diff --git a/tempest/api/compute/admin/test_servers_on_multinodes.py b/tempest/api/compute/admin/test_servers_on_multinodes.py
index 5dc153e..e8367c5 100644
--- a/tempest/api/compute/admin/test_servers_on_multinodes.py
+++ b/tempest/api/compute/admin/test_servers_on_multinodes.py
@@ -144,6 +144,12 @@
 
         if not CONF.compute_feature_enabled.shelve:
             raise cls.skipException("Shelve is not available.")
+        # Test has two users from different projects. Member user creates VM
+        # and shelve it but admin user unshelve this VM. In case of encrypted
+        # Nova storage the admin user has no access to the user encryption
+        # keys and not be able to perform unshelve action.
+        if CONF.ephemeral_storage_encryption.enabled:
+            raise cls.skipException("Nova has encrypted storage.")
         if CONF.compute.min_compute_nodes < 2:
             raise cls.skipException(
                 "Less than 2 compute nodes, skipping multi-nodes test.")