diff --git a/server/src/test/java/org/opensearch/cluster/service/MasterServiceTests.java b/server/src/test/java/org/opensearch/cluster/service/MasterServiceTests.java
index 3c27748daa87d..d4804b18bd160 100644
--- a/server/src/test/java/org/opensearch/cluster/service/MasterServiceTests.java
+++ b/server/src/test/java/org/opensearch/cluster/service/MasterServiceTests.java
@@ -86,6 +86,8 @@
 import java.util.concurrent.atomic.AtomicInteger;
 import java.util.concurrent.atomic.AtomicReference;
 
+import com.carrotsearch.randomizedtesting.annotations.Timeout;
+
 import static java.util.Collections.emptyMap;
 import static java.util.Collections.emptySet;
 import static org.hamcrest.Matchers.anyOf;
@@ -863,6 +865,7 @@ public ClusterManagerTaskThrottler.ThrottlingKey getClusterManagerThrottlingKey(
         AtomicInteger throttledTask3 = new AtomicInteger();
         AtomicInteger succeededTask1 = new AtomicInteger();
         AtomicInteger succeededTask2 = new AtomicInteger();
+        AtomicInteger succeededTask3 = new AtomicInteger();
         AtomicInteger timedOutTask3 = new AtomicInteger();
 
         final ClusterStateTaskListener listener = new ClusterStateTaskListener() {
@@ -880,6 +883,8 @@ public void clusterStateProcessed(String source, ClusterState oldState, ClusterS
                     succeededTask1.incrementAndGet();
                 } else if (source.equals(task2)) {
                     succeededTask2.incrementAndGet();
+                } else if (source.equals(task3)) {
+                    succeededTask3.incrementAndGet();
                 }
                 latch.countDown();
             }
@@ -955,7 +960,7 @@ public void run() {
         assertEquals(numberOfTask1, throttledTask1.get() + succeededTask1.get());
         assertEquals(numberOfTask2, succeededTask2.get());
         assertEquals(0, throttledTask2.get());
-        assertEquals(numberOfTask3, throttledTask3.get() + timedOutTask3.get());
+        assertEquals(numberOfTask3, throttledTask3.get() + timedOutTask3.get() + succeededTask3.get());
         masterService.close();
     }
 
@@ -1378,6 +1383,76 @@ public void testDeprecatedMasterServiceUpdateTaskThreadName() {
         assertThrows(AssertionError.class, () -> MasterService.assertClusterManagerUpdateThread());
     }
 
+    @Timeout(millis = 5_000)
+    public void testTaskTimeout() throws InterruptedException {
+        try (ClusterManagerService clusterManagerService = createClusterManagerService(true)) {
+            final AtomicInteger failureCount = new AtomicInteger();
+            final AtomicInteger successCount = new AtomicInteger();
+            final CountDownLatch taskStartLatch = new CountDownLatch(1);
+            final CountDownLatch blockingTaskLatch = new CountDownLatch(1);
+            final CountDownLatch timeoutLatch = new CountDownLatch(1);
+            final ClusterStateTaskListener blockingListener = new ClusterStateTaskListener() {
+                @Override
+                public void onFailure(String source, Exception e) {
+                    fail("Unexpected failure");
+                }
+
+                @Override
+                public void clusterStateProcessed(String source, ClusterState oldState, ClusterState newState) {
+                    successCount.incrementAndGet();
+                    taskStartLatch.countDown();
+                    try {
+                        blockingTaskLatch.await();
+                    } catch (InterruptedException e) {
+                        fail("Interrupted");
+                    }
+                }
+            };
+            final ClusterStateTaskListener timeoutListener = new ClusterStateTaskListener() {
+                @Override
+                public void onFailure(String source, Exception e) {
+                    assertEquals("timeout", source);
+                    failureCount.incrementAndGet();
+                    timeoutLatch.countDown();
+                }
+
+                @Override
+                public void clusterStateProcessed(String source, ClusterState oldState, ClusterState newState) {
+                    fail("Unexpected success");
+                }
+            };
+
+            final ClusterStateTaskExecutor<Object> executor = (currentState, tasks) -> ClusterStateTaskExecutor.ClusterTasksResult.builder()
+                .successes(tasks)
+                .build(currentState);
+
+            // start a task and wait for it to start and block on the clusterStateProcessed callback
+            clusterManagerService.submitStateUpdateTask(
+                "success",
+                new Object(),
+                ClusterStateTaskConfig.build(randomFrom(Priority.values())),
+                executor,
+                blockingListener
+            );
+            taskStartLatch.await();
+
+            // start a second task that is guaranteed to timeout as the first task is still running
+            clusterManagerService.submitStateUpdateTask(
+                "timeout",
+                new Object(),
+                ClusterStateTaskConfig.build(randomFrom(Priority.values()), TimeValue.timeValueMillis(1L)),
+                executor,
+                timeoutListener
+            );
+
+            // wait for the timeout to happen, then unblock and assert one success and one failure
+            timeoutLatch.await();
+            blockingTaskLatch.countDown();
+            assertEquals(1, failureCount.get());
+            assertEquals(1, successCount.get());
+        }
+    }
+
     /**
      * Returns the cluster state that the cluster-manager service uses (and that is provided by the discovery layer)
      */