diff --git a/sharktank/tests/models/vae/vae_test.py b/sharktank/tests/models/vae/vae_test.py
index 99454f6cf..9b77d835e 100644
--- a/sharktank/tests/models/vae/vae_test.py
+++ b/sharktank/tests/models/vae/vae_test.py
@@ -100,6 +100,9 @@ def testCompareF16EagerVsHuggingface(self):
 
         torch.testing.assert_close(ref_results, results)
 
+    @pytest.mark.xfail(
+        reason="Waiting on fix for https://github.com/iree-org/iree/issues/19623"
+    )
     def testVaeIreeVsHuggingFace(self):
         dtype = getattr(torch, "float32")
         inputs = get_random_inputs(dtype=dtype, device="cpu", bs=1)