diff --git a/src/ray/core_worker/context.cc b/src/ray/core_worker/context.cc
index 59dda5c11..0eba2ebd8 100644
--- a/src/ray/core_worker/context.cc
+++ b/src/ray/core_worker/context.cc
@@ -55,7 +55,8 @@ WorkerContext::WorkerContext(WorkerType worker_type, const JobID &job_id)
       worker_id_(worker_type_ == WorkerType::DRIVER ? ComputeDriverIdFromJob(job_id)
                                                     : WorkerID::FromRandom()),
       current_job_id_(worker_type_ == WorkerType::DRIVER ? job_id : JobID::Nil()),
-      current_actor_id_(ActorID::Nil()) {
+      current_actor_id_(ActorID::Nil()),
+      main_thread_id_(boost::this_thread::get_id()) {
   // For worker main thread which initializes the WorkerContext,
   // set task_id according to whether current worker is a driver.
   // (For other threads it's set to random ID via GetThreadContext).
@@ -118,6 +119,10 @@ std::shared_ptr<const TaskSpecification> WorkerContext::GetCurrentTask() const {
 
 const ActorID &WorkerContext::GetCurrentActorID() const { return current_actor_id_; }
 
+bool WorkerContext::CurrentThreadIsMain() const {
+  return boost::this_thread::get_id() == main_thread_id_;
+}
+
 bool WorkerContext::CurrentActorIsDirectCall() const {
   return current_actor_is_direct_call_;
 }
diff --git a/src/ray/core_worker/context.h b/src/ray/core_worker/context.h
index 3ced2ced1..08f79a9fd 100644
--- a/src/ray/core_worker/context.h
+++ b/src/ray/core_worker/context.h
@@ -1,6 +1,8 @@
 #ifndef RAY_CORE_WORKER_CONTEXT_H
 #define RAY_CORE_WORKER_CONTEXT_H
 
+#include <boost/thread.hpp>
+
 #include "ray/common/task/task_spec.h"
 #include "ray/core_worker/common.h"
 
@@ -34,6 +36,9 @@ class WorkerContext {
 
   const ActorID &GetCurrentActorID() const;
 
+  /// Returns whether the current thread is the main worker thread.
+  bool CurrentThreadIsMain() const;
+
   /// Returns whether we are in a direct call actor.
   bool CurrentActorIsDirectCall() const;
 
@@ -56,6 +61,9 @@ class WorkerContext {
   bool current_task_is_direct_call_ = false;
   int current_actor_max_concurrency_ = 1;
 
+  /// The id of the (main) thread that constructed this worker context.
+  boost::thread::id main_thread_id_;
+
  private:
   static WorkerThreadContext &GetThreadContext(bool for_main_thread = false);
 
diff --git a/src/ray/core_worker/core_worker.cc b/src/ray/core_worker/core_worker.cc
index 36f58150e..842926078 100644
--- a/src/ray/core_worker/core_worker.cc
+++ b/src/ray/core_worker/core_worker.cc
@@ -165,7 +165,7 @@ CoreWorker::CoreWorker(const WorkerType worker_type, const Language language,
       [this](const RayObject &obj, const ObjectID &obj_id) {
         RAY_CHECK_OK(plasma_store_provider_->Put(obj, obj_id));
       },
-      ref_counting_enabled ? reference_counter_ : nullptr));
+      ref_counting_enabled ? reference_counter_ : nullptr, raylet_client_));
   memory_store_provider_.reset(new CoreWorkerMemoryStoreProvider(memory_store_));
 
   // Create an entry for the driver task in the task table. This task is
@@ -263,8 +263,7 @@ void CoreWorker::ReportActiveObjectIDs() {
       reference_counter_->GetAllInScopeObjectIDs();
   RAY_LOG(DEBUG) << "Sending " << active_object_ids.size() << " object IDs to raylet.";
   if (active_object_ids.size() > RayConfig::instance().raylet_max_active_object_ids()) {
-    RAY_LOG(WARNING) << active_object_ids.size() << "object IDs are currently in scope. "
-                     << "This may lead to required objects being garbage collected.";
+    RAY_LOG(WARNING) << active_object_ids.size() << " object IDs are currently in scope.";
   }
 
   if (!raylet_client_->ReportActiveObjectIDs(active_object_ids).ok()) {
@@ -347,8 +346,8 @@ Status CoreWorker::Get(const std::vector<ObjectID> &ids, const int64_t timeout_m
                                   timeout_ms - (current_time_ms() - start_time));
     }
     RAY_RETURN_NOT_OK(memory_store_provider_->Get(memory_object_ids, local_timeout_ms,
-                                                  worker_context_.GetCurrentTaskID(),
-                                                  &result_map, &got_exception));
+                                                  worker_context_, &result_map,
+                                                  &got_exception));
   }
 
