diff --git a/tests/test_suites/llm/sft-qwen2.5-32b-4n8g-fsdp2tp8sp-actckpt.v3.sh b/tests/test_suites/llm/sft-qwen2.5-32b-4n8g-fsdp2tp8sp-actckpt.v3.sh.disabled
similarity index 100%
rename from tests/test_suites/llm/sft-qwen2.5-32b-4n8g-fsdp2tp8sp-actckpt.v3.sh
rename to tests/test_suites/llm/sft-qwen2.5-32b-4n8g-fsdp2tp8sp-actckpt.v3.sh.disabled
diff --git a/tests/test_suites/nightly.txt b/tests/test_suites/nightly.txt
index ea353d1131..63588bc036 100644
--- a/tests/test_suites/nightly.txt
+++ b/tests/test_suites/nightly.txt
@@ -65,7 +65,8 @@ tests/test_suites/llm/sft-llama3.1-8b-1n8g-fsdp2tp2.sh
 tests/test_suites/llm/sft-llama3.1-8b-1n8g-fsdp2tp1-dynamicbatch.sh
 
 # Functional 32b test
-tests/test_suites/llm/sft-qwen2.5-32b-4n8g-fsdp2tp8sp-actckpt.v3.sh
+# TODO(ahmadki): sequence parallel + tp_size >1 is currently broken in torch==2.8.0, disabled until https://github.com/NVIDIA-NeMo/Automodel/issues/652 is fixed
+# tests/test_suites/llm/sft-qwen2.5-32b-4n8g-fsdp2tp8sp-actckpt.v3.sh
 
 # Megatron
 tests/test_suites/llm/sft-llama3.1-8b-1n8g-megatron.sh