diff --git a/.github/instructions/pwsh.instructions.md b/.github/instructions/pwsh.instructions.md
new file mode 100644
index 00000000000..1a03b63e894
--- /dev/null
+++ b/.github/instructions/pwsh.instructions.md
@@ -0,0 +1,84 @@
+---
+applyTo: "**/*.ps1"
+---
+
+# PowerShell Script Instructions
+
+## Path Handling
+
+- **Always use `[System.IO.Path]::Combine` instead of `Join-Path`**
+  - Use the full form: `([System.IO.Path]::Combine($path1, $path2, ...))`
+  - Example: `([System.IO.Path]::Combine($PSScriptRoot, '..', 'common', 'scripts', 'common.ps1'))`
+  - This ensures consistent path handling across all platforms
+
+## Command Invocation
+
+- **Use `Invoke-LoggedCommand` for invoking external commands**
+  - Commands should be logged unless they output to stderr that needs to be processed
+  - Use `-GroupOutput` to collapse output in CI logs
+  - Use `-DoNotExitOnFailedExitCode` when you need to handle exit codes manually
+  - Example: `Invoke-LoggedCommand "cargo build --keep-going" -GroupOutput`
+  - Example with error handling: `Invoke-LoggedCommand "cargo test ..." -GroupOutput -DoNotExitOnFailedExitCode`
+
+## Output Grouping
+
+- **Use `LogGroupStart` and `LogGroupEnd` to collapse verbose output**
+  - Use for output that is verbose or not relevant in most cases (e.g., large JSON dumps, detailed test output)
+  - Example:
+    ```powershell
+    LogGroupStart "Raw JSON Output"
+    Get-Content $jsonFile | ForEach-Object { Write-Host $_ }
+    LogGroupEnd
+    ```
+
+## Console Output
+
+- **Do not use emojis in console output**
+  - Use plain text instead
+  - Bad: `Write-Host "✅ Tests passed"`
+  - Good: `Write-Host "Tests passed"`
+
+## Code Organization
+
+- **Extract common code patterns into functions**
+  - If you see similar code blocks repeated, extract them into a reusable function
+  - Functions should have clear parameters and return values
+  - Example: Extract test execution logic into a shared function rather than duplicating it
+
+## Parameter Defaults
+
+- **Use default parameter values when sensible defaults are available**
+  - Set default values directly in the parameter declaration instead of checking and setting in the script body
+  - Example:
+    ```powershell
+    param(
+      [string]$OutputDirectory = ([System.IO.Path]::Combine($PSScriptRoot, '..', 'output'))
+    )
+    ```
+
+## Error Handling
+
+- **Use `LogError` for error messages if common.ps1 is imported**
+  - If you've imported common.ps1, use `LogError` followed by `exit 1`
+  - If you're not sure if common.ps1 is imported, use `Write-Host` with red color
+  - Never use `Write-Error`
+  - Example with common.ps1: 
+    ```powershell
+    if ($exitCode -ne 0) {
+      LogError "Operation failed"
+      exit 1
+    }
+    ```
+  - Example without common.ps1:
+    ```powershell
+    if ($exitCode -ne 0) {
+      Write-Host "Operation failed" -ForegroundColor Red
+      exit 1
+    }
+    ```
+- **Use `LogWarning` for warning messages if common.ps1 is imported**
+  - If you've imported common.ps1, use `LogWarning` instead of `Write-Warning`
+  - Example: `LogWarning "Test results directory not found"`
+- **Fail fast on errors**
+  - Exit immediately when a critical operation fails
+  - Unless otherwise specified, don't accumulate errors and summarize at the end
diff --git a/.gitignore b/.gitignore
index d6e75923ad7..97630422509 100644
--- a/.gitignore
+++ b/.gitignore
@@ -33,3 +33,4 @@ vcpkg_installed/
 
 # Temporary folder to refresh SDK with TypeSpec.
 TempTypeSpecFiles/
+test-results/
diff --git a/eng/cgmanifest.json b/eng/cgmanifest.json
index 538e25da889..b4969252667 100644
--- a/eng/cgmanifest.json
+++ b/eng/cgmanifest.json
@@ -2,6 +2,12 @@
   "$schema": "https://json.schemastore.org/component-detection-manifest.json",
   "version": 1,
   "registrations": [
+    {
+      "component": {
+        "type": "cargo",
+        "cargo": { "name": "cargo2junit", "version": "0.1.14" }
+      }
+    },
     {
       "component": {
         "type": "cargo",
diff --git a/eng/pipelines/templates/jobs/ci.tests.yml b/eng/pipelines/templates/jobs/ci.tests.yml
index ec6ec822407..5339858cb02 100644
--- a/eng/pipelines/templates/jobs/ci.tests.yml
+++ b/eng/pipelines/templates/jobs/ci.tests.yml
@@ -73,6 +73,23 @@ jobs:
       arguments: >
         -PackageInfoDirectory '$(Build.ArtifactStagingDirectory)/PackageInfo'
 
