diff --git a/tools/test_apps/protocols/pppos/app_test.py b/tools/test_apps/protocols/pppos/app_test.py
index 9111868e0..818fe17f5 100644
--- a/tools/test_apps/protocols/pppos/app_test.py
+++ b/tools/test_apps/protocols/pppos/app_test.py
@@ -5,6 +5,7 @@ import socket
 import subprocess
 import ttfw_idf
 import time
+import netifaces
 from threading import Thread, Event
 
 
@@ -58,7 +59,13 @@ def test_examples_protocol_pppos_connect(env, extra_data):
     t = Thread(target=run_server, args=(server_stop, port, server_ip, client_ip))
     t.start()
     try:
-        ip6_addr = dut1.expect(re.compile(r"Got IPv6 address ([0-9a-f\:]+)"), timeout=30)[0]
+        ppp_server_timeout = time.time() + 30
+        while "ppp0" not in netifaces.interfaces():
+            print("PPP server haven't yet setup its netif, list of active netifs:{}".format(netifaces.interfaces()))
+            time.sleep(0.5)
+            if time.time() > ppp_server_timeout:
+                raise ValueError("ENV_TEST_FAILURE: PPP server failed to setup ppp0 interface within timeout")
+        ip6_addr = dut1.expect(re.compile(r"Got IPv6 address (\w{4}\:\w{4}\:\w{4}\:\w{4}\:\w{4}\:\w{4}\:\w{4}\:\w{4})"), timeout=30)[0]
         print("IPv6 address of ESP: {}".format(ip6_addr))
 
         dut1.expect(re.compile(r"Socket listening"))
diff --git a/tools/test_apps/protocols/pppos/main/pppos_client_main.c b/tools/test_apps/protocols/pppos/main/pppos_client_main.c
index 058257125..37961cf6f 100644
--- a/tools/test_apps/protocols/pppos/main/pppos_client_main.c
+++ b/tools/test_apps/protocols/pppos/main/pppos_client_main.c
@@ -25,6 +25,7 @@ static const char *TAG = "pppos_test_app";
 static EventGroupHandle_t event_group = NULL;
 static const int CONNECT_BIT = BIT0;
 static const int STOP_BIT = BIT1;
+static const int DISCONNECT_BIT = BIT2;
 static const int TCP_SERVER_DONE = BIT3;
 static const int TCP_SERVER_FAILED = BIT4;
 static char addr_str[128];
@@ -53,6 +54,9 @@ static void on_ppp_changed(void *arg, esp_event_base_t event_base,
                         int32_t event_id, void *event_data)
 {
     ESP_LOGI(TAG, "PPP state changed event %d", event_id);
+    if (event_id == NETIF_PPP_PHASE_DISCONNECT) {
+        xEventGroupSetBits(event_group, DISCONNECT_BIT);
+    }
 }
 
 
@@ -211,6 +215,11 @@ void app_main(void)
     esp_netif_config_t cfg = ESP_NETIF_DEFAULT_PPP();
     esp_netif_t *esp_netif = esp_netif_new(&cfg);
     assert(esp_netif);
+    esp_netif_ppp_config_t ppp_config = {
+            .ppp_error_event_enabled = true,
+            .ppp_phase_event_enabled = true
+    };
+    esp_netif_ppp_set_params(esp_netif, &ppp_config);
 
     /* create dte object */
     esp_modem_dte_config_t config = ESP_MODEM_DTE_DEFAULT_CONFIG();
@@ -228,7 +237,6 @@ void app_main(void)
     esp_netif_attach(esp_netif, modem_netif_adapter);
     /* Wait for IP address */
     xEventGroupWaitBits(event_group, CONNECT_BIT, pdTRUE, pdTRUE, portMAX_DELAY);
-
     ESP_LOGI(TAG, "start IPv6 test");
     xTaskCreate(test_tcp_server_ipv6, "tcp_server_ipv6", 4096, NULL, 5, NULL);
     xEventGroupWaitBits(event_group, TCP_SERVER_DONE, pdTRUE, pdTRUE, portMAX_DELAY);
@@ -248,6 +256,8 @@ void app_main(void)
     }
 
     ESP_ERROR_CHECK(esp_modem_stop_ppp(dte));
+    /* Wait for the PPP connection to terminate gracefully */
+    xEventGroupWaitBits(event_group, DISCONNECT_BIT, pdTRUE, pdTRUE, portMAX_DELAY);
     /* Destroy the netif adapter withe events, which internally frees also the esp-netif instance */
     esp_modem_netif_clear_default_handlers(modem_netif_adapter);
     esp_modem_netif_teardown(modem_netif_adapter);