   // If any of the objects have been promoted to plasma, then we retry their
@@ -454,7 +453,7 @@ Status CoreWorker::Wait(const std::vector<ObjectID> &ids, int num_objects,
     // consider waiting on them in plasma as well to ensure they are local.
     RAY_RETURN_NOT_OK(memory_store_provider_->Wait(
         memory_object_ids, num_objects - static_cast<int>(ready.size()),
-        /*timeout_ms=*/0, worker_context_.GetCurrentTaskID(), &ready));
+        /*timeout_ms=*/0, worker_context_, &ready));
   }
   RAY_CHECK(static_cast<int>(ready.size()) <= num_objects);
 
@@ -477,7 +476,7 @@ Status CoreWorker::Wait(const std::vector<ObjectID> &ids, int num_objects,
     if (static_cast<int>(ready.size()) < num_objects && memory_object_ids.size() > 0) {
       RAY_RETURN_NOT_OK(memory_store_provider_->Wait(
           memory_object_ids, num_objects - static_cast<int>(ready.size()), timeout_ms,
-          worker_context_.GetCurrentTaskID(), &ready));
+          worker_context_, &ready));
     }
     RAY_CHECK(static_cast<int>(ready.size()) <= num_objects);
   }
diff --git a/src/ray/core_worker/reference_count_test.cc b/src/ray/core_worker/reference_count_test.cc
index 60d6c6191..c904f22db 100644
--- a/src/ray/core_worker/reference_count_test.cc
+++ b/src/ray/core_worker/reference_count_test.cc
@@ -161,7 +161,8 @@ TEST(MemoryStoreIntegrationTest, TestSimple) {
   RAY_CHECK_OK(store.Put(id1, buffer));
   ASSERT_EQ(store.Size(), 1);
   std::vector<std::shared_ptr<RayObject>> results;
-  RAY_CHECK_OK(store.Get({id1}, /*num_objects*/ 1, /*timeout_ms*/ -1,
+  WorkerContext ctx(WorkerType::WORKER, JobID::Nil());
+  RAY_CHECK_OK(store.Get({id1}, /*num_objects*/ 1, /*timeout_ms*/ -1, ctx,
                          /*remove_after_get*/ true, &results));
   ASSERT_EQ(results.size(), 1);
   ASSERT_EQ(store.Size(), 1);
diff --git a/src/ray/core_worker/store_provider/memory_store/memory_store.cc b/src/ray/core_worker/store_provider/memory_store/memory_store.cc
index 1fa82e495..1154645bc 100644
--- a/src/ray/core_worker/store_provider/memory_store/memory_store.cc
+++ b/src/ray/core_worker/store_provider/memory_store/memory_store.cc
@@ -109,8 +109,11 @@ std::shared_ptr<RayObject> GetRequest::Get(const ObjectID &object_id) const {
 
 CoreWorkerMemoryStore::CoreWorkerMemoryStore(
     std::function<void(const RayObject &, const ObjectID &)> store_in_plasma,
-    std::shared_ptr<ReferenceCounter> counter)
-    : store_in_plasma_(store_in_plasma), ref_counter_(counter) {}
+    std::shared_ptr<ReferenceCounter> counter,
+    std::shared_ptr<RayletClient> raylet_client)
+    : store_in_plasma_(store_in_plasma),
+      ref_counter_(counter),
+      raylet_client_(raylet_client) {}
 
 void CoreWorkerMemoryStore::GetAsync(
     const ObjectID &object_id, std::function<void(std::shared_ptr<RayObject>)> callback) {
@@ -208,7 +211,7 @@ Status CoreWorkerMemoryStore::Put(const ObjectID &object_id, const RayObject &ob
 
 Status CoreWorkerMemoryStore::Get(const std::vector<ObjectID> &object_ids,
                                   int num_objects, int64_t timeout_ms,
-                                  bool remove_after_get,
+                                  const WorkerContext &ctx, bool remove_after_get,
                                   std::vector<std::shared_ptr<RayObject>> *results) {
   (*results).resize(object_ids.size(), nullptr);
 
@@ -260,8 +263,20 @@ Status CoreWorkerMemoryStore::Get(const std::vector<ObjectID> &object_ids,
     }
   }
 
+  // Only send block/unblock IPCs for non-actor tasks on the main thread.
+  // TODO(ekl) support non-lifetime resources for direct actor calls.
+  bool should_notify_raylet =
+      (raylet_client_ != nullptr && !ctx.CurrentActorIsDirectCall() &&
+       ctx.CurrentThreadIsMain());
+
   // Wait for remaining objects (or timeout).
+  if (should_notify_raylet) {
+    RAY_CHECK_OK(raylet_client_->NotifyDirectCallTaskBlocked());
+  }
   bool done = get_request->Wait(timeout_ms);
+  if (should_notify_raylet) {
+    RAY_CHECK_OK(raylet_client_->NotifyDirectCallTaskUnblocked());
+  }
 
