diff --git a/.github/workflows/build.yaml b/.github/workflows/build.yaml
index 125b29250..2fe8be7c8 100644
--- a/.github/workflows/build.yaml
+++ b/.github/workflows/build.yaml
@@ -14,6 +14,8 @@ concurrency:
   cancel-in-progress: ${{ github.ref != 'refs/heads/main' }}
 
 env:
+  # TODO: Remove when cargo-wdk supports Cargo build-dir layout v2 (see https://github.com/microsoft/windows-drivers-rs/issues/709).
+  CARGO_UNSTABLE_BUILD_DIR_NEW_LAYOUT: 'false'
   RUSTFLAGS: >-
     -D warnings
     -C target-feature=+crt-static
diff --git a/.github/workflows/test.yaml b/.github/workflows/test.yaml
index 3e0dfa6fe..2b26ea315 100644
--- a/.github/workflows/test.yaml
+++ b/.github/workflows/test.yaml
@@ -13,6 +13,11 @@ concurrency:
   group: ${{ github.workflow }}-${{ github.event.compare || github.head_ref || github.ref }}
   cancel-in-progress: ${{ github.ref != 'refs/heads/main' }}
 
+env:
+  # TODO: Remove when cargo-wdk supports Cargo build-dir layout v2 (see https://github.com/microsoft/windows-drivers-rs/issues/709).
+  # The whitelist in function `sanitize_env_vars` in crates/cargo-wdk/tests/test_utils/mod.rs should also be removed once this env var is removed.
+  CARGO_UNSTABLE_BUILD_DIR_NEW_LAYOUT: 'false'
+
 jobs:
   test:
     name: Test
diff --git a/crates/cargo-wdk/tests/test_utils/mod.rs b/crates/cargo-wdk/tests/test_utils/mod.rs
index f13da0e45..45dee3b21 100644
--- a/crates/cargo-wdk/tests/test_utils/mod.rs
+++ b/crates/cargo-wdk/tests/test_utils/mod.rs
@@ -313,6 +313,8 @@ fn sanitize_env_vars(cmd: &mut Command) {
             // non-default locations
             && var_upper != "CARGO_HOME"
             && var_upper != "RUSTUP_HOME"
+            // TODO: Remove this whitelist once the env var is removed from test.yaml (see https://github.com/microsoft/windows-drivers-rs/issues/709)
+            && var_upper != "CARGO_UNSTABLE_BUILD_DIR_NEW_LAYOUT"
         {
             Some(var)
         } else {