diff --git a/invokeai/app/services/download/download_default.py b/invokeai/app/services/download/download_default.py
index 50cac80d094..843351a2591 100644
--- a/invokeai/app/services/download/download_default.py
+++ b/invokeai/app/services/download/download_default.py
@@ -224,7 +224,6 @@ def _download_next_item(self) -> None:
                 job.job_started = get_iso_timestamp()
                 self._do_download(job)
                 self._signal_job_complete(job)
-
             except (OSError, HTTPError) as excp:
                 job.error_type = excp.__class__.__name__ + f"({str(excp)})"
                 job.error = traceback.format_exc()
diff --git a/invokeai/app/services/model_install/model_install_base.py b/invokeai/app/services/model_install/model_install_base.py
index 737f62a0649..4f2cdaed8e8 100644
--- a/invokeai/app/services/model_install/model_install_base.py
+++ b/invokeai/app/services/model_install/model_install_base.py
@@ -28,6 +28,7 @@ class InstallStatus(str, Enum):
 
     WAITING = "waiting"  # waiting to be dequeued
     DOWNLOADING = "downloading"  # downloading of model files in process
+    DOWNLOADS_DONE = "downloads_done"  # downloading done, waiting to run
     RUNNING = "running"  # being processed
     COMPLETED = "completed"  # finished running
     ERROR = "error"  # terminated with an error message
@@ -229,6 +230,11 @@ def downloading(self) -> bool:
         """Return true if job is downloading."""
         return self.status == InstallStatus.DOWNLOADING
 
+    @property
+    def downloads_done(self) -> bool:
+        """Return true if job's downloads ae done."""
+        return self.status == InstallStatus.DOWNLOADS_DONE
+
     @property
     def running(self) -> bool:
         """Return true if job is running."""
diff --git a/invokeai/app/services/model_install/model_install_default.py b/invokeai/app/services/model_install/model_install_default.py
index a48cf92b994..93287a40c64 100644
--- a/invokeai/app/services/model_install/model_install_default.py
+++ b/invokeai/app/services/model_install/model_install_default.py
@@ -28,7 +28,6 @@
     ModelRepoVariant,
     ModelType,
 )
-from invokeai.backend.model_manager.hash import FastModelHash
 from invokeai.backend.model_manager.metadata import (
     AnyModelRepoMetadata,
     CivitaiMetadataFetch,
@@ -153,7 +152,6 @@ def install_path(
             config["source"] = model_path.resolve().as_posix()
 
         info: AnyModelConfig = self._probe_model(Path(model_path), config)
-        old_hash = info.current_hash
 
         if preferred_name := config.get("name"):
             preferred_name = Path(preferred_name).with_suffix(model_path.suffix)
@@ -167,8 +165,6 @@ def install_path(
             raise DuplicateModelException(
                 f"A model named {model_path.name} is already installed at {dest_path.as_posix()}"
             ) from excp
-        new_hash = FastModelHash.hash(new_path)
-        assert new_hash == old_hash, f"{model_path}: Model hash changed during installation, possibly corrupted."
 
         return self._register(
             new_path,
@@ -284,7 +280,7 @@ def sync_to_config(self) -> None:
     def scan_directory(self, scan_dir: Path, install: bool = False) -> List[str]:  # noqa D102
         self._cached_model_paths = {Path(x.path) for x in self.record_store.all_models()}
         callback = self._scan_install if install else self._scan_register
-        search = ModelSearch(on_model_found=callback)
+        search = ModelSearch(on_model_found=callback, config=self._app_config)
         self._models_installed.clear()
         search.search(scan_dir)
         return list(self._models_installed)
@@ -370,7 +366,7 @@ def _install_next_item(self) -> None:
                     self._signal_job_errored(job)
 
                 elif (
-                    job.waiting or job.downloading
+                    job.waiting or job.downloads_done
                 ):  # local jobs will be in waiting state, remote jobs will be downloading state
                     job.total_bytes = self._stat_size(job.local_path)
                     job.bytes = job.total_bytes
@@ -448,7 +444,7 @@ def _scan_models_directory(self) -> None:
                     installed.update(self.scan_directory(models_dir))
             self._logger.info(f"{len(installed)} new models registered; {len(defunct_models)} unregistered")
 
-    def _sync_model_path(self, key: str, ignore_hash_change: bool = False) -> AnyModelConfig:
+    def _sync_model_path(self, key: str) -> AnyModelConfig:
         """
         Move model into the location indicated by its basetype, type and name.
 