   {
     absl::MutexLock lock(&mu_);
diff --git a/src/ray/core_worker/store_provider/memory_store/memory_store.h b/src/ray/core_worker/store_provider/memory_store/memory_store.h
index 504404a35..ef94e3373 100644
--- a/src/ray/core_worker/store_provider/memory_store/memory_store.h
+++ b/src/ray/core_worker/store_provider/memory_store/memory_store.h
@@ -7,6 +7,7 @@
 #include "ray/common/id.h"
 #include "ray/common/status.h"
 #include "ray/core_worker/common.h"
+#include "ray/core_worker/context.h"
 #include "ray/core_worker/reference_count.h"
 
 namespace ray {
@@ -24,9 +25,11 @@ class CoreWorkerMemoryStore {
   /// \param[in] store_in_plasma If not null, this is used to spill to plasma.
   /// \param[in] counter If not null, this enables ref counting for local objects,
   ///            and the `remove_after_get` flag for Get() will be ignored.
+  /// \param[in] raylet_client If not null, used to notify tasks blocked / unblocked.
   CoreWorkerMemoryStore(
       std::function<void(const RayObject &, const ObjectID &)> store_in_plasma = nullptr,
-      std::shared_ptr<ReferenceCounter> counter = nullptr);
+      std::shared_ptr<ReferenceCounter> counter = nullptr,
+      std::shared_ptr<RayletClient> raylet_client = nullptr);
   ~CoreWorkerMemoryStore(){};
 
   /// Put an object with specified ID into object store.
@@ -41,12 +44,14 @@ class CoreWorkerMemoryStore {
   /// \param[in] object_ids IDs of the objects to get. Duplicates are not allowed.
   /// \param[in] num_objects Number of objects that should appear.
   /// \param[in] timeout_ms Timeout in milliseconds, wait infinitely if it's negative.
+  /// \param[in] ctx The current worker context.
   /// \param[in] remove_after_get When to remove the objects from store after `Get`
   /// finishes. This has no effect if ref counting is enabled.
   /// \param[out] results Result list of objects data.
   /// \return Status.
   Status Get(const std::vector<ObjectID> &object_ids, int num_objects, int64_t timeout_ms,
-             bool remove_after_get, std::vector<std::shared_ptr<RayObject>> *results);
+             const WorkerContext &ctx, bool remove_after_get,
+             std::vector<std::shared_ptr<RayObject>> *results);
 
   /// Asynchronously get an object from the object store. The object will not be removed
   /// from storage after GetAsync (TODO(ekl): integrate this with object GC).
@@ -93,6 +98,9 @@ class CoreWorkerMemoryStore {
   /// mandatory once Java is supported.
   std::shared_ptr<ReferenceCounter> ref_counter_ = nullptr;
 
+  // If set, this will be used to notify worker blocked / unblocked on get calls.
+  std::shared_ptr<RayletClient> raylet_client_ = nullptr;
+
   /// Protects the data structures below.
   absl::Mutex mu_;
 
diff --git a/src/ray/core_worker/store_provider/memory_store_provider.cc b/src/ray/core_worker/store_provider/memory_store_provider.cc
index 3568fa923..773c8c2dd 100644
--- a/src/ray/core_worker/store_provider/memory_store_provider.cc
+++ b/src/ray/core_worker/store_provider/memory_store_provider.cc
@@ -25,13 +25,13 @@ Status CoreWorkerMemoryStoreProvider::Put(const RayObject &object,
 
 Status CoreWorkerMemoryStoreProvider::Get(
     const absl::flat_hash_set<ObjectID> &object_ids, int64_t timeout_ms,
-    const TaskID &task_id,
+    const WorkerContext &ctx,
     absl::flat_hash_map<ObjectID, std::shared_ptr<RayObject>> *results,
     bool *got_exception) {
   const std::vector<ObjectID> id_vector(object_ids.begin(), object_ids.end());
   std::vector<std::shared_ptr<RayObject>> result_objects;
   RAY_RETURN_NOT_OK(
-      store_->Get(id_vector, id_vector.size(), timeout_ms, true, &result_objects));
+      store_->Get(id_vector, id_vector.size(), timeout_ms, ctx, true, &result_objects));
 
   for (size_t i = 0; i < id_vector.size(); i++) {
     if (result_objects[i] != nullptr) {
@@ -52,11 +52,12 @@ Status CoreWorkerMemoryStoreProvider::Contains(const ObjectID &object_id,
 
