diff --git a/eng/pipelines/coreclr/templates/run-performance-job.yml b/eng/pipelines/coreclr/templates/run-performance-job.yml
index 218c8262ad52d..c9e9ef693832c 100644
--- a/eng/pipelines/coreclr/templates/run-performance-job.yml
+++ b/eng/pipelines/coreclr/templates/run-performance-job.yml
@@ -89,6 +89,7 @@ jobs:
         sudo apt-get update &&
         sudo apt -y install curl dirmngr apt-transport-https lsb-release ca-certificates &&
         $(HelixPreCommandsWasmOnLinux) &&
+        export DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER=1 &&
         export PERFLAB_UPLOAD_TOKEN="$(HelixPerfUploadTokenValue)"
         || export PERF_PREREQS_INSTALL_FAILED=1;
         test "x$PERF_PREREQS_INSTALL_FAILED" = "x1" && echo "** Error: Failed to install prerequites **"
diff --git a/eng/testing/performance/microbenchmarks.proj b/eng/testing/performance/microbenchmarks.proj
index 3793751775f92..dc14d5dd37661 100644
--- a/eng/testing/performance/microbenchmarks.proj
+++ b/eng/testing/performance/microbenchmarks.proj
@@ -34,7 +34,8 @@
     <Python>python3</Python>
     <CoreRun>$(BaseDirectory)/Core_Root/corerun</CoreRun>
     <BaselineCoreRun>$(BaseDirectory)/Baseline_Core_Root/corerun</BaselineCoreRun>
-    <HelixPreCommands>$(HelixPreCommands);chmod +x $(PerformanceDirectory)/tools/machine-setup.sh;. $(PerformanceDirectory)/tools/machine-setup.sh</HelixPreCommands>
+    <!-- Set DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER=1 as a workaround for https://github.com/dotnet/runtime/issues/74328 -->
+    <HelixPreCommands>$(HelixPreCommands);chmod +x $(PerformanceDirectory)/tools/machine-setup.sh;. $(PerformanceDirectory)/tools/machine-setup.sh;export DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER=1</HelixPreCommands>
     <ArtifactsDirectory>$HELIX_WORKITEM_ROOT/artifacts/BenchmarkDotNet.Artifacts</ArtifactsDirectory>
     <BaselineArtifactsDirectory>$HELIX_WORKITEM_ROOT/artifacts/BenchmarkDotNet.Artifacts_Baseline</BaselineArtifactsDirectory>
     <ResultsComparer>$(PerformanceDirectory)/src/tools/ResultsComparer/ResultsComparer.csproj</ResultsComparer>
diff --git a/eng/testing/tests.wasm.targets b/eng/testing/tests.wasm.targets
index b85acb34fb619..7ecff6b59fbad 100644
--- a/eng/testing/tests.wasm.targets
+++ b/eng/testing/tests.wasm.targets
@@ -60,12 +60,16 @@
     <SetScriptCommands Condition="'$(JSEngine)' != ''" Include="export JS_ENGINE=--engine=$(JSEngine)" />
     <SetScriptCommands Condition="'$(JSEngineArgs)' != ''" Include="export JS_ENGINE_ARGS=$(JSEngineArgs)" />
     <SetScriptCommands Condition="'$(_WasmMainJSFileName)' != ''" Include="export MAIN_JS=--js-file=$(_WasmMainJSFileName)" />
+    <!-- Workaround for https://github.com/dotnet/runtime/issues/74328 -->
+    <SetScriptCommands Condition="'$(BuildAOTTestsOnHelix)' == 'true'" Include="export DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER=1" />
   </ItemGroup>
   <ItemGroup Condition="'$(OS)' == 'Windows_NT'">
     <SetScriptCommands Condition="'$(Scenario)' != '' and '$(ContinuousIntegrationBuild)' != 'true'" Include="set &quot;SCENARIO=$(Scenario)&quot;" />
     <SetScriptCommands Condition="'$(JSEngine)' != ''" Include="set &quot;JS_ENGINE=--engine^=$(JSEngine)&quot;" />
     <SetScriptCommands Condition="'$(JSEngineArgs)' != ''" Include="set &quot;JS_ENGINE_ARGS=$(JSEngineArgs)&quot;" />
     <SetScriptCommands Condition="'$(_WasmMainJSFileName)' != ''" Include="set &quot;MAIN_JS=--js-file^=$(_WasmMainJSFileName)&quot;" />
+    <!-- Workaround for https://github.com/dotnet/runtime/issues/74328 -->
+    <SetScriptCommands Condition="'$(BuildAOTTestsOnHelix)' == 'true'" Include="set DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER=1" />
   </ItemGroup>
 
   <PropertyGroup>
diff --git a/src/tests/BuildWasmApps/Wasm.Build.Tests/DotNetCommand.cs b/src/tests/BuildWasmApps/Wasm.Build.Tests/DotNetCommand.cs
index 84ccf2fa23ab1..44f58f5cc45e0 100644
--- a/src/tests/BuildWasmApps/Wasm.Build.Tests/DotNetCommand.cs
+++ b/src/tests/BuildWasmApps/Wasm.Build.Tests/DotNetCommand.cs
@@ -16,6 +16,8 @@ public DotNetCommand(BuildEnvironment buildEnv, ITestOutputHelper _testOutput, b
             _useDefaultArgs = useDefaultArgs;
             if (useDefaultArgs)
                 WithEnvironmentVariables(buildEnv.EnvVars);
+            // workaround msbuild issue - https://github.com/dotnet/runtime/issues/74328
+            WithEnvironmentVariable("DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER", "1");
         }
 
         protected override string GetFullArgs(params string[] args)
diff --git a/src/tests/BuildWasmApps/Wasm.Build.Tests/RunCommand.cs b/src/tests/BuildWasmApps/Wasm.Build.Tests/RunCommand.cs
index 01f1e1efacd21..33759316d1e34 100644
--- a/src/tests/BuildWasmApps/Wasm.Build.Tests/RunCommand.cs
+++ b/src/tests/BuildWasmApps/Wasm.Build.Tests/RunCommand.cs
@@ -14,5 +14,7 @@ public RunCommand(BuildEnvironment buildEnv, ITestOutputHelper _testOutput, stri
         WithEnvironmentVariable("DOTNET_INSTALL_DIR", Path.GetDirectoryName(buildEnv.DotNet)!);
         WithEnvironmentVariable("DOTNET_MULTILEVEL_LOOKUP", "0");
         WithEnvironmentVariable("DOTNET_SKIP_FIRST_TIME_EXPERIENCE", "1");
+        // workaround msbuild issue - https://github.com/dotnet/runtime/issues/74328
+        WithEnvironmentVariable("DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER", "1");
     }
 }
diff --git a/src/tests/Common/CLRTest.Execute.Bash.targets b/src/tests/Common/CLRTest.Execute.Bash.targets
index 82eb602eadddc..bb353c172dfcd 100644
--- a/src/tests/Common/CLRTest.Execute.Bash.targets
+++ b/src/tests/Common/CLRTest.Execute.Bash.targets
@@ -286,6 +286,9 @@ else
   __Command+=" dotnet"
 fi
 
+# workaround msbuild issue - https://github.com/dotnet/runtime/issues/74328
+export DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER=1
+
 $__Command msbuild $CORE_ROOT/wasm-test-runner/WasmTestRunner.proj /p:NetCoreAppCurrent=$(NetCoreAppCurrent) /p:TestAssemblyFileName=$(MsBuildProjectName).dll /p:TestBinDir=`pwd` $(CLRTestMSBuildArgs) || exit $?
 
    ]]>