diff --git a/extensions/ollama/src/stream-runtime.test.ts b/extensions/ollama/src/stream-runtime.test.ts
index f3b4ef8bff2..5e830aa6286 100644
--- a/extensions/ollama/src/stream-runtime.test.ts
+++ b/extensions/ollama/src/stream-runtime.test.ts
@@ -1237,12 +1237,19 @@ async function nextEventWithin<T>(
   iterator: AsyncIterator<T>,
   timeoutMs = 100,
 ): Promise<IteratorResult<T> | "timeout"> {
-  return await Promise.race([
-    iterator.next(),
-    new Promise<"timeout">((resolve) => {
-      setTimeout(() => resolve("timeout"), timeoutMs);
-    }),
-  ]);
+  let timer: NodeJS.Timeout | undefined;
+  try {
+    return await Promise.race([
+      iterator.next(),
+      new Promise<"timeout">((resolve) => {
+        timer = setTimeout(() => resolve("timeout"), timeoutMs);
+      }),
+    ]);
+  } finally {
+    if (timer) {
+      clearTimeout(timer);
+    }
+  }
 }
 
 describe("createOllamaStreamFn streaming events", () => {