diff --git a/internal/testrunner/runners/system/servicedeployer/terraform.go b/internal/testrunner/runners/system/servicedeployer/terraform.go
index 6a191d244e..67b79e6fca 100644
--- a/internal/testrunner/runners/system/servicedeployer/terraform.go
+++ b/internal/testrunner/runners/system/servicedeployer/terraform.go
@@ -64,6 +64,12 @@ func addTerraformOutputs(outCtxt ServiceContext) error {
 	// Unmarshall the data into `terraformOutputs`
 	logger.Debug("Unmarshalling terraform output json")
 	var terraformOutputs map[string]OutputMeta
+
+	if !json.Valid(content) {
+		logger.Debug("Invalid Json content in the terraform output file, skipped creating outputs")
+		return nil
+	}
+
 	if err = json.Unmarshal(content, &terraformOutputs); err != nil {
 		return fmt.Errorf("error during json Unmarshal %w", err)
 	}
diff --git a/internal/testrunner/runners/system/servicedeployer/terraform_test.go b/internal/testrunner/runners/system/servicedeployer/terraform_test.go
index 30d822f455..ce19808beb 100644
--- a/internal/testrunner/runners/system/servicedeployer/terraform_test.go
+++ b/internal/testrunner/runners/system/servicedeployer/terraform_test.go
@@ -9,6 +9,7 @@ import (
 	"testing"
 
 	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
 )
 
 func TestAddTerraformOutputs(t *testing.T) {
@@ -20,6 +21,28 @@ func TestAddTerraformOutputs(t *testing.T) {
 		content       []byte
 		expectedProps map[string]interface{}
 	}{
+		{
+			testName: "invalid_json_output",
+			runId:    "987987",
+			ctxt: ServiceContext{
+				Test: struct{ RunID string }{"987987"},
+			},
+			content: []byte(
+				``,
+			),
+			expectedProps: map[string]interface{}{},
+		},
+		{
+			testName: "empty_json_output",
+			runId:    "v",
+			ctxt: ServiceContext{
+				Test: struct{ RunID string }{"9887"},
+			},
+			content: []byte(
+				`{}`,
+			),
+			expectedProps: map[string]interface{}{},
+		},
 		{
 			testName: "single_value_output",
 			runId:    "99999",
@@ -121,7 +144,8 @@ func TestAddTerraformOutputs(t *testing.T) {
 			}
 
 			// Test that the terraform output values are generated correctly
-			addTerraformOutputs(tc.ctxt)
+			err := addTerraformOutputs(tc.ctxt)
+			require.NoError(t, err)
 			assert.Equal(t, tc.expectedProps, tc.ctxt.CustomProperties)
 		})
 	}