diff --git a/app/controllers/projects_controller.rb b/app/controllers/projects_controller.rb
index 02c84ce33d8c52cded412081cea89a33162eeaa5..f0ddd62e9964dcde91ffd78ed0a45bbd930a4c15 100644
--- a/app/controllers/projects_controller.rb
+++ b/app/controllers/projects_controller.rb
@@ -362,6 +362,7 @@ def project_params(attributes: [])
 
   def project_params_attributes
     [
+      :allow_merge_on_skipped_pipeline,
       :avatar,
       :build_allow_git_fetch,
       :build_coverage_regex,
diff --git a/app/graphql/types/project_type.rb b/app/graphql/types/project_type.rb
index 88a9adfc3934994eb8ddd5d07c5d91f866e5b695..f0e2e4c7ae335dffb5ccde555b3534c0716582a9 100644
--- a/app/graphql/types/project_type.rb
+++ b/app/graphql/types/project_type.rb
@@ -95,6 +95,8 @@ class ProjectType < BaseObject
           description: 'Status of Jira import background job of the project'
     field :only_allow_merge_if_pipeline_succeeds, GraphQL::BOOLEAN_TYPE, null: true,
           description: 'Indicates if merge requests of the project can only be merged with successful jobs'
+    field :allow_merge_on_skipped_pipeline, GraphQL::BOOLEAN_TYPE, null: true,
+          description: 'If `only_allow_merge_if_pipeline_succeeds` is true, indicates if merge requests of the project can also be merged with skipped jobs'
     field :request_access_enabled, GraphQL::BOOLEAN_TYPE, null: true,
           description: 'Indicates if users can request member access to the project'
     field :only_allow_merge_if_all_discussions_are_resolved, GraphQL::BOOLEAN_TYPE, null: true,
diff --git a/app/models/merge_request.rb b/app/models/merge_request.rb
index 1453b1f11d234b6d5b6ba4530b0f6eb631bc111f..caf7b554427dac52fa64016fd8f86cc0aa6c8b97 100644
--- a/app/models/merge_request.rb
+++ b/app/models/merge_request.rb
@@ -1169,6 +1169,7 @@ def can_be_merged_via_command_line_by?(user)
   def mergeable_ci_state?
     return true unless project.only_allow_merge_if_pipeline_succeeds?
     return false unless actual_head_pipeline
+    return true if project.allow_merge_on_skipped_pipeline? && actual_head_pipeline.skipped?
 
     actual_head_pipeline.success?
   end
diff --git a/app/models/project.rb b/app/models/project.rb
index a70f016a9f3a535a257afe285b64dcbd93067828..bdcef14d705d072aebb1d69782a4a00a2c61d9d3 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -198,7 +198,7 @@ class Project < ApplicationRecord
   has_one :error_tracking_setting, inverse_of: :project, class_name: 'ErrorTracking::ProjectErrorTrackingSetting'
   has_one :metrics_setting, inverse_of: :project, class_name: 'ProjectMetricsSetting'
   has_one :grafana_integration, inverse_of: :project
-  has_one :project_setting, ->(project) { where_or_create_by(project: project) }, inverse_of: :project
+  has_one :project_setting, inverse_of: :project, autosave: true
   has_one :alerting_setting, inverse_of: :project, class_name: 'Alerting::ProjectAlertingSetting'
 
   # Merge Requests for target project should be removed with it
@@ -376,6 +376,7 @@ class Project < ApplicationRecord
   delegate :default_git_depth, :default_git_depth=, to: :ci_cd_settings, prefix: :ci
   delegate :forward_deployment_enabled, :forward_deployment_enabled=, :forward_deployment_enabled?, to: :ci_cd_settings
   delegate :actual_limits, :actual_plan_name, to: :namespace, allow_nil: true
+  delegate :allow_merge_on_skipped_pipeline, :allow_merge_on_skipped_pipeline?, :allow_merge_on_skipped_pipeline=, to: :project_setting
 
   # Validations
   validates :creator, presence: true, on: :create
@@ -727,6 +728,10 @@ def initialize(attributes = nil)
     super
   end
 
+  def project_setting
+    super.presence || build_project_setting
+  end
+
   def all_pipelines
     if builds_enabled?
       super
diff --git a/app/models/project_setting.rb b/app/models/project_setting.rb
index 7c93faf3928be23b6ce67fe8bb0cb9948b76363b..9022d3e879d0c4c96c5688bfc7982fd2fcb10246 100644
--- a/app/models/project_setting.rb
+++ b/app/models/project_setting.rb
@@ -4,10 +4,6 @@ class ProjectSetting < ApplicationRecord
   belongs_to :project, inverse_of: :project_setting
 
   self.primary_key = :project_id
-
-  def self.where_or_create_by(attrs)
-    where(primary_key => safe_find_or_create_by(attrs))
-  end
 end
 
