diff --git a/postgres/pg-cache/src/pg.ts b/postgres/pg-cache/src/pg.ts
index 8c351be0a..5bd9d3727 100644
--- a/postgres/pg-cache/src/pg.ts
+++ b/postgres/pg-cache/src/pg.ts
@@ -1,8 +1,11 @@
 import pg from 'pg';
 import { getPgEnvOptions, PgConfig } from 'pg-env';
+import { Logger } from '@pgpmjs/logger';
 
 import { pgCache } from './lru';
 
+const log = new Logger('pg-cache');
+
 const getDbString = (
   user: string,
   password: string,
@@ -21,6 +24,59 @@ export const getPgPool = (pgConfig: Partial<PgConfig>): pg.Pool => {
   }
   const connectionString = getDbString(user, password, host, port, database);
   const pgPool = new pg.Pool({ connectionString });
+
+  /**
+   * IMPORTANT: Pool-level error handler for idle connection errors.
+   *
+   * WHY THIS EXISTS:
+   * pg-pool maintains a pool of database connections. When a connection is idle
+   * (not actively running a query) and the server terminates it (e.g., during
+   * database cleanup via pg_terminate_backend), pg-pool emits an 'error' event
+   * on the pool's EventEmitter. In Node.js, an EventEmitter 'error' event with
+   * no listeners is FATAL and crashes the entire process with an unhelpful
+   * stack trace showing internal pg-pool/pg-protocol objects.
+   *
+   * WHY THIS IS SAFE (does NOT swallow real errors):
+   * This handler ONLY catches errors emitted on IDLE pooled connections via
+   * the EventEmitter pattern. It does NOT intercept errors from active queries.
+   *
+   * Error paths in pg-pool:
+   * 1. QUERY ERRORS (pool.query(), client.query()):
+   *    - Returned via Promise rejection
+   *    - Bubble up through async/await as normal exceptions
+   *    - NOT affected by this handler - they still throw as expected
+   *    - Examples: syntax errors, constraint violations, connection refused
+   *
+   * 2. IDLE CONNECTION ERRORS (this handler):
+   *    - Emitted via EventEmitter when server kills an idle connection
+   *    - Without a handler: crashes Node.js process
+   *    - With this handler: logged and process continues
+   *    - Examples: pg_terminate_backend during cleanup, server restart
+   *
+   * WHEN THIS FIRES:
+   * - pgpm test-packages creates temp databases, deploys, then drops them
+   * - Dropping requires pg_terminate_backend() to kill active connections
+   * - Idle connections in the pool receive PostgreSQL error 57P01
+   * - This handler catches that expected cleanup error
+   *
+   * PostgreSQL error codes handled:
+   * - 57P01: admin_shutdown (terminating connection due to administrator command)
+   *   This is EXPECTED during database teardown and logged at debug level.
+   *
+   * All other error codes are logged at error level for visibility but do not
+   * crash the process, allowing the test harness to continue and report results.
+   */
+  pgPool.on('error', (err: Error & { code?: string }) => {
+    if (err.code === '57P01') {
+      // Expected during database cleanup - log at debug level
+      log.debug(`Pool ${database} connection terminated (expected during cleanup): ${err.message}`);
+    } else {
+      // Unexpected pool error - log at error level for visibility
+      // Note: This does NOT swallow query errors - those still throw via Promise rejection
+      log.error(`Pool ${database} unexpected idle connection error [${err.code || 'unknown'}]: ${err.message}`);
+    }
+  });
+  
   pgCache.set(database, pgPool);
   return pgPool;
-};
\ No newline at end of file
+};