diff --git a/src/test/cli.podman.test.ts b/src/test/cli.podman.test.ts
index 932d9a358..4541eadb9 100644
--- a/src/test/cli.podman.test.ts
+++ b/src/test/cli.podman.test.ts
@@ -14,6 +14,11 @@ describe('Dev Containers CLI using Podman', function () {
 
 	const tmp = path.relative(process.cwd(), path.join(__dirname, 'tmp'));
 	const cli = `npx --prefix ${tmp} devcontainer`;
+	const podman = 'podman';
+	// Buildah 1.42+ can reset /tmp permissions after RUN --mount when layers are enabled.
+	const cliEnvironment = process.env.GITHUB_ACTIONS === 'true'
+		? { ...process.env, BUILDAH_LAYERS: 'false' }
+		: process.env;
 
 	before('Install', async () => {
 		await shellExec(`rm -rf ${tmp}/node_modules`);
@@ -24,21 +29,21 @@ describe('Dev Containers CLI using Podman', function () {
 	describe('Command up using Podman', () => {
 
 		it('should execute successfully with valid config with features', async () => {
-			const res = await shellExec(`${cli} up --docker-path podman --workspace-folder ${__dirname}/configs/image-with-features`);
+			const res = await shellExec(`${cli} up --docker-path ${podman} --workspace-folder ${__dirname}/configs/image-with-features`, { env: cliEnvironment });
 			const response = JSON.parse(res.stdout);
 			assert.equal(response.outcome, 'success');
 			const containerId: string = response.containerId;
 			assert.ok(containerId, 'Container id not found.');
-			await shellExec(`podman rm -f ${containerId}`);
+			await shellExec(`${podman} rm -f ${containerId}`);
 		});
 
 		it('should execute successfully with valid config with features', async () => {
-			const res = await shellExec(`${cli} up --docker-path podman --workspace-folder ${__dirname}/configs/dockerfile-with-features`);
+			const res = await shellExec(`${cli} up --docker-path ${podman} --workspace-folder ${__dirname}/configs/dockerfile-with-features`, { env: cliEnvironment });
 			const response = JSON.parse(res.stdout);
 			assert.equal(response.outcome, 'success');
 			const containerId: string = response.containerId;
 			assert.ok(containerId, 'Container id not found.');
-			await shellExec(`podman rm -f ${containerId}`);
+			await shellExec(`${podman} rm -f ${containerId}`);
 		});
 	});
-});
\ No newline at end of file
+});