 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -64,6 +64,7 @@ This project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.htm
    They no longer track the gRPC codes. (#1214)
 - The `StatusCode` field of the `SpanData` struct in the `go.opentelemetry.io/otel/sdk/export/trace` package now uses the codes package from this package instead of the gRPC project. (#1214)
 - Move the `go.opentelemetry.io/otel/api/baggage` package into `go.opentelemetry.io/otel/propagators`. (#1217)
+- A `Shutdown` method of `SpanProcessor` and all its implementations receives a context and returns an error. (#1264)
 
 ### Fixed
 
diff --git a/example/otel-collector/main.go b/example/otel-collector/main.go
index 6fa294f6f45..39aa5ba6860 100644
--- a/example/otel-collector/main.go
+++ b/example/otel-collector/main.go
@@ -80,8 +80,9 @@ func initProvider() func() {
 	pusher.Start()
 
 	return func() {
-		handleErr(tracerProvider.Shutdown(context.Background()), "failed to shutdown provider")
-		handleErr(exp.Shutdown(context.Background()), "failed to stop exporter")
+		ctx := context.Background()
+		handleErr(tracerProvider.Shutdown(ctx), "failed to shutdown provider")
+		handleErr(exp.Shutdown(ctx), "failed to stop exporter")
 		pusher.Stop() // pushes any last exports to the receiver
 	}
 }
diff --git a/sdk/trace/batch_span_processor.go b/sdk/trace/batch_span_processor.go
index 82a4722bab6..83015e943ed 100644
--- a/sdk/trace/batch_span_processor.go
+++ b/sdk/trace/batch_span_processor.go
@@ -125,11 +125,23 @@ func (bsp *BatchSpanProcessor) OnEnd(sd *export.SpanData) {
 
 // Shutdown flushes the queue and waits until all spans are processed.
 // It only executes once. Subsequent call does nothing.
-func (bsp *BatchSpanProcessor) Shutdown() {
+func (bsp *BatchSpanProcessor) Shutdown(ctx context.Context) error {
+	var err error
 	bsp.stopOnce.Do(func() {
-		close(bsp.stopCh)
-		bsp.stopWait.Wait()
+		wait := make(chan struct{})
+		go func() {
+			close(bsp.stopCh)
+			bsp.stopWait.Wait()
+			close(wait)
+		}()
+		// Wait until the wait group is done or the context is cancelled
+		select {
+		case <-wait:
+		case <-ctx.Done():
+			err = ctx.Err()
+		}
 	})
+	return err
 }
 
 // ForceFlush exports all ended spans that have not yet been exported.
diff --git a/sdk/trace/batch_span_processor_test.go b/sdk/trace/batch_span_processor_test.go
index 239a0af87b5..173903b8e03 100644
--- a/sdk/trace/batch_span_processor_test.go
+++ b/sdk/trace/batch_span_processor_test.go
@@ -65,7 +65,10 @@ func TestNewBatchSpanProcessorWithNilExporter(t *testing.T) {
 	bsp.OnStart(&export.SpanData{})
 	bsp.OnEnd(&export.SpanData{})
 	bsp.ForceFlush()
-	bsp.Shutdown()
+	err := bsp.Shutdown(context.Background())
+	if err != nil {
+		t.Error("Error shutting the BatchSpanProcessor down\n")
+	}
 }
 
 type testOption struct {
@@ -222,8 +225,14 @@ func getSpanContext() otel.SpanContext {
 func TestBatchSpanProcessorShutdown(t *testing.T) {
 	bsp := sdktrace.NewBatchSpanProcessor(&testBatchExporter{})
 
-	bsp.Shutdown()
+	err := bsp.Shutdown(context.Background())
+	if err != nil {
+		t.Error("Error shutting the BatchSpanProcessor down\n")
+	}
 
 	// Multiple call to Shutdown() should not panic.
-	bsp.Shutdown()
+	err = bsp.Shutdown(context.Background())
+	if err != nil {
+		t.Error("Error shutting the BatchSpanProcessor down\n")
+	}
 }
diff --git a/sdk/trace/provider.go b/sdk/trace/provider.go
index b4cdcf6bb7b..d915f19a0c1 100644
--- a/sdk/trace/provider.go
+++ b/sdk/trace/provider.go
@@ -20,6 +20,7 @@ import (
 	"sync/atomic"
 
