diff --git a/.gitignore b/.gitignore
index 83b4dc2ec..363027524 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,6 +6,7 @@ __pycache__/
 *.egg-info/
 
 # Virtual environments
+.venv/
 .test_venv/
 .cvs_venv/
 .ruff_venv/
diff --git a/cvs/runners/_base_runner.py b/cvs/runners/_base_runner.py
index 714c2bed0..9a4e6b27b 100644
--- a/cvs/runners/_base_runner.py
+++ b/cvs/runners/_base_runner.py
@@ -184,11 +184,14 @@ def execute(self, **kwargs) -> RunResult:
         try:
             # Setup phase
             log.info(f"Setting up {self.__class__.__name__}...")
-            if not self.setup():
+            setup_ok = self.setup()
+            # Set even on partial/failed setup so the finally block below still
+            # tears down resources a partially-successful setup already created.
+            self._setup_complete = True
+            if not setup_ok:
                 return RunResult(
                     status=RunStatus.FAILED, start_time=start_time, end_time=time.time(), error_message="Setup failed"
                 )
-            self._setup_complete = True
 
             # Run phase
             log.info(f"Running {self.__class__.__name__}...")
diff --git a/cvs/runners/unittests/__init__.py b/cvs/runners/unittests/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/cvs/runners/unittests/test_base_runner.py b/cvs/runners/unittests/test_base_runner.py
new file mode 100644
index 000000000..d6054348b
--- /dev/null
+++ b/cvs/runners/unittests/test_base_runner.py
@@ -0,0 +1,79 @@
+"""
+Unit tests for BaseRunner.execute()'s setup -> run -> teardown lifecycle.
+
+Copyright 2025 Advanced Micro Devices, Inc.
+All rights reserved.
+"""
+
+import unittest
+
+from cvs.runners._base_runner import BaseRunner, RunConfig, RunResult, RunStatus
+
+
+class _FakeRunner(BaseRunner):
+    """Minimal concrete BaseRunner for exercising execute()."""
+
+    def __init__(self, config, setup_return=True, run_return=None, run_raises=None):
+        super().__init__(config)
+        self._setup_return = setup_return
+        self._run_return = run_return
+        self._run_raises = run_raises
+        self.teardown_calls = 0
+
+    def setup(self) -> bool:
+        return self._setup_return
+
+    def run(self, **kwargs) -> RunResult:
+        if self._run_raises is not None:
+            raise self._run_raises
+        return self._run_return
+
+    def teardown(self) -> bool:
+        self.teardown_calls += 1
+        return True
+
+
+def _config() -> RunConfig:
+    return RunConfig(nodes=["10.0.0.1"], username="testuser")
+
+
+class TestExecuteTeardownLifecycle(unittest.TestCase):
+    def test_teardown_runs_after_successful_setup_and_run(self):
+        run_result = RunResult(status=RunStatus.COMPLETED, start_time=0, end_time=1)
+        runner = _FakeRunner(_config(), setup_return=True, run_return=run_result)
+
+        result = runner.execute()
+
+        self.assertEqual(result.status, RunStatus.COMPLETED)
+        self.assertEqual(runner.teardown_calls, 1)
+
+    def test_teardown_runs_when_setup_fails(self):
+        runner = _FakeRunner(_config(), setup_return=False)
+
+        result = runner.execute()
+
+        self.assertEqual(result.status, RunStatus.FAILED)
+        self.assertEqual(result.error_message, "Setup failed")
+        self.assertEqual(runner.teardown_calls, 1)
+
+    def test_teardown_runs_when_run_raises(self):
+        runner = _FakeRunner(_config(), setup_return=True, run_raises=RuntimeError("boom"))
+
+        result = runner.execute()
+
+        self.assertEqual(result.status, RunStatus.FAILED)
+        self.assertIn("boom", result.error_message)
+        self.assertEqual(runner.teardown_calls, 1)
+
+    def test_teardown_not_run_before_setup_attempted(self):
+        runner = _FakeRunner(
+            _config(), setup_return=True, run_return=RunResult(status=RunStatus.COMPLETED, start_time=0, end_time=1)
+        )
+
+        self.assertFalse(runner._setup_complete)
+        runner.execute()
+        self.assertTrue(runner._setup_complete)
+
+
+if __name__ == "__main__":
+    unittest.main()