diff --git a/run-tests.js b/run-tests.js
index 93547d3c0f0d6..a8745665593a5 100644
--- a/run-tests.js
+++ b/run-tests.js
@@ -420,26 +420,11 @@ async function main() {
           }
         }
       }
+
       if (!passed) {
         console.error(`${test} failed to pass within ${numRetries} retries`)
         children.forEach((child) => child.kill())
 
-        if (isTestJob) {
-          try {
-            const testsOutput = await fs.readFile(
-              `${test}${RESULTS_EXT}`,
-              'utf8'
-            )
-            console.log(
-              `--test output start--`,
-              testsOutput,
-              `--test output end--`
-            )
-          } catch (err) {
-            console.log(`Failed to load test output`, err)
-          }
-        }
-
         if (!shouldContinueTestsOnError) {
           cleanUpAndExit(1)
         } else {
@@ -448,6 +433,21 @@ async function main() {
           )
         }
       }
+
+      // Emit test output if test failed or if we're continuing tests on error
+      if ((!passed || shouldContinueTestsOnError) && isTestJob) {
+        try {
+          const testsOutput = await fs.readFile(`${test}${RESULTS_EXT}`, 'utf8')
+          console.log(
+            `--test output start--`,
+            testsOutput,
+            `--test output end--`
+          )
+        } catch (err) {
+          console.log(`Failed to load test output`, err)
+        }
+      }
+
       sema.release()
       dirSema.release()
     })
diff --git a/test/lib/e2e-utils.ts b/test/lib/e2e-utils.ts
index 08eff34a2866f..e5281405770e0 100644
--- a/test/lib/e2e-utils.ts
+++ b/test/lib/e2e-utils.ts
@@ -11,7 +11,19 @@ import { shouldRunTurboDevTest } from './next-test-utils'
 export type { NextInstance }
 
 // increase timeout to account for yarn install time
-jest.setTimeout(240 * 1000)
+// if either test runs for the --turbo or have a custom timeout, set reduced timeout instead.
+// this is due to current --turbo test have a lot of tests fails with timeouts, ends up the whole
+// test job exceeds the 6 hours limit.
+let testTimeout = shouldRunTurboDevTest() ? (240 * 1000) / 4 : 240 * 1000
+if (process.env.NEXT_E2E_TEST_TIMEOUT) {
+  try {
+    testTimeout = parseInt(process.env.NEXT_E2E_TEST_TIMEOUT, 10)
+  } catch (_) {
+    // ignore
+  }
+}
+
+jest.setTimeout(testTimeout)
 
 const testsFolder = path.join(__dirname, '..')