diff --git a/Makefile b/Makefile
index 952d405a564..b283f85ba6e 100644
--- a/Makefile
+++ b/Makefile
@@ -38,6 +38,9 @@ endif
 
 export NO_SUDO       ?= false
 
+# Workaround: https://github.com/dotnet/sdk/issues/26965
+export DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER = true
+
 ifneq ($(NO_SUDO),false)
 _PREPARE_ARGS += --auto-provisioning-uses-sudo=false
 endif
diff --git a/build-tools/automation/yaml-templates/variables.yaml b/build-tools/automation/yaml-templates/variables.yaml
index 31576a1957c..44c591ce654 100644
--- a/build-tools/automation/yaml-templates/variables.yaml
+++ b/build-tools/automation/yaml-templates/variables.yaml
@@ -43,3 +43,6 @@ variables:
   value: 0
 - name: DotNetReleaseBranchPrefix
   value: refs/heads/release/
+# Workaround: https://github.com/dotnet/sdk/issues/26965
+- name: DOTNET_CLI_DO_NOT_USE_MSBUILD_SERVER
+  value: true