diff --git a/flyteadmin/pkg/rpc/adminservice/middleware/recovery_interceptor.go b/flyteadmin/pkg/rpc/adminservice/middleware/recovery_interceptor.go
index 561309cebe..6b04e14db7 100644
--- a/flyteadmin/pkg/rpc/adminservice/middleware/recovery_interceptor.go
+++ b/flyteadmin/pkg/rpc/adminservice/middleware/recovery_interceptor.go
@@ -31,14 +31,13 @@ func (ri *RecoveryInterceptor) UnaryServerInterceptor() grpc.UnaryServerIntercep
 		defer func() {
 			if r := recover(); r != nil {
 				ri.panicCounter.Inc()
-				logger.Fatalf(ctx, "panic-ed for request: [%+v] to %s with err: %v with Stack: %v", req, info.FullMethod, r, string(debug.Stack()))
+				logger.Errorf(ctx, "panic-ed for request: [%+v] to %s with err: %v with Stack: %v", req, info.FullMethod, r, string(debug.Stack()))
 				// Return INTERNAL to client with no info as to not leak implementation details
 				err = status.Errorf(codes.Internal, "")
 			}
 		}()
 
-		resp, err := handler(ctx, req)
-		return resp, err
+		return handler(ctx, req)
 	}
 }
 
@@ -49,13 +48,12 @@ func (ri *RecoveryInterceptor) StreamServerInterceptor() grpc.StreamServerInterc
 		defer func() {
 			if r := recover(); r != nil {
 				ri.panicCounter.Inc()
-				logger.Fatalf(stream.Context(), "panic-ed for stream to %s with err: %v with Stack: %v", info.FullMethod, r, string(debug.Stack()))
+				logger.Errorf(stream.Context(), "panic-ed for stream to %s with err: %v with Stack: %v", info.FullMethod, r, string(debug.Stack()))
 				// Return INTERNAL to client with no info as to not leak implementation details
 				err = status.Errorf(codes.Internal, "")
 			}
 		}()
 
-		err = handler(srv, stream)
-		return err
+		return handler(srv, stream)
 	}
 }
diff --git a/flyteadmin/pkg/rpc/adminservice/middleware/recovery_interceptor_test.go b/flyteadmin/pkg/rpc/adminservice/middleware/recovery_interceptor_test.go
new file mode 100644
index 0000000000..5a6dfa832d
--- /dev/null
+++ b/flyteadmin/pkg/rpc/adminservice/middleware/recovery_interceptor_test.go
@@ -0,0 +1,38 @@
+package middleware
+
+import (
+	"context"
+	mockScope "github.com/flyteorg/flyte/flytestdlib/promutils"
+	"github.com/stretchr/testify/require"
+	"google.golang.org/grpc"
+	"google.golang.org/grpc/codes"
+	"google.golang.org/grpc/status"
+	"testing"
+)
+
+func TestRecoveryInterceptor(t *testing.T) {
+	ctx := context.Background()
+	testScope := mockScope.NewTestScope()
+	recoveryInterceptor := NewRecoveryInterceptor(testScope)
+	unaryInterceptor := recoveryInterceptor.UnaryServerInterceptor()
+	info := &grpc.UnaryServerInfo{}
+	req := "test-request"
+
+	t.Run("should recover from panic", func(t *testing.T) {
+		_, err := unaryInterceptor(ctx, req, info, func(ctx context.Context, req any) (any, error) {
+			panic("synthetic")
+		})
+		expectedErr := status.Errorf(codes.Internal, "")
+		require.Error(t, err)
+		require.Equal(t, expectedErr, err)
+	})
+
+	t.Run("should plumb response without panic", func(t *testing.T) {
+		mockedResponse := "test"
+		resp, err := unaryInterceptor(ctx, req, info, func(ctx context.Context, req any) (any, error) {
+			return mockedResponse, nil
+		})
+		require.NoError(t, err)
+		require.Equal(t, mockedResponse, resp)
+	})
+}