diff --git a/dev/tests/verification/Tests/ExtendedGenerationTest.php b/dev/tests/verification/Tests/ExtendedGenerationTest.php
index 46246c45b..e7bb0a879 100644
--- a/dev/tests/verification/Tests/ExtendedGenerationTest.php
+++ b/dev/tests/verification/Tests/ExtendedGenerationTest.php
@@ -5,6 +5,8 @@
  */
 namespace tests\verification\Tests;
 
+use Magento\FunctionalTestingFramework\Test\Handlers\TestObjectHandler;
+use Magento\FunctionalTestingFramework\Util\TestGenerator;
 use tests\util\MftfTestCase;
 
 class ExtendedGenerationTest extends MftfTestCase
@@ -87,14 +89,23 @@ public function testExtendedTestGenerationRemoveHookAction()
     }
 
     /**
-     * Tests generation of test that attemps to extend a test that doesn't exist
+     * Tests to ensure extended tests with no parents are not generated
      *
      * @throws \Exception
      * @throws \Magento\FunctionalTestingFramework\Exceptions\TestReferenceException
      */
     public function testExtendedTestGenerationNoParent()
     {
-        $this->generateAndCompareTest('ChildExtendedTestNoParent');
+        $testObject = TestObjectHandler::getInstance()->getObject('ChildExtendedTestNoParent');
+        $test = TestGenerator::getInstance(null, [$testObject]);
+        $test->createAllTestFiles();
+
+        $cestFile = $test->getExportDir() .
+            DIRECTORY_SEPARATOR .
+            $testObject->getCodeceptionName() .
+            ".php";
+
+        $this->assertFalse(file_exists($cestFile));
     }
 
     /**
diff --git a/src/Magento/FunctionalTestingFramework/Test/Util/ObjectExtensionUtil.php b/src/Magento/FunctionalTestingFramework/Test/Util/ObjectExtensionUtil.php
index 97f67004a..e67037940 100644
--- a/src/Magento/FunctionalTestingFramework/Test/Util/ObjectExtensionUtil.php
+++ b/src/Magento/FunctionalTestingFramework/Test/Util/ObjectExtensionUtil.php
@@ -210,10 +210,10 @@ public function skipTest($testObject)
         $annotations = $testObject->getAnnotations();
 
         // Add skip to the group array if it doesn't already exist
-        if (array_key_exists('group', $annotations) && !in_array('skip', $annotations['group'])) {
-            array_push($annotations['group'], 'skip');
-        } elseif (!array_key_exists('group', $annotations)) {
-            $annotations['group'] = ['skip'];
+        if (array_key_exists('skip', $annotations)) {
+            return $testObject;
+        } elseif (!array_key_exists('skip', $annotations)) {
+            $annotations['skip'] = ['issueId' => "ParentTestDoesNotExist"];
         }
 
         $skippedTest = new TestObject(
diff --git a/src/Magento/FunctionalTestingFramework/Util/TestGenerator.php b/src/Magento/FunctionalTestingFramework/Util/TestGenerator.php
index be9ad9996..bf93fc47a 100644
--- a/src/Magento/FunctionalTestingFramework/Util/TestGenerator.php
+++ b/src/Magento/FunctionalTestingFramework/Util/TestGenerator.php
@@ -244,6 +244,16 @@ private function assembleAllTestPhp($testManifest, array $testsToIgnore)
         $cestPhpArray = [];
 
         foreach ($testObjects as $test) {
+            // Do not generate test if it is an extended test and parent does not exist
+            if ($test->isSkipped() && !empty($test->getParentName())) {
+                try {
+                    TestObjectHandler::getInstance()->getObject($test->getParentName());
+                } catch (TestReferenceException $e) {
+                    print("{$test->getName()} will not be generated. Parent {$e->getMessage()} \n");
+                    continue;
+                }
+            }
+
             $this->debug("<comment>Start creating test: " . $test->getCodeceptionName() . "</comment>");
             $php = $this->assembleTestPhp($test);
             $cestPhpArray[] = [$test->getCodeceptionName(), $php];