diff --git a/test/functional/blockchain.py b/test/functional/blockchain.py
--- a/test/functional/blockchain.py
+++ b/test/functional/blockchain.py
@@ -167,13 +167,13 @@
         assert_equal(self.nodes[0].getblockcount(), 206)
         self.log.debug('Node should not stop at this height')
         assert_raises(subprocess.TimeoutExpired,
-                      lambda: self.bitcoind_processes[0].wait(timeout=3))
+                      lambda: self.nodes[0].process.wait(timeout=3))
         try:
             self.nodes[0].generate(1)
         except (ConnectionError, http.client.BadStatusLine):
             pass  # The node already shut down before response
         self.log.debug('Node should stop at this height...')
-        self.bitcoind_processes[0].wait(timeout=BITCOIND_PROC_WAIT_TIMEOUT)
+        self.nodes[0].process.wait(timeout=BITCOIND_PROC_WAIT_TIMEOUT)
         self.nodes[0] = self.start_node(0, self.options.tmpdir)
         assert_equal(self.nodes[0].getblockcount(), 207)
 
diff --git a/test/functional/dbcrash.py b/test/functional/dbcrash.py
--- a/test/functional/dbcrash.py
+++ b/test/functional/dbcrash.py
@@ -67,7 +67,9 @@
                            self.node2_args, self.node3_args]
 
     def setup_network(self):
-        self.setup_nodes()
+        # Need a bit of extra time for the nodes to start up for this test
+        self.nodes = self.start_nodes(
+            self.num_nodes, self.options.tmpdir, self.extra_args, timewait=90)
         # Leave them unconnected, we'll use submitblock directly in this test
 
     def restart_node(self, node_index, expected_tip):
@@ -77,11 +79,11 @@
         after 60 seconds. Returns the utxo hash of the given node."""
 
         time_start = time.time()
-        while time.time() - time_start < 60:
+        while time.time() - time_start < 120:
             try:
                 # Any of these RPC calls could throw due to node crash
                 self.nodes[node_index] = self.start_node(
-                    node_index, self.options.tmpdir, self.extra_args[node_index])
+                    node_index, self.options.tmpdir, self.extra_args[node_index], timewait=90)
                 self.nodes[node_index].waitforblock(expected_tip)
                 utxo_hash = self.nodes[node_index].gettxoutsetinfo()[
                     'hash_serialized']
diff --git a/test/functional/fundrawtransaction.py b/test/functional/fundrawtransaction.py
--- a/test/functional/fundrawtransaction.py
+++ b/test/functional/fundrawtransaction.py
@@ -462,8 +462,7 @@
         self.stop_node(0)
         self.stop_node(2)
         self.stop_node(3)
-        self.nodes[1].encryptwallet("test")
-        self.bitcoind_processes[1].wait(timeout=BITCOIND_PROC_WAIT_TIMEOUT)
+        self.nodes[1].node_encrypt_wallet("test")
 
         self.nodes = self.start_nodes(self.num_nodes, self.options.tmpdir)
         # This test is not meant to test fee estimation and we'd like
diff --git a/test/functional/getblocktemplate_longpoll.py b/test/functional/getblocktemplate_longpoll.py
--- a/test/functional/getblocktemplate_longpoll.py
+++ b/test/functional/getblocktemplate_longpoll.py
@@ -18,7 +18,8 @@
         self.longpollid = templat['longpollid']
         # create a new connection to the node, we can't use the same
         # connection from two threads
-        self.node = get_rpc_proxy(node.url, 1, timeout=600)
+        self.node = get_rpc_proxy(
+            node.url, 1, timeout=600, coveragedir=node.coverage_dir)
 
     def run(self):
         self.node.getblocktemplate({'longpollid': self.longpollid})
diff --git a/test/functional/keypool.py b/test/functional/keypool.py
--- a/test/functional/keypool.py
+++ b/test/functional/keypool.py
@@ -21,8 +21,7 @@
                'hdmasterkeyid'] == wallet_info_old['hdmasterkeyid'])
 
