diff --git a/fault-tolerance/fault-tolerance/src/main/java/io/helidon/faulttolerance/FaultTolerance.java b/fault-tolerance/fault-tolerance/src/main/java/io/helidon/faulttolerance/FaultTolerance.java
index 6b32e8f6cb7..9ed7b017353 100644
--- a/fault-tolerance/fault-tolerance/src/main/java/io/helidon/faulttolerance/FaultTolerance.java
+++ b/fault-tolerance/fault-tolerance/src/main/java/io/helidon/faulttolerance/FaultTolerance.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2020, 2023 Oracle and/or its affiliates.
+ * Copyright (c) 2020, 2024 Oracle and/or its affiliates.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -20,11 +20,11 @@
 import java.util.List;
 import java.util.concurrent.Callable;
 import java.util.concurrent.ExecutorService;
-import java.util.concurrent.Executors;
 import java.util.concurrent.atomic.AtomicReference;
 import java.util.function.Supplier;
 
 import io.helidon.common.LazyValue;
+import io.helidon.common.configurable.ThreadPoolSupplier;
 import io.helidon.config.Config;
 
 import static java.lang.System.Logger.Level.ERROR;
@@ -54,9 +54,11 @@ public final class FaultTolerance {
     private static final AtomicReference<Config> CONFIG = new AtomicReference<>(Config.empty());
 
     static {
-        EXECUTOR.set(LazyValue.create(() -> Executors.newThreadPerTaskExecutor(Thread.ofVirtual()
-                                                          .name("helidon-ft-", 0)
-                                                          .factory())));
+        EXECUTOR.set(LazyValue.create(() -> ThreadPoolSupplier.builder()
+                .threadNamePrefix("helidon-ft-")
+                .virtualThreads(true)
+                .build()
+                .get()));
     }
 
     private FaultTolerance() {
diff --git a/fault-tolerance/fault-tolerance/src/test/java/io/helidon/faulttolerance/AsyncTest.java b/fault-tolerance/fault-tolerance/src/test/java/io/helidon/faulttolerance/AsyncTest.java
index f9d40053bfb..1b77023fea7 100644
--- a/fault-tolerance/fault-tolerance/src/test/java/io/helidon/faulttolerance/AsyncTest.java
+++ b/fault-tolerance/fault-tolerance/src/test/java/io/helidon/faulttolerance/AsyncTest.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2022, 2023 Oracle and/or its affiliates.
+ * Copyright (c) 2022, 2024 Oracle and/or its affiliates.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -19,6 +19,9 @@
 import java.util.concurrent.CompletableFuture;
 import java.util.concurrent.TimeUnit;
 
+import io.helidon.common.context.Context;
+import io.helidon.common.context.Contexts;
+
 import org.junit.jupiter.api.Test;
 
 import static org.hamcrest.CoreMatchers.endsWith;
@@ -61,6 +64,24 @@ void testThreadName() throws Exception {
         assertThat(threadName, endsWith(": async"));
     }
 
+    @Test
+    void testContextPropagation() throws Exception {
+        Context context = Context.create();
+        CompletableFuture<Context> cf = new CompletableFuture<>();
+        Contexts.runInContext(context, () -> {
+            try {
+                Async async = Async.create();
+                async.invoke(() -> {
+                    cf.complete(Contexts.context().orElse(null));
+                    return null;
+                });
+            } catch (Exception e) {
+                throw new RuntimeException(e);
+            }
+        });
+        assertThat(cf.get(WAIT_TIMEOUT_MILLIS, TimeUnit.MILLISECONDS), is(context));
+    }
+
     private Thread testAsync(Async async) {
         try {
             CompletableFuture<Thread> cf = new CompletableFuture<>();