diff --git a/.github/workflows/rust.yml b/.github/workflows/rust.yml
index 1976c07649..48b95da242 100644
--- a/.github/workflows/rust.yml
+++ b/.github/workflows/rust.yml
@@ -81,7 +81,7 @@ jobs:
       - uses: actions-rs/cargo@v1
         with:
           command: test
-          args: --all-features --no-fail-fast
+          args: --all-features --no-fail-fast -- --nocapture
 
   # test-coverage:
   #   runs-on: ubuntu-latest
diff --git a/.gitignore b/.gitignore
index e76c684077..f337532a68 100644
--- a/.gitignore
+++ b/.gitignore
@@ -20,3 +20,5 @@ data
 # Ignore Python artifacts
 .mypy_cache/
 __pycache__/
+
+.modelator
diff --git a/Cargo.lock b/Cargo.lock
index aa2baa2153..56700c72de 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -824,6 +824,19 @@ dependencies = [
  "zeroize",
 ]
 
+[[package]]
+name = "env_logger"
+version = "0.8.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "17392a012ea30ef05a610aa97dfb49496e71c9f676b27879922ea5bdf60d9d3f"
+dependencies = [
+ "atty",
+ "humantime",
+ "log",
+ "regex",
+ "termcolor",
+]
+
 [[package]]
 name = "ff"
 version = "0.9.0"
@@ -1350,6 +1363,7 @@ dependencies = [
  "bytes",
  "chrono",
  "dyn-clonable",
+ "env_logger",
  "ibc-proto",
  "ics23",
  "modelator",
@@ -1365,8 +1379,10 @@ dependencies = [
  "tendermint-proto",
  "tendermint-rpc",
  "tendermint-testgen",
+ "test-env-log",
  "thiserror",
  "tracing",
+ "tracing-subscriber 0.2.18",
 ]
 
 [[package]]
@@ -1396,6 +1412,7 @@ dependencies = [
  "dirs-next",
  "dyn-clonable",
  "dyn-clone",
+ "env_logger",
  "futures",
  "hdpath",
  "hex",
@@ -1422,12 +1439,14 @@ dependencies = [
  "tendermint-proto",
  "tendermint-rpc",
  "tendermint-testgen",
+ "test-env-log",
  "thiserror",
  "tiny-bip39",
  "tokio",
  "toml",
  "tonic",
  "tracing",
+ "tracing-subscriber 0.2.18",
 ]
 
 [[package]]
@@ -3157,6 +3176,17 @@ dependencies = [
  "winapi-util",
 ]
 
+[[package]]
+name = "test-env-log"
+version = "0.2.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b3e4b132a630cc8a0d06cfcb400da67adef3d0087a94b3332d4692908f0c2544"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn",
+]
+
 [[package]]
 name = "textwrap"
 version = "0.12.1"
diff --git a/relayer/Cargo.toml b/relayer/Cargo.toml
index c8369c04c8..c74987da7d 100644
--- a/relayer/Cargo.toml
+++ b/relayer/Cargo.toml
@@ -71,6 +71,9 @@ version = "=0.19.0"
 
 [dev-dependencies]
 serial_test = "0.5.0"
+env_logger = "0.8.3"
+tracing-subscriber = "0.2.18"
+test-env-log = { version = "0.2.7", features = ["trace"] }
 ibc = { version = "0.3.2", path = "../modules", features = ["mocks"] }
 
 # Needed for generating (synthetic) light blocks.
diff --git a/relayer/src/chain/mock.rs b/relayer/src/chain/mock.rs
index b840576793..3a8fcf661a 100644
--- a/relayer/src/chain/mock.rs
+++ b/relayer/src/chain/mock.rs
@@ -42,7 +42,7 @@ use ibc_proto::ibc::core::connection::v1::{
 use crate::chain::Chain;
 use crate::config::ChainConfig;
 use crate::error::{Error, Kind};
-use crate::event::monitor::EventReceiver;
+use crate::event::monitor::{EventReceiver, EventSender};
 use crate::keyring::{KeyEntry, KeyRing};
 use crate::light_client::{mock::LightClient as MockLightClient, LightClient};
 
@@ -53,6 +53,10 @@ use crate::light_client::{mock::LightClient as MockLightClient, LightClient};
 pub struct MockChain {
     config: ChainConfig,
     context: MockContext,
+
+    // keep a reference to event sender to prevent it from being dropped
+    _event_sender: EventSender,
+    event_receiver: EventReceiver,
 }
 
 impl Chain for MockChain {
@@ -62,6 +66,7 @@ impl Chain for MockChain {
     type ClientState = TendermintClientState;
 
     fn bootstrap(config: ChainConfig, _rt: Arc<Runtime>) -> Result<Self, Error> {
+        let (sender, receiver) = channel::unbounded();
         Ok(MockChain {
             config: config.clone(),
             context: MockContext::new(
@@ -70,6 +75,8 @@ impl Chain for MockChain {
                 50,
                 Height::new(config.id.version(), 20),
             ),
+            _event_sender: sender,
+            event_receiver: receiver,
         })
     }
 
