diff --git a/pytest/tests/mocknet/helpers/neard_runner.py b/pytest/tests/mocknet/helpers/neard_runner.py
index 3c152841744..210953f95ea 100644
--- a/pytest/tests/mocknet/helpers/neard_runner.py
+++ b/pytest/tests/mocknet/helpers/neard_runner.py
@@ -109,6 +109,32 @@ class TestState(Enum):
 
 backup_id_pattern = re.compile(r'^[0-9a-zA-Z.][0-9a-zA-Z_\-.]+$')
 
+# Rotate the logs if they get larger than __neard_logs_file_size__
+# Remove old files if the number of files is __neard_logs_max_file_count__
+# Remove old files if all the logs are past __neard_logs_max_size__
+# The prerotate logic serves us in case neard_runner is not running for a while
+# and we end up with a file larger than the estimated size.
+LOGROTATE_TEMPLATE = """__neard_logs_dir__/__neard_logs_file_name__ {
+    su ubuntu ubuntu
+    size __neard_logs_file_size__
+    rotate __neard_logs_max_file_count__
+    copytruncate
+    missingok
+    notifempty
+    dateext
+    dateformat -%Y-%m-%d-%H-%M-%S
+    create 0644 ubuntu ubuntu
+    prerotate
+        total_size=$(du -sb __neard_logs_dir__/__neard_logs_file_name__* | awk '{total+=$1}END{print total}')
+        while [ $total_size -gt __neard_logs_max_size__ ]; do
+            # get the oldest file alphabetically 
+            oldest_file=$(ls -1 __neard_logs_dir__/__neard_logs_file_name__-* | head -n1)
+            rm -f "$oldest_file"
+            total_size=$(du -sb __neard_logs_dir__/__neard_logs_file_name__* | awk '{total+=$1}END{print total}')
+        done
+    endscript
+}"""
+
 
 class NeardRunner:
 
@@ -116,10 +142,8 @@ def __init__(self, args):
         self.home = args.home
         self.neard_home = args.neard_home
         self.neard_logs_dir = args.neard_logs_dir
-        try:
-            os.mkdir(self.neard_logs_dir)
-        except FileExistsError:
-            pass
+        self.neard_logs_file_name = 'logs.txt'
+        self._configure_neard_logs()
         with open(self.home_path('config.json'), 'r') as f:
             self.config = json.load(f)
         self.neard = None
@@ -150,6 +174,46 @@ def __init__(self, args):
         # is no need to block reading that when inside the update_binaries rpc for example
         self.lock = threading.Lock()
 
+    def _configure_neard_logs(self):
+        try:
+            os.mkdir(self.neard_logs_dir)
+        except FileExistsError:
+            pass
+
+        variables = {
+            '__neard_logs_dir__': f'{self.neard_logs_dir}',
+            '__neard_logs_file_name__': f'{self.neard_logs_file_name}',
+            '__neard_logs_file_size__': '100M',
+            '__neard_logs_max_file_count__': '900',
+            '__neard_logs_max_size__': '100000000000',  # 100G
+        }
+        logrotate_config = LOGROTATE_TEMPLATE
+        # Replace variables in the template
+        for var, value in variables.items():
+            logrotate_config = re.sub(re.escape(var), value, logrotate_config)
+        self.logrotate_config_path = f'{self.neard_logs_dir}/.neard_logrotate_policy'
+        logging.info(
+            f'Setting log rotation policy in {self.logrotate_config_path}')
+        with open(self.logrotate_config_path, 'w') as config_file:
+            config_file.write(logrotate_config)
+        self.logrotate_binary_path = shutil.which('logrotate')
+        if self.logrotate_binary_path is None:
+            logging.error('The logrotate tool was not found on this system.')
+
+    # Try to rotate the logs based on the policy defined here: self.logrotate_config_path.
+    def run_logrotate(self):
+        run_logrotate_cmd = [
+            self.logrotate_binary_path, '-s',
+            f'{self.neard_logs_dir}/.logrotate_status',
+            self.logrotate_config_path
+        ]
+        subprocess.Popen(
+            run_logrotate_cmd,
+            stdin=subprocess.DEVNULL,
+            stdout=subprocess.DEVNULL,
+            stderr=subprocess.DEVNULL,
+        )
+
     def is_legacy(self):
         if os.path.exists(os.path.join(
                 self.neard_home, 'setup', 'records.json')) and os.path.exists(
@@ -749,15 +813,8 @@ def source_near_home_path(self):
 
     # If this is a regular node, starts neard run. If it's a traffic generator, starts neard mirror run
     def start_neard(self, batch_interval_millis=None):
-        for i in range(20, -1, -1):
-            old_log = os.path.join(self.neard_logs_dir, f'log-{i}.txt')
-            new_log = os.path.join(self.neard_logs_dir, f'log-{i+1}.txt')
-            try:
-                os.rename(old_log, new_log)
-            except FileNotFoundError:
-                pass
-
-        with open(os.path.join(self.neard_logs_dir, 'log-0.txt'), 'ab') as out:
+        with open(os.path.join(self.neard_logs_dir, self.neard_logs_file_name),
+                  'ab') as out:
             if self.is_traffic_generator():
                 cmd = [
                     self.data['current_neard_path'],
@@ -1158,6 +1215,7 @@ def main_loop(self):
                     self.reset_near_home()
                 elif state == TestState.MAKING_BACKUP:
                     self.make_backup()
+                self.run_logrotate()
             time.sleep(10)
 
     def serve(self, port):