 ProjectSetting.prepend_if_ee('EE::ProjectSetting')
diff --git a/app/views/projects/_merge_request_merge_checks_settings.html.haml b/app/views/projects/_merge_request_merge_checks_settings.html.haml
index d3fcb52422b1eb1cee976d005c17a1e528f2f4e4..9cebb191346f80e5783ccddd3a97f0504f78204b 100644
--- a/app/views/projects/_merge_request_merge_checks_settings.html.haml
+++ b/app/views/projects/_merge_request_merge_checks_settings.html.haml
@@ -13,6 +13,13 @@
           help_page_path('ci/merge_request_pipelines/index.md',
           anchor: 'pipelines-for-merge-requests'),
           target: '_blank'
+  .form-check.mb-2
+    .gl-pl-6
+      = form.check_box :allow_merge_on_skipped_pipeline, class: 'form-check-input'
+      = form.label :allow_merge_on_skipped_pipeline, class: 'form-check-label' do
+        = s_('ProjectSettings|Skipped pipelines are considered successful')
+        .text-secondary
+          = s_('ProjectSettings|This introduces the risk of merging changes that will not pass the pipeline.')
   .form-check.mb-2
     = form.check_box :only_allow_merge_if_all_discussions_are_resolved, class: 'form-check-input'
     = form.label :only_allow_merge_if_all_discussions_are_resolved, class: 'form-check-label' do
diff --git a/changelogs/unreleased/allow_skipped.yml b/changelogs/unreleased/allow_skipped.yml
new file mode 100644
index 0000000000000000000000000000000000000000..b920298f42e24c91f6cade4e83483beaceb826cf
--- /dev/null
+++ b/changelogs/unreleased/allow_skipped.yml
@@ -0,0 +1,5 @@
+---
+title: Add setting to allow merge on skipped pipeline
+merge_request: 27490
+author: Mathieu Parent
+type: added
diff --git a/db/migrate/20200325094612_add_allow_merge_on_skipped_pipeline_to_project_settings.rb b/db/migrate/20200325094612_add_allow_merge_on_skipped_pipeline_to_project_settings.rb
new file mode 100644
index 0000000000000000000000000000000000000000..8575dd2f080d27cf6c8868794264349f7a512372
--- /dev/null
+++ b/db/migrate/20200325094612_add_allow_merge_on_skipped_pipeline_to_project_settings.rb
@@ -0,0 +1,9 @@
+# frozen_string_literal: true
+
+class AddAllowMergeOnSkippedPipelineToProjectSettings < ActiveRecord::Migration[6.0]
+  DOWNTIME = false
+
+  def change
+    add_column :project_settings, :allow_merge_on_skipped_pipeline, :boolean
+  end
+end
diff --git a/db/structure.sql b/db/structure.sql
index 0018eeb4eaba81ef1f3b288f4d8cd0f180b39860..a7ed83620cdd32667a3e403ca7141921bd4dae79 100644
--- a/db/structure.sql
+++ b/db/structure.sql
@@ -5340,6 +5340,7 @@ CREATE TABLE public.project_settings (
     updated_at timestamp with time zone NOT NULL,
     push_rule_id bigint,
     show_default_award_emojis boolean DEFAULT true,
+    allow_merge_on_skipped_pipeline boolean,
     CONSTRAINT check_bde223416c CHECK ((show_default_award_emojis IS NOT NULL))
 );
 
@@ -13613,6 +13614,7 @@ COPY "schema_migrations" (version) FROM STDIN;
 20200323134519
 20200324093258
 20200324115359
+20200325094612
 20200325104755
 20200325104756
 20200325104833
diff --git a/doc/api/graphql/reference/gitlab_schema.graphql b/doc/api/graphql/reference/gitlab_schema.graphql
index b01af67204955dda2487124cc1e9c1f948dbc1cb..cbe79658f385849d9ea8910c452752a1fa5b6496 100644
--- a/doc/api/graphql/reference/gitlab_schema.graphql
+++ b/doc/api/graphql/reference/gitlab_schema.graphql
@@ -8265,6 +8265,12 @@ type Project {
     statuses: [AlertManagementStatus!]
   ): AlertManagementAlertConnection
 
