diff --git a/tests/e2e/cli/instance_segmentation/test_instance_segmentation.py b/tests/e2e/cli/instance_segmentation/test_instance_segmentation.py
index 9dcc64fd21d..a48d1e02c5d 100644
--- a/tests/e2e/cli/instance_segmentation/test_instance_segmentation.py
+++ b/tests/e2e/cli/instance_segmentation/test_instance_segmentation.py
@@ -152,7 +152,7 @@ def test_otx_eval(self, template, tmp_dir_path):
     @pytest.mark.parametrize("half_precision", [True, False])
     def test_otx_eval_openvino(self, template, tmp_dir_path, half_precision):
         tmp_dir_path = tmp_dir_path / "ins_seg"
-        otx_eval_openvino_testing(template, tmp_dir_path, otx_dir, args, threshold=0.2, half_precision=half_precision)
+        otx_eval_openvino_testing(template, tmp_dir_path, otx_dir, args, threshold=0.1, half_precision=half_precision)
 
     @e2e_pytest_component
     @pytest.mark.skipif(TT_STABILITY_TESTS, reason="This is TT_STABILITY_TESTS")