diff --git a/hazelcast-sql/src/test/java/com/hazelcast/jet/sql/impl/connector/file/SqlHadoopTest.java b/hazelcast-sql/src/test/java/com/hazelcast/jet/sql/impl/connector/file/SqlHadoopTest.java
index ffbb27bf95d5..d911bf0e036c 100644
--- a/hazelcast-sql/src/test/java/com/hazelcast/jet/sql/impl/connector/file/SqlHadoopTest.java
+++ b/hazelcast-sql/src/test/java/com/hazelcast/jet/sql/impl/connector/file/SqlHadoopTest.java
@@ -57,6 +57,11 @@ public class SqlHadoopTest extends SqlTestSupport {
     public static void setUpClass() throws Exception {
         assumeThatNoWindowsOS();
 
+        // Tests will fail on IBM JDK17 with error:
+        // No LoginModule found for com.ibm.security.auth.module.JAASLoginModule
+        // see https://github.com/hazelcast/hazelcast/issues/20754
+        assumeThatNotIBMJDK17();
+
         initialize(1, null);
         sqlService = instance().getSql();