diff --git a/graduated/codefresh-run/step.yaml b/graduated/codefresh-run/step.yaml
index 917885e97..9b2f343ae 100644
--- a/graduated/codefresh-run/step.yaml
+++ b/graduated/codefresh-run/step.yaml
@@ -3,7 +3,7 @@ kind: step-type
 metadata:
   name: codefresh-run
   title: Run a Codefresh pipeline
-  version: 1.6.0
+  version: 1.6.1
   isPublic: true
   description: Run a Codefresh pipeline by ID or name and attach the created build logs.
   sources:
@@ -160,7 +160,7 @@ spec:
             },
             "TERMINATE_ON_TIMEOUT": {
                 "type": "boolean",
-                "description": "Terminate build if timeout reached",
+                "description": "Terminate build if timeout reached. Other errors (e.g. failed API requests) do not terminate the build",
                 "default": false
             },
             "ONLY": {
@@ -262,11 +262,23 @@ spec:
         - echo "Retrieving logs for build $BUILD_ID"
         - codefresh logs -f --no-timestamps $BUILD_ID
       [[- end ]]
+      [[- if eq .Arguments.TERMINATE_ON_TIMEOUT false ]]
         - >-
           codefresh wait --verbose $BUILD_ID --timeout [[(printf "%s"  .Arguments.TIMEOUT_MINS)]]
-      [[- if eq .Arguments.TERMINATE_ON_TIMEOUT true ]]
-          || (echo "TERMINATE_ON_TIMEOUT was set to true, sending termination request" &&
-              codefresh terminate $BUILD_ID &&
-              exit 1)
+      [[- else ]]
+      [[/* Terminate the child build only when the timeout is reached, not on other errors (e.g. API errors). */]]
+      [[/* The timeout is detected by exit code 124 (CLI >= 1.3.0) or by the error message (older CLI versions exit with 1). */]]
+        - >-
+          { codefresh wait --verbose $BUILD_ID --timeout [[(printf "%s"  .Arguments.TIMEOUT_MINS)]] 2>&1;
+          echo $? > /tmp/codefresh-wait.rc; } | tee /tmp/codefresh-wait.log;
+          WAIT_RC=$(cat /tmp/codefresh-wait.rc 2>/dev/null);
+          if [ "$WAIT_RC" != "0" ]; then
+          WAIT_RC=${WAIT_RC:-1};
+          if [ "$WAIT_RC" -eq 124 ] || grep -q "Operation has timed out" /tmp/codefresh-wait.log; then
+          echo "TERMINATE_ON_TIMEOUT was set to true, sending termination request";
+          codefresh terminate $BUILD_ID;
+          fi;
+          exit $WAIT_RC;
+          fi
       [[- end ]]
       [[- end -]]