@@ -81,8 +88,7 @@ impl Chain for MockChain {
         &self,
         _rt: Arc<Runtime>,
     ) -> Result<(EventReceiver, Option<thread::JoinHandle<()>>), Error> {
-        let (_, rx) = channel::unbounded();
-        Ok((rx, None))
+        Ok((self.event_receiver.clone(), None))
     }
 
     fn id(&self) -> &ChainId {
diff --git a/relayer/src/chain/runtime.rs b/relayer/src/chain/runtime.rs
index 51746cae6e..33a5bcc05f 100644
--- a/relayer/src/chain/runtime.rs
+++ b/relayer/src/chain/runtime.rs
@@ -170,7 +170,10 @@ impl<C: Chain + Send + 'static> ChainRuntime<C> {
                                 .broadcast(Arc::new(event_batch))
                                 .map_err(Kind::channel)?;
                         },
-                        Err(e) => error!("received error via event bus: {}", e),
+                        Err(e) => {
+                            error!("received error via event bus: {}", e);
+                            return Err(Kind::Channel.into());
+                        },
                     }
                 },
                 recv(self.request_receiver) -> event => {
diff --git a/relayer/src/config.rs b/relayer/src/config.rs
index b756eaab06..988f98ca3c 100644
--- a/relayer/src/config.rs
+++ b/relayer/src/config.rs
@@ -166,6 +166,7 @@ pub(crate) fn store_writer(config: &Config, mut writer: impl Write) -> Result<()
 #[cfg(test)]
 mod tests {
     use super::{parse, store_writer};
+    use test_env_log::test;
 
     #[test]
     fn parse_valid_config() {
diff --git a/relayer/src/event/bus.rs b/relayer/src/event/bus.rs
index 38ccda485d..1adc13e2dd 100644
--- a/relayer/src/event/bus.rs
+++ b/relayer/src/event/bus.rs
@@ -44,6 +44,7 @@ mod tests {
 
     use serial_test::serial;
     use std::sync::atomic::{AtomicUsize, Ordering};
+    use test_env_log::test;
 
     static COUNTER: AtomicUsize = AtomicUsize::new(0);
 
diff --git a/relayer/src/event/monitor.rs b/relayer/src/event/monitor.rs
index c30205c034..77a5126ceb 100644
--- a/relayer/src/event/monitor.rs
+++ b/relayer/src/event/monitor.rs
@@ -90,6 +90,7 @@ type SubscriptionStream = dyn Stream<Item = SubscriptionResult> + Send + Sync +
 
 pub type Result<T> = std::result::Result<T, Error>;
 
+pub type EventSender = channel::Sender<Result<EventBatch>>;
 pub type EventReceiver = channel::Receiver<Result<EventBatch>>;
 
 /// Connect to a Tendermint node, subscribe to a set of queries,
diff --git a/relayer/src/foreign_client.rs b/relayer/src/foreign_client.rs
index dad8993dd5..baf256bf83 100644
--- a/relayer/src/foreign_client.rs
+++ b/relayer/src/foreign_client.rs
@@ -935,6 +935,7 @@ mod test {
     use std::str::FromStr;
     use std::sync::Arc;
 
+    use test_env_log::test;
     use tokio::runtime::Runtime as TokioRuntime;
 
     use ibc::events::IbcEvent;
diff --git a/relayer/src/util/retry.rs b/relayer/src/util/retry.rs
index 77f896b4c8..f63e09e8fd 100644
--- a/relayer/src/util/retry.rs
+++ b/relayer/src/util/retry.rs
@@ -76,6 +76,7 @@ pub fn clamp_total(
 #[cfg(test)]
 mod tests {
     use super::*;
+    use test_env_log::test;
 
     const CONST_STRATEGY: ConstantGrowth =
         ConstantGrowth::new(Duration::from_secs(1), Duration::from_millis(500));
diff --git a/relayer/src/util/stream.rs b/relayer/src/util/stream.rs
index a567066349..20aeba702b 100644
--- a/relayer/src/util/stream.rs
+++ b/relayer/src/util/stream.rs
@@ -50,6 +50,7 @@ where
 mod tests {
     use super::group_while;
     use futures::{executor::block_on, stream, StreamExt};
+    use test_env_log::test;
 
     #[test]
     fn group_while_non_empty() {