+  """
+  If `only_allow_merge_if_pipeline_succeeds` is true, indicates if merge
+  requests of the project can also be merged with skipped jobs
+  """
+  allowMergeOnSkippedPipeline: Boolean
+
   """
   Indicates the archived status of the project
   """
diff --git a/doc/api/graphql/reference/gitlab_schema.json b/doc/api/graphql/reference/gitlab_schema.json
index c5d172c035d9c0f6b3ad25fb0725e0daec134a7c..40dad1852897a71a0930569f84b1fbcd44fe3c67 100644
--- a/doc/api/graphql/reference/gitlab_schema.json
+++ b/doc/api/graphql/reference/gitlab_schema.json
@@ -24673,6 +24673,20 @@
               "isDeprecated": false,
               "deprecationReason": null
             },
+            {
+              "name": "allowMergeOnSkippedPipeline",
+              "description": "If `only_allow_merge_if_pipeline_succeeds` is true, indicates if merge requests of the project can also be merged with skipped jobs",
+              "args": [
+
+              ],
+              "type": {
+                "kind": "SCALAR",
+                "name": "Boolean",
+                "ofType": null
+              },
+              "isDeprecated": false,
+              "deprecationReason": null
+            },
             {
               "name": "archived",
               "description": "Indicates the archived status of the project",
diff --git a/doc/api/graphql/reference/index.md b/doc/api/graphql/reference/index.md
index a3f84642e134ff7477e8c417b7c38338a9bf633b..6f404e47fb4266a660934715c8a06d7345a04f8a 100644
--- a/doc/api/graphql/reference/index.md
+++ b/doc/api/graphql/reference/index.md
@@ -1252,6 +1252,7 @@ Information about pagination in a connection.
 | ---   |  ---- | ----------  |
 | `alertManagementAlert` | AlertManagementAlert | A single Alert Management alert of the project |
 | `alertManagementAlertStatusCounts` | AlertManagementAlertStatusCountsType | Counts of alerts by status for the project |
+| `allowMergeOnSkippedPipeline` | Boolean | If `only_allow_merge_if_pipeline_succeeds` is true, indicates if merge requests of the project can also be merged with skipped jobs |
 | `archived` | Boolean | Indicates the archived status of the project |
 | `autocloseReferencedIssues` | Boolean | Indicates if issues referenced by merge requests and commits within the default branch are closed automatically |
 | `avatarUrl` | String | URL to avatar image file of the project |
diff --git a/doc/api/projects.md b/doc/api/projects.md
index ed6f9360f9ac261c82322b3c057839846732e5a6..b9ba632cd9e427db4e16f5778f3286b4fe5add27 100644
--- a/doc/api/projects.md
+++ b/doc/api/projects.md
@@ -158,6 +158,7 @@ When the user is authenticated and `simple` is not set this returns something li
     "public_jobs": true,
     "shared_with_groups": [],
     "only_allow_merge_if_pipeline_succeeds": false,
+    "allow_merge_on_skipped_pipeline": false,
     "only_allow_merge_if_all_discussions_are_resolved": false,
     "remove_source_branch_after_merge": false,
     "request_access_enabled": false,
@@ -248,6 +249,7 @@ When the user is authenticated and `simple` is not set this returns something li
     "public_jobs": true,
     "shared_with_groups": [],
     "only_allow_merge_if_pipeline_succeeds": false,
+    "allow_merge_on_skipped_pipeline": false,
     "only_allow_merge_if_all_discussions_are_resolved": false,
     "remove_source_branch_after_merge": false,
     "request_access_enabled": false,
@@ -407,6 +409,7 @@ This endpoint supports [keyset pagination](README.md#keyset-based-pagination) fo
     "public_jobs": true,
     "shared_with_groups": [],
     "only_allow_merge_if_pipeline_succeeds": false,
+    "allow_merge_on_skipped_pipeline": false,
     "only_allow_merge_if_all_discussions_are_resolved": false,
     "remove_source_branch_after_merge": false,
     "request_access_enabled": false,
@@ -497,6 +500,7 @@ This endpoint supports [keyset pagination](README.md#keyset-based-pagination) fo
     "public_jobs": true,
     "shared_with_groups": [],
     "only_allow_merge_if_pipeline_succeeds": false,
+    "allow_merge_on_skipped_pipeline": false,
     "only_allow_merge_if_all_discussions_are_resolved": false,
     "remove_source_branch_after_merge": false,
     "request_access_enabled": false,
@@ -623,6 +627,7 @@ Example response:
     "public_jobs": true,
     "shared_with_groups": [],
     "only_allow_merge_if_pipeline_succeeds": false,
+    "allow_merge_on_skipped_pipeline": false,
     "only_allow_merge_if_all_discussions_are_resolved": false,
     "remove_source_branch_after_merge": false,
     "request_access_enabled": false,
@@ -708,6 +713,7 @@ Example response:
     "public_jobs": true,
     "shared_with_groups": [],
     "only_allow_merge_if_pipeline_succeeds": false,
+    "allow_merge_on_skipped_pipeline": false,
     "only_allow_merge_if_all_discussions_are_resolved": false,
     "remove_source_branch_after_merge": false,
     "request_access_enabled": false,
