diff --git a/Directory.Build.props b/Directory.Build.props
index ab807b268c..9786540064 100644
--- a/Directory.Build.props
+++ b/Directory.Build.props
@@ -3,7 +3,7 @@
 		<ClientOfficialVersion>3.47.0</ClientOfficialVersion>
 		<ClientPreviewVersion>3.48.0</ClientPreviewVersion>
 		<ClientPreviewSuffixVersion>preview.0</ClientPreviewSuffixVersion>
-		<DirectVersion>3.37.9</DirectVersion>
+		<DirectVersion>3.37.10</DirectVersion>
 		<FaultInjectionVersion>1.0.0</FaultInjectionVersion>
 		<FaultInjectionSuffixVersion>beta.0</FaultInjectionSuffixVersion>
 		<EncryptionOfficialVersion>2.0.4</EncryptionOfficialVersion>
diff --git a/Microsoft.Azure.Cosmos/tests/Microsoft.Azure.Cosmos.EmulatorTests/ClientTests.cs b/Microsoft.Azure.Cosmos/tests/Microsoft.Azure.Cosmos.EmulatorTests/ClientTests.cs
index 0600c7be85..21521a8cd0 100644
--- a/Microsoft.Azure.Cosmos/tests/Microsoft.Azure.Cosmos.EmulatorTests/ClientTests.cs
+++ b/Microsoft.Azure.Cosmos/tests/Microsoft.Azure.Cosmos.EmulatorTests/ClientTests.cs
@@ -5,6 +5,7 @@
 namespace Microsoft.Azure.Cosmos.SDK.EmulatorTests
 {
     using System;
+    using System.Collections.Concurrent;
     using System.Collections.Generic;
     using System.Diagnostics;
     using System.IO;
@@ -19,6 +20,7 @@ namespace Microsoft.Azure.Cosmos.SDK.EmulatorTests
     using System.Threading;
     using System.Threading.Tasks;
     using global::Azure;
+    using Microsoft.Azure.Cosmos.FaultInjection;
     using Microsoft.Azure.Cosmos.Query.Core;
     using Microsoft.Azure.Cosmos.Services.Management.Tests.LinqProviderTests;
     using Microsoft.Azure.Cosmos.Telemetry;
@@ -936,7 +938,136 @@ public async Task MultiRegionAccountTest()
             AccountProperties properties = await cosmosClient.ReadAccountAsync();
             Assert.IsNotNull(properties);
         }
-       
+
+        [TestMethod]
+        [Owner("amudumba")]
+        public async Task CreateItemDuringTimeoutTest()
+        {
+            //Prepare
+            //Enabling aggressive timeout detection that empowers connnection health checker whih marks a channel/connection as "unhealthy" if there are a set of consecutive timeouts.
+            Environment.SetEnvironmentVariable("AZURE_COSMOS_AGGRESSIVE_TIMEOUT_DETECTION_ENABLED", "True");
+            Environment.SetEnvironmentVariable("AZURE_COSMOS_TIMEOUT_DETECTION_TIME_LIMIT_IN_SECONDS", "1");
+
+            // Enabling fault injection rule to simulate a timeout scenario.
+            string timeoutRuleId = "timeoutRule-" + Guid.NewGuid().ToString();
+            FaultInjectionRule timeoutRule = new FaultInjectionRuleBuilder(
+                id: timeoutRuleId,
+                condition:
+                    new FaultInjectionConditionBuilder()
+                        .WithOperationType(FaultInjectionOperationType.CreateItem)
+                        .Build(),
+                result:
+                    FaultInjectionResultBuilder.GetResultBuilder(FaultInjectionServerErrorType.SendDelay)
+                    .WithDelay(TimeSpan.FromSeconds(100))
+                        .Build())
+                .Build();
+
+            List<FaultInjectionRule> rules = new List<FaultInjectionRule> { timeoutRule };
+            FaultInjector faultInjector = new FaultInjector(rules);
+
+
+            CosmosClientOptions cosmosClientOptions = new CosmosClientOptions()
+            {
+                ConsistencyLevel = Cosmos.ConsistencyLevel.Session,
+                FaultInjector = faultInjector,
+                RequestTimeout = TimeSpan.FromSeconds(2)
+
+            };
+
+            Cosmos.Database db = null;
+            try
+            {
+                CosmosClient cosmosClient = TestCommon.CreateCosmosClient(clientOptions: cosmosClientOptions);
+
+                db = await cosmosClient.CreateDatabaseIfNotExistsAsync("TimeoutFaultTest");
+                Container container = await db.CreateContainerIfNotExistsAsync("TimeoutFaultContainer", "/pk");
+
+                // Act.
+                // Simulate a aggressive timeout scenario by performing 3 writes which will all timeout due to fault injection rule.
+                for (int i = 0; i < 3; i++)
+                {
+                    try
+                    {
+                        ToDoActivity testItem = ToDoActivity.CreateRandomToDoActivity();
+                        await container.CreateItemAsync<ToDoActivity>(testItem);
+                    }
+                    catch (CosmosException exx)
+                    {
+                        Assert.AreEqual(HttpStatusCode.RequestTimeout, exx.StatusCode);
+                    }
+                }
+
+                //Assert that the old channel that is now made unhealthy by the timeouts and a new healthy channel is available for next requests.