 Status CoreWorkerMemoryStoreProvider::Wait(
     const absl::flat_hash_set<ObjectID> &object_ids, int num_objects, int64_t timeout_ms,
-    const TaskID &task_id, absl::flat_hash_set<ObjectID> *ready) {
+    const WorkerContext &ctx, absl::flat_hash_set<ObjectID> *ready) {
   std::vector<ObjectID> id_vector(object_ids.begin(), object_ids.end());
   std::vector<std::shared_ptr<RayObject>> result_objects;
   RAY_CHECK(object_ids.size() == id_vector.size());
-  auto status = store_->Get(id_vector, num_objects, timeout_ms, false, &result_objects);
+  auto status =
+      store_->Get(id_vector, num_objects, timeout_ms, ctx, false, &result_objects);
   // Ignore TimedOut statuses since we return ready objects explicitly.
   if (!status.IsTimedOut()) {
     RAY_RETURN_NOT_OK(status);
diff --git a/src/ray/core_worker/store_provider/memory_store_provider.h b/src/ray/core_worker/store_provider/memory_store_provider.h
index 76ac204dd..ce07f6633 100644
--- a/src/ray/core_worker/store_provider/memory_store_provider.h
+++ b/src/ray/core_worker/store_provider/memory_store_provider.h
@@ -7,6 +7,7 @@
 #include "ray/common/id.h"
 #include "ray/common/status.h"
 #include "ray/core_worker/common.h"
+#include "ray/core_worker/context.h"
 #include "ray/core_worker/store_provider/memory_store/memory_store.h"
 
 namespace ray {
@@ -27,7 +28,7 @@ class CoreWorkerMemoryStoreProvider {
   Status Put(const RayObject &object, const ObjectID &object_id);
 
   Status Get(const absl::flat_hash_set<ObjectID> &object_ids, int64_t timeout_ms,
-             const TaskID &task_id,
+             const WorkerContext &ctx,
              absl::flat_hash_map<ObjectID, std::shared_ptr<RayObject>> *results,
              bool *got_exception);
 
@@ -35,7 +36,7 @@ class CoreWorkerMemoryStoreProvider {
 
   /// Note that `num_objects` must equal to number of items in `object_ids`.
   Status Wait(const absl::flat_hash_set<ObjectID> &object_ids, int num_objects,
-              int64_t timeout_ms, const TaskID &task_id,
+              int64_t timeout_ms, const WorkerContext &ctx,
               absl::flat_hash_set<ObjectID> *ready);
 
   /// Note that `local_only` must be true, and `delete_creating_tasks` must be false here.
diff --git a/src/ray/core_worker/test/core_worker_test.cc b/src/ray/core_worker/test/core_worker_test.cc
index e3a8a7af6..fe16a624f 100644
--- a/src/ray/core_worker/test/core_worker_test.cc
+++ b/src/ray/core_worker/test/core_worker_test.cc
@@ -646,15 +646,15 @@ TEST_F(SingleNodeTest, TestMemoryStoreProvider) {
   absl::flat_hash_set<ObjectID> wait_results;
 
   ObjectID nonexistent_id = ObjectID::FromRandom().WithDirectTransportType();
+  WorkerContext ctx(WorkerType::WORKER, JobID::Nil());
   wait_ids.insert(nonexistent_id);
-  RAY_CHECK_OK(
-      provider.Wait(wait_ids, ids.size() + 1, 100, RandomTaskId(), &wait_results));
+  RAY_CHECK_OK(provider.Wait(wait_ids, ids.size() + 1, 100, ctx, &wait_results));
   ASSERT_EQ(wait_results.size(), ids.size());
   ASSERT_TRUE(wait_results.count(nonexistent_id) == 0);
 
   // Test Wait() where the required `num_objects` is less than size of `wait_ids`.
   wait_results.clear();
-  RAY_CHECK_OK(provider.Wait(wait_ids, ids.size(), -1, RandomTaskId(), &wait_results));
+  RAY_CHECK_OK(provider.Wait(wait_ids, ids.size(), -1, ctx, &wait_results));
   ASSERT_EQ(wait_results.size(), ids.size());
   ASSERT_TRUE(wait_results.count(nonexistent_id) == 0);
 
@@ -662,7 +662,7 @@ TEST_F(SingleNodeTest, TestMemoryStoreProvider) {
   bool got_exception = false;
   absl::flat_hash_map<ObjectID, std::shared_ptr<RayObject>> results;
   absl::flat_hash_set<ObjectID> ids_set(ids.begin(), ids.end());
-  RAY_CHECK_OK(provider.Get(ids_set, -1, RandomTaskId(), &results, &got_exception));
+  RAY_CHECK_OK(provider.Get(ids_set, -1, ctx, &results, &got_exception));
 