@@ -861,6 +867,7 @@ GET /projects/:id
   ],
   "repository_storage": "default",
   "only_allow_merge_if_pipeline_succeeds": false,
+  "allow_merge_on_skipped_pipeline": false,
   "only_allow_merge_if_all_discussions_are_resolved": false,
   "remove_source_branch_after_merge": false,
   "printing_merge_requests_link_enabled": true,
@@ -1044,6 +1051,7 @@ POST /projects
 | `import_url` | string | no | URL to import repository from |
 | `public_builds` | boolean | no | If `true`, jobs can be viewed by non-project-members |
 | `only_allow_merge_if_pipeline_succeeds` | boolean | no | Set whether merge requests can only be merged with successful jobs |
+| `allow_merge_on_skipped_pipeline` | boolean | no | Set whether or not merge requests can be merged with skipped jobs |
 | `only_allow_merge_if_all_discussions_are_resolved` | boolean | no | Set whether merge requests can only be merged when all the discussions are resolved |
 | `merge_method` | string | no | Set the [merge method](#project-merge-method) used |
 | `autoclose_referenced_issues` | boolean | no | Set whether auto-closing referenced issues on default branch |
@@ -1113,6 +1121,7 @@ POST /projects/user/:user_id
 | `import_url` | string | no | URL to import repository from |
 | `public_builds` | boolean | no | If `true`, jobs can be viewed by non-project-members |
 | `only_allow_merge_if_pipeline_succeeds` | boolean | no | Set whether merge requests can only be merged with successful jobs |
+| `allow_merge_on_skipped_pipeline` | boolean | no | Set whether or not merge requests can be merged with skipped jobs |
 | `only_allow_merge_if_all_discussions_are_resolved` | boolean | no | Set whether merge requests can only be merged when all the discussions are resolved |
 | `merge_method` | string | no | Set the [merge method](#project-merge-method) used |
 | `autoclose_referenced_issues` | boolean | no | Set whether auto-closing referenced issues on default branch |
@@ -1183,6 +1192,7 @@ PUT /projects/:id
 | `import_url` | string | no | URL to import repository from |
 | `public_builds` | boolean | no | If `true`, jobs can be viewed by non-project-members |
 | `only_allow_merge_if_pipeline_succeeds` | boolean | no | Set whether merge requests can only be merged with successful jobs |
+| `allow_merge_on_skipped_pipeline` | boolean | no | Set whether or not merge requests can be merged with skipped jobs |
 | `only_allow_merge_if_all_discussions_are_resolved` | boolean | no | Set whether merge requests can only be merged when all the discussions are resolved |
 | `merge_method` | string | no | Set the [merge method](#project-merge-method) used |
 | `autoclose_referenced_issues` | boolean | no | Set whether auto-closing referenced issues on default branch |
@@ -1317,6 +1327,7 @@ Example responses:
     "public_jobs": true,
     "shared_with_groups": [],
     "only_allow_merge_if_pipeline_succeeds": false,
+    "allow_merge_on_skipped_pipeline": false,
     "only_allow_merge_if_all_discussions_are_resolved": false,
     "remove_source_branch_after_merge": false,
     "request_access_enabled": false,
@@ -1408,6 +1419,7 @@ Example response:
   "public_jobs": true,
   "shared_with_groups": [],
   "only_allow_merge_if_pipeline_succeeds": false,
+  "allow_merge_on_skipped_pipeline": false,
   "only_allow_merge_if_all_discussions_are_resolved": false,
   "remove_source_branch_after_merge": false,
   "request_access_enabled": false,
@@ -1498,6 +1510,7 @@ Example response:
   "public_jobs": true,
   "shared_with_groups": [],
   "only_allow_merge_if_pipeline_succeeds": false,
+  "allow_merge_on_skipped_pipeline": false,
   "only_allow_merge_if_all_discussions_are_resolved": false,
   "remove_source_branch_after_merge": false,
   "request_access_enabled": false,
@@ -1680,6 +1693,7 @@ Example response:
   "public_jobs": true,
   "shared_with_groups": [],
   "only_allow_merge_if_pipeline_succeeds": false,
+  "allow_merge_on_skipped_pipeline": false,
   "only_allow_merge_if_all_discussions_are_resolved": false,
   "remove_source_branch_after_merge": false,
   "request_access_enabled": false,
@@ -1789,6 +1803,7 @@ Example response:
   "public_jobs": true,
   "shared_with_groups": [],
   "only_allow_merge_if_pipeline_succeeds": false,
+  "allow_merge_on_skipped_pipeline": false,
   "only_allow_merge_if_all_discussions_are_resolved": false,
   "remove_source_branch_after_merge": false,
   "request_access_enabled": false,
diff --git a/doc/user/project/merge_requests/merge_when_pipeline_succeeds.md b/doc/user/project/merge_requests/merge_when_pipeline_succeeds.md
index 5eedd0cf8a763f2b0bb8befb43ed2abd01885445..d45ccdc9be9d6edb97f38c5059a4c960bc04b334 100644
--- a/doc/user/project/merge_requests/merge_when_pipeline_succeeds.md
+++ b/doc/user/project/merge_requests/merge_when_pipeline_succeeds.md
@@ -59,6 +59,19 @@ merge request from the UI, until you make all relevant jobs pass.
 
