diff --git a/src/System.Management.Automation/engine/remoting/client/Job.cs b/src/System.Management.Automation/engine/remoting/client/Job.cs
index d01e555d71e..6ed148a68a2 100644
--- a/src/System.Management.Automation/engine/remoting/client/Job.cs
+++ b/src/System.Management.Automation/engine/remoting/client/Job.cs
@@ -3382,8 +3382,11 @@ protected void ProcessJobFailure(ExecutionCmdletHelper helper, out Exception fai
                                 fullyQualifiedErrorId, ErrorCategory.OpenError,
                                 null, null, null, null, null, errorDetails, null);
             }
-            else if (pipeline.PipelineStateInfo.State == PipelineState.Failed)
+            else if ((pipeline.PipelineStateInfo.State == PipelineState.Failed) ||
+                     ((pipeline.PipelineStateInfo.State == PipelineState.Stopped) &&
+                      (pipeline.PipelineStateInfo.Reason != null && !(pipeline.PipelineStateInfo.Reason is PipelineStoppedException))))
             {
+                // Pipeline stopped state is also an error condition if the associated exception is not 'PipelineStoppedException'.
                 object targetObject = runspace.ConnectionInfo.ComputerName;
                 failureException = pipeline.PipelineStateInfo.Reason;
                 if (failureException != null)
@@ -3394,6 +3397,15 @@ protected void ProcessJobFailure(ExecutionCmdletHelper helper, out Exception fai
                     if (rException != null)
                     {
                         errorRecord = rException.ErrorRecord;
+
+                        // A RemoteException will hide a PipelineStoppedException, which should be ignored.
+                        if (errorRecord != null &&
+                            errorRecord.FullyQualifiedErrorId.Equals("PipelineStopped", StringComparison.OrdinalIgnoreCase))
+                        {
+                            // PipelineStoppedException should not be reported as error.
+                            failureException = null;
+                            return;
+                        }
                     }
                     else
                     {
diff --git a/test/powershell/engine/Job/Jobs.Tests.ps1 b/test/powershell/engine/Job/Jobs.Tests.ps1
index df7363b5cd3..52e1f545386 100644
--- a/test/powershell/engine/Job/Jobs.Tests.ps1
+++ b/test/powershell/engine/Job/Jobs.Tests.ps1
@@ -311,8 +311,24 @@ Describe 'Basic Job Tests' -Tags 'Feature' {
                 @{ property = 'InstanceId'}
                 @{ property = 'State'}
             )
-            # '-Seconds 100' is chosen to be substantially large, so that the job is in running state when Stop-Job is called.
-            $jobToStop = Start-Job -ScriptBlock { Start-Sleep -Seconds 100 } -Name 'JobToStop'
+        }
+
+        BeforeEach {
+            # 20 seconds is chosen to be large, so that the job is in running state when Stop-Job is called.
+            $jobToStop = Start-Job -ScriptBlock {
+                1..80 | ForEach-Object {
+                    Write-Output $_
+                    Start-Sleep -Milliseconds 250
+                }
+            } -Name 'JobToStop'
+            # Wait until the job is actually running and executing the script
+            do {
+                $data = Receive-Job -Job $jobToStop
+            } while (($data.Count -eq 0) -and ($jobToStop.State -eq 'Running'))
+        }
+
+        AfterEach {
+            Remove-Job $jobToStop -Force -ErrorAction SilentlyContinue
         }
 
         It 'Can Stop-Job with <property>' -TestCases $stopJobTestCases {
@@ -321,9 +337,5 @@ Describe 'Basic Job Tests' -Tags 'Feature' {
             Stop-Job @splat
             ValidateJobInfo -job $jobToStop -state 'Stopped' -hasMoreData $false
         }
-
-        AfterAll {
-            Remove-Job $jobToStop -Force -ErrorAction SilentlyContinue
-        }
     }
 }