   ASSERT_TRUE(!got_exception);
   ASSERT_EQ(results.size(), ids.size());
@@ -685,8 +685,7 @@ TEST_F(SingleNodeTest, TestMemoryStoreProvider) {
   RAY_CHECK_OK(provider.Delete(ids_set));
 
   usleep(200 * 1000);
-  ASSERT_TRUE(
-      provider.Get(ids_set, 0, RandomTaskId(), &results, &got_exception).IsTimedOut());
+  ASSERT_TRUE(provider.Get(ids_set, 0, ctx, &results, &got_exception).IsTimedOut());
   ASSERT_TRUE(!got_exception);
   ASSERT_EQ(results.size(), 0);
 
@@ -715,8 +714,7 @@ TEST_F(SingleNodeTest, TestMemoryStoreProvider) {
   wait_results.clear();
 
   // Check that only the ready ids are returned when timeout ends before thread runs.
-  RAY_CHECK_OK(
-      provider.Wait(wait_ids, ready_ids.size() + 1, 100, RandomTaskId(), &wait_results));
+  RAY_CHECK_OK(provider.Wait(wait_ids, ready_ids.size() + 1, 100, ctx, &wait_results));
   ASSERT_EQ(ready_ids.size(), wait_results.size());
   for (const auto &ready_id : ready_ids) {
     ASSERT_TRUE(wait_results.find(ready_id) != wait_results.end());
@@ -727,8 +725,7 @@ TEST_F(SingleNodeTest, TestMemoryStoreProvider) {
 
   wait_results.clear();
   // Check that enough objects are returned after the thread inserts at least one object.
-  RAY_CHECK_OK(
-      provider.Wait(wait_ids, ready_ids.size() + 1, 5000, RandomTaskId(), &wait_results));
+  RAY_CHECK_OK(provider.Wait(wait_ids, ready_ids.size() + 1, 5000, ctx, &wait_results));
   ASSERT_TRUE(wait_results.size() >= ready_ids.size() + 1);
   for (const auto &ready_id : ready_ids) {
     ASSERT_TRUE(wait_results.find(ready_id) != wait_results.end());
@@ -737,8 +734,7 @@ TEST_F(SingleNodeTest, TestMemoryStoreProvider) {
   wait_results.clear();
   // Check that all objects are returned after the thread completes.
   async_thread.join();
-  RAY_CHECK_OK(
-      provider.Wait(wait_ids, wait_ids.size(), -1, RandomTaskId(), &wait_results));
+  RAY_CHECK_OK(provider.Wait(wait_ids, wait_ids.size(), -1, ctx, &wait_results));
   ASSERT_EQ(wait_results.size(), ready_ids.size() + unready_ids.size());
   for (const auto &ready_id : ready_ids) {
     ASSERT_TRUE(wait_results.find(ready_id) != wait_results.end());
diff --git a/src/ray/core_worker/transport/raylet_transport.h b/src/ray/core_worker/transport/raylet_transport.h
index b4de32b24..c2137f754 100644
--- a/src/ray/core_worker/transport/raylet_transport.h
+++ b/src/ray/core_worker/transport/raylet_transport.h
@@ -31,7 +31,8 @@ class CoreWorkerRayletTaskReceiver {
                         rpc::SendReplyCallback send_reply_callback);
 
  private:
-  /// Raylet client.
+  /// Reference to the core worker's raylet client. This is a pointer ref so that it
+  /// can be initialized by core worker after this class is constructed.
   std::shared_ptr<RayletClient> &raylet_client_;
   /// The callback function to process a task.
   TaskHandler task_handler_;
diff --git a/src/ray/raylet/format/node_manager.fbs b/src/ray/raylet/format/node_manager.fbs
index 91694b7e6..23b7406e5 100644
--- a/src/ray/raylet/format/node_manager.fbs
+++ b/src/ray/raylet/format/node_manager.fbs
@@ -31,6 +31,11 @@ enum MessageType:int {
   // For a worker that was blocked on some object(s), tell the raylet
   // that the worker is now unblocked. This is sent from a worker to a raylet.
   NotifyUnblocked,
+  // Notify the current worker is blocked. This is only used by direct task calls;
+  // otherwise the block command is piggybacked on other messages.
+  NotifyDirectCallTaskBlocked,
+  // Notify the current worker is unblocked. This is only used by direct task calls.
+  NotifyDirectCallTaskUnblocked,
   // A request to get the task frontier for an actor, called by the actor when
   // saving a checkpoint.
   GetActorFrontierRequest,
@@ -161,6 +166,12 @@ table NotifyUnblocked {
   task_id: string;
 }
 
