diff --git a/tests_e2e/orchestrator/scripts/install-agent b/tests_e2e/orchestrator/scripts/install-agent
index 61181b44d3..d28164f6d3 100755
--- a/tests_e2e/orchestrator/scripts/install-agent
+++ b/tests_e2e/orchestrator/scripts/install-agent
@@ -140,6 +140,25 @@ if [[ $(uname -a) == *"flatcar"* ]]; then
   if [[ ! -f /usr/share/oem/waagent.conf ]]; then
     ln -s "$waagent_conf_path" /usr/share/oem/waagent.conf
   fi
+
+  # New flatcar images set the uphold property for agent service that is causing automatic restart on stop cmd
+  # [Upholds= dependency on it has a continuous effect, constantly restarting the unit if necessary]
+  # Resetting the uphold property as workaround for now
+  uphold_target=$(systemctl show waagent --property=UpheldBy)
+  # example output: UpheldBy=multi-user.target
+  if [[ $uphold_target == *".target"* ]]; then
+    target_name="${uphold_target#*=}"
+    if [[ ! -d /etc/systemd/system/$target_name.d ]]; then
+      mkdir -p /etc/systemd/system/$target_name.d
+    fi
+    echo -e "[Unit]\nUpholds=" > /etc/systemd/system/$target_name.d/10-waagent-sysext.conf
+    systemctl daemon-reload
+  fi
+  # Flatcar images does automatic reboot without user input, so turning it off
+  # Broadcast message from locksmithd at 2024-02-23 19:48:55.478412272 +0000 UTC m=
+  # System reboot in 5 minutes!
+  echo "REBOOT_STRATEGY=off" > /etc/flatcar/update.conf
+  systemctl restart locksmithd
 fi
 
 #
diff --git a/tests_e2e/test_suites/agent_firewall.yml b/tests_e2e/test_suites/agent_firewall.yml
index 4697265709..0e095ba39e 100644
--- a/tests_e2e/test_suites/agent_firewall.yml
+++ b/tests_e2e/test_suites/agent_firewall.yml
@@ -12,9 +12,4 @@ tests:
 images:
   - "endorsed"
   - "endorsed-arm64"
-owns_vm: true  # This vm cannot be shared with other tests because it modifies the firewall rules and agent status.
-# Systemctl stop functionality changed and service doing restart on stop cmd in flatcar images. Thus breaking our tests.
-# TODO: Enable once it is fixed
-skip_on_images:
-  - "flatcar"
-  - "flatcar_arm64"
\ No newline at end of file
+owns_vm: true  # This vm cannot be shared with other tests because it modifies the firewall rules and agent status.
\ No newline at end of file
diff --git a/tests_e2e/test_suites/agent_update.yml b/tests_e2e/test_suites/agent_update.yml
index 5c8736a4ea..e53f2f9211 100644
--- a/tests_e2e/test_suites/agent_update.yml
+++ b/tests_e2e/test_suites/agent_update.yml
@@ -13,8 +13,8 @@ owns_vm: true
 skip_on_clouds:
   - "AzureChinaCloud"
   - "AzureUSGovernment"
-# Systemctl stop functionality changed and service doing restart on stop cmd in flatcar images. Thus breaking our tests.
-# TODO: Enable once it is fixed
+# Since Flatcar read-only filesystem, we can't edit the version file. This test relies on the version to be updated in version file.
+# TODO: Enable once we find workaround for this
 skip_on_images:
   - "flatcar"
   - "flatcar_arm64"
\ No newline at end of file