+  - task: Powershell@2
+    displayName: "Convert Test Results to JUnit XML"
+    condition: and(succeededOrFailed(), ne(variables['NoPackagesChanged'],'true'))
+    inputs:
+      pwsh: true
+      filePath: $(Build.SourcesDirectory)/eng/scripts/Convert-TestResultsToJUnit.ps1
+
+  - task: PublishTestResults@2
+    displayName: "Publish Test Results"
+    condition: and(succeededOrFailed(), ne(variables['NoPackagesChanged'],'true'))
+    inputs:
+      testResultsFormat: 'JUnit'
+      testResultsFiles: '**/test-results/junit/*.xml'
+      testRunTitle: 'Rust Tests - $(Agent.JobName)'
+      mergeTestResults: true
+      failTaskOnFailedTests: false
+
   - ${{ if eq(parameters.TestProxy, true) }}:
     - pwsh: |
         # $(Build.SourcesDirectory)/test-proxy.log is the hardcoded output log location for the test-proxy-tool.yml
diff --git a/eng/scripts/Convert-TestResultsToJUnit.ps1 b/eng/scripts/Convert-TestResultsToJUnit.ps1
new file mode 100644
index 00000000000..8c2204fb909
--- /dev/null
+++ b/eng/scripts/Convert-TestResultsToJUnit.ps1
@@ -0,0 +1,118 @@
+#!/usr/bin/env pwsh
+
+#Requires -Version 7.0
+<#
+.SYNOPSIS
+Converts cargo test JSON output to JUnit XML format using cargo2junit.
+
+.DESCRIPTION
+This script converts the JSON output files from cargo test (captured by Test-Packages.ps1 in CI mode)
+to JUnit XML format suitable for publishing to Azure DevOps test results using the cargo2junit tool.
+
+.PARAMETER TestResultsDirectory
+The directory containing JSON test result files. Defaults to test-results in the repo root.
+
+.PARAMETER OutputDirectory
+The directory where JUnit XML files should be written. Defaults to test-results/junit in the repo root.
+
+.EXAMPLE
+./eng/scripts/Convert-TestResultsToJUnit.ps1
+
+.EXAMPLE
+./eng/scripts/Convert-TestResultsToJUnit.ps1 -TestResultsDirectory ./test-results -OutputDirectory ./junit-results
+#>
+
+param(
+  [string]$TestResultsDirectory,
+  [string]$OutputDirectory
+)
+
+$ErrorActionPreference = 'Stop'
+Set-StrictMode -Version 2.0
+. ([System.IO.Path]::Combine($PSScriptRoot, '..', 'common', 'scripts', 'common.ps1'))
+
+# Set default directories (must be after sourcing common.ps1 which defines $RepoRoot)
+if (!$TestResultsDirectory) {
+  $TestResultsDirectory = ([System.IO.Path]::Combine($RepoRoot, 'test-results'))
+}
+
+if (!$OutputDirectory) {
+  $OutputDirectory = ([System.IO.Path]::Combine($RepoRoot, 'test-results', 'junit'))
+}
+
+Write-Host "Converting test results from JSON to JUnit XML using cargo2junit"
+Write-Host "  Input directory:  $TestResultsDirectory"
+Write-Host "  Output directory: $OutputDirectory"
+
+# Check if test results directory exists
+if (!(Test-Path $TestResultsDirectory)) {
+  LogWarning "Test results directory not found: $TestResultsDirectory"
+  Write-Host "No test results to convert."
+  exit 0
+}
+
+# Create output directory if it doesn't exist
+if (!(Test-Path $OutputDirectory)) {
+  New-Item -ItemType Directory -Path $OutputDirectory | Out-Null
+  Write-Host "Created output directory: $OutputDirectory"
+}
+
+# Check if cargo2junit is installed
+$cargo2junitPath = Get-Command cargo2junit -ErrorAction SilentlyContinue
+if (!$cargo2junitPath) {
+  Write-Host "cargo2junit not found. Installing..."
+  Invoke-LoggedCommand "cargo install cargo2junit" -GroupOutput
+}
+
+# Get all JSON files in the test results directory
+$jsonFiles = @(Get-ChildItem -Path $TestResultsDirectory -Filter "*.json" -File)
+
+if ($jsonFiles.Count -eq 0) {
+  LogWarning "No JSON files found in $TestResultsDirectory"
+  Write-Host "No test results to convert."
+  exit 0
+}
+
+Write-Host "`nConverting $($jsonFiles.Count) JSON file(s) to JUnit XML..."
+
+$convertedCount = 0
+$failedCount = 0
+
+foreach ($jsonFile in $jsonFiles) {
+  $baseName = [System.IO.Path]::GetFileNameWithoutExtension($jsonFile.Name)
+  $junitFile = ([System.IO.Path]::Combine($OutputDirectory, "$baseName.xml"))
+  
+  Write-Host "  Converting: $($jsonFile.Name) -> $([System.IO.Path]::GetFileName($junitFile))"
+  
+  try {
+    # Convert JSON to JUnit XML using cargo2junit
+    Get-Content $jsonFile.FullName | cargo2junit > $junitFile
+    
+    if ($LASTEXITCODE -ne 0) {
+      LogWarning "    cargo2junit returned exit code $LASTEXITCODE for $($jsonFile.Name)"
+      $failedCount++
+    }
+    else {
+      $convertedCount++
+    }
+  }
+  catch {
+    LogWarning "    Failed to convert $($jsonFile.Name): $_"
+    $failedCount++
+  }
+}
+
+Write-Host "`nConversion complete:"
+Write-Host "  Successfully converted: $convertedCount"
+if ($failedCount -gt 0) {
+  Write-Host "  Failed to convert:      $failedCount" -ForegroundColor Yellow
+}
+
+Write-Host "`nJUnit XML files are available in: $OutputDirectory"
+
+# Exit with error if any conversions failed
+if ($failedCount -gt 0) {
+  exit 1
+}
+
+exit 0
diff --git a/eng/scripts/Test-Packages.ps1 b/eng/scripts/Test-Packages.ps1
index a9515d9f8dd..62df0b735df 100755
--- a/eng/scripts/Test-Packages.ps1
+++ b/eng/scripts/Test-Packages.ps1
@@ -9,6 +9,99 @@ $ErrorActionPreference = 'Stop'
 Set-StrictMode -Version 2.0
 . "$PSScriptRoot/../common/scripts/common.ps1"
 
