diff --git a/pkg/testing/integration/program.go b/pkg/testing/integration/program.go
index d6e28d44a..64f00af6b 100644
--- a/pkg/testing/integration/program.go
+++ b/pkg/testing/integration/program.go
@@ -304,17 +304,18 @@ func testLifeCycleInitAndDestroy(
 		return errors.Wrap(err, "Couldn't copy test to temporary directory")
 	}
 
+	// Keep the temporary test directory around for debugging unless
+	// the test completes successfully.
+	keepTestDir := true
 	defer func() {
-		if t.Failed() {
-			// Test failed -- keep temporary files around for debugging.
-			// Maybe also copy to "failed tests" directory.
+		if keepTestDir {
+			// Maybe copy to "failed tests" directory.
 			failedTestsDir := os.Getenv("PULUMI_FAILED_TESTS_DIR")
 			if failedTestsDir != "" {
 				dest := filepath.Join(failedTestsDir, t.Name()+uniqueSuffix())
 				contract.IgnoreError(fsutil.CopyFile(dest, dir, nil))
 			}
 		} else {
-			// Test passed -- delete temporary files.
 			contract.IgnoreError(os.RemoveAll(dir))
 		}
 	}()
@@ -332,7 +333,13 @@ func testLifeCycleInitAndDestroy(
 		}
 	}()
 
-	return between(t, opts, dir)
+	err = between(t, opts, dir)
+	if err != nil {
+		return err
+	}
+
+	keepTestDir = false
+	return nil
 }
 
 func testLifeCycleInitialize(t *testing.T, opts *ProgramTestOptions, dir string) error {
@@ -644,11 +651,11 @@ func performExtraRuntimeValidation(
 }
 
 // CopyTestToTemporaryDirectory creates a temporary directory to run the test in and copies the test to it.
-func CopyTestToTemporaryDirectory(t *testing.T, opts *ProgramTestOptions) (dir string, err error) {
+func CopyTestToTemporaryDirectory(t *testing.T, opts *ProgramTestOptions) (string, error) {
 	// Ensure the required programs are present.
 	if opts.Bin == "" {
 		var pulumi string
-		pulumi, err = exec.LookPath("pulumi")
+		pulumi, err := exec.LookPath("pulumi")
 		if err != nil {
 			return "", errors.Wrapf(err, "Expected to find `pulumi` binary on $PATH")
 		}
@@ -656,7 +663,7 @@ func CopyTestToTemporaryDirectory(t *testing.T, opts *ProgramTestOptions) (dir s
 	}
 	if opts.YarnBin == "" {
 		var yarn string
-		yarn, err = exec.LookPath("yarn")
+		yarn, err := exec.LookPath("yarn")
 		if err != nil {
 			return "", errors.Wrapf(err, "Expected to find `yarn` binary on $PATH")
 		}
@@ -683,7 +690,7 @@ func CopyTestToTemporaryDirectory(t *testing.T, opts *ProgramTestOptions) (dir s
 		opts.Stderr = stderr
 	}
 
-	pioutil.MustFprintf(opts.Stdout, "sample: %v\n", dir)
+	pioutil.MustFprintf(opts.Stdout, "sample: %v\n", sourceDir)
 	pioutil.MustFprintf(opts.Stdout, "pulumi: %v\n", opts.Bin)
 	pioutil.MustFprintf(opts.Stdout, "yarn: %v\n", opts.YarnBin)
 
@@ -694,23 +701,25 @@ func CopyTestToTemporaryDirectory(t *testing.T, opts *ProgramTestOptions) (dir s
 	}
 
 	// Clean up the temporary directory on failure
+	deleteTargetDir := true
 	defer func() {
-		if err != nil {
+		if deleteTargetDir {
 			contract.IgnoreError(os.RemoveAll(targetDir))
 		}
 	}()
 
 	// Copy the source project
-	if copyerr := fsutil.CopyFile(targetDir, sourceDir, nil); copyerr != nil {
-		return "", copyerr
+	if err = fsutil.CopyFile(targetDir, sourceDir, nil); err != nil {
+		return "", err
 	}
 
 	err = prepareProject(t, opts, targetDir)
 	if err != nil {
-		return "", errors.Wrapf(err, "Failed to prepare %v", dir)
+		return "", errors.Wrapf(err, "Failed to prepare %v", targetDir)
 	}
 
 	pioutil.MustFprintf(stdout, "projdir: %v\n", targetDir)
+	deleteTargetDir = false
 	return targetDir, nil
 }