diff --git a/internal/layers/layers.go b/internal/layers/layers.go
index fb5429bcc0..dcdce43617 100644
--- a/internal/layers/layers.go
+++ b/internal/layers/layers.go
@@ -154,7 +154,16 @@ func MountContainerLayers(ctx context.Context, layerFolders []string, guestRoot
 	if err != nil {
 		return "", fmt.Errorf("failed to add SCSI scratch VHD: %s", err)
 	}
-	containerScratchPathInUVM = scsiMount.UVMPath
+
+	// This handles the case where we want to share a scratch disk for multiple containers instead
+	// of mounting a new one. Pass a unique value for `ScratchPath` to avoid container upper and
+	// work directories colliding in the UVM.
+	if scsiMount.RefCount() > 1 && uvm.OS() == "linux" {
+		scratchFmt := fmt.Sprintf("container_%s", filepath.Base(containerScratchPathInUVM))
+		containerScratchPathInUVM = ospath.Join("linux", scsiMount.UVMPath, scratchFmt)
+	} else {
+		containerScratchPathInUVM = scsiMount.UVMPath
+	}
 
 	defer func() {
 		if err != nil {
diff --git a/internal/uvm/scsi.go b/internal/uvm/scsi.go
index 119c9a1088..4444066e21 100644
--- a/internal/uvm/scsi.go
+++ b/internal/uvm/scsi.go
@@ -69,6 +69,11 @@ type SCSIMount struct {
 	refCount uint32
 }
 
+// RefCount returns the current refcount for the SCSI mount.
+func (sm *SCSIMount) RefCount() uint32 {
+	return sm.refCount
+}
+
 func (sm *SCSIMount) logFormat() logrus.Fields {
 	return logrus.Fields{
 		"HostPath":   sm.HostPath,
diff --git a/test/cri-containerd/container_virtual_device_test.go b/test/cri-containerd/container_virtual_device_test.go
index b3c7ae4f3b..747da4d4c3 100644
--- a/test/cri-containerd/container_virtual_device_test.go
+++ b/test/cri-containerd/container_virtual_device_test.go
@@ -209,7 +209,7 @@ func Test_RunContainer_VirtualDevice_GPU_LCOW(t *testing.T) {
 		t.Fatalf("skipping test, failed to find assignable nvidia gpu on host with: %v", err)
 	}
 	if testDeviceInstanceID == "" {
-		t.Fatalf("skipping test, host has no assignable nvidia gpu devices")
+		t.Fatal("skipping test, host has no assignable nvidia gpu devices")
 	}
 
 	pullRequiredLcowImages(t, []string{imageLcowK8sPause, imageLcowAlpine})
@@ -250,7 +250,7 @@ func Test_RunContainer_VirtualDevice_GPU_Multiple_LCOW(t *testing.T) {
 		t.Fatalf("skipping test, failed to find assignable nvidia gpu on host with: %v", err)
 	}
 	if testDeviceInstanceID == "" {
-		t.Fatalf("skipping test, host has no assignable nvidia gpu devices")
+		t.Fatal("skipping test, host has no assignable nvidia gpu devices")
 	}
 
 	pullRequiredLcowImages(t, []string{imageLcowK8sPause, imageLcowAlpine})
@@ -295,10 +295,10 @@ func Test_RunContainer_VirtualDevice_GPU_and_NoGPU_LCOW(t *testing.T) {
 
 	testDeviceInstanceID, err := findTestNvidiaGPUDevice()
 	if err != nil {
-		t.Skipf("skipping test, failed to find assignable nvidia gpu on host with: %v", err)
+		t.Fatalf("skipping test, failed to find assignable nvidia gpu on host with: %v", err)
 	}
 	if testDeviceInstanceID == "" {
-		t.Skipf("skipping test, host has no assignable nvidia gpu devices")
+		t.Fatal("skipping test, host has no assignable nvidia gpu devices")
 	}
 
