diff --git a/.github/actions/run-tests-newton-latest/action.yml b/.github/actions/run-tests-newton-latest/action.yml
new file mode 100644
index 00000000000..42f45636d48
--- /dev/null
+++ b/.github/actions/run-tests-newton-latest/action.yml
@@ -0,0 +1,214 @@
+# Copyright (c) 2022-2025, The Isaac Lab Project Developers (https://github.com/isaac-sim/IsaacLab/blob/main/CONTRIBUTORS.md).
+# All rights reserved.
+#
+# SPDX-License-Identifier: BSD-3-Clause
+
+name: 'Run Tests with Latest Newton'
+description: 'Runs pytest tests in a Docker container with the latest Newton from main branch'
+
+inputs:
+  test-path:
+    description: 'Path to test directory or pytest arguments'
+    required: true
+  result-file:
+    description: 'Name of the result XML file'
+    required: true
+  container-name:
+    description: 'Name for the Docker container'
+    required: true
+  image-tag:
+    description: 'Docker image tag to use'
+    required: true
+  reports-dir:
+    description: 'Directory to store test results'
+    default: 'reports'
+    required: false
+  pytest-options:
+    description: 'Additional pytest options (e.g., -k filter)'
+    default: ''
+    required: false
+  filter-pattern:
+    description: 'Pattern to filter test files (e.g., isaaclab_tasks)'
+    default: ''
+    required: false
+
+runs:
+  using: composite
+  steps:
+    - name: Run Tests with Latest Newton in Docker Container
+      shell: bash
+      run: |
+        # Function to run tests in Docker container with latest Newton
+        run_tests() {
+          local test_path="$1"
+          local result_file="$2"
+          local container_name="$3"
+          local image_tag="$4"
+          local reports_dir="$5"
+          local pytest_options="$6"
+          local filter_pattern="$7"
+
+          echo "Running tests with latest Newton in: $test_path"
+          if [ -n "$pytest_options" ]; then
+            echo "With pytest options: $pytest_options"
+          fi
+          if [ -n "$filter_pattern" ]; then
+            echo "With filter pattern: $filter_pattern"
+          fi
+
+          # Create reports directory
+          mkdir -p "$reports_dir"
+
+          # Clean up any existing container
+          docker rm -f $container_name 2>/dev/null || true
+
+          # Build Docker environment variables
+          docker_env_vars="\
+            -e OMNI_KIT_ACCEPT_EULA=yes \
+            -e ACCEPT_EULA=Y \
+            -e OMNI_KIT_DISABLE_CUP=1 \
+            -e ISAAC_SIM_HEADLESS=1 \
+            -e ISAAC_SIM_LOW_MEMORY=1 \
+            -e PYTHONUNBUFFERED=1 \
+            -e PYTHONIOENCODING=utf-8 \
+            -e TEST_RESULT_FILE=$result_file"
+
+          if [ -n "$filter_pattern" ]; then
+            if [[ "$filter_pattern" == not* ]]; then
+              # Handle "not pattern" case
+              exclude_pattern="${filter_pattern#not }"
+              docker_env_vars="$docker_env_vars -e TEST_EXCLUDE_PATTERN=$exclude_pattern"
+              echo "Setting exclude pattern: $exclude_pattern"
+            else
+              # Handle positive pattern case
+              docker_env_vars="$docker_env_vars -e TEST_FILTER_PATTERN=$filter_pattern"
+              echo "Setting include pattern: $filter_pattern"
+            fi
+          else
+            echo "No filter pattern provided"
+          fi
+
+          echo "Docker environment variables: '$docker_env_vars'"
+
+          # Run tests in container with error handling
+          echo "🚀 Starting Docker container for tests with latest Newton..."
+          if docker run --name $container_name \
+            --entrypoint bash --gpus all --network=host \
+            --security-opt=no-new-privileges:true \
+            --memory=$(echo "$(free -m | awk '/^Mem:/{print $2}') * 0.9 / 1" | bc)m \
+            --cpus=$(echo "$(nproc) * 0.9" | bc) \
+            --oom-kill-disable=false \
+            --ulimit nofile=65536:65536 \
+            --ulimit nproc=4096:4096 \
+            $docker_env_vars \
+            $image_tag \
+            -c "
+              set -e
+              cd /workspace/isaaclab
+              mkdir -p tests
+
+              echo '=== Uninstalling existing newton and mujoco-warp ==='
+              /isaac-sim/python.sh -m pip uninstall -y newton mujoco-warp mujoco || echo 'Some packages may not have been installed'
+
+              echo '=== Cloning latest Newton from main branch ==='
+              git clone --depth 1 https://github.com/newton-physics/newton.git /tmp/newton
+
+              echo '=== Installing Newton with dependencies from uv.lock ==='
+              cd /tmp/newton
+
+              # Extract mujoco-warp and mujoco versions from uv.lock and install them
+              # Parse the uv.lock file to get the package versions
+              if [ -f uv.lock ]; then
+                echo 'Parsing uv.lock for mujoco-warp and mujoco versions...'