         # Encrypt wallet and wait to terminate
-        nodes[0].encryptwallet('test')
-        self.bitcoind_processes[0].wait()
+        nodes[0].node_encrypt_wallet('test')
         # Restart node 0
         nodes[0] = self.start_node(0, self.options.tmpdir)
         # Keep creating keys
diff --git a/test/functional/multiwallet.py b/test/functional/multiwallet.py
--- a/test/functional/multiwallet.py
+++ b/test/functional/multiwallet.py
@@ -41,12 +41,16 @@
         self.nodes[0] = self.start_node(
             0, self.options.tmpdir, self.extra_args[0])
 
-        w1 = self.nodes[0] / "wallet/w1"
+        w1 = self.nodes[0].get_wallet_rpc("w1")
+        w2 = self.nodes[0].get_wallet_rpc("w2")
+        w3 = self.nodes[0].get_wallet_rpc("w3")
+        wallet_bad = self.nodes[0].get_wallet_rpc("bad")
+
         w1.generate(1)
 
         # accessing invalid wallet fails
         assert_raises_jsonrpc(-18, "Requested wallet does not exist or is not loaded",
-                              (self.nodes[0] / "wallet/bad").getwalletinfo)
+                              wallet_bad.getwalletinfo)
 
         # accessing wallet RPC without using wallet endpoint fails
         assert_raises_jsonrpc(-19, "Wallet file not specified (must request wallet RPC through /wallet/<filename> uri-path).",
@@ -58,14 +62,12 @@
         w1_name = w1_info['walletname']
         assert_equal(w1_name, "w1")
 
-        # check w1 wallet balance
-        w2 = self.nodes[0] / "wallet/w2"
+        # check w2 wallet balance
         w2_info = w2.getwalletinfo()
         assert_equal(w2_info['immature_balance'], 0)
         w2_name = w2_info['walletname']
         assert_equal(w2_name, "w2")
 
-        w3 = self.nodes[0] / "wallet/w3"
         w3_name = w3.getwalletinfo()['walletname']
         assert_equal(w3_name, "w3")
 
diff --git a/test/functional/rpcbind_test.py b/test/functional/rpcbind_test.py
--- a/test/functional/rpcbind_test.py
+++ b/test/functional/rpcbind_test.py
@@ -36,7 +36,7 @@
         binds = ['-rpcbind=' + addr for addr in addresses]
         self.nodes = self.start_nodes(self.num_nodes, self.options.tmpdir, [
                                       base_args + binds], connect_to)
-        pid = self.bitcoind_processes[0].pid
+        pid = self.nodes[0].process.pid
         assert_equal(set(get_bind_addrs(pid)), set(expected))
         self.stop_nodes()
 
@@ -50,8 +50,8 @@
         self.nodes = self.start_nodes(
             self.num_nodes, self.options.tmpdir, [base_args])
         # connect to node through non-loopback interface
-        node = get_rpc_proxy(rpc_url(get_datadir_path(
-            self.options.tmpdir, 0), 0, "%s:%d" % (rpchost, rpcport)), 0)
+        node = get_rpc_proxy(rpc_url(get_datadir_path(self.options.tmpdir, 0), 0, "%s:%d" % (
+            rpchost, rpcport)), 0, coveragedir=self.options.coveragedir)
         node.getnetworkinfo()
         self.stop_nodes()
 
diff --git a/test/functional/test_framework/test_framework.py b/test/functional/test_framework/test_framework.py
--- a/test/functional/test_framework/test_framework.py
+++ b/test/functional/test_framework/test_framework.py
@@ -4,14 +4,11 @@
 # file COPYING or http://www.opensource.org/licenses/mit-license.php.
 
