diff --git a/resource-managers/yarn/src/test/scala/org/apache/spark/deploy/yarn/ClientSuite.scala b/resource-managers/yarn/src/test/scala/org/apache/spark/deploy/yarn/ClientSuite.scala
index 918cb790bdc9a..29e5cecb31799 100644
--- a/resource-managers/yarn/src/test/scala/org/apache/spark/deploy/yarn/ClientSuite.scala
+++ b/resource-managers/yarn/src/test/scala/org/apache/spark/deploy/yarn/ClientSuite.scala
@@ -19,7 +19,7 @@ package org.apache.spark.deploy.yarn
 
 import java.io.{File, FileInputStream, FileNotFoundException, FileOutputStream}
 import java.net.URI
-import java.nio.file.Paths
+import java.nio.file.{Files, Paths}
 import java.util.Properties
 import java.util.concurrent.ConcurrentHashMap
 
@@ -760,59 +760,64 @@ class ClientSuite extends SparkFunSuite
 
   test("YARN AM JavaOptions") {
     Seq("client", "cluster").foreach { deployMode =>
-      withTempDir { stagingDir =>
-        val sparkConf = new SparkConfWithEnv(
-          Map("SPARK_HOME" -> System.getProperty("spark.test.home")))
-          .set(SUBMIT_DEPLOY_MODE, deployMode)
-          .set(SparkLauncher.DRIVER_DEFAULT_JAVA_OPTIONS, "-Dx=1 -Dy=2")
-          .set(SparkLauncher.DRIVER_EXTRA_JAVA_OPTIONS, "-Dz=3")
-          .set(AM_DEFAULT_JAVA_OPTIONS, "-Da=1 -Db=2")
-          .set(AM_JAVA_OPTIONS, "-Dc=3")
-
-        val client = createClient(sparkConf)
-        val appIdField = classOf[Client]
-          .getDeclaredField("org$apache$spark$deploy$yarn$Client$$appId")
-        appIdField.setAccessible(true)
-        // A dummy ApplicationId impl, only `toString` method will be called
-        // in Client.createContainerLaunchContext
-        appIdField.set(client, new ApplicationId {
-          override def getId: Int = 1
-          override def setId(i: Int): Unit = {}
-          override def getClusterTimestamp: Long = 1770077136288L
-          override def setClusterTimestamp(l: Long): Unit = {}
-          override def build(): Unit = {}
-          override def toString: String = "application_1770077136288_0001"
-        })
-        val stagingDirPathField = classOf[Client]
-          .getDeclaredField("org$apache$spark$deploy$yarn$Client$$stagingDirPath")
-        stagingDirPathField.setAccessible(true)
-        stagingDirPathField.set(client, new Path(stagingDir.getAbsolutePath))
-        val _createContainerLaunchContext =
-          PrivateMethod[ContainerLaunchContext](Symbol("createContainerLaunchContext"))
-        val containerLaunchContext = client invokePrivate _createContainerLaunchContext()
-
-        val commands = containerLaunchContext.getCommands.asScala
-        deployMode match {
-          case "client" =>
-            // In client mode, spark.yarn.am.defaultJavaOptions and spark.yarn.am.extraJavaOptions
-            // should be set in AM container command JAVA_OPTIONS
-            commands should contain("'-Da=1'")
-            commands should contain("'-Db=2'")
-            commands should contain("'-Dc=3'")
-            commands should not contain "'-Dx=1'"
-            commands should not contain "'-Dy=2'"
-            commands should not contain "'-Dz=3'"
-          case "cluster" =>
-            // In cluster mode, spark.driver.defaultJavaOptions and spark.driver.extraJavaOptions
-            // should be set in AM container command JAVA_OPTIONS
-            commands should not contain "'-Da=1'"
-            commands should not contain "'-Db=2'"
-            commands should not contain "'-Dc=3'"
-            commands should contain ("'-Dx=1'")
-            commands should contain ("'-Dy=2'")
-            commands should contain ("'-Dz=3'")
-          case m =>
-            fail(s"Unexpected deploy mode: $m")
+      withTempDir { sparkHome =>
+        // Create jars dir and RELEASE file to avoid IllegalStateException.
+        Files.createDirectory(Paths.get(sparkHome.getPath, "jars"))
+        Files.createFile(Paths.get(sparkHome.getPath, "RELEASE"))
+
+        withTempDir { stagingDir =>
+          val sparkConf = new SparkConfWithEnv(Map("SPARK_HOME" -> sparkHome.getAbsolutePath))
+            .set(SUBMIT_DEPLOY_MODE, deployMode)
+            .set(SparkLauncher.DRIVER_DEFAULT_JAVA_OPTIONS, "-Dx=1 -Dy=2")
+            .set(SparkLauncher.DRIVER_EXTRA_JAVA_OPTIONS, "-Dz=3")
+            .set(AM_DEFAULT_JAVA_OPTIONS, "-Da=1 -Db=2")
+            .set(AM_JAVA_OPTIONS, "-Dc=3")
+
+          val client = createClient(sparkConf)
+          val appIdField = classOf[Client]
+            .getDeclaredField("org$apache$spark$deploy$yarn$Client$$appId")
+          appIdField.setAccessible(true)
+          // A dummy ApplicationId impl, only `toString` method will be called
+          // in Client.createContainerLaunchContext
+          appIdField.set(client, new ApplicationId {
+            override def getId: Int = 1
+            override def setId(i: Int): Unit = {}
+            override def getClusterTimestamp: Long = 1770077136288L
+            override def setClusterTimestamp(l: Long): Unit = {}
+            override def build(): Unit = {}
+            override def toString: String = "application_1770077136288_0001"
+          })
+          val stagingDirPathField = classOf[Client]
+            .getDeclaredField("org$apache$spark$deploy$yarn$Client$$stagingDirPath")
+          stagingDirPathField.setAccessible(true)
+          stagingDirPathField.set(client, new Path(stagingDir.getAbsolutePath))
+          val _createContainerLaunchContext =
+            PrivateMethod[ContainerLaunchContext](Symbol("createContainerLaunchContext"))
+          val containerLaunchContext = client invokePrivate _createContainerLaunchContext()
+
+          val commands = containerLaunchContext.getCommands.asScala
+          deployMode match {
+            case "client" =>
+              // In client mode, spark.yarn.am.defaultJavaOptions and spark.yarn.am.extraJavaOptions
+              // should be set in AM container command JAVA_OPTIONS
+              commands should contain("'-Da=1'")
+              commands should contain("'-Db=2'")
+              commands should contain("'-Dc=3'")
+              commands should not contain "'-Dx=1'"
+              commands should not contain "'-Dy=2'"
+              commands should not contain "'-Dz=3'"
+            case "cluster" =>
+              // In cluster mode, spark.driver.defaultJavaOptions and spark.driver.extraJavaOptions
+              // should be set in AM container command JAVA_OPTIONS
+              commands should not contain "'-Da=1'"
+              commands should not contain "'-Db=2'"
+              commands should not contain "'-Dc=3'"
+              commands should contain ("'-Dx=1'")
+              commands should contain ("'-Dy=2'")
+              commands should contain ("'-Dz=3'")
+            case m =>
+              fail(s"Unexpected deploy mode: $m")
+          }
         }
       }
     }