diff --git a/modules/data-streams/src/yamlRestTest/java/org/elasticsearch/datastreams/DataStreamsClientYamlTestSuiteIT.java b/modules/data-streams/src/yamlRestTest/java/org/elasticsearch/datastreams/DataStreamsClientYamlTestSuiteIT.java
index d568cc6cd0acb..060f956198541 100644
--- a/modules/data-streams/src/yamlRestTest/java/org/elasticsearch/datastreams/DataStreamsClientYamlTestSuiteIT.java
+++ b/modules/data-streams/src/yamlRestTest/java/org/elasticsearch/datastreams/DataStreamsClientYamlTestSuiteIT.java
@@ -58,6 +58,12 @@ private static ElasticsearchCluster createCluster() {
         if (setNodes) {
             clusterBuilder.nodes(2);
         }
+        // We need to disable ILM history based on a setting, to avoid errors in Serverless where the setting is not available.
+        boolean disableILMHistory = Booleans.parseBoolean(System.getProperty("yaml.rest.tests.disable_ilm_history", "true"));
+        if (disableILMHistory) {
+            // disable ILM history, since it disturbs tests
+            clusterBuilder.setting("indices.lifecycle.history_index_enabled", "false");
+        }
         return clusterBuilder.build();
     }
 
diff --git a/muted-tests.yml b/muted-tests.yml
index e5410199d4106..4b0ef24f541f4 100644
--- a/muted-tests.yml
+++ b/muted-tests.yml
@@ -479,9 +479,6 @@ tests:
 - class: org.elasticsearch.common.logging.JULBridgeTests
   method: testThrowable
   issue: https://github.com/elastic/elasticsearch/issues/132280
-- class: org.elasticsearch.datastreams.DataStreamsClientYamlTestSuiteIT
-  method: test {p0=data_stream/10_basic/Create hidden data stream with match all template}
-  issue: https://github.com/elastic/elasticsearch/issues/132298
 - class: org.elasticsearch.xpack.ml.integration.AutodetectMemoryLimitIT
   method: testManyDistinctOverFields
   issue: https://github.com/elastic/elasticsearch/issues/132308