 from collections import deque
-import errno
 from enum import Enum
-import http.client
 import logging
 import optparse
 import os
 import shutil
-import subprocess
 import sys
 import tempfile
 import time
@@ -19,6 +16,7 @@
 
 from .authproxy import JSONRPCException
 from . import coverage
+from .test_node import TestNode
 from .util import (
     MAX_NODES,
     PortSeed,
@@ -26,12 +24,9 @@
     check_json_precision,
     connect_nodes_bi,
     disconnect_nodes,
-    get_rpc_proxy,
     initialize_datadir,
-    get_datadir_path,
     log_filename,
     p2p_port,
-    rpc_url,
     set_node_times,
     sync_blocks,
     sync_mempools,
@@ -71,7 +66,6 @@
         self.num_nodes = 4
         self.setup_clean_chain = False
         self.nodes = []
-        self.bitcoind_processes = {}
         self.mocktime = 0
 
     def add_options(self, parser):
@@ -219,70 +213,65 @@
     def start_node(self, i, dirname, extra_args=None, rpchost=None, timewait=None, binary=None, stderr=None):
         """Start a bitcoind and return RPC connection to it"""
 
-        datadir = os.path.join(dirname, "node" + str(i))
+        if extra_args is None:
+            extra_args = []
         if binary is None:
             binary = os.getenv("BITCOIND", "bitcoind")
-        args = [binary, "-datadir=" + datadir, "-server", "-keypool=1", "-discover=0", "-rest", "-logtimemicros", "-debug",
-                "-debugexclude=libevent", "-debugexclude=leveldb", "-mocktime=" + str(self.mocktime), "-uacomment=testnode%d" % i]
-        if extra_args is not None:
-            args.extend(extra_args)
-        self.bitcoind_processes[i] = subprocess.Popen(args, stderr=stderr)
-        self.log.debug(
-            "initialize_chain: bitcoind started, waiting for RPC to come up")
-        self._wait_for_bitcoind_start(
-            self.bitcoind_processes[i], datadir, i, rpchost)
-        self.log.debug("initialize_chain: RPC successfully started")
-        proxy = get_rpc_proxy(
-            rpc_url(datadir, i, rpchost), i, timeout=timewait)
-
-        if self.options.coveragedir:
-            coverage.write_all_rpc_commands(self.options.coveragedir, proxy)
-
-        return proxy
+        node = TestNode(i, dirname, extra_args, rpchost, timewait, binary,
+                        stderr, self.mocktime, coverage_dir=self.options.coveragedir)
+        node.start()
+        node.wait_for_rpc_connection()
+
+        if self.options.coveragedir is not None:
+            coverage.write_all_rpc_commands(self.options.coveragedir, node.rpc)
+
+        return node
 
     def start_nodes(self, num_nodes, dirname, extra_args=None, rpchost=None, timewait=None, binary=None):
         """Start multiple bitcoinds, return RPC connections to them"""
 
         if extra_args is None:
-            extra_args = [None] * num_nodes
+            extra_args = [[]] * num_nodes
         if binary is None:
             binary = [None] * num_nodes
         assert_equal(len(extra_args), num_nodes)
         assert_equal(len(binary), num_nodes)
-        rpcs = []
+        nodes = []
         try:
             for i in range(num_nodes):
-                rpcs.append(self.start_node(
-                    i, dirname, extra_args[i], rpchost, timewait=timewait, binary=binary[i]))
+                nodes.append(TestNode(i, dirname, extra_args[i], rpchost, timewait=timewait, binary=binary[i],
+                                      stderr=None, mocktime=self.mocktime, coverage_dir=self.options.coveragedir))
+                nodes[i].start()
+            for node in nodes:
+                node.wait_for_rpc_connection()
         except:
             # If one node failed to start, stop the others
-            # TODO: abusing self.nodes in this way is a little hacky.
-            # Eventually we should do a better job of tracking nodes
-            self.nodes.extend(rpcs)
             self.stop_nodes()
-            self.nodes = []
             raise
-        return rpcs
+
+        if self.options.coveragedir is not None:
+            for node in nodes:
+                coverage.write_all_rpc_commands(
+                    self.options.coveragedir, node.rpc)
+
+        return nodes
 
     def stop_node(self, i):
         """Stop a bitcoind test node"""
-
-        self.log.debug("Stopping node %d" % i)
-        try:
-            self.nodes[i].stop()
-        except http.client.CannotSendRequest as e:
-            self.log.exception("Unable to stop node")
-        return_code = self.bitcoind_processes[i].wait(
-            timeout=BITCOIND_PROC_WAIT_TIMEOUT)
-        del self.bitcoind_processes[i]
-        assert_equal(return_code, 0)
+        self.nodes[i].stop_node()
+        while not self.nodes[i].is_node_stopped():
+            time.sleep(0.1)
 
     def stop_nodes(self):
         """Stop multiple bitcoind test nodes"""
+        for node in self.nodes:
+            # Issue RPC to stop nodes
+            node.stop_node()
 
