diff --git a/CMakeLists.txt b/CMakeLists.txt
index 9ec31a9879c..6185c17ff77 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -626,9 +626,6 @@ if(gRPC_BUILD_TESTS)
   if(_gRPC_PLATFORM_LINUX OR _gRPC_PLATFORM_MAC OR _gRPC_PLATFORM_POSIX)
     add_dependencies(buildtests_c handshake_server_with_readahead_handshaker_test)
   endif()
-  if(_gRPC_PLATFORM_LINUX OR _gRPC_PLATFORM_MAC OR _gRPC_PLATFORM_POSIX)
-    add_dependencies(buildtests_c handshake_verify_peer_options_test)
-  endif()
   add_dependencies(buildtests_c histogram_test)
   add_dependencies(buildtests_c host_port_test)
   add_dependencies(buildtests_c hpack_encoder_test)
@@ -5720,35 +5717,6 @@ if(_gRPC_PLATFORM_LINUX OR _gRPC_PLATFORM_MAC OR _gRPC_PLATFORM_POSIX)
   )
 
 
-endif()
-endif()
-if(gRPC_BUILD_TESTS)
-if(_gRPC_PLATFORM_LINUX OR _gRPC_PLATFORM_MAC OR _gRPC_PLATFORM_POSIX)
-
-  add_executable(handshake_verify_peer_options_test
-    test/core/handshake/verify_peer_options.cc
-  )
-
-  target_include_directories(handshake_verify_peer_options_test
-    PRIVATE
-      ${CMAKE_CURRENT_SOURCE_DIR}
-      ${CMAKE_CURRENT_SOURCE_DIR}/include
-      ${_gRPC_ADDRESS_SORTING_INCLUDE_DIR}
-      ${_gRPC_RE2_INCLUDE_DIR}
-      ${_gRPC_SSL_INCLUDE_DIR}
-      ${_gRPC_UPB_GENERATED_DIR}
-      ${_gRPC_UPB_GRPC_GENERATED_DIR}
-      ${_gRPC_UPB_INCLUDE_DIR}
-      ${_gRPC_XXHASH_INCLUDE_DIR}
-      ${_gRPC_ZLIB_INCLUDE_DIR}
-  )
-
-  target_link_libraries(handshake_verify_peer_options_test
-    ${_gRPC_ALLTARGETS_LIBRARIES}
-    grpc_test_util
-  )
-
-
 endif()
 endif()
 if(gRPC_BUILD_TESTS)
diff --git a/build_autogenerated.yaml b/build_autogenerated.yaml
index c183c1a09e9..c885a861575 100644
--- a/build_autogenerated.yaml
+++ b/build_autogenerated.yaml
@@ -3408,18 +3408,6 @@ targets:
   - linux
   - posix
   - mac
-- name: handshake_verify_peer_options_test
-  build: test
-  language: c
-  headers: []
-  src:
-  - test/core/handshake/verify_peer_options.cc
-  deps:
-  - grpc_test_util
-  platforms:
-  - linux
-  - posix
-  - mac
 - name: histogram_test
   build: test
   language: c
diff --git a/test/core/handshake/BUILD b/test/core/handshake/BUILD
index 24dc1431396..8ead4083739 100644
--- a/test/core/handshake/BUILD
+++ b/test/core/handshake/BUILD
@@ -83,19 +83,20 @@ grpc_cc_test(
     ],
 )
 
-grpc_cc_test(
-    name = "handshake_verify_peer_options_test",
-    srcs = ["verify_peer_options.cc"],
-    data = [
-        "//src/core/tsi/test_creds:ca.pem",
-        "//src/core/tsi/test_creds:server1.key",
-        "//src/core/tsi/test_creds:server1.pem",
-    ],
-    language = "C++",
-    tags = ["no_windows"],
-    deps = [
-        "//:gpr",
-        "//:grpc",
-        "//test/core/util:grpc_test_util",
-    ],
-)
+# Disabled as per b/178094682
+#grpc_cc_test(
+#    name = "handshake_verify_peer_options_test",
+#    srcs = ["verify_peer_options.cc"],
+#    data = [
+#        "//src/core/tsi/test_creds:ca.pem",
+#        "//src/core/tsi/test_creds:server1.key",
+#        "//src/core/tsi/test_creds:server1.pem",
+#    ],
+#    language = "C++",
+#    tags = ["no_mac", no_windows"],
+#    deps = [
+#        "//:gpr",
+#        "//:grpc",
+#        "//test/core/util:grpc_test_util",
+#    ],
+#)
diff --git a/tools/run_tests/generated/tests.json b/tools/run_tests/generated/tests.json
index 08a9c24c87d..ea9e7f84efb 100644
--- a/tools/run_tests/generated/tests.json
+++ b/tools/run_tests/generated/tests.json
@@ -1445,28 +1445,6 @@
     ],
     "uses_polling": true
   },
-  {
-    "args": [],
-    "benchmark": false,
-    "ci_platforms": [
-      "linux",
-      "mac",
-      "posix"
-    ],
-    "cpu_cost": 1.0,
-    "exclude_configs": [],
-    "exclude_iomgrs": [],
-    "flaky": false,
-    "gtest": false,
-    "language": "c",
-    "name": "handshake_verify_peer_options_test",
-    "platforms": [
-      "linux",
-      "mac",
-      "posix"
-    ],
-    "uses_polling": true
-  },
   {
     "args": [],
     "benchmark": false,