diff --git a/.github/workflows/test_e2e_deploy.yml b/.github/workflows/test_e2e_deploy.yml
index 8871dacfe0c97..feb37aec4c4b4 100644
--- a/.github/workflows/test_e2e_deploy.yml
+++ b/.github/workflows/test_e2e_deploy.yml
@@ -51,7 +51,7 @@ jobs:
       - run: node scripts/run-e2e-test-project-reset.mjs
         name: Reset test project
 
-      - run: docker run --rm -v $(pwd):/work mcr.microsoft.com/playwright:v1.35.1-jammy /bin/bash -c "cd /work && NODE_VERSION=${{ env.NODE_LTS_VERSION }} ./scripts/setup-node.sh && corepack enable > /dev/null && NEXT_JUNIT_TEST_REPORT=true DATADOG_API_KEY=${DATADOG_API_KEY} DD_ENV=ci VERCEL_TEST_TOKEN=${{ secrets.VERCEL_TEST_TOKEN }} VERCEL_TEST_TEAM=vtest314-next-e2e-tests NEXT_TEST_JOB=1 NEXT_TEST_MODE=deploy TEST_TIMINGS_TOKEN=${{ secrets.TEST_TIMINGS_TOKEN }} NEXT_TEST_CONTINUE_ON_ERROR=1 xvfb-run node run-tests.js --type e2e --timings -g ${{ matrix.group }}/2 -c 1 >> /proc/1/fd/1"
+      - run: docker run --rm -v $(pwd):/work mcr.microsoft.com/playwright:v1.35.1-jammy /bin/bash -c "cd /work && NODE_VERSION=${{ env.NODE_LTS_VERSION }} ./scripts/setup-node.sh && corepack enable > /dev/null && NEXT_JUNIT_TEST_REPORT=true DATADOG_API_KEY=${DATADOG_API_KEY} DD_ENV=ci VERCEL_TEST_TOKEN=${{ secrets.VERCEL_TEST_TOKEN }} VERCEL_TEST_TEAM=vtest314-next-e2e-tests NEXT_TEST_JOB=1 NEXT_TEST_MODE=deploy TEST_TIMINGS_TOKEN=${{ secrets.TEST_TIMINGS_TOKEN }} xvfb-run node run-tests.js --type e2e --timings -g ${{ matrix.group }}/2 -c 1 >> /proc/1/fd/1"
         name: Run test/e2e (deploy)
 
       - name: Upload test report
diff --git a/test/lib/e2e-utils.ts b/test/lib/e2e-utils.ts
index 7da67a75bd6c1..d87e94f79c77a 100644
--- a/test/lib/e2e-utils.ts
+++ b/test/lib/e2e-utils.ts
@@ -213,16 +213,12 @@ export async function createNext(
   } catch (err) {
     require('console').error('Failed to create next instance', err)
     try {
-      nextInstance.destroy()
+      await nextInstance?.destroy()
     } catch (_) {}
 
-    if (process.env.NEXT_TEST_CONTINUE_ON_ERROR) {
-      // Other test should continue to create new instance if NEXT_TEST_CONTINUE_ON_ERROR explicitly specified.
-      nextInstance = undefined
-      throw err
-    } else {
-      process.exit(1)
-    }
+    nextInstance = undefined
+    // Throw instead of process exit to ensure that Jest reports the tests as failed.
+    throw err
   } finally {
     flushAllTraces()
   }