@@ -469,14 +465,7 @@ def _sync_model_path(self, key: str, ignore_hash_change: bool = False) -> AnyMod
         new_path = models_dir / model.base.value / model.type.value / model.name
         self._logger.info(f"Moving {model.name} to {new_path}.")
         new_path = self._move_model(old_path, new_path)
-        new_hash = FastModelHash.hash(new_path)
         model.path = new_path.relative_to(models_dir).as_posix()
-        if model.current_hash != new_hash:
-            assert (
-                ignore_hash_change
-            ), f"{model.name}: Model hash changed during installation, model is possibly corrupted"
-            model.current_hash = new_hash
-            self._logger.info(f"Model has new hash {model.current_hash}, but will continue to be identified by {key}")
         self.record_store.update_model(key, model)
         return model
 
@@ -749,8 +738,8 @@ def _download_complete_callback(self, download_job: DownloadJob) -> None:
             self._download_cache.pop(download_job.source, None)
 
             # are there any more active jobs left in this task?
-            if all(x.complete for x in install_job.download_parts):
-                #  now enqueue job for actual installation into the models directory
+            if install_job.downloading and all(x.complete for x in install_job.download_parts):
+                install_job.status = InstallStatus.DOWNLOADS_DONE
                 self._install_queue.put(install_job)
 
             # Let other threads know that the number of downloads has changed
diff --git a/pyproject.toml b/pyproject.toml
index f4608063542..26db5a63c7b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -118,6 +118,7 @@ dependencies = [
   "pre-commit",
   "pytest>6.0.0",
   "pytest-cov",
+  "pytest-timeout",
   "pytest-datadir",
   "requests_testadapter",
   "httpx",
@@ -186,9 +187,10 @@ version = { attr = "invokeai.version.__version__" }
 
 #=== Begin: PyTest and Coverage
 [tool.pytest.ini_options]
-addopts = "--cov-report term --cov-report html --cov-report xml --strict-markers -m \"not slow\""
+addopts = "--cov-report term --cov-report html --cov-report xml --strict-markers --timeout 60 -m \"not slow\""
 markers = [
   "slow: Marks tests as slow. Disabled by default. To run all tests, use -m \"\". To run only slow tests, use -m \"slow\".",
+  "timeout: Marks the timeout override."
 ]
 [tool.coverage.run]
 branch = true
diff --git a/tests/app/routers/test_images.py b/tests/app/routers/test_images.py
index 5cb8cf1c37b..c0da3ec51ca 100644
--- a/tests/app/routers/test_images.py
+++ b/tests/app/routers/test_images.py
@@ -1,6 +1,8 @@
+import os
 from pathlib import Path
 from typing import Any
 
+import pytest
 from fastapi import BackgroundTasks
 from fastapi.testclient import TestClient
 
@@ -9,7 +11,11 @@
 from invokeai.app.services.board_records.board_records_common import BoardRecord
 from invokeai.app.services.invoker import Invoker
 
-client = TestClient(app)
+
+@pytest.fixture(autouse=True, scope="module")
+def client(invokeai_root_dir: Path) -> TestClient:
+    os.environ["INVOKEAI_ROOT"] = invokeai_root_dir.as_posix()
+    return TestClient(app)
 
 
 class MockApiDependencies(ApiDependencies):
@@ -19,7 +25,7 @@ def __init__(self, invoker) -> None:
         self.invoker = invoker
 
 
-def test_download_images_from_list(monkeypatch: Any, mock_invoker: Invoker) -> None:
+def test_download_images_from_list(monkeypatch: Any, mock_invoker: Invoker, client: TestClient) -> None:
     prepare_download_images_test(monkeypatch, mock_invoker)
 
     response = client.post("/api/v1/images/download", json={"image_names": ["test.png"]})
@@ -28,7 +34,9 @@ def test_download_images_from_list(monkeypatch: Any, mock_invoker: Invoker) -> N
     assert json_response["bulk_download_item_name"] == "test.zip"
 
 
-def test_download_images_from_board_id_empty_image_name_list(monkeypatch: Any, mock_invoker: Invoker) -> None:
+def test_download_images_from_board_id_empty_image_name_list(
+    monkeypatch: Any, mock_invoker: Invoker, client: TestClient
+) -> None:
     expected_board_name = "test"
 
     def mock_get(*args, **kwargs):
@@ -56,7 +64,9 @@ def mock_add_task(*args, **kwargs):
     monkeypatch.setattr(BackgroundTasks, "add_task", mock_add_task)
 
 
-def test_download_images_with_empty_image_list_and_no_board_id(monkeypatch: Any, mock_invoker: Invoker) -> None:
+def test_download_images_with_empty_image_list_and_no_board_id(
+    monkeypatch: Any, mock_invoker: Invoker, client: TestClient
+) -> None:
     prepare_download_images_test(monkeypatch, mock_invoker)
 
     response = client.post("/api/v1/images/download", json={"image_names": []})
@@ -64,7 +74,7 @@ def test_download_images_with_empty_image_list_and_no_board_id(monkeypatch: Any,
     assert response.status_code == 400
 
 
-def test_get_bulk_download_image(tmp_path: Path, monkeypatch: Any, mock_invoker: Invoker) -> None:
+def test_get_bulk_download_image(tmp_path: Path, monkeypatch: Any, mock_invoker: Invoker, client: TestClient) -> None:
     mock_file: Path = tmp_path / "test.zip"
     mock_file.write_text("contents")
 
