diff --git a/sensors/2.0/vts/functional/SensorsHidlEnvironmentV2_0.cpp b/sensors/2.0/vts/functional/SensorsHidlEnvironmentV2_0.cpp
index 0525bdc..03fcc17 100644
--- a/sensors/2.0/vts/functional/SensorsHidlEnvironmentV2_0.cpp
+++ b/sensors/2.0/vts/functional/SensorsHidlEnvironmentV2_0.cpp
@@ -38,6 +38,13 @@
 
 constexpr size_t SensorsHidlEnvironmentV2_0::MAX_RECEIVE_BUFFER_EVENT_COUNT;
 
+void SensorsHalDeathRecipient::serviceDied(
+        uint64_t /* cookie */,
+        const ::android::wp<::android::hidl::base::V1_0::IBase>& /* service */) {
+    ALOGE("Sensors HAL died (likely crashed) during test");
+    FAIL() << "Sensors HAL died during test";
+}
+
 struct SensorsCallback : ISensorsCallback {
     Return<void> onDynamicSensorsConnected(const hidl_vec<SensorInfo>& /* sensorInfos */) {
         return Return<void>();
@@ -56,6 +63,7 @@
         if (mSensors == nullptr) {
             break;
         }
+        mSensors->linkToDeath(mDeathRecipient, 0 /* cookie */);
 
         // Initialize FMQs
         mEventQueue = std::make_unique<EventMessageQueue>(MAX_RECEIVE_BUFFER_EVENT_COUNT,
diff --git a/sensors/2.0/vts/functional/SensorsHidlEnvironmentV2_0.h b/sensors/2.0/vts/functional/SensorsHidlEnvironmentV2_0.h
index 5e54530..b0dbd90 100644
--- a/sensors/2.0/vts/functional/SensorsHidlEnvironmentV2_0.h
+++ b/sensors/2.0/vts/functional/SensorsHidlEnvironmentV2_0.h
@@ -32,6 +32,13 @@
 using ::android::hardware::MessageQueue;
 
 class SensorsHidlTest;
+
+class SensorsHalDeathRecipient : public ::android::hardware::hidl_death_recipient {
+    virtual void serviceDied(
+            uint64_t cookie,
+            const ::android::wp<::android::hidl::base::V1_0::IBase>& service) override;
+};
+
 class SensorsHidlEnvironmentV2_0 : public SensorsHidlEnvironmentBase {
    public:
     using Event = ::android::hardware::sensors::V1_0::Event;
@@ -84,6 +91,11 @@
     sp<android::hardware::sensors::V2_0::ISensors> mSensors;
 
     /**
+     * Monitors the HAL for crashes, triggering test failure if seen
+     */
+    sp<SensorsHalDeathRecipient> mDeathRecipient = new SensorsHalDeathRecipient();
+
+    /**
      * Type used to simplify the creation of the Event FMQ
      */
     typedef MessageQueue<Event, ::android::hardware::kSynchronizedReadWrite> EventMessageQueue;
diff --git a/sensors/2.0/vts/functional/VtsHalSensorsV2_0TargetTest.cpp b/sensors/2.0/vts/functional/VtsHalSensorsV2_0TargetTest.cpp
index 582ab79..c6d7cad 100644
--- a/sensors/2.0/vts/functional/VtsHalSensorsV2_0TargetTest.cpp
+++ b/sensors/2.0/vts/functional/VtsHalSensorsV2_0TargetTest.cpp
@@ -115,7 +115,13 @@
 // The main test class for SENSORS HIDL HAL.
 
 class SensorsHidlTest : public SensorsHidlTestBase {
-   protected:
+  public:
+    virtual void SetUp() override {
+        // Ensure that we have a valid environment before performing tests
+        ASSERT_NE(getSensors(), nullptr);
+    }
+
+  protected:
     SensorInfo defaultSensorByType(SensorType type) override;
     std::vector<SensorInfo> getSensorsList();
     // implementation wrapper
@@ -612,6 +618,9 @@
     std::unique_ptr<SensorsHidlEnvironmentTest> newEnv =
         std::make_unique<SensorsHidlEnvironmentTest>();
     newEnv->HidlSetUp();
+    if (HasFatalFailure()) {
+        return;  // Exit early if setting up the new environment failed
+    }
 
     activateAllSensors(true);
     // Verify that the old environment does not receive any events
@@ -624,8 +633,11 @@
     newEnv->HidlTearDown();
 
     // Restore the test environment for future tests
-    SensorsHidlEnvironmentV2_0::Instance()->HidlTearDown();
-    SensorsHidlEnvironmentV2_0::Instance()->HidlSetUp();
+    getEnvironment()->HidlTearDown();
+    getEnvironment()->HidlSetUp();
+    if (HasFatalFailure()) {
+        return;  // Exit early if resetting the environment failed
+    }
 
     // Ensure that the original environment is receiving events
     activateAllSensors(true);
@@ -644,8 +656,11 @@
     // Clear the active sensor handles so they are not disabled during TearDown
     auto handles = mSensorHandles;
     mSensorHandles.clear();
-    getEnvironment()->TearDown();
-    getEnvironment()->SetUp();
+    getEnvironment()->HidlTearDown();
+    getEnvironment()->HidlSetUp();
+    if (HasFatalFailure()) {
+        return;  // Exit early if resetting the environment failed
+    }
 
     // Verify no events are received until sensors are re-activated
     ASSERT_EQ(collectEvents(kCollectionTimeoutUs, kNumEvents, getEnvironment()).size(), 0);
@@ -1023,8 +1038,11 @@
     // Clear the active direct connections so they are not stopped during TearDown
     auto handles = mDirectChannelHandles;
     mDirectChannelHandles.clear();
-    getEnvironment()->TearDown();
-    getEnvironment()->SetUp();
+    getEnvironment()->HidlTearDown();
+    getEnvironment()->HidlSetUp();
+    if (HasFatalFailure()) {
+        return;  // Exit early if resetting the environment failed
+    }
 
     // Attempt to configure the direct channel and expect it to fail
     configDirectReport(