+
+
+                // Get all the channels that are under TransportClient -> ChannelDictionary -> Channels.
+                IStoreClientFactory factory = (IStoreClientFactory)cosmosClient.DocumentClient.GetType()
+                    .GetField("storeClientFactory", BindingFlags.NonPublic | BindingFlags.Instance)
+                    .GetValue(cosmosClient.DocumentClient);
+                StoreClientFactory storeClientFactory = (StoreClientFactory)factory;
+
+                TransportClient client = (TransportClient)storeClientFactory.GetType()
+                                .GetField("transportClient", BindingFlags.NonPublic | BindingFlags.Instance)
+                                .GetValue(storeClientFactory);
+                Documents.Rntbd.TransportClient transportClient = (Documents.Rntbd.TransportClient)client;
+
+                Documents.Rntbd.ChannelDictionary channelDict = (Documents.Rntbd.ChannelDictionary)transportClient.GetType()
+                                .GetField("channelDictionary", BindingFlags.NonPublic | BindingFlags.Instance)
+                                .GetValue(transportClient);
+                ConcurrentDictionary<Documents.Rntbd.ServerKey, Documents.Rntbd.IChannel> allChannels = (ConcurrentDictionary<Documents.Rntbd.ServerKey, Documents.Rntbd.IChannel>)channelDict.GetType()
+                    .GetField("channels", BindingFlags.NonPublic | BindingFlags.Instance)
+                    .GetValue(channelDict);
+
+                //Assert that the old channel that is now made unhealthy by the timeouts.
+                //Get the channel by channelDict -> LoadBalancingChannel -> LoadBalancingPartition -> LbChannelState -> IChannel.
+                Documents.Rntbd.LoadBalancingChannel loadBalancingUnhealthyChannel = (Documents.Rntbd.LoadBalancingChannel)allChannels[allChannels.Keys.ElementAt(1)];
+                Documents.Rntbd.LoadBalancingPartition loadBalancingPartitionUnHealthy = (Documents.Rntbd.LoadBalancingPartition)loadBalancingUnhealthyChannel.GetType()
+                                        .GetField("singlePartition", BindingFlags.NonPublic | BindingFlags.Instance)
+                                        .GetValue(loadBalancingUnhealthyChannel);
+
+                Assert.IsNotNull(loadBalancingPartitionUnHealthy);
+
+                List<Documents.Rntbd.LbChannelState> openChannelsUnhealthy = (List<Documents.Rntbd.LbChannelState>)loadBalancingPartitionUnHealthy.GetType()
+                                        .GetField("openChannels", BindingFlags.NonPublic | BindingFlags.Instance)
+                                        .GetValue(loadBalancingPartitionUnHealthy);
+                Assert.AreEqual(1, openChannelsUnhealthy.Count);
+
+                foreach (Documents.Rntbd.LbChannelState channelState in openChannelsUnhealthy)
+                {
+                    Documents.Rntbd.IChannel channel = (Documents.Rntbd.IChannel)openChannelsUnhealthy[0].GetType()
+                                        .GetField("channel", BindingFlags.NonPublic | BindingFlags.Instance)
+                                        .GetValue(channelState);
+                    Assert.IsFalse(channel.Healthy);
+                }
+
+                //Assert that the new channel which is healthy. Picking the first channel from the allChannels dictionary as the new channel.
+                Documents.Rntbd.LoadBalancingChannel loadBalancingChannel = (Documents.Rntbd.LoadBalancingChannel)allChannels[allChannels.Keys.First()];
+                Documents.Rntbd.LoadBalancingPartition loadBalancingPartition = (Documents.Rntbd.LoadBalancingPartition)loadBalancingChannel.GetType()
+                                        .GetField("singlePartition", BindingFlags.NonPublic | BindingFlags.Instance)
+                                        .GetValue(loadBalancingChannel);
+
+                Assert.IsNotNull(loadBalancingPartition);
+
+                List<Documents.Rntbd.LbChannelState> openChannels = (List<Documents.Rntbd.LbChannelState>)loadBalancingPartition.GetType()
+                                        .GetField("openChannels", BindingFlags.NonPublic | BindingFlags.Instance)
+                                        .GetValue(loadBalancingPartition);
+                Assert.AreEqual(1, openChannels.Count);
+
+                foreach (Documents.Rntbd.LbChannelState channelState in openChannels)
+                {
+                    Documents.Rntbd.IChannel channel = (Documents.Rntbd.IChannel)openChannels[0].GetType()
+                                        .GetField("channel", BindingFlags.NonPublic | BindingFlags.Instance)
+                                        .GetValue(channelState);
+                    Assert.IsTrue(channel.Healthy);
+                }
+            }
+            finally
+            {
+                Environment.SetEnvironmentVariable("AZURE_COSMOS_AGGRESSIVE_TIMEOUT_DETECTION_ENABLED", null);
+                Environment.SetEnvironmentVariable("AZURE_COSMOS_TIMEOUT_DETECTION_TIME_LIMIT_IN_SECONDS", null);
+                if (db != null) await db.DeleteAsync();
+            }
+        }
         public static IReadOnlyList<string> GetActiveConnections()
         {
             string testPid = Process.GetCurrentProcess().Id.ToString();