diff --git a/x-pack/test_serverless/functional/test_suites/observability/navigation.ts b/x-pack/test_serverless/functional/test_suites/observability/navigation.ts
index e8793a6af1d87..0b18ae0440e9b 100644
--- a/x-pack/test_serverless/functional/test_suites/observability/navigation.ts
+++ b/x-pack/test_serverless/functional/test_suites/observability/navigation.ts
@@ -75,7 +75,9 @@ export default function ({ getPageObject, getService }: FtrProviderContext) {
       await expectNoPageReload();
     });
 
-    it('active sidenav section is auto opened on load', async () => {
+    // Skipping this test as it is not supported in the new navigation for now.
+    // Will be fixed in https://github.com/elastic/kibana/issues/167328
+    it.skip('active sidenav section is auto opened on load', async () => {
       await svlCommonNavigation.sidenav.openSection('project_settings_project_nav');
       await svlCommonNavigation.sidenav.clickLink({ deepLinkId: 'management' });
       await browser.refresh();