diff --git a/packages/cli/src/controller/generate-controller.spec.ts b/packages/cli/src/controller/generate-controller.spec.ts
index 0647314b13..ac9d84dca7 100644
--- a/packages/cli/src/controller/generate-controller.spec.ts
+++ b/packages/cli/src/controller/generate-controller.spec.ts
@@ -213,11 +213,11 @@ describe('CLI codegen:generate', () => {
     await expect(
       prepareInputFragments<FunctionFragment>(
         'function',
-        'transFerfrom(address,address,uint256)',
+        'transferFrom(address,address,uint256)',
         functionFragments,
         abiName
       )
-    ).rejects.toThrow("'transFerfrom(address' is not a valid function on Erc721");
+    ).rejects.toThrow("'transferFrom(address' is not a valid function on Erc721");
     await expect(
       prepareInputFragments<FunctionFragment>(
         'function',
diff --git a/packages/node-core/src/indexer/test.runner.spec.ts b/packages/node-core/src/indexer/test.runner.spec.ts
index d1c75aba36..eab97bf82c 100644
--- a/packages/node-core/src/indexer/test.runner.spec.ts
+++ b/packages/node-core/src/indexer/test.runner.spec.ts
@@ -179,4 +179,27 @@ describe('TestRunner', () => {
       `\t\tattribute: "timestamp":\n\t\t\texpected: "1970-01-01T00:00:01.000Z"\n\t\t\tactual:   "1970-01-01T00:00:01.001Z"\n`
     );
   });
+
+  it('increments error if a block fails to be fetched', async () => {
+    const expectedEntity = {
+      _name: 'Entity1',
+      id: '1',
+      attr: 'value',
+    };
+    const testMock = {
+      name: 'test1',
+      blockHeight: 1,
+      handler: 'handler1',
+      expectedEntities: [expectedEntity],
+      dependentEntities: [],
+    };
+
+    apiServiceMock.fetchBlocks = jest.fn().mockRejectedValue(new Error('Failed to fetch block'));
+
+    const indexBlock = jest.fn().mockResolvedValue(undefined);
+    const res = await testRunner.runTest(testMock, sandboxMock, indexBlock);
+
+    expect(res.failedTests).toBe(2);
+    expect(res.failedTestSummary?.failedAttributes[0]).toContain('Failed to fetch block');
+  });
 });
diff --git a/packages/node-core/src/indexer/test.runner.ts b/packages/node-core/src/indexer/test.runner.ts
index a0db3f07d2..c2ba21691b 100644
--- a/packages/node-core/src/indexer/test.runner.ts
+++ b/packages/node-core/src/indexer/test.runner.ts
@@ -36,6 +36,24 @@ export class TestRunner<A, SA, B, DS> {
     @Inject('IIndexerManager') protected readonly indexerManager: IIndexerManager<B, DS>
   ) {}
 
+  private async fetchBlock(height: number): Promise<IBlock<B>> {
+    try {
+      const [block] = await this.apiService.fetchBlocks([height]);
+      return block;
+    } catch (e: any) {
+      logger.warn(`Test: ${test.name} field due to fetch block error`, e);
+      this.failedTestSummary = {
+        testName: test.name,
+        entityId: undefined,
+        entityName: undefined,
+        failedAttributes: [`Fetch Block Error:\n${e.message}`],
+      };
+
+      this.failedTests++;
+      throw e;
+    }
+  }
+
   async runTest(
     test: SubqlTest,
     sandbox: TestSandbox,
@@ -55,7 +73,7 @@ export class TestRunner<A, SA, B, DS> {
     try {
       // Fetch block
       logger.debug('Fetching block');
-      const [block] = await this.apiService.fetchBlocks([test.blockHeight]);
+      const block = await this.fetchBlock(test.blockHeight);
 
       await this.storeService.setBlockHeader(block.getHeader());
       // Ensure a block height is set so that data is flushed correctly
diff --git a/packages/node-core/src/indexer/testing.service.ts b/packages/node-core/src/indexer/testing.service.ts
index ee9cbbbae7..85d127d26e 100644
--- a/packages/node-core/src/indexer/testing.service.ts
+++ b/packages/node-core/src/indexer/testing.service.ts
@@ -58,12 +58,7 @@ export abstract class TestingService<A, SA, B, DS extends BaseDataSource> {
 
   abstract getTestRunner(): Promise<[close: () => Promise<void>, runner: TestRunner<A, SA, B, DS>]>; // TestRunner will be create with a new app instance
 
-  async indexBlock(
-    block: IBlock<B>,
-    handler: string,
-    indexerManager: IIndexerManager<B, DS>,
-    apiService?: IApi<A, SA, IBlock<B>[]>
-  ): Promise<void> {
+  async indexBlock(block: IBlock<B>, handler: string, indexerManager: IIndexerManager<B, DS>): Promise<void> {
     await indexerManager.indexBlock(block, this.getDsWithHandler(handler));
   }
 
diff --git a/packages/node/CHANGELOG.md b/packages/node/CHANGELOG.md
index f566f3eaf3..edd6bdba80 100644
--- a/packages/node/CHANGELOG.md
+++ b/packages/node/CHANGELOG.md
@@ -5,6 +5,8 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
 ## [Unreleased]
+### Fixed
+- Testing not updating test results correctly if fetching block fails (#2716)
 
 ## [5.10.0] - 2025-03-05
 ### Changed