diff --git a/pxr/base/tf/testenv/stopwatch.cpp b/pxr/base/tf/testenv/stopwatch.cpp
index 4b7dc03e6c..6e6214504a 100644
--- a/pxr/base/tf/testenv/stopwatch.cpp
+++ b/pxr/base/tf/testenv/stopwatch.cpp
@@ -43,6 +43,13 @@ IsClose(double a, double b, double epsilon=1e-3)
            && diff <= epsilon * abs(b);
 }
 
+static bool
+IsCloselyBounded(double value, double lower, double upper, double epsilon=1e-3)
+{
+    return (1 - epsilon) * lower  <= value
+           && value <= (1 + epsilon) * upper;
+}
+
 static bool
 Test_TfStopwatch()
 {
@@ -64,43 +71,57 @@ Test_TfStopwatch()
 
     // Delay .5 seconds (500 million nanoseconds)
     //
+    auto pre_start = std::chrono::steady_clock::now();
     watch1.Start();
-    auto start = std::chrono::steady_clock::now();
+    auto post_start = std::chrono::steady_clock::now();
     std::this_thread::sleep_for(std::chrono::milliseconds(500));
+    auto pre_stop = std::chrono::steady_clock::now();
     watch1.Stop();
-    auto end = std::chrono::steady_clock::now();
+    auto post_stop = std::chrono::steady_clock::now();
 
-    std::chrono::duration<double> elapsed = end - start;
+    std::chrono::duration<double> minElapsed = pre_stop - post_start;
+    std::chrono::duration<double> maxElapsed = post_stop - pre_start;
 
-    // The value of watch1 should match the elapsed duration
+    // The value of watch1 should be bounded by minElapsed / maxElapsed:
+    //     minElapsed < watch1 < maxElapsed
     // measured via std::chrono. This should be roughly .5 seconds,
     // but may be higher since sleep_for may overshoot the requested
-    // time.
-    if (!IsClose(watch1.GetSeconds(), elapsed.count())) {
+    // time. We take the upper / lower bounds to account for possible thread
+    // scheduling issues.
+    if (!IsCloselyBounded(watch1.GetSeconds(), minElapsed.count(),
+                          maxElapsed.count())) {
         cout << "Sleep for .5 seconds but got: " << endl
              << "TfStopwatch: " << watch1.GetSeconds() << endl
-             << "std::chrono: " << elapsed.count() << endl;
+             << "std::chrono (lower bound): " << minElapsed.count() << endl
+             << "std::chrono (upper bound): " << maxElapsed.count() << endl;
         ok = false;
     }
 
     // Delay another .5 seconds and see if watch is near 1
     //
+    pre_start = std::chrono::steady_clock::now();
     watch1.Start();
-    start = std::chrono::steady_clock::now();
+    post_start = std::chrono::steady_clock::now();
     std::this_thread::sleep_for(std::chrono::milliseconds(500));
+    pre_stop = std::chrono::steady_clock::now();
     watch1.Stop();
-    end = std::chrono::steady_clock::now();
+    post_stop = std::chrono::steady_clock::now();
+
 
-    elapsed += (end - start);
+    minElapsed += pre_stop - post_start;
+    maxElapsed += post_stop - pre_start;
 
     // The value of watch1 should match the updated elapsed duration.
-    if (!IsClose(watch1.GetSeconds(), elapsed.count())) {
+    if (!IsCloselyBounded(watch1.GetSeconds(), minElapsed.count(),
+                          maxElapsed.count())) {
         cout << "Sleep for 1.0 seconds but got: " << endl
              << "TfStopwatch: " << watch1.GetSeconds() << endl
-             << "std::chrono: " << elapsed.count() << endl;
+             << "std::chrono (lower bound): " << minElapsed.count() << endl
+             << "std::chrono (upper bound): " << maxElapsed.count() << endl;
         ok = false;
     }
 
+
     // The value of watchCopy should be zero
     //
     if (watchCopy.GetSeconds() != 0.0) {
diff --git a/pxr/base/trace/testenv/testTrace.py b/pxr/base/trace/testenv/testTrace.py
index 0842d03ee9..bd2c3d7fff 100644
--- a/pxr/base/trace/testenv/testTrace.py
+++ b/pxr/base/trace/testenv/testTrace.py
@@ -204,22 +204,28 @@ def testFunc():
 
         gc.enabled = True
         sleepTime = 1.0
+        pre_begin = time.time()
         b = gc.BeginEvent("Test tuple")
-        b2 = time.time()
+        post_begin = time.time()
         time.sleep(sleepTime)
+        pre_end = time.time()
         e = gc.EndEvent("Test tuple")
-        e2 = time.time()
+        post_end = time.time()
 
         elapsedSeconds = Trace.GetElapsedSeconds(b, e)
-        expectedElapsedSeconds = e2 - b2
+        expectedMinSeconds = pre_end - post_begin
+        expectedMaxSeconds = post_end - pre_begin
         gr.Report()
 
-        elapsedDiff = abs(elapsedSeconds - expectedElapsedSeconds)
-        self.assertTrue(elapsedDiff < 0.005,
-                        "Elapsed: {} Expected: {} Diff: {}".format(
-                            elapsedSeconds, expectedElapsedSeconds, 
-                            elapsedDiff))
-
+        epsilon = 0.005
+        self.assertGreater(elapsedSeconds, expectedMinSeconds - epsilon,
+                        "Elapsed: {} Expected Min: {} Diff: {}".format(
+                            elapsedSeconds, expectedMinSeconds,
+                            expectedMinSeconds - elapsedSeconds))
+        self.assertLess(elapsedSeconds, expectedMaxSeconds + epsilon,
+                        "Elapsed: {} Expected Max: {} Diff: {}".format(
+                            elapsedSeconds, expectedMaxSeconds,
+                            elapsedSeconds - expectedMaxSeconds))
         print("")
 
 if __name__ == '__main__':