diff --git a/src/vs/platform/assignment/common/assignmentService.ts b/src/vs/platform/assignment/common/assignmentService.ts
index 413bd60f7ffe4..d5ab03ae0b62d 100644
--- a/src/vs/platform/assignment/common/assignmentService.ts
+++ b/src/vs/platform/assignment/common/assignmentService.ts
@@ -19,7 +19,7 @@ export abstract class BaseAssignmentService implements IAssignmentService {
 	private overrideInitDelay: Promise<void>;
 
 	protected get experimentsEnabled(): boolean {
-		return true;
+		return !this.environmentService.disableExperiments;
 	}
 
 	constructor(
diff --git a/src/vs/workbench/services/assignment/common/assignmentService.ts b/src/vs/workbench/services/assignment/common/assignmentService.ts
index d18437e1bca81..ebded17a67d33 100644
--- a/src/vs/workbench/services/assignment/common/assignmentService.ts
+++ b/src/vs/workbench/services/assignment/common/assignmentService.ts
@@ -18,6 +18,7 @@ import { Registry } from '../../../../platform/registry/common/platform.js';
 import { BaseAssignmentService } from '../../../../platform/assignment/common/assignmentService.js';
 import { workbenchConfigurationNodeBase } from '../../../common/configuration.js';
 import { IConfigurationRegistry, Extensions as ConfigurationExtensions, ConfigurationScope } from '../../../../platform/configuration/common/configurationRegistry.js';
+import { IWorkbenchEnvironmentService } from '../../environment/common/environmentService.js';
 import { IEnvironmentService } from '../../../../platform/environment/common/environment.js';
 
 export const IWorkbenchAssignmentService = createDecorator<IWorkbenchAssignmentService>('WorkbenchAssignmentService');
@@ -86,7 +87,8 @@ export class WorkbenchAssignmentService extends BaseAssignmentService {
 		@IStorageService storageService: IStorageService,
 		@IConfigurationService configurationService: IConfigurationService,
 		@IProductService productService: IProductService,
-		@IEnvironmentService environmentService: IEnvironmentService
+		@IEnvironmentService environmentService: IEnvironmentService,
+		@IWorkbenchEnvironmentService private readonly workbenchEnvironmentService: IWorkbenchEnvironmentService
 	) {
 
 		super(
@@ -100,7 +102,10 @@ export class WorkbenchAssignmentService extends BaseAssignmentService {
 	}
 
 	protected override get experimentsEnabled(): boolean {
-		return !this.environmentService.disableExperiments && this.configurationService.getValue('workbench.enableExperiments') === true;
+		return !this.environmentService.disableExperiments &&
+			!this.environmentService.extensionTestsLocationURI &&
+			!this.workbenchEnvironmentService.enableSmokeTestDriver &&
+			this.configurationService.getValue('workbench.enableExperiments') === true;
 	}
 
 	override async getTreatment<T extends string | number | boolean>(name: string): Promise<T | undefined> {
diff --git a/src/vs/workbench/services/coreExperimentation/common/coreExperimentationService.ts b/src/vs/workbench/services/coreExperimentation/common/coreExperimentationService.ts
index 944e9bee9de8f..5ab4a26c6b3c3 100644
--- a/src/vs/workbench/services/coreExperimentation/common/coreExperimentationService.ts
+++ b/src/vs/workbench/services/coreExperimentation/common/coreExperimentationService.ts
@@ -89,8 +89,12 @@ export class CoreExperimentationService extends Disposable implements ICoreExper
 	) {
 		super();
 
-		if (environmentService.disableExperiments) {
-			return; // explicitly disabled
+		if (
+			environmentService.disableExperiments ||
+			environmentService.enableSmokeTestDriver ||
+			environmentService.extensionTestsLocationURI
+		) {
+			return; //not applicable in this environment
 		}
 
 		this.initializeExperiments();