diff --git a/python/ray/node.py b/python/ray/node.py
index 5d2483a64..23e5623a2 100644
--- a/python/ray/node.py
+++ b/python/ray/node.py
@@ -4,6 +4,7 @@ import datetime
 import errno
 import os
 import logging
+import random
 import signal
 import socket
 import subprocess
@@ -24,6 +25,7 @@ from ray.utils import try_to_create_directory, try_to_symlink
 logger = logging.getLogger(__name__)
 
 SESSION_LATEST = "session_latest"
+NUMBER_OF_PORT_RETRIES = 40
 
 
 class Node:
@@ -167,7 +169,8 @@ class Node:
                 # NOTE: There is a possible but unlikely race condition where
                 # the port is bound by another process between now and when the
                 # raylet starts.
-                self._ray_params.node_manager_port = self._get_unused_port()
+                self._ray_params.node_manager_port, self._socket = \
+                    self._get_unused_port(close_on_exit=False)
 
         if not connect_only and spawn_reaper and not self.kernel_fate_share:
             self.start_reaper_process()
@@ -300,6 +303,14 @@ class Node:
         """Get the node manager's port."""
         return self._ray_params.node_manager_port
 
+    @property
+    def socket(self):
+        """Get the socket reserving the node manager's port"""
+        try:
+            return self._socket
+        except AttributeError:
+            return None
+
     @property
     def address_info(self):
         """Get a dictionary of addresses."""
@@ -395,12 +406,30 @@ class Node:
         log_stderr_file = open(log_stderr, "a", buffering=1)
         return log_stdout_file, log_stderr_file
 
-    def _get_unused_port(self):
+    def _get_unused_port(self, close_on_exit=True):
         s = socket.socket(socket.AF_INET, socket.SOCK_STREAM)
         s.bind(("", 0))
         port = s.getsockname()[1]
-        s.close()
-        return port
+
+        # Try to generate a port that is far above the 'next available' one.
+        # This solves issue #8254 where GRPC fails because the port assigned
+        # from this method has been used by a different process.
+        for _ in range(NUMBER_OF_PORT_RETRIES):
+            new_port = random.randint(port, 65535)
+            new_s = socket.socket(socket.AF_INET, socket.SOCK_STREAM)
+            try:
+                new_s.bind(("", new_port))
+            except OSError:
+                new_s.close()
+                continue
+            s.close()
+            if close_on_exit:
+                new_s.close()
+            return new_port, new_s
+        logger.error("Unable to succeed in selecting a random port.")
+        if close_on_exit:
+            s.close()
+        return port, s
 
     def _prepare_socket_file(self, socket_path, default_prefix):
         """Prepare the socket file for raylet and plasma.
@@ -417,7 +446,7 @@ class Node:
         if sys.platform == "win32":
             if socket_path is None:
                 result = "tcp://{}:{}".format(self._localhost,
-                                              self._get_unused_port())
+                                              self._get_unused_port()[0])
         else:
             if socket_path is None:
                 result = self._make_inc_temp(
@@ -598,7 +627,8 @@ class Node:
             include_java=self._ray_params.include_java,
             java_worker_options=self._ray_params.java_worker_options,
             load_code_from_local=self._ray_params.load_code_from_local,
-            fate_share=self.kernel_fate_share)
+            fate_share=self.kernel_fate_share,
+            socket_to_use=self.socket)
         assert ray_constants.PROCESS_TYPE_RAYLET not in self.all_processes
         self.all_processes[ray_constants.PROCESS_TYPE_RAYLET] = [process_info]
 
diff --git a/python/ray/services.py b/python/ray/services.py
index db1aa42fb..05bf4988c 100644
--- a/python/ray/services.py
+++ b/python/ray/services.py
@@ -1230,7 +1230,8 @@ def start_raylet(redis_address,
                  include_java=False,
                  java_worker_options=None,
                  load_code_from_local=False,
-                 fate_share=None):
+                 fate_share=None,
+                 socket_to_use=None):
     """Start a raylet, which is a combined local scheduler and object manager.
 
     Args:
@@ -1361,6 +1362,8 @@ def start_raylet(redis_address,
         "--temp_dir={}".format(temp_dir),
         "--session_dir={}".format(session_dir),
     ]
+    if socket_to_use:
+        socket_to_use.close()
     process_info = start_ray_process(
         command,
         ray_constants.PROCESS_TYPE_RAYLET,