+table NotifyDirectCallTaskBlocked {
+}
+
+table NotifyDirectCallTaskUnblocked {
+}
+
 table WaitRequest {
   // List of object ids we'll be waiting on.
   object_ids: [string];
diff --git a/src/ray/raylet/node_manager.cc b/src/ray/raylet/node_manager.cc
index 6c73e1bd8..6bedea3ea 100644
--- a/src/ray/raylet/node_manager.cc
+++ b/src/ray/raylet/node_manager.cc
@@ -833,6 +833,7 @@ void NodeManager::DispatchTasks(
           return local_queues_.NumRunning(a->first) < local_queues_.NumRunning(b->first);
         });
   }
+  std::vector<std::function<void()>> post_assign_callbacks;
   // Approximate fair round robin between classes.
   for (const auto &it : fair_order) {
     const auto &task_resources =
@@ -845,7 +846,7 @@ void NodeManager::DispatchTasks(
         // once the first task is not feasible, we can break out of this loop
         break;
       }
-      if (AssignTask(task)) {
+      if (AssignTask(task, &post_assign_callbacks)) {
         removed_task_ids.insert(task_id);
       }
     }
@@ -854,6 +855,9 @@ void NodeManager::DispatchTasks(
   // it queued locally. Once the GetTaskReply has been sent, the task will get
   // re-queued, depending on whether the message succeeded or not.
   local_queues_.MoveTasks(removed_task_ids, TaskState::READY, TaskState::SWAP);
+  for (auto func : post_assign_callbacks) {
+    func();
+  }
 }
 
 void NodeManager::ProcessClientMessage(
@@ -902,6 +906,14 @@ void NodeManager::ProcessClientMessage(
   case protocol::MessageType::FetchOrReconstruct: {
     ProcessFetchOrReconstructMessage(client, message_data);
   } break;
+  case protocol::MessageType::NotifyDirectCallTaskBlocked: {
+    std::shared_ptr<Worker> worker = worker_pool_.GetRegisteredWorker(client);
+    HandleDirectCallTaskBlocked(worker);
+  } break;
+  case protocol::MessageType::NotifyDirectCallTaskUnblocked: {
+    std::shared_ptr<Worker> worker = worker_pool_.GetRegisteredWorker(client);
+    HandleDirectCallTaskUnblocked(worker);
+  } break;
   case protocol::MessageType::NotifyUnblocked: {
     auto message = flatbuffers::GetRoot<protocol::NotifyUnblocked>(message_data);
     HandleTaskUnblocked(client, from_flatbuf<TaskID>(*message->task_id()));
@@ -1103,6 +1115,8 @@ void NodeManager::ProcessDisconnectClientMessage(
       // Clean up any open ray.wait calls that the worker made.
       task_dependency_manager_.UnsubscribeWaitDependencies(worker->WorkerId());
     }
+    // Erase any lease metadata.
+    leased_workers_.erase(worker->Port());
   }
 
   if (is_worker) {
@@ -1435,6 +1449,7 @@ void NodeManager::HandleWorkerLeaseRequest(const rpc::WorkerLeaseRequest &reques
         // TODO(swang): Kill worker if other end hangs up.
         // TODO(swang): Implement a lease term by which the owner needs to return the
         // worker.
+        RAY_CHECK(leased_workers_.find(port) == leased_workers_.end());
         leased_workers_[port] = std::static_pointer_cast<Worker>(granted);
       });
   task.OnSpillbackInstead(
@@ -1454,14 +1469,18 @@ void NodeManager::HandleReturnWorker(const rpc::ReturnWorkerRequest &request,
                                      rpc::SendReplyCallback send_reply_callback) {
   // Read the resource spec submitted by the client.
   auto worker_port = request.worker_port();
-  RAY_LOG(DEBUG) << "Return worker " << worker_port;
   std::shared_ptr<Worker> worker = std::move(leased_workers_[worker_port]);
   leased_workers_.erase(worker_port);
   Status status;
   if (worker) {
+    // Handle the edge case where the worker was returned before we got the
+    // unblock RPC by unblocking it immediately (unblock is idempotent).
+    if (worker->IsBlocked()) {
+      HandleDirectCallTaskUnblocked(worker);
+    }
     HandleWorkerAvailable(worker);
   } else {
-    status = Status::Invalid("Returned worker does not exist");
+    status = Status::Invalid("Returned worker does not exist any more");
   }
   send_reply_callback(status, nullptr, nullptr);
 }
@@ -1844,6 +1863,48 @@ void NodeManager::SubmitTask(const Task &task, const Lineage &uncommitted_lineag
   }
 }
 
