diff --git a/test/cli/autoconf/swarm_connect_test.go b/test/cli/autoconf/swarm_connect_test.go
index 95c75d953..a9e58b7c9 100644
--- a/test/cli/autoconf/swarm_connect_test.go
+++ b/test/cli/autoconf/swarm_connect_test.go
@@ -2,7 +2,6 @@ package autoconf
 
 import (
 	"testing"
-	"time"
 
 	"github.com/ipfs/kubo/test/cli/harness"
 	"github.com/stretchr/testify/assert"
@@ -21,10 +20,12 @@ func TestSwarmConnectWithAutoConf(t *testing.T) {
 	t.Parallel()
 
 	t.Run("AutoConf disabled - should work", func(t *testing.T) {
+		// Don't run subtests in parallel to avoid daemon startup conflicts
 		testSwarmConnectWithAutoConfSetting(t, false, true) // expect success
 	})
 
 	t.Run("AutoConf enabled - should work", func(t *testing.T) {
+		// Don't run subtests in parallel to avoid daemon startup conflicts
 		testSwarmConnectWithAutoConfSetting(t, true, true) // expect success (fix the bug!)
 	})
 }
@@ -44,17 +45,10 @@ func testSwarmConnectWithAutoConfSetting(t *testing.T, autoConfEnabled bool, exp
 		"/dnsaddr/bootstrap.libp2p.io/p2p/QmbLHAnMoJPWSCR5Zhtx6BHJX9KiKNN6tpvbUcqanj75Nb",
 	})
 
-	// CRITICAL: Start the daemon first - this is the key requirement
-	// The daemon must be running and working properly
+	// Start the daemon
 	node.StartDaemon()
 	defer node.StopDaemon()
 
-	// Give daemon time to start up completely
-	time.Sleep(3 * time.Second)
-
-	// Verify daemon is responsive
-	result := node.RunIPFS("id")
-	require.Equal(t, 0, result.ExitCode(), "Daemon should be responsive before testing swarm connect")
 	t.Logf("Daemon is running and responsive. AutoConf enabled: %v", autoConfEnabled)
 
 	// Now test swarm connect to a bootstrap peer
@@ -62,7 +56,7 @@ func testSwarmConnectWithAutoConfSetting(t *testing.T, autoConfEnabled bool, exp
 	// 1. The daemon is running
 	// 2. The CLI should connect to the daemon via API
 	// 3. The daemon should handle the swarm connect request
-	result = node.RunIPFS("swarm", "connect", "/dnsaddr/bootstrap.libp2p.io")
+	result := node.RunIPFS("swarm", "connect", "/dnsaddr/bootstrap.libp2p.io")
 
 	// swarm connect should work regardless of AutoConf setting
 	assert.Equal(t, 0, result.ExitCode(),
diff --git a/test/cli/harness/node.go b/test/cli/harness/node.go
index 7d0a90866..fa36e7d6c 100644
--- a/test/cli/harness/node.go
+++ b/test/cli/harness/node.go
@@ -265,23 +265,74 @@ func (n *Node) StartDaemonWithReq(req RunRequest, authorization string) *Node {
 	if alive {
 		log.Panicf("node %d is already running", n.ID)
 	}
-	newReq := req
-	newReq.Path = n.IPFSBin
-	newReq.Args = append([]string{"daemon"}, req.Args...)
-	newReq.RunFunc = (*exec.Cmd).Start
 
-	log.Debugf("starting node %d", n.ID)
-	res := n.Runner.MustRun(newReq)
+	// Start the daemon with a simple retry mechanism
+	// Sometimes when tests run in parallel, daemon startup can fail transiently
+	var daemonStarted bool
+	var lastErr error
+	for attempt := 0; attempt < 3; attempt++ {
+		if attempt > 0 {
+			time.Sleep(time.Second) // Brief pause before retry
+			log.Debugf("retrying daemon start for node %d (attempt %d/3)", n.ID, attempt+1)
+		}
 
-	n.Daemon = res
+		func() {
+			defer func() {
+				if r := recover(); r != nil {
+					lastErr = fmt.Errorf("panic during daemon start: %v", r)
+					log.Debugf("node %d daemon start attempt %d failed: %v", n.ID, attempt+1, r)
+				}
+			}()
 
-	// Register the daemon process for cleanup tracking
-	if res.Cmd != nil && res.Cmd.Process != nil {
-		globalProcessTracker.RegisterProcess(res.Cmd.Process)
+			newReq := req
+			newReq.Path = n.IPFSBin
+			newReq.Args = append([]string{"daemon"}, req.Args...)
+			newReq.RunFunc = (*exec.Cmd).Start
+
+			log.Debugf("starting node %d", n.ID)
+			res := n.Runner.MustRun(newReq)
+
+			n.Daemon = res
+
+			// Register the daemon process for cleanup tracking
+			if res.Cmd != nil && res.Cmd.Process != nil {
+				globalProcessTracker.RegisterProcess(res.Cmd.Process)
+			}
+
+			log.Debugf("node %d started, checking API", n.ID)
+			n.WaitOnAPI(authorization)
+			daemonStarted = true
+		}()
+
+		if daemonStarted {
+			break
+		}
+	}
+
+	if !daemonStarted {
+		if lastErr != nil {
+			log.Panicf("node %d failed to start daemon after 3 attempts: %v", n.ID, lastErr)
+		} else {
+			log.Panicf("node %d failed to start daemon after 3 attempts", n.ID)
+		}
+	}
+
+	// Wait for daemon to be fully ready by checking it can respond to commands
+	// This is more reliable than just checking the API endpoint
+	maxRetries := 30
+	for i := 0; i < maxRetries; i++ {
+		result := n.RunIPFS("id")
+		if result.ExitCode() == 0 {
+			log.Debugf("node %d daemon is fully responsive", n.ID)
+			break
+		}
+		if i == maxRetries-1 {
+			log.Panicf("node %d daemon not responsive after %d retries. stderr: %s",
+				n.ID, maxRetries, result.Stderr.String())
+		}
+		time.Sleep(200 * time.Millisecond)
 	}
 
-	log.Debugf("node %d started, checking API", n.ID)
-	n.WaitOnAPI(authorization)
 	return n
 }