+
+                # Set PIP_FIND_LINKS for mujoco packages
+                export PIP_FIND_LINKS=https://py.mujoco.org/
+
+                # Extract mujoco version from uv.lock
+                mujoco_version=\$(grep -A5 'name = \"mujoco\"' uv.lock | grep 'version = ' | head -1 | sed 's/.*version = \"\(.*\)\"/\1/')
+                if [ -n \"\$mujoco_version\" ]; then
+                  echo \"Installing mujoco==\$mujoco_version\"
+                  /isaac-sim/python.sh -m pip install \"mujoco==\$mujoco_version\"
+                else
+                  echo 'mujoco version not found in uv.lock, installing latest'
+                  /isaac-sim/python.sh -m pip install mujoco
+                fi
+
+                # Extract mujoco-warp git URL from uv.lock (it's installed from git source)
+                mujoco_warp_git=\$(grep -A10 'name = \"mujoco-warp\"' uv.lock | grep 'git = ' | head -1 | sed 's/.*git = \"\([^\"]*\)\".*/\1/')
+                if [ -n \"\$mujoco_warp_git\" ]; then
+                  # Parse the git URL - format is https://github.com/org/repo#commit_hash
+                  git_url=\$(echo \"\$mujoco_warp_git\" | cut -d'#' -f1)
+                  commit_hash=\$(echo \"\$mujoco_warp_git\" | cut -d'#' -f2)
+                  echo \"Installing mujoco-warp from git: \$git_url at commit \$commit_hash\"
+                  /isaac-sim/python.sh -m pip install \"git+\${git_url}@\${commit_hash}\"
+                else
+                  echo 'mujoco-warp git source not found in uv.lock, installing from pip'
+                  /isaac-sim/python.sh -m pip install mujoco-warp
+                fi
+              else
+                echo 'uv.lock not found, installing latest versions'
+                export PIP_FIND_LINKS=https://py.mujoco.org/
+                /isaac-sim/python.sh -m pip install mujoco
+                /isaac-sim/python.sh -m pip install git+https://github.com/google-deepmind/mujoco_warp.git
+              fi
+
+              # Install Newton from the cloned repo
+              echo '=== Installing Newton from source ==='
+              /isaac-sim/python.sh -m pip install -e .
+
+              echo '=== Verifying installations ==='
+              /isaac-sim/python.sh -c \"import newton; print(f'Newton version: {newton.__version__}')\" || echo 'Newton import check'
+              /isaac-sim/python.sh -c \"import mujoco_warp; print('mujoco_warp imported successfully')\" || echo 'mujoco_warp not available'
+              /isaac-sim/python.sh -c \"import mujoco; print(f'mujoco version: {mujoco.__version__}')\" || echo 'mujoco not available'
+
+              cd /workspace/isaaclab
+              echo '=== Starting pytest with path: $test_path ==='
+              /isaac-sim/python.sh -m pytest --ignore=tools/conftest.py $test_path $pytest_options -v -s --junitxml=tests/$result_file || echo 'Pytest completed with exit code: \$?'
+            "; then
+            echo "✅ Docker container completed successfully"
+          else
+            echo "⚠️ Docker container failed, but continuing to copy results..."
+          fi
+
+          # Copy test results with error handling
+          echo "📋 Attempting to copy test results..."
+          if docker cp $container_name:/workspace/isaaclab/tests/$result_file "$reports_dir/$result_file" 2>/dev/null; then
+            echo "✅ Test results copied successfully"
+          else
+            echo "❌ Failed to copy specific result file, trying to copy all test results..."
+            if docker cp $container_name:/workspace/isaaclab/tests/ "$reports_dir/" 2>/dev/null; then
+              echo "✅ All test results copied successfully"
+              # Look for any XML files and use the first one found
+              if [ -f "$reports_dir/full_report.xml" ]; then
+                mv "$reports_dir/full_report.xml" "$reports_dir/$result_file"
+                echo "✅ Found and renamed full_report.xml to $result_file"
+              elif [ -f "$reports_dir/test-reports-"*".xml" ]; then
+                # Combine individual test reports if no full report exists
+                echo "📊 Combining individual test reports..."