+void NodeManager::HandleDirectCallTaskBlocked(const std::shared_ptr<Worker> &worker) {
+  if (!worker || worker->GetAssignedTaskId().IsNil() || worker->IsBlocked()) {
+    return;  // The worker may have died or is no longer processing the task.
+  }
+  auto const cpu_resource_ids = worker->ReleaseTaskCpuResources();
+  local_available_resources_.Release(cpu_resource_ids);
+  cluster_resource_map_[gcs_client_->client_table().GetLocalClientId()].Release(
+      cpu_resource_ids.ToResourceSet());
+  worker->MarkBlocked();
+  DispatchTasks(local_queues_.GetReadyTasksByClass());
+}
+
+void NodeManager::HandleDirectCallTaskUnblocked(const std::shared_ptr<Worker> &worker) {
+  if (!worker || worker->GetAssignedTaskId().IsNil() || !worker->IsBlocked()) {
+    return;  // The worker may have died or is no longer processing the task.
+  }
+  TaskID task_id = worker->GetAssignedTaskId();
+  Task task = local_queues_.GetTaskOfState(task_id, TaskState::RUNNING);
+  const auto required_resources = task.GetTaskSpecification().GetRequiredResources();
+  const ResourceSet cpu_resources = required_resources.GetNumCpus();
+  bool oversubscribed = !local_available_resources_.Contains(cpu_resources);
+  if (!oversubscribed) {
+    // Reacquire the CPU resources for the worker. Note that care needs to be
+    // taken if the user is using the specific CPU IDs since the IDs that we
+    // reacquire here may be different from the ones that the task started with.
+    auto const resource_ids = local_available_resources_.Acquire(cpu_resources);
+    worker->AcquireTaskCpuResources(resource_ids);
+    cluster_resource_map_[gcs_client_->client_table().GetLocalClientId()].Acquire(
+        cpu_resources);
+  } else {
+    // In this case, we simply don't reacquire the CPU resources for the worker.
+    // The worker can keep running and when the task finishes, it will simply
+    // not have any CPU resources to release.
+    RAY_LOG(WARNING)
+        << "Resources oversubscribed: "
+        << cluster_resource_map_[gcs_client_->client_table().GetLocalClientId()]
+               .GetAvailableResources()
+               .ToString();
+  }
+  worker->MarkUnblocked();
+}
+
 void NodeManager::HandleTaskBlocked(const std::shared_ptr<LocalClientConnection> &client,
                                     const std::vector<ObjectID> &required_object_ids,
                                     const TaskID &current_task_id, bool ray_get) {
@@ -1884,12 +1945,14 @@ void NodeManager::HandleTaskBlocked(const std::shared_ptr<LocalClientConnection>
   // Subscribe to the objects required by the task. These objects will be
   // fetched and/or reconstructed as necessary, until the objects become local
   // or are unsubscribed.
-  if (ray_get) {
-    task_dependency_manager_.SubscribeGetDependencies(current_task_id,
-                                                      required_object_ids);
-  } else {
-    task_dependency_manager_.SubscribeWaitDependencies(worker->WorkerId(),
-                                                       required_object_ids);
+  if (!required_object_ids.empty()) {
+    if (ray_get) {
+      task_dependency_manager_.SubscribeGetDependencies(current_task_id,
+                                                        required_object_ids);
+    } else {
+      task_dependency_manager_.SubscribeWaitDependencies(worker->WorkerId(),
+                                                         required_object_ids);
+    }
   }
 }
 
@@ -1974,7 +2037,8 @@ void NodeManager::EnqueuePlaceableTask(const Task &task) {
   task_dependency_manager_.TaskPending(task);
 }
 
-bool NodeManager::AssignTask(const Task &task) {
+bool NodeManager::AssignTask(const Task &task,
+                             std::vector<std::function<void()>> *post_assign_callbacks) {
   const TaskSpecification &spec = task.GetTaskSpecification();
 
   // If this is an actor task, check that the new task has the correct counter.
@@ -2036,7 +2100,12 @@ bool NodeManager::AssignTask(const Task &task) {
 
   if (task.OnDispatch() != nullptr) {
     task.OnDispatch()(worker, initial_config_.node_manager_address, worker->Port());
-    finish_assign_task_callback(Status::OK());
+    if (post_assign_callbacks != nullptr) {
+      // Moves the tasks from SWAP to RUNNING state atomically. This avoids race
+      // conditions with ReturnLease requests.
+      post_assign_callbacks->push_back(
+          [this, worker, task_id]() { FinishAssignTask(task_id, *worker, true); });
+    }
   } else {
     worker->AssignTask(task, resource_id_set, finish_assign_task_callback);
   }
diff --git a/src/ray/raylet/node_manager.h b/src/ray/raylet/node_manager.h
index efea4246d..f49ea2f20 100644
--- a/src/ray/raylet/node_manager.h
+++ b/src/ray/raylet/node_manager.h
@@ -211,8 +211,10 @@ class NodeManager : public rpc::NodeManagerServiceHandler {
   /// Assign a task. The task is assumed to not be queued in local_queues_.
   ///
   /// \param task The task in question.
+  /// \param post_assign_callbacks Set of functions to run after assignments finish.
   /// \return true, if tasks was assigned to a worker, false otherwise.
-  bool AssignTask(const Task &task);
+  bool AssignTask(const Task &task,
+                  std::vector<std::function<void()>> *post_assign_callbacks);
   /// Handle a worker finishing its assigned task.
   ///
   /// \param worker The worker that finished the task.
@@ -328,6 +330,19 @@ class NodeManager : public rpc::NodeManagerServiceHandler {
   void HandleTaskUnblocked(const std::shared_ptr<LocalClientConnection> &client,
                            const TaskID &current_task_id);
 