 	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/global"
 	export "go.opentelemetry.io/otel/sdk/export/trace"
 	"go.opentelemetry.io/otel/sdk/instrumentation"
 	"go.opentelemetry.io/otel/sdk/resource"
@@ -142,7 +143,7 @@ func (p *TracerProvider) UnregisterSpanProcessor(s SpanProcessor) {
 	}
 	if stopOnce != nil {
 		stopOnce.state.Do(func() {
-			s.Shutdown()
+			global.Handle(s.Shutdown(context.Background()))
 		})
 	}
 	if len(new) > 1 {
@@ -190,7 +191,7 @@ func (p *TracerProvider) Shutdown(ctx context.Context) error {
 
 	for _, sps := range spss {
 		sps.state.Do(func() {
-			sps.sp.Shutdown()
+			global.Handle(sps.sp.Shutdown(ctx))
 		})
 	}
 	return nil
diff --git a/sdk/trace/provider_test.go b/sdk/trace/provider_test.go
index 02c0282898e..edfd8735bc9 100644
--- a/sdk/trace/provider_test.go
+++ b/sdk/trace/provider_test.go
@@ -25,8 +25,9 @@ type basicSpanProcesor struct {
 	running bool
 }
 
-func (t *basicSpanProcesor) Shutdown() {
+func (t *basicSpanProcesor) Shutdown(context.Context) error {
 	t.running = false
+	return nil
 }
 
 func (t *basicSpanProcesor) OnStart(s *export.SpanData) {}
diff --git a/sdk/trace/simple_span_processor.go b/sdk/trace/simple_span_processor.go
index d0cef298cbb..c3899e21012 100644
--- a/sdk/trace/simple_span_processor.go
+++ b/sdk/trace/simple_span_processor.go
@@ -52,7 +52,8 @@ func (ssp *SimpleSpanProcessor) OnEnd(sd *export.SpanData) {
 }
 
 // Shutdown method does nothing. There is no data to cleanup.
-func (ssp *SimpleSpanProcessor) Shutdown() {
+func (ssp *SimpleSpanProcessor) Shutdown(_ context.Context) error {
+	return nil
 }
 
 // ForceFlush does nothing as there is no data to flush.
diff --git a/sdk/trace/simple_span_processor_test.go b/sdk/trace/simple_span_processor_test.go
index 4014d9e59f0..98b570308a5 100644
--- a/sdk/trace/simple_span_processor_test.go
+++ b/sdk/trace/simple_span_processor_test.go
@@ -82,7 +82,11 @@ func TestSimpleSpanProcessorShutdown(t *testing.T) {
 	ssp := sdktrace.NewSimpleSpanProcessor(&testExporter{})
 	if ssp == nil {
 		t.Errorf("Error creating new instance of SimpleSpanProcessor\n")
+		return
 	}
 
-	ssp.Shutdown()
+	err := ssp.Shutdown(context.Background())
+	if err != nil {
+		t.Error("Error shutting the SimpleSpanProcessor down\n")
+	}
 }
diff --git a/sdk/trace/span_processor.go b/sdk/trace/span_processor.go
index e707745f92d..dffb9aa0276 100644
--- a/sdk/trace/span_processor.go
+++ b/sdk/trace/span_processor.go
@@ -15,6 +15,7 @@
 package trace
 
 import (
+	"context"
 	"sync"
 
 	export "go.opentelemetry.io/otel/sdk/export/trace"
@@ -31,10 +32,10 @@ type SpanProcessor interface {
 	// and hence should not block.
 	OnEnd(sd *export.SpanData)
 
-	// Shutdown is invoked when SDK shutsdown. Use this call to cleanup any processor
+	// Shutdown is invoked when SDK shuts down. Use this call to cleanup any processor
 	// data. No calls to OnStart and OnEnd method is invoked after Shutdown call is
 	// made. It should not be blocked indefinitely.
-	Shutdown()
+	Shutdown(ctx context.Context) error
 
 	// ForceFlush exports all ended spans to the configured Exporter that have not yet
 	// been exported.  It should only be called when absolutely necessary, such as when
diff --git a/sdk/trace/span_processor_example_test.go b/sdk/trace/span_processor_example_test.go
index 5eb41b005cf..f2240785249 100644
--- a/sdk/trace/span_processor_example_test.go
+++ b/sdk/trace/span_processor_example_test.go
@@ -15,6 +15,7 @@
 package trace
 
 import (
+	"context"
 	"time"
 
 	export "go.opentelemetry.io/otel/sdk/export/trace"
@@ -33,9 +34,9 @@ type DurationFilter struct {
 	Max time.Duration
 }
 
