diff --git a/e2e/tests-dfx/cycles-ledger.bash b/e2e/tests-dfx/cycles-ledger.bash
index 540fa6c470..62b8382fd3 100644
--- a/e2e/tests-dfx/cycles-ledger.bash
+++ b/e2e/tests-dfx/cycles-ledger.bash
@@ -417,7 +417,7 @@ current_time_nanoseconds() {
 }
 
 @test "canister creation" {
-  # skip "can't be properly tested with feature flag turned off (`CYCLES_LEDGER_ENABLED`). TODO(SDK-1331): re-enable this test"
+  skip "can't be properly tested with feature flag turned off (`CYCLES_LEDGER_ENABLED`). TODO(SDK-1331): re-enable this test"
   dfx_new temporary
   add_cycles_ledger_canisters_to_project
   install_cycles_ledger_canisters
diff --git a/src/dfx/src/lib/operations/cycles_ledger.rs b/src/dfx/src/lib/operations/cycles_ledger.rs
index 52925384c5..cc2cb45cce 100644
--- a/src/dfx/src/lib/operations/cycles_ledger.rs
+++ b/src/dfx/src/lib/operations/cycles_ledger.rs
@@ -27,7 +27,7 @@ use thiserror::Error;
 
 /// Cycles ledger feature flag to turn off behavior that would be confusing while cycles ledger is not enabled yet.
 //TODO(SDK-1331): feature flag can be removed
-pub const CYCLES_LEDGER_ENABLED: bool = true;
+pub const CYCLES_LEDGER_ENABLED: bool = false;
 
 const ICRC1_BALANCE_OF_METHOD: &str = "icrc1_balance_of";
 const ICRC1_TRANSFER_METHOD: &str = "icrc1_transfer";