diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/dense_output.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/dense_output.mlir
index 674a1a78862eb..7ee385263d314 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/dense_output.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/dense_output.mlir
@@ -18,18 +18,18 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0="%mlir_src_dir/test/Integration/data/test.mtx"
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and VLA vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 !Filename = !llvm.ptr<i8>
 
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_flatten.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_flatten.mlir
index 238f0da0a9531..56a26ec08b610 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_flatten.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_flatten.mlir
@@ -18,18 +18,18 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0="%mlir_src_dir/test/Integration/data/test.tns"
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and VLA vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 !Filename = !llvm.ptr<i8>
 
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_matvec.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_matvec.mlir
index 4b9818890e6fb..cc3be3c823f53 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_matvec.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_matvec.mlir
@@ -18,23 +18,23 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0="%mlir_src_dir/test/Integration/data/wide.mtx"
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with parallelization strategy.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=true parallelization-strategy=any-storage-any-loop
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and parallelization strategy.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false parallelization-strategy=any-storage-any-loop
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and, if available, VLA
 // vectorization.
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_mttkrp.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_mttkrp.mlir
index c48cdb10c6c0b..e91fa97586b8c 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_mttkrp.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_mttkrp.mlir
@@ -18,19 +18,19 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0=%mlir_src_dir/test/Integration/data/mttkrp_b.tns
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and, if available, VLA
 // vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 !Filename = !llvm.ptr<i8>
 
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_out_simple.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_out_simple.mlir
index fd36c815235b8..91b6b1517d8db 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_out_simple.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_out_simple.mlir
@@ -18,15 +18,15 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0="%mlir_src_dir/test/Integration/data/test.mtx"
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and, if available, VLA
 // vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 !Filename = !llvm.ptr<i8>
 
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sampled_matmul.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sampled_matmul.mlir
index b9f10ac34b731..491fadf4616c0 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sampled_matmul.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sampled_matmul.mlir
@@ -18,19 +18,19 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0="%mlir_src_dir/test/Integration/data/test.mtx"
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation and, if available, VLA
 // vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 !Filename = !llvm.ptr<i8>
 
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sorted_coo.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sorted_coo.mlir
index 06209829918c4..177272e45a10c 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sorted_coo.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sorted_coo.mlir
@@ -19,18 +19,18 @@
 
 // REDEFINE: %{env} = TENSOR0="%mlir_src_dir/test/Integration/data/wide.mtx" \
 // REDEFINE: TENSOR1="%mlir_src_dir/test/Integration/data/mttkrp_b.tns"
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false enable-buffer-initialization=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=4 enable-buffer-initialization=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with  VLA vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 !Filename = !llvm.ptr<i8>
 
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_spmm.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_spmm.mlir
index a2926607599d5..59ea9a8114c53 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_spmm.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_spmm.mlir
@@ -18,18 +18,18 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0="%mlir_src_dir/test/Integration/data/wide.mtx"
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with  VLA vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 !Filename = !llvm.ptr<i8>
 
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sum.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sum.mlir
index bb2d1e5b88fca..a00f4d0018a20 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sum.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sum.mlir
@@ -18,18 +18,18 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0=%mlir_src_dir/test/Integration/data/test_symmetric.mtx
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with  VLA vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 // TODO: The test currently only operates on the triangular part of the
 // symmetric matrix.
diff --git a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sum_c32.mlir b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sum_c32.mlir
index 0d75dc5f5e038..10a05b6a7ba01 100644
--- a/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sum_c32.mlir
+++ b/mlir/test/Integration/Dialect/SparseTensor/CPU/sparse_sum_c32.mlir
@@ -18,18 +18,18 @@
 //--------------------------------------------------------------------------------------------------
 
 // REDEFINE: %{env} = TENSOR0="%mlir_src_dir/test/Integration/data/test_symmetric_complex.mtx"
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with direct IR generation.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with vectorization.
 // REDEFINE: %{sparse_compiler_opts} = enable-runtime-library=false vl=2 reassociate-fp-reductions=true enable-index-optimizations=true
-// RUN: %{compile} | %{env} %{run} | FileCheck %s
+// RUN: %{compile} | env %{env} %{run} | FileCheck %s
 //
 // Do the same run, but now with  VLA vectorization.
-// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | %{env} %{run_sve} | FileCheck %s %}
+// RUN: %if mlir_arm_sve_tests %{ %{compile_sve} | env %{env} %{run_sve} | FileCheck %s %}
 
 // TODO: The test currently only operates on the triangular part of the
 // symmetric matrix.
diff --git a/mlir/test/lit.cfg.py b/mlir/test/lit.cfg.py
index f265ac794c6f6..da8488373862c 100644
--- a/mlir/test/lit.cfg.py
+++ b/mlir/test/lit.cfg.py
@@ -18,7 +18,14 @@
 # name: The name of this test suite.
 config.name = "MLIR"
 
-config.test_format = lit.formats.ShTest(not llvm_config.use_lit_shell)
+# We prefer the lit internal shell which provides a better user experience on failures
+# unless the user explicitly disables it with LIT_USE_INTERNAL_SHELL=0 env var.
+use_lit_shell = True
+lit_shell_env = os.environ.get("LIT_USE_INTERNAL_SHELL")
+if lit_shell_env:
+  use_lit_shell = not lit.util.pythonize_bool(lit_shell_env)
+
+config.test_format = lit.formats.ShTest(execute_external=not use_lit_shell)
 
 # suffixes: A list of file extensions to treat as test files.
 config.suffixes = [