diff --git a/test/functional/config/example_dut_config.yml b/test/functional/config/example_dut_config.yml
index 619849e..00180d8 100644
--- a/test/functional/config/example_dut_config.yml
+++ b/test/functional/config/example_dut_config.yml
@@ -1,10 +1,10 @@
 # DUT type should be either "local" or "ssh"
-# if ssh is selected, then ip, user and password fields are required
+# if ssh is selected, then ip and user fields are required and you have to make sure you have
+# enabled SSH key-based authentication to the machine with given ip address
 type: "local"
 
 # ip: "x.x.x.x"
 # user: "example_user"
-# password: "example_password"
 
 # env: "HTTPS_PROXY=myproxy.example:12345"
 # reboot_timeout: 1800  #timeout value in seconds
diff --git a/test/functional/tests/conftest.py b/test/functional/tests/conftest.py
index 58b24c7..1c4ddb4 100644
--- a/test/functional/tests/conftest.py
+++ b/test/functional/tests/conftest.py
@@ -8,6 +8,7 @@ import sys
 import traceback
 from datetime import timedelta
 
+import paramiko
 import pytest
 import yaml
 
@@ -61,6 +62,8 @@ def pytest_runtest_setup(item):
         TestRun.presetup()
         try:
             TestRun.executor.wait_for_connection(timedelta(seconds=20))
+        except paramiko.AuthenticationException:
+            raise
         except Exception:
             try:
                 TestRun.plugin_manager.get_plugin('power_control').power_cycle()