diff --git a/plugin-template b/plugin-template
index 84ec91bf..ea33caf3 100755
--- a/plugin-template
+++ b/plugin-template
@@ -13,6 +13,7 @@ from pathlib import Path
 
 import yaml
 from jinja2 import Environment, FileSystemLoader
+from packaging.requirements import Requirement
 
 import utils
 
@@ -345,11 +346,40 @@ def main():
         file_path = os.path.join(plugin_root_dir, "template_config.yml")
         print("\nAn updated plugin template config written to {path}.\n".format(path=file_path))
 
+    if "github" in sections:
+        migrate_pytest_plugins(plugin_root_dir)
+
     if plugin_root_dir:
         print("\nDeprecation check:")
         check_for_deprecated_files(plugin_root_dir, sections)
 
 
+def migrate_pytest_plugins(plugin_root_dir):
+    with open(f"{plugin_root_dir}/functest_requirements.txt", "r") as fp:
+        lines = fp.readlines()
+    modified = False
+    for item in ["pytest-xdist", "pytest-timeout"]:
+        found = False
+        result = []
+        for line in lines:
+            try:
+                req = Requirement(line)
+            except ValueError:
+                result.append(line)
+                continue
+            if req.name == item:
+                found = True
+            result.append(line)
+        if not found:
+            result.append(f"{item}\n")
+            modified = True
+        lines = result
+
+    if modified:
+        with open(f"{plugin_root_dir}/functest_requirements.txt", "w") as fp:
+            fp.writelines(lines)
+
+
 def to_nice_yaml(data):
     """Implement a filter for Jinja 2 templates to render human readable YAML."""
     return yaml.dump(data, indent=2, allow_unicode=True, default_flow_style=False)
diff --git a/templates/github/.github/workflows/scripts/script.sh.j2 b/templates/github/.github/workflows/scripts/script.sh.j2
index f31e5865..81aff089 100755
--- a/templates/github/.github/workflows/scripts/script.sh.j2
+++ b/templates/github/.github/workflows/scripts/script.sh.j2
@@ -135,13 +135,13 @@ else
   if [[ "$GITHUB_WORKFLOW" =~ "Nightly" ]]
   then
     {%- for plugin in plugins %}
-    cmd_user_prefix bash -c "pytest -v -r sx --color=yes --suppress-no-test-exit-code --pyargs {{ plugin.name | snake }}.tests.functional -m parallel -n {{ parallel_test_workers }} --nightly"
-    cmd_user_prefix bash -c "pytest -v -r sx --color=yes --suppress-no-test-exit-code --pyargs {{ plugin.name | snake }}.tests.functional -m 'not parallel' --nightly"
+    cmd_user_prefix bash -c "pytest -v --timeout=300 -r sx --color=yes --suppress-no-test-exit-code --pyargs {{ plugin.name | snake }}.tests.functional -m parallel -n {{ parallel_test_workers }} --nightly"
+    cmd_user_prefix bash -c "pytest -v --timeout=300 -r sx --color=yes --suppress-no-test-exit-code --pyargs {{ plugin.name | snake }}.tests.functional -m 'not parallel' --nightly"
     {%- endfor %}
   else
     {%- for plugin in plugins %}
-    cmd_user_prefix bash -c "pytest -v -r sx --color=yes --suppress-no-test-exit-code --pyargs {{ plugin.name | snake }}.tests.functional -m parallel -n {{ parallel_test_workers }}"
-    cmd_user_prefix bash -c "pytest -v -r sx --color=yes --suppress-no-test-exit-code --pyargs {{ plugin.name | snake }}.tests.functional -m 'not parallel'"
+    cmd_user_prefix bash -c "pytest -v --timeout=300 -r sx --color=yes --suppress-no-test-exit-code --pyargs {{ plugin.name | snake }}.tests.functional -m parallel -n {{ parallel_test_workers }}"
+    cmd_user_prefix bash -c "pytest -v --timeout=300 -r sx --color=yes --suppress-no-test-exit-code --pyargs {{ plugin.name | snake }}.tests.functional -m 'not parallel'"
     {%- endfor %}
   fi
 fi
diff --git a/templates/test/functest_requirements.txt.j2 b/templates/test/functest_requirements.txt.j2
index 5aecac20..acea38ee 100644
--- a/templates/test/functest_requirements.txt.j2
+++ b/templates/test/functest_requirements.txt.j2
@@ -1,2 +1,4 @@
 pulp-smash @ git+https://github.com/pulp/pulp-smash.git
 pytest
+pytest-xdist
+pytest-timeout