+                echo '<?xml version="1.0" encoding="utf-8"?><testsuites>' > "$reports_dir/$result_file"
+                for xml_file in "$reports_dir"/test-reports-*.xml; do
+                  if [ -f "$xml_file" ]; then
+                    echo "  Processing: $xml_file"
+                    sed '1d; /^<testsuite/d; /^<\/testsuite/d' "$xml_file" >> "$reports_dir/$result_file" 2>/dev/null || true
+                  fi
+                done
+                echo '</testsuites>' >> "$reports_dir/$result_file"
+                echo "✅ Combined individual test reports into $result_file"
+              else
+                echo "❌ No test result files found, creating fallback"
+                echo "<?xml version=\"1.0\" encoding=\"utf-8\"?><testsuite name=\"$container_name\" tests=\"0\" failures=\"0\" errors=\"1\" time=\"0\"><testcase classname=\"setup\" name=\"no_results_found\"><error message=\"No test results found\">Container may have failed to generate any results</error></testcase></testsuite>" > "$reports_dir/$result_file"
+              fi
+            else
+              echo "❌ Failed to copy any test results, creating fallback"
+              echo "<?xml version=\"1.0\" encoding=\"utf-8\"?><testsuite name=\"$container_name\" tests=\"0\" failures=\"0\" errors=\"1\" time=\"0\"><testcase classname=\"setup\" name=\"copy_failed\"><error message=\"Failed to copy test results\">Container may have failed to generate results</error></testcase></testsuite>" > "$reports_dir/$result_file"
+            fi
+          fi
+
+          # Clean up container
+          echo "🧹 Cleaning up Docker container..."
+          docker rm $container_name 2>/dev/null || echo "⚠️ Container cleanup failed, but continuing..."
+        }
+
+        # Call the function with provided parameters
+        run_tests "${{ inputs.test-path }}" "${{ inputs.result-file }}" "${{ inputs.container-name }}" "${{ inputs.image-tag }}" "${{ inputs.reports-dir }}" "${{ inputs.pytest-options }}" "${{ inputs.filter-pattern }}"
diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index 05048cc03b1..56b875c0af2 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -151,8 +151,110 @@ jobs:
           exit 1
         fi
 
+  test-newton-latest-tasks:
+    runs-on: [self-hosted, gpu]
+    timeout-minutes: 180
+    continue-on-error: true
+
+    steps:
+    - name: Checkout Code
+      uses: actions/checkout@v4
+      with:
+        fetch-depth: 0
+        lfs: true
+
+    - name: Build Docker Image
+      uses: ./.github/actions/docker-build
+      with:
+        image-tag: ${{ env.DOCKER_IMAGE_TAG }}
+        isaacsim-base-image: ${{ env.ISAACSIM_BASE_IMAGE }}
+        isaacsim-version: ${{ env.ISAACSIM_BASE_VERSION }}
+
+    - name: Run IsaacLab Tasks Tests with Latest Newton
+      uses: ./.github/actions/run-tests-newton-latest
+      with:
+        test-path: "tools"
+        result-file: "newton-latest-tasks-report.xml"
+        container-name: "isaac-lab-newton-latest-tasks-test-$$"
+        image-tag: ${{ env.DOCKER_IMAGE_TAG }}
+        pytest-options: ""
+        filter-pattern: "isaaclab_tasks"
+
+    - name: Upload Newton Latest Tasks Test Results
+      uses: actions/upload-artifact@v4
+      if: always()
+      with:
+        name: newton-latest-tasks-test-results
+        path: reports/newton-latest-tasks-report.xml
+        retention-days: 1
+        compression-level: 9
+
+    - name: Check Test Results for Fork PRs
+      if: github.event.pull_request.head.repo.full_name != github.repository
+      run: |
+        if [ -f "reports/newton-latest-tasks-report.xml" ]; then
+          if grep -q 'failures="[1-9]' reports/newton-latest-tasks-report.xml || grep -q 'errors="[1-9]' reports/newton-latest-tasks-report.xml; then
+            echo "Tests failed for PR from fork. The test report is in the logs. Failing the job."
+            exit 1
+          fi
+        else
+          echo "No test results file found. This might indicate test execution failed."
