diff --git a/pkgs/by-name/pu/pulumi/plugins/pulumi-python/package.nix b/pkgs/by-name/pu/pulumi/plugins/pulumi-python/package.nix
index 405b110e23b2..fbe31bae618b 100644
--- a/pkgs/by-name/pu/pulumi/plugins/pulumi-python/package.nix
+++ b/pkgs/by-name/pu/pulumi/plugins/pulumi-python/package.nix
@@ -12,7 +12,7 @@ buildGoModule (finalAttrs: {
 
   sourceRoot = "${finalAttrs.src.name}/sdk/python/cmd/pulumi-language-python";
 
-  vendorHash = "sha256-BfkjDesPdPDV2uILYaMJFIvaEBKT15ukwaReAL3yziw=";
+  vendorHash = "sha256-1P90hdwBwCNRfR1PDSHQuEOCcrbnoJrmU4ggG7ktAGY=";
 
   ldflags = [
     "-s"
@@ -23,8 +23,10 @@ buildGoModule (finalAttrs: {
   checkFlags = [
     "-skip=^${
       lib.concatStringsSep "$|^" [
-        "TestLanguage"
-        "TestDeterminePulumiPackages"
+        "TestLanguageDefault"
+        "TestLanguageTOML"
+        "TestLanguageClasses"
+        "TestListPulumiPackageInfos"
       ]
     }$"
   ];
@@ -42,8 +44,7 @@ buildGoModule (finalAttrs: {
   postInstall = ''
     cp -t "$out/bin" \
       ../pulumi-language-python-exec \
-      ../../dist/pulumi-resource-pulumi-python \
-      ../../dist/pulumi-analyzer-policy-python
+      ../../dist/pulumi-resource-pulumi-python
   '';
 
   passthru.tests.smokeTest = callPackage ./smoke-test/default.nix { };
@@ -55,6 +56,7 @@ buildGoModule (finalAttrs: {
     mainProgram = "pulumi-language-python";
     maintainers = with lib.maintainers; [
       tie
+      untio11
     ];
   };
 })
diff --git a/pkgs/development/python-modules/pulumi/default.nix b/pkgs/development/python-modules/pulumi/default.nix
index adbed7f545ca..8fb594748b9a 100644
--- a/pkgs/development/python-modules/pulumi/default.nix
+++ b/pkgs/development/python-modules/pulumi/default.nix
@@ -12,6 +12,10 @@
   pyyaml,
   debugpy,
   pip,
+  opentelemetry-api,
+  opentelemetry-sdk,
+  opentelemetry-instrumentation-grpc,
+  opentelemetry-exporter-otlp-proto-grpc,
   pytest,
   pytest-asyncio,
   pytest-timeout,
@@ -48,6 +52,10 @@ buildPythonPackage {
     pyyaml
     debugpy
     pip
+    opentelemetry-api
+    opentelemetry-sdk
+    opentelemetry-instrumentation-grpc
+    opentelemetry-exporter-otlp-proto-grpc
   ];
 
   pythonRelaxDeps = [
@@ -55,6 +63,10 @@ buildPythonPackage {
     "grpcio"
     "pip"
     "semver"
+    "opentelemetry-api"
+    "opentelemetry-sdk"
+    "opentelemetry-instrumentation-grpc"
+    "opentelemetry-exporter-otlp-proto-grpc"
   ];
 
   nativeCheckInputs = [
@@ -64,19 +76,20 @@ buildPythonPackage {
     pulumi-python
   ];
 
-  disabledTestPaths = [
-    # TODO: remove disabledTestPaths once the test is fixed upstream.
-    # https://github.com/pulumi/pulumi/pull/19080#discussion_r2309611222
-    "lib/test/provider/experimental/test_property_value.py::test_nesting"
-  ];
-
+  # CheckPhase script based on:
   # https://github.com/pulumi/pulumi/blob/0acaf8060640fdd892abccf1ce7435cd6aae69fe/sdk/python/scripts/test_fast.sh#L10-L11
   # https://github.com/pulumi/pulumi/blob/0acaf8060640fdd892abccf1ce7435cd6aae69fe/sdk/python/scripts/test_fast.sh#L16
+  # Script updated in https://github.com/pulumi/pulumi/pull/21365
+  #
+  # Ignore lib/test/langhost because tests require `uv` / virtualenv which is not supported in the Nix sandbox.
   installCheckPhase = ''
     runHook preInstallCheck
     declare -a _disabledTestPathsArray
     concatTo _disabledTestPathsArray disabledTestPaths
-    ${python.executable} -m pytest --junit-xml= --ignore=lib/test/automation lib/test \
+    ${python.executable} -m pytest --junit-xml= \
+      --ignore=lib/test/automation \
+      --ignore=lib/test/langhost \
+      lib/test \
       "''${_disabledTestPathsArray[@]/#/--deselect=}"
     pushd lib/test_with_mocks
     ${python.executable} -m pytest --junit-xml=
@@ -95,6 +108,7 @@ buildPythonPackage {
     license = lib.licenses.asl20;
     maintainers = with lib.maintainers; [
       tie
+      untio11
     ];
   };
 }