diff --git a/gcloud-java-datastore/src/main/java/com/google/gcloud/datastore/testing/LocalGcdHelper.java b/gcloud-java-datastore/src/main/java/com/google/gcloud/datastore/testing/LocalGcdHelper.java
index 87d7ade8e2ed..7fe3ee9b0b71 100644
--- a/gcloud-java-datastore/src/main/java/com/google/gcloud/datastore/testing/LocalGcdHelper.java
+++ b/gcloud-java-datastore/src/main/java/com/google/gcloud/datastore/testing/LocalGcdHelper.java
@@ -84,9 +84,6 @@ public class LocalGcdHelper {
   private static final String GCLOUD = "gcloud";
   private static final Path INSTALLED_GCD_PATH;
   private static final String GCD_VERSION_PREFIX = "gcd-emulator ";
-  private static final String CONTENTION_ERROR_MESSAGE =
-      "com.google.apphosting.client.serviceapp.RpcException: " +
-          "too much contention on these datastore entities. please try again.";
 
   static {
     INSTALLED_GCD_PATH = installedGcdPath();
@@ -217,6 +214,7 @@ public void run() {
       try {
         boolean readerDone = false;
         boolean errorReaderDone = false;
+        String currentLog = null;
         while (!readerDone || !errorReaderDone) {
           if (!readerDone && reader.ready()) {
             readerDone = reader.readLine() != null;
@@ -226,12 +224,7 @@ public void run() {
             if (errorOutput == null) {
               errorReaderDone = true;
             } else {
-              if (errorOutput.startsWith("INFO:")
-                  || errorOutput.startsWith("com.google.apphosting.client.serviceapp")) {
-                if (!errorOutput.startsWith(CONTENTION_ERROR_MESSAGE)) {
-                  System.err.println(errorOutput);
-                }
-              }
+              currentLog = processLog(errorOutput, currentLog);
             }
           }
         }
@@ -240,6 +233,27 @@ public void run() {
       }
     }
 
+    private static boolean isNewGcdLog(String line) {
+      return line.contains("com.google.apphosting.client.serviceapp.BaseApiServlet")
+          && !line.trim().startsWith("at ");
+    }
+
+    private static String processLog(String currentLine, String currentLog) {
+      if (isNewGcdLog(currentLine)) {
+        if (currentLog != null) {
+          log.info(currentLog.trim());
+        }
+        return "GCD ";
+      } else if (currentLine.startsWith("SEVERE: ")) {
+        currentLog = null; // Don't show duplicate error messages from gcd.sh
+      } else if (currentLog != null && currentLine.startsWith("INFO: ")) {
+        return currentLog + currentLine.substring("INFO: ".length()) + "\n";
+      } else if (currentLog != null && !currentLine.trim().startsWith("at ")) {
+        return currentLog + currentLine + "\n";
+      }
+      return currentLog;
+    }
+
     public static ProcessStreamReader start(
         Process process, String blockUntil, boolean blockOnErrorStream) throws IOException {
       ProcessStreamReader thread = new ProcessStreamReader(process, blockUntil, blockOnErrorStream);