diff --git a/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/Program.cs b/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/Program.cs
new file mode 100644
index 000000000000..aca68508c192
--- /dev/null
+++ b/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/Program.cs
@@ -0,0 +1,47 @@
+using Microsoft.Testing.Platform.Builder;
+using Microsoft.Testing.Platform.Capabilities.TestFramework;
+using Microsoft.Testing.Platform.Extensions.Messages;
+using Microsoft.Testing.Platform.Extensions.TestFramework;
+
+var testApplicationBuilder = await TestApplication.CreateBuilderAsync(args);
+
+testApplicationBuilder.RegisterTestFramework(_ => new TestFrameworkCapabilities(), (_, __) => new DummyTestAdapter());
+
+using var testApplication = await testApplicationBuilder.BuildAsync();
+return await testApplication.RunAsync();
+
+public class DummyTestAdapter : ITestFramework, IDataProducer
+{
+	public string Uid => nameof(DummyTestAdapter);
+
+	public string Version => "2.0.0";
+
+	public string DisplayName => nameof(DummyTestAdapter);
+
+	public string Description => nameof(DummyTestAdapter);
+
+	public Task<bool> IsEnabledAsync() => Task.FromResult(true);
+
+	public Type[] DataTypesProduced { get; } = [typeof(TestNodeUpdateMessage)];
+
+	public Task<CreateTestSessionResult> CreateTestSessionAsync(CreateTestSessionContext context)
+		=> Task.FromResult(new CreateTestSessionResult() { IsSuccess = true });
+
+	public Task<CloseTestSessionResult> CloseTestSessionAsync(CloseTestSessionContext context)
+		=> Task.FromResult(new CloseTestSessionResult() { IsSuccess = true });
+
+	public async Task ExecuteRequestAsync(ExecuteRequestContext context)
+	{
+		// Simple dummy test that always passes
+		await context.MessageBus.PublishAsync(this, new TestNodeUpdateMessage(
+			context.Request.Session.SessionUid,
+			new TestNode()
+			{
+				Uid = "dummy_test_1",
+				DisplayName = "Dummy Test 1",
+				Properties = new PropertyBag(PassedTestNodeStateProperty.CachedInstance)
+			}));
+
+		context.Complete();
+	}
+}
diff --git a/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/TestProjectMTPWithUseAppHostFalse.csproj b/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/TestProjectMTPWithUseAppHostFalse.csproj
new file mode 100644
index 000000000000..9fd88a6e395e
--- /dev/null
+++ b/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/TestProjectMTPWithUseAppHostFalse.csproj
@@ -0,0 +1,19 @@
+<Project Sdk="Microsoft.NET.Sdk">
+  <Import Project="$([MSBuild]::GetDirectoryNameOfFileAbove($(MSBuildThisFileDirectory), testAsset.props))\testAsset.props" />
+
+	<PropertyGroup>
+		<TargetFramework>$(CurrentTargetFramework)</TargetFramework>
+		<OutputType>Exe</OutputType>
+		<UseAppHost>false</UseAppHost>
+
+		<ImplicitUsings>enable</ImplicitUsings>
+		<Nullable>enable</Nullable>
+
+		<ManagePackageVersionsCentrally>false</ManagePackageVersionsCentrally>
+		<IsTestingPlatformApplication>true</IsTestingPlatformApplication>
+	</PropertyGroup>
+
+	<ItemGroup>
+		<PackageReference Include="Microsoft.Testing.Platform" Version="$(MicrosoftTestingPlatformVersion)" />
+	</ItemGroup>
+</Project>
diff --git a/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/dotnet.config b/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/dotnet.config
new file mode 100644
index 000000000000..da0410e32d54
--- /dev/null
+++ b/test/TestAssets/TestProjects/TestProjectMTPWithUseAppHostFalse/dotnet.config
@@ -0,0 +1,2 @@
+[dotnet.test.runner]
+name = "Microsoft.Testing.Platform"
diff --git a/test/dotnet.Tests/CommandTests/Test/GivenDotnetTestBuildsAndRunsTests.cs b/test/dotnet.Tests/CommandTests/Test/GivenDotnetTestBuildsAndRunsTests.cs
index 549b50e93552..853a46e8829d 100644
--- a/test/dotnet.Tests/CommandTests/Test/GivenDotnetTestBuildsAndRunsTests.cs
+++ b/test/dotnet.Tests/CommandTests/Test/GivenDotnetTestBuildsAndRunsTests.cs
@@ -374,5 +374,20 @@ public void RunningWithGlobalPropertyShouldProperlyPropagate(string configuratio
 
             result.ExitCode.Should().Be(ExitCodes.Success);
         }
+
+        [Fact]
+        public void RunMTPProjectWithUseAppHostFalse_ShouldWork()
+        {
+            TestAsset testInstance = _testAssetsManager.CopyTestAsset("TestProjectMTPWithUseAppHostFalse", Guid.NewGuid().ToString())
+                .WithSource();
+
+            // Run test with UseAppHost=false
+            CommandResult result = new DotnetTestCommand(Log, disableNewOutput: false)
+                .WithWorkingDirectory(testInstance.Path)
+                .Execute();
+
+            // Verify the test runs successfully with UseAppHost=false
+            result.ExitCode.Should().Be(0);
+        }
     }
 }