diff --git a/cdap-app-fabric/src/main/java/io/cdap/cdap/internal/app/runtime/distributed/remote/RemoteExecutionTwillRunnerService.java b/cdap-app-fabric/src/main/java/io/cdap/cdap/internal/app/runtime/distributed/remote/RemoteExecutionTwillRunnerService.java
index 3c77c8bc216e..97b8b9ff0829 100644
--- a/cdap-app-fabric/src/main/java/io/cdap/cdap/internal/app/runtime/distributed/remote/RemoteExecutionTwillRunnerService.java
+++ b/cdap-app-fabric/src/main/java/io/cdap/cdap/internal/app/runtime/distributed/remote/RemoteExecutionTwillRunnerService.java
@@ -32,6 +32,7 @@
 import io.cdap.cdap.common.lang.ClassLoaders;
 import io.cdap.cdap.common.logging.LoggingContext;
 import io.cdap.cdap.common.logging.LoggingContextAccessor;
+import io.cdap.cdap.common.logging.LoggingContextAccessor.LoggingContextRestorer;
 import io.cdap.cdap.common.service.Retries;
 import io.cdap.cdap.common.service.RetryStrategies;
 import io.cdap.cdap.common.service.RetryStrategy;
@@ -632,21 +633,29 @@ public TwillController create(@Nullable Callable<Void> startupTask, long timeout
 
           // If the startup task failed, publish failure state and delete the program running state
           startupTaskCompletion.whenComplete((res, throwable) -> {
-            if (throwable == null) {
-              LOG.debug("Startup task completed for program run {}", programRunId);
-            } else {
-              LOG.error("Fail to start program run {}", programRunId, throwable);
-              // The startup task completion can be failed in multiple scenarios.
-              // It can be caused by the startup task failure.
-              // It can also be due to cancellation from the controller, or a start up timeout.
-              // In either case, always cancel the startup task. If the task is already completed, there is no.
-              startupTaskFuture.cancel(true);
-              try {
-                // Attempt to force kill the remote process. If there is no such process found, it won't throw.
-                processController.kill(RuntimeJobStatus.RUNNING);
-              } catch (Exception e) {
-                LOG.warn("Force termination of remote process for {} failed", programRunId, e);
+            Map<String, String> systemArgs = programOpts.getArguments().asMap();
+            LoggingContext loggingContext = LoggingContextHelper.getLoggingContextWithRunId(
+              programRunId, systemArgs);
+            try (LoggingContextRestorer restoreContext = LoggingContextAccessor.setLoggingContext(loggingContext)) {
+              if (throwable == null) {
+                LOG.debug("Startup task completed for program run {}", programRunId);
+              } else {
+                LOG.error("Fail to start program run {}", programRunId, throwable);
+                // The startup task completion can be failed in multiple scenarios.
+                // It can be caused by the startup task failure.
+                // It can also be due to cancellation from the controller, or a start up timeout.
+                // In either case, always cancel the startup task. If the task is already completed, there is no.
+                startupTaskFuture.cancel(true);
+                try {
+                  // Attempt to force kill the remote process. If there is no such process found, it won't throw.
+                  processController.kill(RuntimeJobStatus.RUNNING);
+                } catch (Exception e) {
+                  LOG.warn("Force termination of remote process for {} failed", programRunId, e);
+                }
+                programStateWriter.error(programRunId, throwable);
               }
+            } catch (Exception e) {
+              LOG.error("Exception caught while setting logging context for program run {}", programRunId, e);
               programStateWriter.error(programRunId, throwable);
             }
           });
diff --git a/cdap-common/src/main/java/io/cdap/cdap/common/logging/LoggingContextAccessor.java b/cdap-common/src/main/java/io/cdap/cdap/common/logging/LoggingContextAccessor.java
index 97ba7e35b458..adb98b09a10d 100644
--- a/cdap-common/src/main/java/io/cdap/cdap/common/logging/LoggingContextAccessor.java
+++ b/cdap-common/src/main/java/io/cdap/cdap/common/logging/LoggingContextAccessor.java
@@ -1,5 +1,5 @@
 /*
- * Copyright © 2014 Cask Data, Inc.
+ * Copyright © 2024 Cask Data, Inc.
  *
  * Licensed under the Apache License, Version 2.0 (the "License"); you may not
  * use this file except in compliance with the License. You may obtain a copy of
@@ -14,6 +14,7 @@
  * the License.
  */
 
+
 package io.cdap.cdap.common.logging;
 
 import java.util.Collections;
@@ -34,6 +35,9 @@ public class LoggingContextAccessor {
   private static final InheritableThreadLocal<LoggingContext> loggingContext =
       new InheritableThreadLocal<>();
 
+  public interface LoggingContextRestorer extends Cancellable, AutoCloseable {
+    // The AutoCloseable interface implicitly provides the close() method
+  }
   /**
    * Sets the logging context.
    * <p>
@@ -46,7 +50,7 @@ public class LoggingContextAccessor {
    * @return Cancellable that can be used to revert the logging context and MDC Map to its original
    *     value
    */
-  public static Cancellable setLoggingContext(LoggingContext context) {
+  public static LoggingContextRestorer setLoggingContext(LoggingContext context) {
     final LoggingContext saveLoggingContext = loggingContext.get();
     final Map saveContextMap = MDC.getCopyOfContextMap();
     final Thread saveCurrentThread = Thread.currentThread();
@@ -59,10 +63,13 @@ public static Cancellable setLoggingContext(LoggingContext context) {
       // MDC will throw this if there is no valid binding. Normally this shouldn't happen, but in case it does,
       // we'll just ignore it as it doesn't affect platform logic at all as we always use loggingContext.
     }
-    return new Cancellable() {
+    return new LoggingContextRestorer() {
       private boolean cancelled;
 
-      @Override
+      /**
+       * Cancels the current logging context change and restores the previous context.
+       */
+      @Override // From Cancellable
       public void cancel() {
         if (Thread.currentThread() == saveCurrentThread && !cancelled) {
           MDC.setContextMap(saveContextMap == null ? Collections.emptyMap() : saveContextMap);
@@ -70,6 +77,15 @@ public void cancel() {
           cancelled = true;
         }
       }
+
+      /**
+       * AutoCloseable implementation to ensure restoration of context.
+       * Delegates to the cancel() method.
+       */
+      @Override // From AutoCloseable
+      public void close() throws Exception {
+        cancel(); // Calls the cancel logic
+      }
     };
   }