diff --git a/tezt/lib_cloud/env.ml b/tezt/lib_cloud/env.ml
index faaba9e4c2d95782b32443230be70b4b67ff98a4..70eb8a02d126fbebf60528929c021f68abfc3cfc 100644
--- a/tezt/lib_cloud/env.ml
+++ b/tezt/lib_cloud/env.ml
@@ -116,19 +116,37 @@ let init () =
      This allows logrotate to use a better strategy than copytruncate
      https://incoherency.co.uk/blog/stories/logrotate-copytruncate-race-condition.html
   *)
-  (if log_rotation <> 0 then
-     match Tezt_core.Cli.Logs.file with
-     | None -> ()
-     | Some logfile ->
-         Log.report "Installing signal handler for SIGHUP" ;
-         let signal_hup_handler signal =
-           if signal = Sys.sighup then (
-             (* TODO: Not sure if set_file is async-signal-safe.
-                Maybe implement a better solution if it causes issues *)
-             Tezt_core.Log.set_file logfile ;
-             Log.report "Logfile was reopened")
-         in
-         Sys.set_signal Sys.sighup (Sys.Signal_handle signal_hup_handler)) ;
+  (match Tezt_core.Cli.Logs.file with
+  | None -> ()
+  | Some logfile ->
+      let sighup_flag = ref false in
+      (* loop every second to check if sighup_flag was set *)
+      let logfile_reopen =
+        let rec loop () =
+          let* () =
+            if !sighup_flag then (
+              sighup_flag := false ;
+              Log.report "Reopening logfile : %s" logfile ;
+              Tezt_core.Log.set_file logfile ;
+              Lwt.return_unit)
+            else Lwt_unix.sleep 1.
+          in
+          loop ()
+        in
+        Log.report "Starting reopen logfile background handler" ;
+        loop ()
+      in
+      (* signal handler that now just defer Log.set_file *)
+      let signal_hup_handler signal =
+        if signal = Sys.sighup then sighup_flag := true
+      in
+      let _ =
+        Lwt_main.Exit_hooks.add_first (fun () ->
+            let () = Lwt.cancel logfile_reopen in
+            Lwt.return_unit)
+      in
+      Log.report "Installing signal handler for reopening logfile" ;
+      Sys.set_signal Sys.sighup (Sys.Signal_handle signal_hup_handler)) ;
   match mode with
   | `Local_orchestrator_local_agents | `Ssh_host _ -> Lwt.return_unit
   | `Remote_orchestrator_local_agents ->