+# Helper function to parse test results from JSON and output human-readable summary
+function Write-TestSummary {
+  param(
+    [string]$JsonFile,
+    [string]$PackageName
+  )
+  
+  if (!(Test-Path $JsonFile)) {
+    Write-Warning "Test results file not found: $JsonFile"
+    return
+  }
+  
+  $passed = 0
+  $failed = 0
+  $ignored = 0
+  $failedTests = @()
+  
+  # Parse JSON output (newline-delimited JSON)
+  Get-Content $JsonFile | ForEach-Object {
+    try {
+      $event = $_ | ConvertFrom-Json -ErrorAction SilentlyContinue
+      if ($event.type -eq "test" -and $event.event) {
+        switch ($event.event) {
+          "ok" { $passed++ }
+          "failed" { 
+            $failed++
+            $failedTests += $event.name
+          }
+          "ignored" { $ignored++ }
+        }
+      }
+    }
+    catch {
+      # Ignore lines that aren't valid JSON
+    }
+  }
+  
+  LogGroupStart "Test Summary: $PackageName"
+  Write-Host "Passed:  $passed" -ForegroundColor Green
+  Write-Host "Failed:  $failed" -ForegroundColor $(if ($failed -gt 0) { "Red" } else { "Green" })
+  Write-Host "Ignored: $ignored" -ForegroundColor Yellow
+  
+  if ($failed -gt 0) {
+    Write-Host "`nFailed tests:" -ForegroundColor Red
+    foreach ($test in $failedTests) {
+      Write-Host "  - $test" -ForegroundColor Red
+    }
+    Write-Host "`nAdditional details are available in the test tab for the build." -ForegroundColor Yellow
+  }
+  LogGroupEnd
+  
+  return @{
+    Passed = $passed
+    Failed = $failed
+    Ignored = $ignored
+  }
+}
+
+# Helper function to run cargo test with JSON output
+function Invoke-CargoTestWithJsonOutput {
+  param(
+    [string]$TestParams,
+    [string]$TestDescription,
+    [string]$OutputFile
+  )
+  
+  Write-Host "Running $TestDescription with JSON output to: $OutputFile"
+  
+  # Use cargo +nightly test with --format json and -Z unstable-options
+  $testCommand = "cargo +nightly test $TestParams --no-fail-fast -- --format json -Z unstable-options"
+  
+  # Run the test command and capture output
+  $result = Invoke-LoggedCommand $testCommand -GroupOutput -DoNotExitOnFailedExitCode
+  
+  LogGroupStart 'Test result JSON'
+  $result | Write-Host
+  LogGroupEnd
+  
+  # Write JSON to file
+  $result | Out-File -FilePath $OutputFile -Encoding utf8
+  
+  # Parse and display summary
+  $results = Write-TestSummary -JsonFile $OutputFile -PackageName $TestDescription
+  
+  # Exit immediately if tests failed
+  if ($LASTEXITCODE -ne 0) {
+    LogError "Tests failed for $TestDescription"
+    exit $LASTEXITCODE
+  }
+  
+  return $results
+}
+
 Write-Host @"
 Testing packages with
     PackageInfoDirectory: '$PackageInfoDirectory'
@@ -20,9 +113,16 @@ Testing packages with
     ARM_OIDC_TOKEN: $($env:ARM_OIDC_TOKEN ? 'present' : 'not present')
 "@
 