 ![Only allow merge if pipeline succeeds message](img/merge_when_pipeline_succeeds_only_if_succeeds_msg.png)
 
+### Skipped pipelines
+
+> [Introduced](https://gitlab.com/gitlab-org/gitlab/-/issues/211482) in GitLab 13.1.
+
+When the **Pipelines must succeed** checkbox is checked, [skipped pipelines](../../../ci/yaml/README.md#skip-pipeline) prevent
+merge requests from being merged. To change this behavior:
+
+1. Navigate to your project's **Settings > General** page.
+1. Expand the **Merge requests** section.
+1. In the **Merge checks** subsection, ensure **Pipelines must succeed** is checked.
+1. In the **Merge checks** subsection, select the **Skipped pipelines are considered successful** checkbox.
+1. Press **Save** for the changes to take effect.
+
 ### Limitations
 
 When this setting is enabled, a merge request is prevented from being merged if there is no pipeline. This may conflict with some use cases where [`only/except`](../../../ci/yaml/README.md#onlyexcept-advanced) rules are used and they don't generate any pipelines.
diff --git a/lib/api/entities/project.rb b/lib/api/entities/project.rb
index b6fa419da58fc4dbf73218291f5c42c98e5e5d70..55a57501858b28f3292f40d1cd95af6dd3d958b9 100644
--- a/lib/api/entities/project.rb
+++ b/lib/api/entities/project.rb
@@ -93,6 +93,7 @@ class Project < BasicProjectDetails
         SharedGroupWithProject.represent(project.project_group_links, options)
       end
       expose :only_allow_merge_if_pipeline_succeeds
+      expose :allow_merge_on_skipped_pipeline
       expose :request_access_enabled
       expose :only_allow_merge_if_all_discussions_are_resolved
       expose :remove_source_branch_after_merge
@@ -119,6 +120,7 @@ def self.preload_relation(projects_relation, options = {})
         # MR describing the solution: https://gitlab.com/gitlab-org/gitlab-foss/merge_requests/20555
         super(projects_relation).preload(:group)
                                 .preload(:ci_cd_settings)
+                                .preload(:project_setting)
                                 .preload(:container_expiration_policy)
                                 .preload(:auto_devops)
                                 .preload(project_group_links: { group: :route },
diff --git a/lib/api/helpers/projects_helpers.rb b/lib/api/helpers/projects_helpers.rb
index 5afdb34da971544563a5545199658a563ec397af..8a115d42929c69dcd0d199d751defa708b24b3c9 100644
--- a/lib/api/helpers/projects_helpers.rb
+++ b/lib/api/helpers/projects_helpers.rb
@@ -44,6 +44,7 @@ module ProjectsHelpers
         optional :public_builds, type: Boolean, desc: 'Perform public builds'
         optional :request_access_enabled, type: Boolean, desc: 'Allow users to request member access'
         optional :only_allow_merge_if_pipeline_succeeds, type: Boolean, desc: 'Only allow to merge if builds succeed'
+        optional :allow_merge_on_skipped_pipeline, type: Boolean, desc: 'Allow to merge if pipeline is skipped'
         optional :only_allow_merge_if_all_discussions_are_resolved, type: Boolean, desc: 'Only allow to merge if all discussions are resolved'
         optional :tag_list, type: Array[String], desc: 'The list of tags for a project'
         # TODO: remove rubocop disable - https://gitlab.com/gitlab-org/gitlab/issues/14960
@@ -92,6 +93,7 @@ module ProjectsHelpers
 
