diff --git a/qa/qa/specs/features/browser_ui/3_create/repository/add_file_template_spec.rb b/qa/qa/specs/features/browser_ui/3_create/repository/add_file_template_spec.rb
index 567c6a83ddf75fbad6704b27a1b9b06e312d1d3f..458072b1507d957d75de6ae60545d142d3e42908 100644
--- a/qa/qa/specs/features/browser_ui/3_create/repository/add_file_template_spec.rb
+++ b/qa/qa/specs/features/browser_ui/3_create/repository/add_file_template_spec.rb
@@ -1,7 +1,8 @@
 # frozen_string_literal: true
 
 module QA
-  context 'Create' do
+  # Failure issue: https://gitlab.com/gitlab-org/quality/nightly/issues/127
+  context 'Create', :quarantine do
     describe 'File templates' do
       include Runtime::Fixtures