diff --git a/packages/hoppscotch-common/src/helpers/RequestRunner.ts b/packages/hoppscotch-common/src/helpers/RequestRunner.ts
index 063f9b67..39da7cf6 100644
--- a/packages/hoppscotch-common/src/helpers/RequestRunner.ts
+++ b/packages/hoppscotch-common/src/helpers/RequestRunner.ts
@@ -87,6 +87,7 @@ export type InitialEnvironmentState = {
   initialEnvID: string
   initialSelectedEnvs: Environment["variables"]
   initialEnvironmentIndex: SelectedEnvironmentIndex
+  initialEnvName: string
   initialEnvs: TestResult["envs"] & {
     temp: Environment["variables"]
   }
@@ -115,6 +116,9 @@ export const captureInitialEnvironmentState = (): InitialEnvironmentState => {
     environmentsStore.value.selectedEnvironmentIndex
   )
 
+  // Capture the initial environment name
+  const initialEnvName = getCurrentEnvironment().name
+
   // Capture the initial script environment state (the environment passed to scripts)
   const initialEnvs = getCombinedEnvVariables()
   const initialEnvsForComparison: TestResult["envs"] = {
@@ -127,6 +131,7 @@ export const captureInitialEnvironmentState = (): InitialEnvironmentState => {
     initialEnvID,
     initialSelectedEnvs,
     initialEnvironmentIndex,
+    initialEnvName,
     initialEnvs,
     initialEnvsForComparison,
   }
@@ -489,6 +494,7 @@ export function runRESTRequest$(
     initialEnvID,
     initialSelectedEnvs,
     initialEnvironmentIndex,
+    initialEnvName,
     initialEnvs,
     initialEnvsForComparison,
   } = captureInitialEnvironmentState()
@@ -610,6 +616,7 @@ export function runRESTRequest$(
               updateEnvsAfterTestScript(
                 combinedResult,
                 initialEnvironmentIndex,
+                initialEnvName,
                 initialEnvID
               )
             }
@@ -666,6 +673,7 @@ export function runRESTRequest$(
 function updateEnvsAfterTestScript(
   runResult: E.Right<SandboxTestResult>,
   initialEnvironmentIndex: SelectedEnvironmentIndex,
+  initialEnvName: string,
   initialEnvID?: string
 ) {
   const globalEnvVariables = updateEnvironments(
@@ -696,14 +704,14 @@ function updateEnvsAfterTestScript(
       variables: selectedEnvVariables,
     })
   } else if (initialEnvironmentIndex.type === "TEAM_ENV") {
-    const env = getEnvironment({
-      type: "TEAM_ENV",
-    })
+    // Use the initial environment name to avoid issues when environment changes during request execution
+    // adding a fallback to current environment name just in case so it's not null
+    const envName = initialEnvName ?? getCurrentEnvironment().name
     pipe(
       updateTeamEnvironment(
         JSON.stringify(selectedEnvVariables),
         initialEnvironmentIndex.teamEnvID,
-        env.name
+        envName
       )
     )()
   }
@@ -801,6 +809,7 @@ export function runTestRunnerRequest(
     initialEnvID,
     initialSelectedEnvs,
     initialEnvironmentIndex,
+    initialEnvName,
     initialEnvs,
     initialEnvsForComparison,
   } = initialEnvironmentState
@@ -897,6 +906,7 @@ export function runTestRunnerRequest(
                 updateEnvsAfterTestScript(
                   postRequestScriptResult,
                   initialEnvironmentIndex,
+                  initialEnvName,
                   initialEnvID
                 )
               }
diff --git a/packages/hoppscotch-common/src/services/test-runner/test-runner.service.ts b/packages/hoppscotch-common/src/services/test-runner/test-runner.service.ts
index 9e62aadc..5a7ecf23 100644
--- a/packages/hoppscotch-common/src/services/test-runner/test-runner.service.ts
+++ b/packages/hoppscotch-common/src/services/test-runner/test-runner.service.ts
@@ -10,7 +10,6 @@ import { cloneDeep } from "lodash-es"
 import { Ref } from "vue"
 import {
   captureInitialEnvironmentState,
-  InitialEnvironmentState,
   runTestRunnerRequest,
 } from "~/helpers/RequestRunner"
 import {
@@ -182,17 +181,13 @@ export class TestRunnerService extends Service {
           headers: [...inheritedHeaders, ...request.headers],
         }
 
-        // Capture the initial environment state for a test run so that it remains consistent and unchanged when current environment changes
-        const initialEnvironmentState = captureInitialEnvironmentState()
-
         await this.runTestRequest(
           tab,
           finalRequest,
           collection,
           options,
           currentPath,
-          inheritedVariables,
-          initialEnvironmentState
+          inheritedVariables
         )
 
         if (options.delay && options.delay > 0) {
@@ -283,8 +278,7 @@ export class TestRunnerService extends Service {
     collection: HoppCollection,
     options: TestRunnerOptions,
     path: number[],
-    inheritedVariables: HoppCollectionVariable[] = [],
-    initialEnvironmentState: InitialEnvironmentState
+    inheritedVariables: HoppCollectionVariable[] = []
   ) {
     if (options.stopRef?.value) {
       throw new Error("Test execution stopped")
@@ -297,6 +291,9 @@ export class TestRunnerService extends Service {
         error: undefined,
       })
 
+      // Capture the initial environment state for a test run so that it remains consistent and unchanged when current environment changes
+      const initialEnvironmentState = captureInitialEnvironmentState()
+
       const results = await runTestRunnerRequest(
         request,
         options.keepVariableValues,