       def self.update_params_at_least_one_of
         [
+          :allow_merge_on_skipped_pipeline,
           :autoclose_referenced_issues,
           :auto_devops_enabled,
           :auto_devops_deploy_strategy,
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index 210f51a73dbf45996f2d07cbdb54e6d613356b26..a1b3105fcc2b976408504ea0e44c254cd9472e28 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -17341,6 +17341,9 @@ msgstr ""
 msgid "ProjectSettings|Show link to create/view merge request when pushing from the command line"
 msgstr ""
 
+msgid "ProjectSettings|Skipped pipelines are considered successful"
+msgstr ""
+
 msgid "ProjectSettings|Snippets"
 msgstr ""
 
@@ -17356,6 +17359,9 @@ msgstr ""
 msgid "ProjectSettings|These checks must pass before merge requests can be merged"
 msgstr ""
 
+msgid "ProjectSettings|This introduces the risk of merging changes that will not pass the pipeline."
+msgstr ""
+
 msgid "ProjectSettings|This setting is applied on the server level and can be overridden by an admin."
 msgstr ""
 
diff --git a/spec/lib/gitlab/import_export/all_models.yml b/spec/lib/gitlab/import_export/all_models.yml
index 235d54e3a16fe3c2498f79ec1affec3b4b3c9164..849d8fcc1c42c0aa9693282cf0cbf79f5b0bedda 100644
--- a/spec/lib/gitlab/import_export/all_models.yml
+++ b/spec/lib/gitlab/import_export/all_models.yml
@@ -424,6 +424,7 @@ project:
 - deploy_tokens
 - settings
 - ci_cd_settings
+- project_settings
 - import_export_upload
 - repository_languages
 - pool_repository
diff --git a/spec/lib/gitlab/import_export/safe_model_attributes.yml b/spec/lib/gitlab/import_export/safe_model_attributes.yml
index 97fd30837d44c0a04e7ed3c1a051ddfb4a3bea49..0d112bfdb2a20f65b87e017555ca2faa2ca074da 100644
--- a/spec/lib/gitlab/import_export/safe_model_attributes.yml
+++ b/spec/lib/gitlab/import_export/safe_model_attributes.yml
@@ -703,6 +703,8 @@ Badge:
 - type
 ProjectCiCdSetting:
 - group_runners_enabled
+ProjectSetting:
+- allow_merge_on_skipped_pipeline
 ProtectedEnvironment:
 - id
 - project_id
diff --git a/spec/models/merge_request_spec.rb b/spec/models/merge_request_spec.rb
index 8c50966078f4c845e45a2e64c4fab4d974f1730e..c70ddac5da6bbfa97abf0d0e49d2a92f2609e7cc 100644
--- a/spec/models/merge_request_spec.rb
+++ b/spec/models/merge_request_spec.rb
@@ -2517,12 +2517,13 @@ def set_compare(merge_request)
   end
 
   describe '#mergeable_ci_state?' do
-    let(:project) { create(:project, only_allow_merge_if_pipeline_succeeds: true) }
     let(:pipeline) { create(:ci_empty_pipeline) }
 
-    subject { build(:merge_request, target_project: project) }
-
     context 'when it is only allowed to merge when build is green' do
+      let(:project) { create(:project, only_allow_merge_if_pipeline_succeeds: true) }
+
+      subject { build(:merge_request, target_project: project) }
+
       context 'and a failed pipeline is associated' do
         before do
           pipeline.update(status: 'failed', sha: subject.diff_head_sha)
@@ -2544,7 +2545,7 @@ def set_compare(merge_request)
       context 'and a skipped pipeline is associated' do
         before do
           pipeline.update(status: 'skipped', sha: subject.diff_head_sha)
-          allow(subject).to receive(:head_pipeline) { pipeline }
+          allow(subject).to receive(:head_pipeline).and_return(pipeline)
         end
 
         it { expect(subject.mergeable_ci_state?).to be_falsey }
@@ -2552,7 +2553,48 @@ def set_compare(merge_request)
 
