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App Engine Not able to process large concurrent requests

I have deployed a service on Google Cloud's App Engine, and I'm currently stress-testing the system by sending 500+ concurrent requests to the endpoint. However, I've encountered an issue where a significant portion of the requests (approximately 300+) are resulting in a '500: Request was aborted after waiting too long' response. I'm investigating the root cause of this problem.

I suspect that the App Engine might be struggling to handle this level of concurrent requests. If this is indeed the case, I'm seeking guidance on optimizing my app.yaml configuration to enhance App Engine's performance while keeping costs in check. Alternatively, I'm open to exploring other solutions that can effectively address this issue without necessitating changes to the App Engine configuration.

Here's a snippet of my current app.yaml configuration for reference:"

shawavisek35_0-1700895001268.png

I am really confused on how to solve this efficiently, Any sort of help would be appreciated.
Thanks

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