-func (f DurationFilter) OnStart(sd *export.SpanData) { f.Next.OnStart(sd) }
-func (f DurationFilter) Shutdown()                   { f.Next.Shutdown() }
-func (f DurationFilter) ForceFlush()                 { f.Next.ForceFlush() }
+func (f DurationFilter) OnStart(sd *export.SpanData)        { f.Next.OnStart(sd) }
+func (f DurationFilter) Shutdown(ctx context.Context) error { return f.Next.Shutdown(ctx) }
+func (f DurationFilter) ForceFlush()                        { f.Next.ForceFlush() }
 func (f DurationFilter) OnEnd(sd *export.SpanData) {
 	if f.Min > 0 && sd.EndTime.Sub(sd.StartTime) < f.Min {
 		// Drop short lived spans.
@@ -59,9 +60,9 @@ type InstrumentationBlacklist struct {
 	Blacklist map[string]bool
 }
 
-func (f InstrumentationBlacklist) OnStart(sd *export.SpanData) { f.Next.OnStart(sd) }
-func (f InstrumentationBlacklist) Shutdown()                   { f.Next.Shutdown() }
-func (f InstrumentationBlacklist) ForceFlush()                 { f.Next.ForceFlush() }
+func (f InstrumentationBlacklist) OnStart(sd *export.SpanData)        { f.Next.OnStart(sd) }
+func (f InstrumentationBlacklist) Shutdown(ctx context.Context) error { return f.Next.Shutdown(ctx) }
+func (f InstrumentationBlacklist) ForceFlush()                        { f.Next.ForceFlush() }
 func (f InstrumentationBlacklist) OnEnd(sd *export.SpanData) {
 	if f.Blacklist != nil && f.Blacklist[sd.InstrumentationLibrary.Name] {
 		// Drop spans from this instrumentation
diff --git a/sdk/trace/span_processor_test.go b/sdk/trace/span_processor_test.go
index a64d808390b..081307ce90c 100644
--- a/sdk/trace/span_processor_test.go
+++ b/sdk/trace/span_processor_test.go
@@ -22,14 +22,14 @@ import (
 	export "go.opentelemetry.io/otel/sdk/export/trace"
 )
 
-type testSpanProcesor struct {
+type testSpanProcessor struct {
 	name          string
 	spansStarted  []*export.SpanData
 	spansEnded    []*export.SpanData
 	shutdownCount int
 }
 
-func (t *testSpanProcesor) OnStart(s *export.SpanData) {
+func (t *testSpanProcessor) OnStart(s *export.SpanData) {
 	kv := label.KeyValue{
 		Key:   "OnStart",
 		Value: label.StringValue(t.name),
@@ -38,7 +38,7 @@ func (t *testSpanProcesor) OnStart(s *export.SpanData) {
 	t.spansStarted = append(t.spansStarted, s)
 }
 
-func (t *testSpanProcesor) OnEnd(s *export.SpanData) {
+func (t *testSpanProcessor) OnEnd(s *export.SpanData) {
 	kv := label.KeyValue{
 		Key:   "OnEnd",
 		Value: label.StringValue(t.name),
@@ -47,11 +47,12 @@ func (t *testSpanProcesor) OnEnd(s *export.SpanData) {
 	t.spansEnded = append(t.spansEnded, s)
 }
 
-func (t *testSpanProcesor) Shutdown() {
+func (t *testSpanProcessor) Shutdown(_ context.Context) error {
 	t.shutdownCount++
+	return nil
 }
 
-func (t *testSpanProcesor) ForceFlush() {
+func (t *testSpanProcessor) ForceFlush() {
 }
 
 func TestRegisterSpanProcessort(t *testing.T) {
@@ -181,7 +182,10 @@ func TestSpanProcessorShutdown(t *testing.T) {
 	tp.RegisterSpanProcessor(sp)
 
 	wantCount := 1
-	sp.Shutdown()
+	err := sp.Shutdown(context.Background())
+	if err != nil {
+		t.Error("Error shutting the testSpanProcessor down\n")
+	}
 
 	gotCount := sp.shutdownCount
 	if wantCount != gotCount {
@@ -216,12 +220,12 @@ func TestMultipleUnregisterSpanProcessorCalls(t *testing.T) {
 	}
 }
 
-func NewTestSpanProcessor(name string) *testSpanProcesor {
-	return &testSpanProcesor{name: name}
+func NewTestSpanProcessor(name string) *testSpanProcessor {
+	return &testSpanProcessor{name: name}
 }
 
-func NewNamedTestSpanProcessors(names []string) []*testSpanProcesor {
-	tsp := []*testSpanProcesor{}
+func NewNamedTestSpanProcessors(names []string) []*testSpanProcessor {
+	tsp := []*testSpanProcessor{}
 	for _, n := range names {
 		tsp = append(tsp, NewTestSpanProcessor(n))
 	}