       context 'when no pipeline is associated' do
         before do
-          allow(subject).to receive(:head_pipeline) { nil }
+          allow(subject).to receive(:head_pipeline).and_return(nil)
+        end
+
+        it { expect(subject.mergeable_ci_state?).to be_falsey }
+      end
+    end
+
+    context 'when it is only allowed to merge when build is green or skipped' do
+      let(:project) { create(:project, only_allow_merge_if_pipeline_succeeds: true, allow_merge_on_skipped_pipeline: true) }
+
+      subject { build(:merge_request, target_project: project) }
+
+      context 'and a failed pipeline is associated' do
+        before do
+          pipeline.update!(status: 'failed', sha: subject.diff_head_sha)
+          allow(subject).to receive(:head_pipeline).and_return(pipeline)
+        end
+
+        it { expect(subject.mergeable_ci_state?).to be_falsey }
+      end
+
+      context 'and a successful pipeline is associated' do
+        before do
+          pipeline.update!(status: 'success', sha: subject.diff_head_sha)
+          allow(subject).to receive(:head_pipeline).and_return(pipeline)
+        end
+
+        it { expect(subject.mergeable_ci_state?).to be_truthy }
+      end
+
+      context 'and a skipped pipeline is associated' do
+        before do
+          pipeline.update!(status: 'skipped', sha: subject.diff_head_sha)
+          allow(subject).to receive(:head_pipeline).and_return(pipeline)
+        end
+
+        it { expect(subject.mergeable_ci_state?).to be_truthy }
+      end
+
+      context 'when no pipeline is associated' do
+        before do
+          allow(subject).to receive(:head_pipeline).and_return(nil)
         end
 
         it { expect(subject.mergeable_ci_state?).to be_falsey }
@@ -2560,7 +2602,9 @@ def set_compare(merge_request)
     end
 
     context 'when merges are not restricted to green builds' do
-      subject { build(:merge_request, target_project: create(:project, only_allow_merge_if_pipeline_succeeds: false)) }
+      let(:project) { create(:project, only_allow_merge_if_pipeline_succeeds: false) }
+
+      subject { build(:merge_request, target_project: project) }
 
       context 'and a failed pipeline is associated' do
         before do
@@ -2578,6 +2622,23 @@ def set_compare(merge_request)
 
         it { expect(subject.mergeable_ci_state?).to be_truthy }
       end
+
+      context 'and a skipped pipeline is associated' do
+        before do
+          pipeline.update!(status: 'skipped', sha: subject.diff_head_sha)
+          allow(subject).to receive(:head_pipeline).and_return(pipeline)
+        end
+
+        it { expect(subject.mergeable_ci_state?).to be_truthy }
+      end
+
+      context 'when no pipeline is associated' do
+        before do
+          allow(subject).to receive(:head_pipeline).and_return(nil)
+        end
+
+        it { expect(subject.mergeable_ci_state?).to be_truthy }
+      end
     end
   end
 
diff --git a/spec/models/project_spec.rb b/spec/models/project_spec.rb
index 787d778b483bf9d240301e955fda845b0338c498..1a19f6f8814c0413b0e8216e3e0af8556bb788e4 100644
--- a/spec/models/project_spec.rb
+++ b/spec/models/project_spec.rb
@@ -183,9 +183,9 @@
         expect(project.pages_metadatum).to be_persisted
       end
 
-      it 'automatically creates a project setting row' do
+      it 'automatically builds a project setting row' do
         expect(project.project_setting).to be_an_instance_of(ProjectSetting)
-        expect(project.project_setting).to be_persisted
+        expect(project.project_setting).to be_new_record
       end
     end
 
diff --git a/spec/requests/api/projects_spec.rb b/spec/requests/api/projects_spec.rb
index 6f6737864b6f89a70a0961df9e25ece89415cf46..5af4ad020fc35618a31481965e2a6ff941fff39c 100644
--- a/spec/requests/api/projects_spec.rb
+++ b/spec/requests/api/projects_spec.rb
@@ -764,7 +764,8 @@
         resolve_outdated_diff_discussions: false,
         remove_source_branch_after_merge: true,
         autoclose_referenced_issues: true,
-        only_allow_merge_if_pipeline_succeeds: false,
+        only_allow_merge_if_pipeline_succeeds: true,
+        allow_merge_on_skipped_pipeline: true,
         request_access_enabled: true,
         only_allow_merge_if_all_discussions_are_resolved: false,
         ci_config_path: 'a/custom/path',
@@ -912,6 +913,22 @@
       expect(json_response['only_allow_merge_if_pipeline_succeeds']).to be_truthy
     end
 
