diff --git a/test/smoke/src/areas/terminal/terminal-persistence.test.ts b/test/smoke/src/areas/terminal/terminal-persistence.test.ts
index 50998b5ac76..498f73af4e5 100644
--- a/test/smoke/src/areas/terminal/terminal-persistence.test.ts
+++ b/test/smoke/src/areas/terminal/terminal-persistence.test.ts
@@ -28,7 +28,8 @@ export function setup(opts: ParsedArgs) {
 		});
 
 		describe('detach/attach', () => {
-			it('should support basic reconnection', async () => {
+			// https://github.com/microsoft/vscode/issues/137799
+			it.skip('should support basic reconnection', async () => {
 				await terminal.runCommand(TerminalCommandId.CreateNew);
 				// TODO: Handle passing in an actual regex, not string
 				await terminal.assertTerminalGroups([