diff --git a/packages/tests/src/tests/init.test.ts b/packages/tests/src/tests/init.test.ts
index 358063700b..8433838949 100644
--- a/packages/tests/src/tests/init.test.ts
+++ b/packages/tests/src/tests/init.test.ts
@@ -12,9 +12,6 @@ import { createRegistryServer } from "../utils/registry"
 
 describe("shadcn init - next-app", () => {
   it("should init with default configuration", async () => {
-    // Sleep for 1 second to avoid race condition with the registry server.
-    await new Promise((resolve) => setTimeout(resolve, 2000))
-
     const fixturePath = await createFixtureTestDirectory("next-app")
     await npxShadcn(fixturePath, ["init", "--defaults"])
 
diff --git a/packages/tests/src/utils/helpers.ts b/packages/tests/src/utils/helpers.ts
index 31b0a10397..b6437e2dc5 100644
--- a/packages/tests/src/utils/helpers.ts
+++ b/packages/tests/src/utils/helpers.ts
@@ -47,7 +47,7 @@ export async function runCommand(
       },
       input: options?.input,
       reject: false,
-      timeout: options?.timeout ?? 30000,
+      timeout: options?.timeout ?? 60000,
     })
 
     const result = await childProcess
diff --git a/packages/tests/src/utils/setup.ts b/packages/tests/src/utils/setup.ts
index 98b3acf24c..6b14b85fb5 100644
--- a/packages/tests/src/utils/setup.ts
+++ b/packages/tests/src/utils/setup.ts
@@ -4,9 +4,59 @@ import { rimraf } from "rimraf"
 
 export const TEMP_DIR = path.join(__dirname, "../../temp")
 
+const SHADCN_CLI_PATH = path.join(__dirname, "../../../shadcn/dist/index.js")
+
+async function waitForCondition(
+  label: string,
+  check: () => Promise<boolean>,
+  timeoutMs = 60000
+) {
+  const deadline = Date.now() + timeoutMs
+  while (Date.now() < deadline) {
+    if (await check()) return
+    await new Promise((resolve) => setTimeout(resolve, 500))
+  }
+  throw new Error(`Timed out waiting for: ${label} (${timeoutMs}ms)`)
+}
+
 export default async function setup() {
   await fs.ensureDir(TEMP_DIR)
 
+  // The v4 dev script runs `pnpm --filter=shadcn build` in the background
+  // while `next dev` starts immediately. On fast CI runs the server can be
+  // ready before the CLI binary is built, so we wait for it explicitly.
+  await waitForCondition("shadcn CLI binary", () =>
+    fs.pathExists(SHADCN_CLI_PATH)
+  )
+
+  // The CLI's first request goes to the dynamic /init route. On a cold Next.js
+  // dev server, this route needs to be compiled on first access (~1.8s). That
+  // compilation time, on top of everything else init does, pushes the first
+  // test over the 30s CLI timeout. Warming up the route here ensures it is
+  // already compiled before any test starts.
+  const registryUrl = process.env.REGISTRY_URL || "http://localhost:4000/r"
+  const shadcnUrl = registryUrl.replace(/\/r\/?$/, "")
+  const initWarmupUrl = `${shadcnUrl}/init?base=base&style=nova&baseColor=neutral&theme=neutral&iconLibrary=lucide&font=geist&rtl=false&menuAccent=subtle&menuColor=default&radius=default&template=next`
+
+  await waitForCondition("init route warm-up", async () => {
+    try {
+      const res = await fetch(initWarmupUrl)
+      return res.ok
+    } catch {
+      return false
+    }
+  })
+
+  // The CLI fetches registry paths that may not exist (e.g. font files),
+  // causing Next.js to compile the /_not-found/page route on first 404.
+  // That compilation takes ~4-5s and contributes to the first test timing
+  // out. Trigger one 404 here so the not-found page is pre-compiled.
+  try {
+    await fetch(`${shadcnUrl}/r/styles/new-york-v4/font-geist.json`)
+  } catch {
+    // Best effort — don't block setup if this fails.
+  }
+
   return async () => {
     try {
       await rimraf(TEMP_DIR)