diff --git a/pkg/machine/e2e/proxy_test.go b/pkg/machine/e2e/proxy_test.go
index b5393832d7..020fad5b0b 100644
--- a/pkg/machine/e2e/proxy_test.go
+++ b/pkg/machine/e2e/proxy_test.go
@@ -3,6 +3,7 @@ package e2e_test
 import (
 	"os"
 
+	"github.com/containers/podman/v4/pkg/machine"
 	. "github.com/onsi/ginkgo/v2"
 	. "github.com/onsi/gomega"
 	. "github.com/onsi/gomega/gexec"
@@ -22,6 +23,10 @@ var _ = Describe("podman machine proxy settings propagation", func() {
 	})
 
 	It("ssh to running machine and check proxy settings", func() {
+		// https://github.com/containers/podman/issues/20129
+		if testProvider.VMType() == machine.HyperVVirt {
+			Skip("proxy settings not yet supported")
+		}
 		name := randomString()
 		i := new(initMachine)
 		session, err := mb.setName(name).setCmd(i.withImagePath(mb.imagePath)).run()