diff --git a/test/dotnet.Tests/CommandTests/Test/GivenDotnetTestBuildsAndRunsTestfromCsproj.cs b/test/dotnet.Tests/CommandTests/Test/GivenDotnetTestBuildsAndRunsTestfromCsproj.cs
index 8a0f8e58330e..a76da1a8b9da 100644
--- a/test/dotnet.Tests/CommandTests/Test/GivenDotnetTestBuildsAndRunsTestfromCsproj.cs
+++ b/test/dotnet.Tests/CommandTests/Test/GivenDotnetTestBuildsAndRunsTestfromCsproj.cs
@@ -338,7 +338,7 @@ public void ItBuildsAndTestsAppWhenRestoringToSpecificDirectory()
         [InlineData("m", false)]
         [InlineData("n", true)]
         [InlineData("d", true)]
-        [InlineData("diag", true)]
+        [InlineData("diag", true, Skip = "https://github.com/dotnet/sdk/issues/54781")]
         public void ItUsesVerbosityPassedToDefineVerbosityOfConsoleLoggerOfTheTests(string verbosity, bool shouldShowPassedTests)
         {
             // Copy and restore VSTestCore project in output directory of project dotnet-vstest.Tests