diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
index bde96cb272..ec7cbbf627 100644
--- a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
@@ -9,6 +9,7 @@ import java.nio.file.{Files, Paths, StandardCopyOption}
 import com.daml.ledger.api.testtool.infrastructure.Reporter.ColorizedPrintStreamReporter
 import com.daml.ledger.api.testtool.infrastructure.{
   Dars,
+  Errors,
   LedgerSessionConfiguration,
   LedgerTestCase,
   LedgerTestCasesRunner,
@@ -161,8 +162,12 @@ object LedgerApiTestTool {
           config.verbose,
         ).report(summaries)
         sys.exit(exitCode(summaries, config.mustFail))
-      case Failure(e) =>
-        logger.error(e.getMessage, e)
+      case Failure(exception: Errors.FrameworkException) =>
+        logger.error(exception.getMessage)
+        logger.debug(exception.getMessage, exception)
+        sys.exit(1)
+      case Failure(exception) =>
+        logger.error(exception.getMessage, exception)
         sys.exit(1)
     }
   }
diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/Errors.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/Errors.scala
new file mode 100644
index 0000000000..d86ca32b19
--- /dev/null
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/Errors.scala
@@ -0,0 +1,14 @@
+// Copyright (c) 2020 Digital Asset (Switzerland) GmbH and/or its affiliates. All rights reserved.
+// SPDX-License-Identifier: Apache-2.0
+
+package com.daml.ledger.api.testtool.infrastructure
+
+object Errors {
+
+  sealed abstract class FrameworkException(message: String, cause: Throwable)
+      extends RuntimeException(message, cause)
+
+  final class ParticipantConnectionException(address: String, cause: Throwable)
+      extends FrameworkException(s"Could not connect to the participant at $address.", cause)
+
+}
diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/participant/ParticipantSession.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/participant/ParticipantSession.scala
index 387b5aae61..3e4de24d6c 100644
--- a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/participant/ParticipantSession.scala
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/participant/ParticipantSession.scala
@@ -3,7 +3,7 @@
 
 package com.daml.ledger.api.testtool.infrastructure.participant
 
-import com.daml.ledger.api.testtool.infrastructure.LedgerServices
+import com.daml.ledger.api.testtool.infrastructure.{Errors, LedgerServices}
 import com.daml.ledger.api.v1.ledger_identity_service.GetLedgerIdentityRequest
 import com.daml.ledger.api.v1.transaction_service.GetLedgerEndRequest
 import com.daml.timer.RetryStrategy
@@ -12,6 +12,8 @@ import org.slf4j.LoggerFactory
 
 import scala.concurrent.duration.DurationInt
 import scala.concurrent.{ExecutionContext, Future}
+import scala.util.Failure
+import scala.util.control.NonFatal
 
 private[infrastructure] final class ParticipantSession private (
     config: ParticipantSessionConfiguration,
@@ -56,11 +58,22 @@ object ParticipantSession {
   )(implicit executionContext: ExecutionContext): Future[ParticipantSession] = {
     val services = new LedgerServices(channel)
     for {
-      ledgerId <- RetryStrategy.exponentialBackoff(10, 10.millis) { (attempt, wait) =>
-        logger.debug(
-          s"Fetching ledgerId to create context (attempt #$attempt, next one in $wait)...")
-        services.identity.getLedgerIdentity(new GetLedgerIdentityRequest).map(_.ledgerId)
-      }
+      // Keep retrying for about a minute.
+      ledgerId <- RetryStrategy
+        .exponentialBackoff(10, 100.millis) { (attempt, wait) =>
+          services.identity
+            .getLedgerIdentity(new GetLedgerIdentityRequest)
+            .map(_.ledgerId)
+            .andThen {
+              case Failure(_) =>
+                logger.info(
+                  s"Could not connect to the participant (attempt #$attempt). Trying again in $wait...")
+            }
+        }
+        .recoverWith {
+          case NonFatal(exception) =>
+            Future.failed(new Errors.ParticipantConnectionException(config.address, exception))
+        }
     } yield new ParticipantSession(config, services, ledgerId)
   }
 }
diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/participant/ParticipantSessionManager.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/participant/ParticipantSessionManager.scala
index 0ac4b7cefa..e64380eb88 100644
--- a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/participant/ParticipantSessionManager.scala
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/infrastructure/participant/ParticipantSessionManager.scala
@@ -69,9 +69,10 @@ object ParticipantSessionManager {
     }
     channelBuilder.maxInboundMessageSize(10000000)
     val channel = channelBuilder.build()
-    logger.info(s"Connected to participant at ${config.address}.")
-    ParticipantSession(config, channel).map(session =>
-      new Session(config, session, channel, eventLoopGroup))
+    ParticipantSession(config, channel).map { session =>
+      logger.info(s"Connected to participant at ${config.address}.")
+      new Session(config, session, channel, eventLoopGroup)
+    }
   }
 
   private final class Session(