diff --git a/metadata-io/src/test/java/com/linkedin/metadata/entity/EbeanEntityServiceTest.java b/metadata-io/src/test/java/com/linkedin/metadata/entity/EbeanEntityServiceTest.java
index 2fe8788c6df68..c15b0063386f2 100644
--- a/metadata-io/src/test/java/com/linkedin/metadata/entity/EbeanEntityServiceTest.java
+++ b/metadata-io/src/test/java/com/linkedin/metadata/entity/EbeanEntityServiceTest.java
@@ -4,6 +4,7 @@
 import static com.linkedin.metadata.Constants.STATUS_ASPECT_NAME;
 import static com.linkedin.metadata.entity.ebean.EbeanAspectDao.TX_ISOLATION;
 import static org.mockito.ArgumentMatchers.any;
+import static org.mockito.ArgumentMatchers.anyBoolean;
 import static org.mockito.ArgumentMatchers.anyInt;
 import static org.mockito.ArgumentMatchers.anyLong;
 import static org.mockito.ArgumentMatchers.eq;
@@ -12,7 +13,6 @@
 import static org.mockito.Mockito.doThrow;
 import static org.mockito.Mockito.mock;
 import static org.mockito.Mockito.reset;
-import static org.mockito.Mockito.spy;
 import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.when;
 import static org.testng.Assert.assertEquals;
@@ -48,6 +48,7 @@
 import com.linkedin.metadata.utils.PegasusUtils;
 import com.linkedin.mxe.MetadataChangeProposal;
 import com.linkedin.mxe.SystemMetadata;
+import com.linkedin.util.Pair;
 import io.datahubproject.metadata.context.OperationContext;
 import io.datahubproject.metadata.context.RetrieverContext;
 import io.datahubproject.test.DataGenerator;
@@ -58,7 +59,6 @@
 import jakarta.persistence.EntityNotFoundException;
 import java.net.URISyntaxException;
 import java.sql.Timestamp;
-import java.util.ArrayList;
 import java.util.Collection;
 import java.util.List;
 import java.util.Map;
@@ -90,9 +90,6 @@
 public class EbeanEntityServiceTest
     extends EntityServiceTest<EbeanAspectDao, EbeanRetentionService> {
 
-  // Track additional Database instances created in individual tests for cleanup
-  private final List<Database> additionalDatabases = new ArrayList<>();
-
   public EbeanEntityServiceTest() throws EntityRegistryException {}
 
   @DataProvider(name = "cdcModeVariants")
@@ -170,11 +167,8 @@ public void testNoRowsUpdatedErrorHandling() throws Exception {
     CorpUserInfo writeAspect = AspectGenerationUtils.createCorpUserInfo("email@test.com");
     String aspectName = PegasusUtils.getAspectNameFromSchema(writeAspect.schema());
 
-    // Create database and spy on aspectDao
-    Database server = EbeanTestUtils.createTestServer(EbeanEntityServiceTest.class.getSimpleName());
-    additionalDatabases.add(server); // Track for cleanup
-    EbeanAspectDao aspectDao =
-        spy(new EbeanAspectDao(server, EbeanConfiguration.testDefault, null));
+    // No database needed since all methods are stubbed
+    EbeanAspectDao aspectDao = mock(EbeanAspectDao.class);
 
     // Prevent actual saves
     EntityAspect mockEntityAspect = mock(EntityAspect.class);
@@ -182,7 +176,16 @@ public void testNoRowsUpdatedErrorHandling() throws Exception {
     doReturn(Optional.of(mockEntityAspect)).when(aspectDao).updateAspect(any(), any());
     doReturn(Optional.of(mockEntityAspect)).when(aspectDao).insertAspect(any(), any(), anyLong());
 
-    // Create spied transaction context that throws on commitAndContinue
+    // Stub methods that the transaction block will call
+    // Use mutable maps because the code calls computeIfAbsent() on them
+    when(aspectDao.getLatestAspects(any(), any(), anyBoolean()))
+        .thenReturn(new java.util.HashMap<>());
+    when(aspectDao.getNextVersions(any())).thenReturn(new java.util.HashMap<>());
+    // Stub saveLatestAspect to return a Pair with the mocked entity aspects
+    when(aspectDao.saveLatestAspect(any(), any(), any(), any()))
+        .thenReturn(Pair.of(Optional.of(mockEntityAspect), Optional.of(mockEntityAspect)));
+
+    // Create mocked transaction context that throws on commitAndContinue
     AtomicReference<TransactionContext> capturedTxContext = new AtomicReference<>();
     AtomicReference<TransactionResult<?>> capturedResult = new AtomicReference<>();
 
@@ -191,7 +194,14 @@ public void testNoRowsUpdatedErrorHandling() throws Exception {
               Function<TransactionContext, TransactionResult<?>> block = invocation.getArgument(0);
               Integer maxTransactionRetry = invocation.getArgument(2);
 
-              TransactionContext txContext = spy(TransactionContext.empty(maxTransactionRetry));
+              // Use mock instead of spy to avoid Mockito global interceptor
+              TransactionContext txContext = mock(TransactionContext.class);
+              // Stub other methods that might be called
+              when(txContext.getFailedAttempts()).thenReturn(0);
+              when(txContext.shouldAttemptRetry()).thenReturn(true);
+              when(txContext.lastException()).thenReturn(null);
+              when(txContext.lastExceptionIsDuplicateKey()).thenReturn(false);
+
               capturedTxContext.set(txContext);
 
               doThrow(new EntityNotFoundException("No rows updated"))
@@ -205,7 +215,7 @@ public void testNoRowsUpdatedErrorHandling() throws Exception {
         .when(aspectDao)
         .runInTransactionWithRetry(any(), any(), anyInt());
 
-    // Create the service with our spied dao
+    // Create the service with our mocked dao
     PreProcessHooks preProcessHooks = new PreProcessHooks();
     preProcessHooks.setUiEnabled(false);
     EntityServiceImpl entityService =
@@ -778,7 +788,5 @@ public void cleanup() {
     // Shutdown all Database instances to prevent thread pool and connection leaks
     // This includes the "gma.heartBeat" thread and connection pools
     EbeanTestUtils.shutdownDatabaseFromAspectDao(_aspectDao);
-    EbeanTestUtils.shutdownDatabases(additionalDatabases);
-    additionalDatabases.clear();
   }
 }