diff --git a/docker-compose/docker-compose.yml b/docker-compose/docker-compose.yml
index 6e15fdbe0d..4f0a887c27 100644
--- a/docker-compose/docker-compose.yml
+++ b/docker-compose/docker-compose.yml
@@ -185,6 +185,8 @@ services:
   neon-test-extensions:
     profiles: ["test-extensions"]
     image: ${REPOSITORY:-neondatabase}/neon-test-extensions-v${PG_TEST_VERSION:-16}:${TAG:-latest}
+    environment:
+      - PGPASSWORD=cloud_admin
     entrypoint:
       - "/bin/bash"
       - "-c"
diff --git a/docker-compose/run-tests.sh b/docker-compose/run-tests.sh
index 3fc0b90071..9873187b62 100644
--- a/docker-compose/run-tests.sh
+++ b/docker-compose/run-tests.sh
@@ -7,7 +7,10 @@ LIST=$( (echo -e "${SKIP//","/"\n"}"; ls -d -- *-src) | sort | uniq -u)
 for d in ${LIST}
 do
        [ -d "${d}" ] || continue
-    psql -c "select 1" >/dev/null || break
+       if ! psql -w -c "select 1" >/dev/null; then
+          FAILED="${d} ${FAILED}"
+          break
+       fi
        USE_PGXS=1 make -C "${d}" installcheck || FAILED="${d} ${FAILED}"
 done
 [ -z "${FAILED}" ] && exit 0