diff --git a/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts b/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
index b27f729f46d..8586d6c1791 100644
--- a/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
+++ b/extensions/vscode-api-tests/src/singlefolder-tests/terminal.test.ts
@@ -492,7 +492,8 @@ import { assertNoRpc } from '../utils';
 			// 	const terminal = window.createTerminal({ name: 'foo', pty });
 			// });
 
-			test('should respect dimension overrides', async () => {
+			// Skip in remote for now as it's flaky https://github.com/microsoft/vscode/issues/137155
+			(process.env.REMOTE_VSCODE ? test.skip : test)('should respect dimension overrides', async () => {
 				const writeEmitter = new EventEmitter<string>();
 				const overrideDimensionsEmitter = new EventEmitter<TerminalDimensions>();
 				const pty: Pseudoterminal = {