+    it 'sets a project as not allowing merge when pipeline is skipped' do
+      project_params = attributes_for(:project, allow_merge_on_skipped_pipeline: false)
+
+      post api('/projects', user), params: project_params
+
+      expect(json_response['allow_merge_on_skipped_pipeline']).to be_falsey
+    end
+
+    it 'sets a project as allowing merge when pipeline is skipped' do
+      project_params = attributes_for(:project, allow_merge_on_skipped_pipeline: true)
+
+      post api('/projects', user), params: project_params
+
+      expect(json_response['allow_merge_on_skipped_pipeline']).to be_truthy
+    end
+
     it 'sets a project as allowing merge even if discussions are unresolved' do
       project = attributes_for(:project, only_allow_merge_if_all_discussions_are_resolved: false)
 
@@ -1245,16 +1262,36 @@
 
     it 'sets a project as allowing merge even if build fails' do
       project = attributes_for(:project, only_allow_merge_if_pipeline_succeeds: false)
+
       post api("/projects/user/#{user.id}", admin), params: project
+
       expect(json_response['only_allow_merge_if_pipeline_succeeds']).to be_falsey
     end
 
     it 'sets a project as allowing merge only if pipeline succeeds' do
       project = attributes_for(:project, only_allow_merge_if_pipeline_succeeds: true)
+
       post api("/projects/user/#{user.id}", admin), params: project
+
       expect(json_response['only_allow_merge_if_pipeline_succeeds']).to be_truthy
     end
 
+    it 'sets a project as not allowing merge when pipeline is skipped' do
+      project = attributes_for(:project, allow_merge_on_skipped_pipeline: false)
+
+      post api("/projects/user/#{user.id}", admin), params: project
+
+      expect(json_response['allow_merge_on_skipped_pipeline']).to be_falsey
+    end
+
+    it 'sets a project as allowing merge when pipeline is skipped' do
+      project = attributes_for(:project, allow_merge_on_skipped_pipeline: true)
+
+      post api("/projects/user/#{user.id}", admin), params: project
+
+      expect(json_response['allow_merge_on_skipped_pipeline']).to be_truthy
+    end
+
     it 'sets a project as allowing merge even if discussions are unresolved' do
       project = attributes_for(:project, only_allow_merge_if_all_discussions_are_resolved: false)
 
@@ -1394,6 +1431,7 @@
         expect(json_response['shared_with_groups'][0]['group_name']).to eq(group.name)
         expect(json_response['shared_with_groups'][0]['group_access_level']).to eq(link.group_access)
         expect(json_response['only_allow_merge_if_pipeline_succeeds']).to eq(project.only_allow_merge_if_pipeline_succeeds)
+        expect(json_response['allow_merge_on_skipped_pipeline']).to eq(project.allow_merge_on_skipped_pipeline)
         expect(json_response['only_allow_merge_if_all_discussions_are_resolved']).to eq(project.only_allow_merge_if_all_discussions_are_resolved)
       end
     end
@@ -1461,6 +1499,7 @@
         expect(json_response['shared_with_groups'][0]['group_access_level']).to eq(link.group_access)
         expect(json_response['shared_with_groups'][0]).to have_key('expires_at')
         expect(json_response['only_allow_merge_if_pipeline_succeeds']).to eq(project.only_allow_merge_if_pipeline_succeeds)
+        expect(json_response['allow_merge_on_skipped_pipeline']).to eq(project.allow_merge_on_skipped_pipeline)
         expect(json_response['only_allow_merge_if_all_discussions_are_resolved']).to eq(project.only_allow_merge_if_all_discussions_are_resolved)
         expect(json_response['ci_default_git_depth']).to eq(project.ci_default_git_depth)
         expect(json_response['merge_method']).to eq(project.merge_method.to_s)
diff --git a/spec/services/projects/create_service_spec.rb b/spec/services/projects/create_service_spec.rb
index 729e5d9c23d5d383abd923cbc29fe5b4e70baa35..e70ee05ed31a43ba009e0ad39cbbd981b17d7648 100644
--- a/spec/services/projects/create_service_spec.rb
+++ b/spec/services/projects/create_service_spec.rb
@@ -43,10 +43,10 @@
       create_project(user, opts)
     end
 
-    it 'creates associated project settings' do
+    it 'builds associated project settings' do
       project = create_project(user, opts)
 
-      expect(project.project_setting).to be_persisted
+      expect(project.project_setting).to be_new_record
     end
   end