-        for i in range(len(self.nodes)):
-            self.stop_node(i)
-        assert not self.bitcoind_processes.values()  # All connections must be gone now
+        for node in self.nodes:
+            # Wait for nodes to stop
+            while not node.is_node_stopped():
+                time.sleep(0.1)
 
     def assert_start_raises_init_error(self, i, dirname, extra_args=None, expected_msg=None):
         with tempfile.SpooledTemporaryFile(max_size=2**16) as log_stderr:
@@ -291,6 +280,8 @@
                 self.stop_node(i)
             except Exception as e:
                 assert 'bitcoind exited' in str(e)  # node must have shutdown
+                self.nodes[i].running = False
+                self.nodes[i].process = None
                 if expected_msg is not None:
                     log_stderr.seek(0)
                     stderr = log_stderr.read().decode('utf-8')
@@ -305,7 +296,7 @@
                 raise AssertionError(assert_msg)
 
     def wait_for_node_exit(self, i, timeout):
-        self.bitcoind_processes[i].wait(timeout)
+        self.nodes[i].process.wait(timeout)
 
     def split_network(self):
         """
@@ -408,21 +399,14 @@
                         "-keypool=1", "-datadir=" + datadir, "-discover=0"]
                 if i > 0:
                     args.append("-connect=127.0.0.1:" + str(p2p_port(0)))
-                self.bitcoind_processes[i] = subprocess.Popen(args)
-                self.log.debug(
-                    "initialize_chain: bitcoind started, waiting for RPC to come up")
-                self._wait_for_bitcoind_start(
-                    self.bitcoind_processes[i], datadir, i)
-                self.log.debug("initialize_chain: RPC successfully started")
+                self.nodes.append(TestNode(i, cachedir, extra_args=[], rpchost=None, timewait=None,
+                                           binary=None, stderr=None, mocktime=self.mocktime, coverage_dir=None))
+                self.nodes[i].args = args
+                self.nodes[i].start()
 
-            self.nodes = []
-            for i in range(MAX_NODES):
-                try:
-                    self.nodes.append(get_rpc_proxy(
-                        rpc_url(get_datadir_path(cachedir, i), i), i))
-                except:
-                    self.log.exception("Error connecting to node %d" % i)
-                    sys.exit(1)
+            # Wait for RPC connections to be ready
+            for node in self.nodes:
+                node.wait_for_rpc_connection()
 
             # Create a 200-block-long chain; each of the 4 first nodes
             # gets 25 mature blocks and 25 immature.
@@ -467,32 +451,6 @@
         for i in range(num_nodes):
             initialize_datadir(test_dir, i)
 
-    def _wait_for_bitcoind_start(self, process, datadir, i, rpchost=None):
-        """Wait for bitcoind to start.
-
-        This means that RPC is accessible and fully initialized.
-        Raise an exception if bitcoind exits during initialization."""
-        while True:
-            if process.poll() is not None:
-                raise Exception(
-                    'bitcoind exited with status %i during initialization' % process.returncode)
-            try:
-                # Check if .cookie file to be created
-                rpc = get_rpc_proxy(
-                    rpc_url(datadir, i, rpchost), i, coveragedir=self.options.coveragedir)
-                rpc.getblockcount()
-                break  # break out of loop on success
-            except IOError as e:
-                if e.errno != errno.ECONNREFUSED:  # Port not yet open?
-                    raise  # unknown IO error
-            except JSONRPCException as e:  # Initialization phase
-                if e.error['code'] != -28:  # RPC in warmup?
-                    raise  # unknown JSON RPC exception
-            except ValueError as e:  # cookie file not found and no rpcuser or rpcassword. bitcoind still starting
-                if "No RPC credentials" not in str(e):
-                    raise
-            time.sleep(0.25)
-
 
