diff --git a/app/models/concerns/has_status.rb b/app/models/concerns/has_status.rb
index 3c9c6584e02..32af5566135 100644
--- a/app/models/concerns/has_status.rb
+++ b/app/models/concerns/has_status.rb
@@ -11,18 +11,21 @@ module HasStatus
 
   class_methods do
     def status_sql
-      scope = respond_to?(:exclude_ignored) ? exclude_ignored : all
+      scope_relevant = respond_to?(:exclude_ignored) ? exclude_ignored : all
+      scope_warnings = respond_to?(:failed_but_allowed) ? failed_but_allowed : none
 
-      builds = scope.select('count(*)').to_sql
-      created = scope.created.select('count(*)').to_sql
-      success = scope.success.select('count(*)').to_sql
-      manual = scope.manual.select('count(*)').to_sql
-      pending = scope.pending.select('count(*)').to_sql
-      running = scope.running.select('count(*)').to_sql
-      skipped = scope.skipped.select('count(*)').to_sql
-      canceled = scope.canceled.select('count(*)').to_sql
+      builds = scope_relevant.select('count(*)').to_sql
+      created = scope_relevant.created.select('count(*)').to_sql
+      success = scope_relevant.success.select('count(*)').to_sql
+      manual = scope_relevant.manual.select('count(*)').to_sql
+      pending = scope_relevant.pending.select('count(*)').to_sql
+      running = scope_relevant.running.select('count(*)').to_sql
+      skipped = scope_relevant.skipped.select('count(*)').to_sql
+      canceled = scope_relevant.canceled.select('count(*)').to_sql
+      warnings = scope_warnings.select('count(*) > 0').to_sql.presence || 'false'
 
       "(CASE
+        WHEN (#{builds})=(#{skipped}) AND (#{warnings}) THEN 'success'
         WHEN (#{builds})=(#{skipped}) THEN 'skipped'
         WHEN (#{builds})=(#{success}) THEN 'success'
         WHEN (#{builds})=(#{created}) THEN 'created'
diff --git a/changelogs/unreleased/fix-gb-fix-skipped-pipeline-with-allowed-to-fail-jobs.yml b/changelogs/unreleased/fix-gb-fix-skipped-pipeline-with-allowed-to-fail-jobs.yml
new file mode 100644
index 00000000000..f59c6ecd90c
--- /dev/null
+++ b/changelogs/unreleased/fix-gb-fix-skipped-pipeline-with-allowed-to-fail-jobs.yml
@@ -0,0 +1,4 @@
+---
+title: Fix CI/CD status in case there are only allowed to failed jobs in the pipeline
+merge_request: 11166
+author:
diff --git a/spec/models/commit_status_spec.rb b/spec/models/commit_status_spec.rb
index 9262ce08987..1e074c7ad26 100644
--- a/spec/models/commit_status_spec.rb
+++ b/spec/models/commit_status_spec.rb
@@ -284,6 +284,41 @@ describe CommitStatus, :models do
     end
   end
 
+  describe '.status' do
+    context 'when there are multiple statuses present' do
+      before do
+        create_status(status: 'running')
+        create_status(status: 'success')
+        create_status(allow_failure: true, status: 'failed')
+      end
+
+      it 'returns a correct compound status' do
+        expect(described_class.all.status).to eq 'running'
+      end
+    end
+
+    context 'when there are only allowed to fail commit statuses present' do
+      before do
+        create_status(allow_failure: true, status: 'failed')
+      end
+
+      it 'returns status that indicates success' do
+        expect(described_class.all.status).to eq 'success'
+      end
+    end
+
+    context 'when using a scope to select latest statuses' do
+      before do
+        create_status(name: 'test', retried: true, status: 'failed')
+        create_status(allow_failure: true, name: 'test', status: 'failed')
+      end
+
+      it 'returns status according to the scope' do
+        expect(described_class.latest.status).to eq 'success'
+      end
+    end
+  end
+
   describe '#before_sha' do
     subject { commit_status.before_sha }
 
diff --git a/spec/models/concerns/has_status_spec.rb b/spec/models/concerns/has_status_spec.rb
index 101567998c9..a38f2553eb1 100644
--- a/spec/models/concerns/has_status_spec.rb
+++ b/spec/models/concerns/has_status_spec.rb
@@ -48,7 +48,7 @@ describe HasStatus do
           [create(type, status: :failed, allow_failure: true)]
         end
 
-        it { is_expected.to eq 'skipped' }
+        it { is_expected.to eq 'success' }
       end
 
       context 'success and canceled' do
diff --git a/spec/services/ci/process_pipeline_service_spec.rb b/spec/services/ci/process_pipeline_service_spec.rb
index 1557cb3c938..efcaccc254e 100644
--- a/spec/services/ci/process_pipeline_service_spec.rb
+++ b/spec/services/ci/process_pipeline_service_spec.rb
@@ -62,6 +62,10 @@ describe Ci::ProcessPipelineService, '#execute', :services do
       fail_running_or_pending
 
       expect(builds_statuses).to eq %w(failed pending)
+
+      fail_running_or_pending
+
+      expect(pipeline.reload).to be_success
     end
   end