diff --git a/tests/dragonfly/cluster_mgr_test.py b/tests/dragonfly/cluster_mgr_test.py
index 61c618a02..e683e8a11 100644
--- a/tests/dragonfly/cluster_mgr_test.py
+++ b/tests/dragonfly/cluster_mgr_test.py
@@ -24,7 +24,6 @@ def run_cluster_mgr(args):
     return result.returncode == 0
 
 
-@pytest.mark.skip("it leaves an unclosed instance that fails other tests")
 @dfly_args({"proactor_threads": 2, "cluster_mode": "yes"})
 async def test_cluster_mgr(df_factory):
     NODES = 3
@@ -113,7 +112,7 @@ async def test_cluster_mgr(df_factory):
     # Add replicas
     replica_clients = [replica.client() for replica in replicas]
     for i in range(NODES):
-        await replica_clients[i].execute_command(f"replicaof localhost {masters[i].port}")
+        await replica_clients[i].execute_command(f"replicaof 127.0.0.1 {masters[i].port}")
         assert run_cluster_mgr(
             [
                 f"--action=attach",
@@ -133,7 +132,7 @@ async def test_cluster_mgr(df_factory):
 
     # Revert take over
     c_master0 = masters[0].client()
-    await c_master0.execute_command(f"replicaof localhost {replicas[0].port}")
+    await c_master0.execute_command(f"replicaof 127.0.0.1 {replicas[0].port}")
     assert run_cluster_mgr(
         [
             f"--action=attach",
@@ -144,7 +143,7 @@ async def test_cluster_mgr(df_factory):
     )
     assert run_cluster_mgr(["--action=takeover", f"--target_port={masters[0].port}"])
     await c_master0.execute_command(f"replicaof no one")
-    await replica_clients[0].execute_command(f"replicaof localhost {masters[0].port}")
+    await replica_clients[0].execute_command(f"replicaof 127.0.0.1 {masters[0].port}")
     assert run_cluster_mgr(
         [
             f"--action=attach",
diff --git a/tools/cluster_mgr.py b/tools/cluster_mgr.py
index 7d420945c..5e9fe152c 100755
--- a/tools/cluster_mgr.py
+++ b/tools/cluster_mgr.py
@@ -57,12 +57,13 @@ def send_command(node, command, print_errors=True):
     for i in range(0, 5):
         try:
             result = client.execute_command(*command)
-            client.close()
             return result
         except Exception as e:
             if print_errors:
                 print(e)
             time.sleep(0.1 * i)
+        finally:
+            client.close()
 
     if print_errors:
         print(f"Unable to run command {command} against {node.host}:{node.port} after 5 attempts!")
@@ -123,10 +124,10 @@ def create_locally(args):
     next_port = args.first_port
     masters = []
     for i in range(args.num_masters):
-        master = Master("localhost", next_port)
+        master = Master("127.0.0.1", next_port)
         next_port += 1
         for j in range(args.replicas_per_master):
-            replica = Node("localhost", next_port)
+            replica = Node("127.0.0.1", next_port)
             master.replicas.append(replica)
             next_port += 1
         masters.append(master)
@@ -205,6 +206,8 @@ def build_config_from_existing(args):
                 "replicas": [build_node(replica) for replica in shard["nodes"][1::]],
             }
         )
+
+    client.close()
     return config
 
 
@@ -456,16 +459,16 @@ Create a 6 node cluster locally, 3 of them masters with 1 replica each:
 
 Connect to existing cluster and print current config:
   ./cluster_mgr.py --action=print_config
-This will connect to localhost:6379 by default. Override with `--target_host` and `--target_port`
+This will connect to 127.0.0.1:6379 by default. Override with `--target_host` and `--target_port`
 
 Configure an existing Dragonfly server to be a standalone cluster (owning all slots):
   ./cluster_mgr.py --action=config_single_remote
 This connects to an *existing* Dragonfly server, and pushes a config telling it to own all slots.
-This will connect to localhost:6379 by default. Override with `--target_host` and `--target_port`
+This will connect to 127.0.0.1:6379 by default. Override with `--target_host` and `--target_port`
 
 Attach an existing Dragonfly server to an existing cluster (owning no slots):
   ./cluster_mgr.py --action=attach --attach_host=HOST --attach_port=PORT
-This will connect to existing cluster present at localhost:6379 by default. Override with
+This will connect to existing cluster present at 127.0.0.1:6379 by default. Override with
 `--target_host` and `--target_port`.
 To attach node as a replica - use --attach_as_replica=True. In such case, the node will be a
 replica of --target_host/--target_port.
@@ -524,10 +527,10 @@ WARNING: Be careful! This will close all Dragonfly servers connected to the clus
     parser.add_argument(
         "--slot_end", type=int, default=100, help="Last slot to move / migrate (inclusive)"
     )
-    parser.add_argument("--target_host", default="localhost", help="Master host/ip")
+    parser.add_argument("--target_host", default="127.0.0.1", help="Master host/ip")
     parser.add_argument("--target_port", type=int, default=6379, help="Master port")
     parser.add_argument(
-        "--attach_host", default="localhost", help="New cluster node master host/ip"
+        "--attach_host", default="127.0.0.1", help="New cluster node master host/ip"
     )
     parser.add_argument(
         "--attach_port", type=int, default=6379, help="New cluster node master port"