 class ComparisonTestFramework(BitcoinTestFramework):
     """Test framework for doing p2p comparison testing
diff --git a/test/functional/test_framework/test_node.py b/test/functional/test_framework/test_node.py
new file mode 100755
--- /dev/null
+++ b/test/functional/test_framework/test_node.py
@@ -0,0 +1,143 @@
+#!/usr/bin/env python3
+# Copyright (c) 2017 The Bitcoin Core developers
+# Distributed under the MIT software license, see the accompanying
+# file COPYING or http://www.opensource.org/licenses/mit-license.php.
+"""Class for bitcoind node under test"""
+
+import errno
+import http.client
+import logging
+import os
+import subprocess
+import time
+
+from .util import (
+    assert_equal,
+    get_rpc_proxy,
+    rpc_url,
+)
+from .authproxy import JSONRPCException
+
+
+class TestNode():
+    """A class for representing a bitcoind node under test.
+
+    This class contains:
+
+    - state about the node (whether it's running, etc)
+    - a Python subprocess.Popen object representing the running process
+    - an RPC connection to the node
+
+    To make things easier for the test writer, a bit of magic is happening under the covers.
+    Any unrecognised messages will be dispatched to the RPC connection."""
+
+    def __init__(self, i, dirname, extra_args, rpchost, timewait, binary, stderr, mocktime, coverage_dir):
+        self.index = i
+        self.datadir = os.path.join(dirname, "node" + str(i))
+        self.rpchost = rpchost
+        if timewait:
+            self.rpc_timeout = timewait
+        else:
+            # Wait for up to 60 seconds for the RPC server to respond
+            self.rpc_timeout = 60
+        if binary is None:
+            self.binary = os.getenv("BITCOIND", "bitcoind")
+        else:
+            self.binary = binary
+        self.stderr = stderr
+        self.coverage_dir = coverage_dir
+        # Most callers will just need to add extra args to the standard list below. For those callers that need more flexibity, they can just set the args property directly.
+        self.extra_args = extra_args
+        self.args = [self.binary, "-datadir=" + self.datadir, "-server", "-keypool=1", "-discover=0", "-rest", "-logtimemicros",
+                     "-debug", "-debugexclude=libevent", "-debugexclude=leveldb", "-mocktime=" + str(mocktime), "-uacomment=testnode%d" % i]
+
+        self.running = False
+        self.process = None
+        self.rpc_connected = False
+        self.rpc = None
+        self.url = None
+        self.log = logging.getLogger('TestFramework.node%d' % i)
+
+    def __getattr__(self, *args, **kwargs):
+        """Dispatches any unrecognised messages to the RPC connection."""
+        assert self.rpc_connected and self.rpc is not None, "Error: no RPC connection"
+        return self.rpc.__getattr__(*args, **kwargs)
+
+    def start(self):
+        """Start the node."""
+        self.process = subprocess.Popen(
+            self.args + self.extra_args, stderr=self.stderr)
+        self.running = True
+        self.log.debug("bitcoind started, waiting for RPC to come up")
+
+    def wait_for_rpc_connection(self):
+        """Sets up an RPC connection to the bitcoind process. Returns False if unable to connect."""
+        # Poll at a rate of four times per second
+        poll_per_s = 4
+        for _ in range(poll_per_s * self.rpc_timeout):
+            assert self.process.poll(
+            ) is None, "bitcoind exited with status %i during initialization" % self.process.returncode
+            try:
+                self.rpc = get_rpc_proxy(rpc_url(
+                    self.datadir, self.index, self.rpchost), self.index, coveragedir=self.coverage_dir)
+                self.rpc.getblockcount()
+                # If the call to getblockcount() succeeds then the RPC connection is up
+                self.rpc_connected = True
+                self.url = self.rpc.url
+                self.log.debug("RPC successfully started")
+                return
+            except IOError as e:
+                if e.errno != errno.ECONNREFUSED:  # Port not yet open?
+                    raise  # unknown IO error
+            except JSONRPCException as e:  # Initialization phase
+                if e.error['code'] != -28:  # RPC in warmup?
+                    raise  # unknown JSON RPC exception
+            except ValueError as e:  # cookie file not found and no rpcuser or rpcassword. bitcoind still starting
+                if "No RPC credentials" not in str(e):
+                    raise
+            time.sleep(1.0 / poll_per_s)
+        raise AssertionError("Unable to connect to bitcoind")
+
+    def get_wallet_rpc(self, wallet_name):
+        assert self.rpc_connected
+        assert self.rpc
+        wallet_path = "wallet/%s" % wallet_name
+        return self.rpc / wallet_path
+
+    def stop_node(self):
+        """Stop the node."""
+        if not self.running:
+            return
+        self.log.debug("Stopping node")
+        try:
+            self.stop()
+        except http.client.CannotSendRequest:
+            self.log.exception("Unable to stop node.")
+
+    def is_node_stopped(self):
+        """Checks whether the node has stopped.
+
+        Returns True if the node has stopped. False otherwise.
+        This method is responsible for freeing resources (self.process)."""
+        if not self.running:
+            return True
+        return_code = self.process.poll()
+        if return_code is not None:
+            # process has stopped. Assert that it didn't return an error code.
+            assert_equal(return_code, 0)
+            self.running = False
+            self.process = None
+            self.log.debug("Node stopped")
+            return True
+        return False
+
+    def node_encrypt_wallet(self, passphrase):
+        """"Encrypts the wallet.
+
+        This causes bitcoind to shutdown, so this method takes
+        care of cleaning up resources."""
+        self.encryptwallet(passphrase)
+        while not self.is_node_stopped():
+            time.sleep(0.1)
+        self.rpc = None
+        self.rpc_connected = False
diff --git a/test/functional/test_framework/util.py b/test/functional/test_framework/util.py
--- a/test/functional/test_framework/util.py
+++ b/test/functional/test_framework/util.py
@@ -9,7 +9,6 @@
 import json
 import logging
 import os
-import sys
 import random
 import re
 import time
@@ -235,7 +234,7 @@
 