+# Create directory for test results
+$testResultsDir = ([System.IO.Path]::Combine($RepoRoot, 'test-results'))
+if (!(Test-Path $testResultsDir)) {
+  New-Item -ItemType Directory -Path $testResultsDir | Out-Null
+}
+Write-Host "Test results will be saved to: $testResultsDir"
+
 if ($PackageInfoDirectory) {
   if (!(Test-Path $PackageInfoDirectory)) {
-    Write-Error "Package info path '$PackageInfoDirectory' does not exist."
+    LogError "Package info path '$PackageInfoDirectory' does not exist."
     exit 1
   }
 
@@ -44,12 +144,12 @@ foreach ($package in $packagesToTest) {
   try {
     $packageDirectory = ([System.IO.Path]::Combine($RepoRoot, $package.DirectoryPath))
 
-    $setupScript = Join-Path $packageDirectory "Test-Setup.ps1"
+    $setupScript = ([System.IO.Path]::Combine($packageDirectory, 'Test-Setup.ps1'))
     if (Test-Path $setupScript) {
       Write-Host "`n`nRunning test setup script for package: '$($package.Name)'`n"
       Invoke-LoggedCommand $setupScript -GroupOutput
       if (!$? -ne 0) {
-        Write-Error "Test setup script failed for package: '$($package.Name)'"
+        LogError "Test setup script failed for package: '$($package.Name)'"
         exit 1
       }
     }
@@ -59,13 +159,19 @@ foreach ($package in $packagesToTest) {
     Invoke-LoggedCommand "cargo build --keep-going" -GroupOutput
     Write-Host "`n`n"
 
-    Invoke-LoggedCommand "cargo test --doc --no-fail-fast" -GroupOutput
-    Write-Host "`n`n"
-
-    Invoke-LoggedCommand "cargo test --all-targets --no-fail-fast" -GroupOutput
-    Write-Host "`n`n"
+    # Generate unique filenames for test outputs
+    $timestamp = Get-Date -Format "yyyyMMdd-HHmmss-fff"
+    $sanitizedPackageName = $package.Name -replace '[^a-zA-Z0-9_-]', '_'
+    
+    # Run doc tests
+    $docTestOutput = ([System.IO.Path]::Combine($testResultsDir, "$sanitizedPackageName-doctest-$timestamp.json"))
+    Invoke-CargoTestWithJsonOutput -TestParams "--doc" -TestDescription "$($package.Name) (doc tests)" -OutputFile $docTestOutput
+    
+    # Run all-targets tests
+    $allTargetsOutput = ([System.IO.Path]::Combine($testResultsDir, "$sanitizedPackageName-alltargets-$timestamp.json"))
+    Invoke-CargoTestWithJsonOutput -TestParams "--all-targets" -TestDescription "$($package.Name) (all targets)" -OutputFile $allTargetsOutput
 
-    $cleanupScript = Join-Path $packageDirectory "Test-Cleanup.ps1"
+    $cleanupScript = ([System.IO.Path]::Combine($packageDirectory, 'Test-Cleanup.ps1'))
     if (Test-Path $cleanupScript) {
       Write-Host "`n`nRunning test cleanup script for package: '$($package.Name)'`n"
       Invoke-LoggedCommand $cleanupScript -GroupOutput
diff --git a/sdk/canary/azure_canary_core/src/lib.rs b/sdk/canary/azure_canary_core/src/lib.rs
index aa702d75587..15fc8b5672a 100644
--- a/sdk/canary/azure_canary_core/src/lib.rs
+++ b/sdk/canary/azure_canary_core/src/lib.rs
@@ -43,4 +43,9 @@ mod tests {
         let result = add(2, 2);
         assert_eq!(result, 4);
     }
+
+    #[test]
+    fn fails() {
+        assert_eq!(1, 0);
+    }
 }