diff --git a/staging/src/k8s.io/apiserver/pkg/util/peerproxy/peerproxy_handler.go b/staging/src/k8s.io/apiserver/pkg/util/peerproxy/peerproxy_handler.go
index 8e236a7505c..c1a77791d7f 100644
--- a/staging/src/k8s.io/apiserver/pkg/util/peerproxy/peerproxy_handler.go
+++ b/staging/src/k8s.io/apiserver/pkg/util/peerproxy/peerproxy_handler.go
@@ -199,7 +199,8 @@ func (h *peerProxyHandler) resolveServingLocation(apiservers *sync.Map) (bool, [
 		apiserverKey := key.(string)
 		if apiserverKey == h.serverId {
 			locallyServiceable = true
-			// stop iteration
+			// stop iteration and reset any errors encountered so far.
+			respErr = nil
 			return false
 		}
 
diff --git a/staging/src/k8s.io/apiserver/pkg/util/peerproxy/peerproxy_handler_test.go b/staging/src/k8s.io/apiserver/pkg/util/peerproxy/peerproxy_handler_test.go
index f9c9aec9e26..4fb45f30243 100644
--- a/staging/src/k8s.io/apiserver/pkg/util/peerproxy/peerproxy_handler_test.go
+++ b/staging/src/k8s.io/apiserver/pkg/util/peerproxy/peerproxy_handler_test.go
@@ -285,7 +285,10 @@ func TestPeerProxy(t *testing.T) {
 			}
 			req.Header.Set(PeerProxiedHeader, tt.peerproxiedHeader)
 
-			resp, _ := requestGetter(req)
+			resp, err := requestGetter(req)
+			if err != nil {
+				t.Fatalf("unexpected error trying to get the request: %v", err)
+			}
 
 			// compare response
 			assert.Equal(t, tt.expectedStatus, resp.StatusCode)
diff --git a/test/integration/apiserver/peerproxy/peer_proxy_test.go b/test/integration/apiserver/peerproxy/peer_proxy_test.go
index 9db36d07df7..5f6c5e74821 100644
--- a/test/integration/apiserver/peerproxy/peer_proxy_test.go
+++ b/test/integration/apiserver/peerproxy/peer_proxy_test.go
@@ -133,12 +133,13 @@ func TestPeerProxiedRequestToThirdServerAfterFirstDies(t *testing.T) {
 	// set lease duration to 1s for serverA to ensure that storageversions for serverA are updated
 	// once it is shutdown
 	controlplaneapiserver.IdentityLeaseDurationSeconds = 10
-	controlplaneapiserver.IdentityLeaseGCPeriod = time.Second
-	controlplaneapiserver.IdentityLeaseRenewIntervalPeriod = 10 * time.Second
+	controlplaneapiserver.IdentityLeaseGCPeriod = 2 * time.Second
+	controlplaneapiserver.IdentityLeaseRenewIntervalPeriod = time.Second
 
 	// start serverA with all APIs enabled
 	// override hostname to ensure unique ips
 	server.SetHostnameFuncForTests("test-server-a")
+	t.Log("starting apiserver for ServerA")
 	serverA := kastesting.StartTestServerOrDie(t, &kastesting.TestServerInstanceOptions{EnableCertAuth: true, ProxyCA: &proxyCA}, []string{}, etcd)
 	kubeClientSetA, err := kubernetes.NewForConfig(serverA.ClientConfig)
 	require.NoError(t, err)
@@ -153,6 +154,7 @@ func TestPeerProxiedRequestToThirdServerAfterFirstDies(t *testing.T) {
 	// start serverB with some api disabled
 	// override hostname to ensure unique ips
 	server.SetHostnameFuncForTests("test-server-b")
+	t.Log("starting apiserver for ServerB")
 	serverB := kastesting.StartTestServerOrDie(t, &kastesting.TestServerInstanceOptions{EnableCertAuth: true, ProxyCA: &proxyCA}, []string{
 		fmt.Sprintf("--runtime-config=%v", "batch/v1=false")}, etcd)
 	defer serverB.TearDownFn()
@@ -165,6 +167,7 @@ func TestPeerProxiedRequestToThirdServerAfterFirstDies(t *testing.T) {
 	// start serverC with all APIs enabled
 	// override hostname to ensure unique ips
 	server.SetHostnameFuncForTests("test-server-c")
+	t.Log("starting apiserver for ServerC")
 	serverC := kastesting.StartTestServerOrDie(t, &kastesting.TestServerInstanceOptions{EnableCertAuth: true, ProxyCA: &proxyCA}, []string{}, etcd)
 	defer serverC.TearDownFn()
 
@@ -180,14 +183,24 @@ func TestPeerProxiedRequestToThirdServerAfterFirstDies(t *testing.T) {
 
 	var jobsB *v1.JobList
 	// list jobs using ServerB which it should proxy to ServerC and get back valid response
-	err = wait.PollImmediate(1*time.Second, 1*time.Minute, func() (bool, error) {
+	err = wait.PollUntilContextTimeout(ctx, 1*time.Second, 1*time.Minute, false, func(ctx context.Context) (bool, error) {
+		select {
+		case <-ctx.Done():
+			return false, ctx.Err()
+		default:
+		}
+
+		t.Log("retrieving jobs from ServerB")
 		jobsB, err = kubeClientSetB.BatchV1().Jobs("default").List(context.Background(), metav1.ListOptions{})
 		if err != nil {
+			t.Logf("error trying to list jobs from ServerB: %v", err)
 			return false, nil
 		}
+
 		if jobsB != nil {
 			return true, nil
 		}
+		t.Log("retrieved nil jobs from ServerB")
 		return false, nil
 	})
 	klog.Infof("\nServerB has retrieved jobs list of length %v \n\n", len(jobsB.Items))