 
 def rpc_url(datadir, i, rpchost=None):
-    rpc_u, rpc_p = get_auth_cookie(datadir, i)
+    rpc_u, rpc_p = get_auth_cookie(datadir)
     host = '127.0.0.1'
     port = rpc_port(i)
     if rpchost:
@@ -267,7 +266,7 @@
     return os.path.join(dirname, "node" + str(n))
 
 
-def get_auth_cookie(datadir, n):
+def get_auth_cookie(datadir):
     user = None
     password = None
     if os.path.isfile(os.path.join(datadir, "bitcoin.conf")):
@@ -642,6 +641,7 @@
     # Try to work it based out on main module
     # We might expect the caller to be rpc-tests.py or a test script
     # itself.
+    import sys
     mainmod = sys.modules['__main__']
     mainmod_path = getattr(mainmod, '__file__', '')
     if mainmod_path and mainmod_path.endswith('.py'):
diff --git a/test/functional/wallet-dump.py b/test/functional/wallet-dump.py
--- a/test/functional/wallet-dump.py
+++ b/test/functional/wallet-dump.py
@@ -94,8 +94,7 @@
         assert_equal(found_addr_rsv, 90 * 2)
 
         # encrypt wallet, restart, unlock and dump
-        self.nodes[0].encryptwallet('test')
-        self.bitcoind_processes[0].wait()
+        self.nodes[0].node_encrypt_wallet('test')
         self.nodes[0] = self.start_node(
             0, self.options.tmpdir, self.extra_args[0])
         self.nodes[0].walletpassphrase('test', 10)
diff --git a/test/functional/wallet-encryption.py b/test/functional/wallet-encryption.py
--- a/test/functional/wallet-encryption.py
+++ b/test/functional/wallet-encryption.py
@@ -31,8 +31,7 @@
         assert_equal(len(privkey), 52)
 
         # Encrypt the wallet
-        self.nodes[0].encryptwallet(passphrase)
-        self.bitcoind_processes[0].wait(timeout=BITCOIND_PROC_WAIT_TIMEOUT)
+        self.nodes[0].node_encrypt_wallet(passphrase)
         self.nodes[0] = self.start_node(0, self.options.tmpdir)
 
         # Test that the wallet is encrypted