@@ -82,7 +92,7 @@ def mock_add_task(*args, **kwargs):
     assert response.content == b"contents"
 
 
-def test_get_bulk_download_image_not_found(monkeypatch: Any, mock_invoker: Invoker) -> None:
+def test_get_bulk_download_image_not_found(monkeypatch: Any, mock_invoker: Invoker, client: TestClient) -> None:
     monkeypatch.setattr("invokeai.app.api.routers.images.ApiDependencies", MockApiDependencies(mock_invoker))
 
     def mock_add_task(*args, **kwargs):
@@ -96,7 +106,7 @@ def mock_add_task(*args, **kwargs):
 
 
 def test_get_bulk_download_image_image_deleted_after_response(
-    monkeypatch: Any, mock_invoker: Invoker, tmp_path: Path
+    monkeypatch: Any, mock_invoker: Invoker, tmp_path: Path, client: TestClient
 ) -> None:
     mock_file: Path = tmp_path / "test.zip"
     mock_file.write_text("contents")
diff --git a/tests/app/services/download/test_download_queue.py b/tests/app/services/download/test_download_queue.py
index 9c1826170e6..543703d713a 100644
--- a/tests/app/services/download/test_download_queue.py
+++ b/tests/app/services/download/test_download_queue.py
@@ -167,6 +167,7 @@ def broken_callback(job: DownloadJob) -> None:
     queue.stop()
 
 
+@pytest.mark.timeout(timeout=15, method="thread")
 def test_cancel(tmp_path: Path, session: Session) -> None:
     event_bus = TestEventService()
 
@@ -182,6 +183,9 @@ def cancelled_callback(job: DownloadJob) -> None:
         nonlocal cancelled
         cancelled = True
 
+    def handler(signum, frame):
+        raise TimeoutError("Join took too long to return")
+
     job = queue.download(
         source=AnyHttpUrl("http://www.civitai.com/models/12345"),
         dest=tmp_path,
diff --git a/tests/app/services/model_install/test_model_install.py b/tests/app/services/model_install/test_model_install.py
index 80b106c5cb2..7e51e8deb3d 100644
--- a/tests/app/services/model_install/test_model_install.py
+++ b/tests/app/services/model_install/test_model_install.py
@@ -196,6 +196,7 @@ def test_delete_register(
         store.get_model(key)
 
 
+@pytest.mark.timeout(timeout=20, method="thread")
 def test_simple_download(mm2_installer: ModelInstallServiceBase, mm2_app_config: InvokeAIAppConfig) -> None:
     source = URLModelSource(url=Url("https://www.test.foo/download/test_embedding.safetensors"))
 
@@ -221,6 +222,7 @@ def test_simple_download(mm2_installer: ModelInstallServiceBase, mm2_app_config:
     assert event_names == ["model_install_downloading", "model_install_running", "model_install_completed"]
 
 
+@pytest.mark.timeout(timeout=20, method="thread")
 def test_huggingface_download(mm2_installer: ModelInstallServiceBase, mm2_app_config: InvokeAIAppConfig) -> None:
     source = URLModelSource(url=Url("https://huggingface.co/stabilityai/sdxl-turbo"))
 
diff --git a/tests/backend/model_manager/model_manager_fixtures.py b/tests/backend/model_manager/model_manager_fixtures.py
index df54e2f9267..fce72cb04d7 100644
--- a/tests/backend/model_manager/model_manager_fixtures.py
+++ b/tests/backend/model_manager/model_manager_fixtures.py
@@ -2,6 +2,7 @@
 
 import os
 import shutil
+import time
 from pathlib import Path
 from typing import Any, Dict, List
 
@@ -149,6 +150,7 @@ def mm2_installer(
 
     def stop_installer() -> None:
         installer.stop()
+        time.sleep(0.1)  # avoid error message from the logger when it is closed before thread prints final message
 
     request.addfinalizer(stop_installer)
     return installer
diff --git a/tests/conftest.py b/tests/conftest.py
index a483b7529a1..06d29b05bed 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -5,6 +5,8 @@
 # We import the model_installer and torch_device fixtures here so that they can be used by all tests. Flake8 does not
 # play well with fixtures (F401 and F811), so this is cleaner than importing in all files that use these fixtures.
 import logging
+import shutil
+from pathlib import Path
 
 import pytest
 
@@ -58,3 +60,11 @@ def mock_services() -> InvocationServices:
 @pytest.fixture()
 def mock_invoker(mock_services: InvocationServices) -> Invoker:
     return Invoker(services=mock_services)
+
+
+@pytest.fixture(scope="module")
+def invokeai_root_dir(tmp_path_factory) -> Path:
+    root_template = Path(__file__).parent.resolve() / "backend/model_manager/data/invokeai_root"
+    temp_dir: Path = tmp_path_factory.mktemp("data") / "invokeai_root"
+    shutil.copytree(root_template, temp_dir)
+    return temp_dir