 	pullRequiredLcowImages(t, []string{imageLcowK8sPause, imageLcowAlpine})
@@ -364,10 +364,10 @@ func Test_RunContainer_VirtualDevice_GPU_Multiple_Removal_LCOW(t *testing.T) {
 
 	testDeviceInstanceID, err := findTestNvidiaGPUDevice()
 	if err != nil {
-		t.Skipf("skipping test, failed to find assignable nvidia gpu on host with: %v", err)
+		t.Fatalf("skipping test, failed to find assignable nvidia gpu on host with: %v", err)
 	}
 	if testDeviceInstanceID == "" {
-		t.Skipf("skipping test, host has no assignable nvidia gpu devices")
+		t.Fatal("skipping test, host has no assignable nvidia gpu devices")
 	}
 
 	pullRequiredLcowImages(t, []string{imageLcowK8sPause, imageLcowAlpine})
@@ -413,7 +413,7 @@ func Test_RunContainer_VirtualDevice_LocationPath_WCOW_Process(t *testing.T) {
 		t.Fatalf("skipping test, failed to retrieve assignable device on host with: %v", err)
 	}
 	if testDeviceLocationPath == "" {
-		t.Fatalf("skipping test, host has no assignable devices")
+		t.Fatal("skipping test, host has no assignable devices")
 	}
 
 	pullRequiredImages(t, []string{imageWindowsNanoserver})
@@ -451,7 +451,7 @@ func Test_RunContainer_VirtualDevice_ClassGUID_WCOW_Process(t *testing.T) {
 		t.Fatalf("skipping test, failed to retrieve assignable device on host with: %v", err)
 	}
 	if instanceID == "" {
-		t.Fatalf("skipping test, host has no assignable devices")
+		t.Fatal("skipping test, host has no assignable devices")
 	}
 
 	// use fixed GPU class guid
@@ -495,7 +495,7 @@ func Test_RunContainer_VirtualDevice_GPU_WCOW_Hypervisor(t *testing.T) {
 		t.Fatalf("skipping test, failed to retrieve assignable device on host with: %v", err)
 	}
 	if testDeviceInstanceID == "" {
-		t.Fatalf("skipping test, host has no assignable devices")
+		t.Fatal("skipping test, host has no assignable devices")
 	}
 
 	pullRequiredImages(t, []string{imageWindowsNanoserver})
@@ -540,7 +540,7 @@ func Test_RunContainer_VirtualDevice_GPU_and_NoGPU_WCOW_Hypervisor(t *testing.T)
 		t.Fatalf("skipping test, failed to retrieve assignable device on host with: %v", err)
 	}
 	if testDeviceInstanceID == "" {
-		t.Fatalf("skipping test, host has no assignable devices")
+		t.Fatal("skipping test, host has no assignable devices")
 	}
 
 	pullRequiredImages(t, []string{imageWindowsNanoserver})
@@ -602,7 +602,7 @@ func Test_RunContainer_VirtualDevice_GPU_Multiple_WCOW_Hypervisor(t *testing.T)
 		t.Fatalf("skipping test, failed to retrieve assignable device on host with: %v", err)
 	}
 	if testDeviceInstanceID == "" {
-		t.Fatalf("skipping test, host has no assignable devices")
+		t.Fatal("skipping test, host has no assignable devices")
 	}
 
 	pullRequiredImages(t, []string{imageWindowsNanoserver})
@@ -654,7 +654,7 @@ func Test_RunContainer_VirtualDevice_GPU_Multiple_Removal_WCOW_Hypervisor(t *tes
 		t.Fatalf("skipping test, failed to retrieve assignable device on host with: %v", err)
 	}
 	if testDeviceInstanceID == "" {
-		t.Fatalf("skipping test, host has no assignable devices")
+		t.Fatal("skipping test, host has no assignable devices")
 	}
 
 	pullRequiredImages(t, []string{imageWindowsNanoserver})