+  /// Handle a direct call task that is blocked. Note that this callback may
+  /// arrive after the worker lease has been returned to the node manager.
+  ///
+  /// \param worker Shared ptr to the worker, or nullptr if lost.
+  void HandleDirectCallTaskBlocked(const std::shared_ptr<Worker> &worker);
+
+  /// Handle a direct call task that is unblocked. Note that this callback may
+  /// arrive after the worker lease has been returned to the node manager.
+  /// However, it is guaranteed to arrive after DirectCallTaskBlocked.
+  ///
+  /// \param worker Shared ptr to the worker, or nullptr if lost.
+  void HandleDirectCallTaskUnblocked(const std::shared_ptr<Worker> &worker);
+
   /// Kill a worker.
   ///
   /// \param worker The worker to kill.
diff --git a/src/ray/raylet/raylet_client.cc b/src/ray/raylet/raylet_client.cc
index 9803a44ae..f9e839bf4 100644
--- a/src/ray/raylet/raylet_client.cc
+++ b/src/ray/raylet/raylet_client.cc
@@ -258,6 +258,20 @@ ray::Status RayletClient::NotifyUnblocked(const TaskID &current_task_id) {
   return conn_->WriteMessage(MessageType::NotifyUnblocked, &fbb);
 }
 
+ray::Status RayletClient::NotifyDirectCallTaskBlocked() {
+  flatbuffers::FlatBufferBuilder fbb;
+  auto message = ray::protocol::CreateNotifyDirectCallTaskBlocked(fbb);
+  fbb.Finish(message);
+  return conn_->WriteMessage(MessageType::NotifyDirectCallTaskBlocked, &fbb);
+}
+
+ray::Status RayletClient::NotifyDirectCallTaskUnblocked() {
+  flatbuffers::FlatBufferBuilder fbb;
+  auto message = ray::protocol::CreateNotifyDirectCallTaskUnblocked(fbb);
+  fbb.Finish(message);
+  return conn_->WriteMessage(MessageType::NotifyDirectCallTaskUnblocked, &fbb);
+}
+
 ray::Status RayletClient::Wait(const std::vector<ObjectID> &object_ids, int num_returns,
                                int64_t timeout_milliseconds, bool wait_local,
                                const TaskID &current_task_id, WaitResultPair *result) {
@@ -392,6 +406,8 @@ ray::Status RayletClient::ReturnWorker(int worker_port) {
   request.set_worker_port(worker_port);
   return grpc_client_->ReturnWorker(
       request, [](const ray::Status &status, const ray::rpc::ReturnWorkerReply &reply) {
-        RAY_CHECK_OK(status);
+        if (!status.ok()) {
+          RAY_LOG(ERROR) << "Error returning worker: " << status;
+        }
       });
 }
diff --git a/src/ray/raylet/raylet_client.h b/src/ray/raylet/raylet_client.h
index f796307ce..a28555fc0 100644
--- a/src/ray/raylet/raylet_client.h
+++ b/src/ray/raylet/raylet_client.h
@@ -126,12 +126,25 @@ class RayletClient : public WorkerLeaseInterface {
   /// \return int 0 means correct, other numbers mean error.
   ray::Status FetchOrReconstruct(const std::vector<ObjectID> &object_ids, bool fetch_only,
                                  const TaskID &current_task_id);
+
   /// Notify the raylet that this client (worker) is no longer blocked.
   ///
   /// \param current_task_id The task that is no longer blocked.
   /// \return ray::Status.
   ray::Status NotifyUnblocked(const TaskID &current_task_id);
 
+  /// Notify the raylet that this client is blocked. This is only used for direct task
+  /// calls. Note that ordering of this with respect to Unblock calls is important.
+  ///
+  /// \return ray::Status.
+  ray::Status NotifyDirectCallTaskBlocked();
+
+  /// Notify the raylet that this client is unblocked. This is only used for direct task
+  /// calls. Note that ordering of this with respect to Block calls is important.
+  ///
+  /// \return ray::Status.
+  ray::Status NotifyDirectCallTaskUnblocked();
+
   /// Wait for the given objects until timeout expires or num_return objects are
   /// found.
   ///