diff --git a/test/common/index.js b/test/common/index.js
index 8eccffbb84b663..6ef229797c8f77 100644
--- a/test/common/index.js
+++ b/test/common/index.js
@@ -598,7 +598,8 @@ function printSkipMessage(msg) {
 
 function skip(msg) {
   printSkipMessage(msg);
-  process.exit(0);
+  // In known_issues test, skipping should produce a non-zero exit code.
+  process.exit(require.main?.filename.startsWith(path.resolve(__dirname, '../known_issues/')) ? 1 : 0);
 }
 
 // Returns true if the exit code "exitCode" and/or signal name "signal"
diff --git a/test/fixtures/inspector-instrumentation-breakpoint/dep.js b/test/fixtures/inspector-instrumentation-breakpoint/dep.js
new file mode 100644
index 00000000000000..e2ba44676df631
--- /dev/null
+++ b/test/fixtures/inspector-instrumentation-breakpoint/dep.js
@@ -0,0 +1 @@
+console.log('dep loaded');
diff --git a/test/fixtures/inspector-instrumentation-breakpoint/main.js b/test/fixtures/inspector-instrumentation-breakpoint/main.js
new file mode 100644
index 00000000000000..a0b8fdf1c94ad4
--- /dev/null
+++ b/test/fixtures/inspector-instrumentation-breakpoint/main.js
@@ -0,0 +1 @@
+require('./dep');
diff --git a/test/known_issues/test-inspector-instrumentation-breakpoint.js b/test/known_issues/test-inspector-instrumentation-breakpoint.js
new file mode 100644
index 00000000000000..0105097f2baf4a
--- /dev/null
+++ b/test/known_issues/test-inspector-instrumentation-breakpoint.js
@@ -0,0 +1,54 @@
+// This test validates inspector's Debugger.setInstrumentationBreakpoint method.
+// Refs: https://github.com/nodejs/node/issues/31138
+
+'use strict';
+const common = require('../common');
+
+common.skipIfInspectorDisabled();
+
+const assert = require('assert');
+const { resolve: UrlResolve } = require('url');
+const fixtures = require('../common/fixtures');
+const { NodeInstance } = require('../common/inspector-helper.js');
+
+async function testBreakpointBeforeScriptExecution(session) {
+  console.log('[test]',
+              'Verifying debugger stops on start of each script ' +
+    '(Debugger.setInstrumentationBreakpoint with beforeScriptExecution)');
+  const commands = [
+    { 'method': 'Runtime.enable' },
+    { 'method': 'Debugger.enable' },
+    { 'method': 'Debugger.setInstrumentationBreakpoint',
+      'params': { 'instrumentation': 'beforeScriptExecution' } },
+    { 'method': 'Runtime.runIfWaitingForDebugger' },
+  ];
+
+  await session.send(commands);
+
+  // Break on start
+  await session.waitForBreakOnLine(
+    0, UrlResolve(session.scriptURL().toString(), 'main.js'));
+  await session.send([{ 'method': 'Debugger.resume' }]);
+
+  // Script loaded
+  await session.waitForBreakOnLine(
+    0, UrlResolve(session.scriptURL().toString(), 'main.js'));
+  await session.send([{ 'method': 'Debugger.resume' }]);
+
+  // Script loaded
+  await session.waitForBreakOnLine(
+    0, UrlResolve(session.scriptURL().toString(), 'dep.js'));
+  await session.send([{ 'method': 'Debugger.resume' }]);
+}
+
+async function runTest() {
+  const main = fixtures.path('inspector-instrumentation-breakpoint', 'main.js');
+  const child = new NodeInstance(['--inspect-brk=0'], '', main);
+
+  const session = await child.connectInspectorSession();
+  await testBreakpointBeforeScriptExecution(session);
+  await session.runToCompletion();
+  assert.strictEqual((await child.expectShutdown()).exitCode, 0);
+}
+
+runTest();