diff --git a/test/mysql-cdc/mzcompose.py b/test/mysql-cdc/mzcompose.py
index c6384a1264b07..baebdc9197271 100644
--- a/test/mysql-cdc/mzcompose.py
+++ b/test/mysql-cdc/mzcompose.py
@@ -377,5 +377,5 @@ def workflow_source_timeouts(c: Composition, parser: WorkflowArgumentParser) ->
         c.up("materialized", "mysql", "toxiproxy")
         c.run_testdrive_files(
             f"--var=mysql-root-password={MySql.DEFAULT_ROOT_PASSWORD}",
-            "proxied/connect_timeout.td",
+            "proxied/*.td",
         )
diff --git a/test/mysql-cdc/proxied/connect_timeout_latency.td b/test/mysql-cdc/proxied/connect_timeout_latency.td
new file mode 100644
index 0000000000000..9b8c2bbd2506b
--- /dev/null
+++ b/test/mysql-cdc/proxied/connect_timeout_latency.td
@@ -0,0 +1,56 @@
+# Copyright Materialize, Inc. and contributors. All rights reserved.
+#
+# Use of this software is governed by the Business Source License
+# included in the LICENSE file at the root of this repository.
+#
+# As of the Change Date specified in that file, in accordance with
+# the Business Source License, use of this software will be governed
+# by the Apache License, Version 2.0.
+
+
+> DROP SOURCE IF EXISTS mz_source CASCADE;
+> DROP CONNECTION IF EXISTS mysql_conn CASCADE;
+> DROP SECRET IF EXISTS mysql_pass;
+
+# Override MySQL connect timeout to 2s
+$ postgres-connect name=mz_system url=postgres://mz_system:materialize@${testdrive.materialize-internal-sql-addr}
+$ postgres-execute connection=mz_system
+ALTER SYSTEM SET mysql_source_connect_timeout = '2s';
+
+# delay connectivity to mysql by 3s
+$ http-request method=POST url=http://toxiproxy:8474/proxies content-type=application/json
+{
+  "name": "mysql",
+  "listen": "0.0.0.0:3306",
+  "upstream": "mysql:3306",
+  "enabled": true
+}
+$ http-request method=POST url=http://toxiproxy:8474/proxies/mysql/toxics content-type=application/json
+{
+  "name": "mysql",
+  "type": "latency",
+  "attributes": { "latency": 3000 }
+}
+
+> CREATE SECRET mysql_pass AS '${arg.mysql-root-password}';
+! CREATE CONNECTION mysql_conn TO MYSQL (
+    HOST "toxiproxy",
+    USER root,
+    PASSWORD SECRET mysql_pass
+  );
+contains:connection attempt timed out after 2s
+
+# Override MySQL connect timeout to 30s
+$ postgres-connect name=mz_system url=postgres://mz_system:materialize@${testdrive.materialize-internal-sql-addr}
+$ postgres-execute connection=mz_system
+ALTER SYSTEM SET mysql_source_connect_timeout = '30s';
+
+> CREATE CONNECTION mysql_conn TO MYSQL (
+    HOST "toxiproxy",
+    USER root,
+    PASSWORD SECRET mysql_pass
+  );
+
+> DROP CONNECTION mysql_conn
+
+$ http-request method=DELETE url=http://toxiproxy:8474/proxies/mysql