+          exit 1
+        fi
+
+  test-newton-latest-general:
+    runs-on: [self-hosted, gpu]
+    timeout-minutes: 180
+    continue-on-error: true
+
+    steps:
+    - name: Checkout Code
+      uses: actions/checkout@v4
+      with:
+        fetch-depth: 0
+        lfs: true
+
+    - name: Build Docker Image
+      uses: ./.github/actions/docker-build
+      with:
+        image-tag: ${{ env.DOCKER_IMAGE_TAG }}
+        isaacsim-base-image: ${{ env.ISAACSIM_BASE_IMAGE }}
+        isaacsim-version: ${{ env.ISAACSIM_BASE_VERSION }}
+
+    - name: Run General Tests with Latest Newton
+      uses: ./.github/actions/run-tests-newton-latest
+      with:
+        test-path: "tools"
+        result-file: "newton-latest-general-report.xml"
+        container-name: "isaac-lab-newton-latest-general-test-$$"
+        image-tag: ${{ env.DOCKER_IMAGE_TAG }}
+        pytest-options: ""
+        filter-pattern: "not isaaclab_tasks"
+
+    - name: Upload Newton Latest General Test Results
+      uses: actions/upload-artifact@v4
+      if: always()
+      with:
+        name: newton-latest-general-test-results
+        path: reports/newton-latest-general-report.xml
+        retention-days: 1
+        compression-level: 9
+
+    - name: Check Test Results for Fork PRs
+      if: github.event.pull_request.head.repo.full_name != github.repository
+      run: |
+        if [ -f "reports/newton-latest-general-report.xml" ]; then
+          if grep -q 'failures="[1-9]' reports/newton-latest-general-report.xml || grep -q 'errors="[1-9]' reports/newton-latest-general-report.xml; then
+            echo "Tests failed for PR from fork. The test report is in the logs. Failing the job."
+            exit 1
+          fi
+        else
+          echo "No test results file found. This might indicate test execution failed."
+          exit 1
+        fi
+
   combine-results:
-    needs: [test-isaaclab-tasks, test-general]
+    needs: [test-isaaclab-tasks, test-general, test-newton-latest-tasks, test-newton-latest-general]
     runs-on: [self-hosted, gpu]
     if: always()
 
@@ -179,6 +281,21 @@ jobs:
       with:
         name: general-test-results
         path: reports/
+      continue-on-error: true
+
+    - name: Download Newton Latest Tasks Test Results
+      uses: actions/download-artifact@v4
+      with:
+        name: newton-latest-tasks-test-results
+        path: reports/
+      continue-on-error: true
+
+    - name: Download Newton Latest General Test Results
+      uses: actions/download-artifact@v4
+      with:
+        name: newton-latest-general-test-results
+        path: reports/
+      continue-on-error: true
 
     - name: Combine All Test Results
       uses: ./.github/actions/combine-results
diff --git a/source/isaaclab/isaaclab/app/app_launcher.py b/source/isaaclab/isaaclab/app/app_launcher.py
index 0eb449335a5..5ac74a940ff 100644
--- a/source/isaaclab/isaaclab/app/app_launcher.py
+++ b/source/isaaclab/isaaclab/app/app_launcher.py
@@ -991,6 +991,9 @@ def _create_app(self):
 
         # disable sys stdout and stderr to avoid printing the warning messages
         # this is mainly done to purge the print statements from the simulation app
+        # Note: We save the current stdout (not sys.__stdout__) to properly restore it
+        # when running under pytest or other tools that capture output
+        original_stdout = sys.stdout
         if "--verbose" not in sys.argv and "--info" not in sys.argv:
             sys.stdout = open(os.devnull, "w")  # noqa: SIM115
         # launch simulation app
diff --git a/tools/test_settings.py b/tools/test_settings.py
index 5b0664aaaf7..9af0df8367b 100644
--- a/tools/test_settings.py
+++ b/tools/test_settings.py
@@ -19,7 +19,7 @@
     "test_articulation.py": 500,
     "test_rigid_object.py": 300,
     "test_environments.py": 1500,  # This test runs through all the environments for 100 steps each
-    "test_environments_standalone.py": 1500,  # This test runs through all the environments for 100 steps each
+    "test_environments_standalone.py": 2500,  # This test runs through all the environments for 100 steps each
     "test_environment_determinism.py": 500,  # This test runs through many the environments for 100 steps each
     "test_factory_environments.py": 300,  # This test runs through Factory environments for 100 steps each
     "test_env_rendering_logic.py": 300,