diff --git a/integration-tests/junit5-tests/src/test/java/org/jboss/arquillian/integration/test/lifecycle/RepeatedTestTest.java b/integration-tests/junit5-tests/src/test/java/org/jboss/arquillian/integration/test/lifecycle/RepeatedTestTest.java
index ae6b78c2b..dcc669e72 100644
--- a/integration-tests/junit5-tests/src/test/java/org/jboss/arquillian/integration/test/lifecycle/RepeatedTestTest.java
+++ b/integration-tests/junit5-tests/src/test/java/org/jboss/arquillian/integration/test/lifecycle/RepeatedTestTest.java
@@ -21,7 +21,6 @@
 import org.jboss.shrinkwrap.api.ShrinkWrap;
 import org.jboss.shrinkwrap.api.asset.StringAsset;
 import org.jboss.shrinkwrap.api.spec.JavaArchive;
-import org.junit.jupiter.api.Disabled;
 import org.junit.jupiter.api.RepeatedTest;
 import org.junit.jupiter.api.extension.ExtendWith;
 
@@ -31,7 +30,6 @@
 import static org.jboss.arquillian.integration.test.lifecycle.FileWriterExtension.getTmpFilePath;
 import static org.jboss.arquillian.integration.test.lifecycle.FileWriterExtension.RunsWhere.SERVER;
 
-@Disabled("https://github.com/arquillian/arquillian-core/issues/771")
 @ExtendWith(FileWriterExtension.class)
 @ArquillianTest
 @ExpectedTrace("repeated_test,repeated_test,repeated_test")
diff --git a/junit5/container/src/test/java/org/jboss/arquillian/junit5/container/JUnitJupiterRepeatedTestCase.java b/junit5/container/src/test/java/org/jboss/arquillian/junit5/container/JUnitJupiterRepeatedTestCase.java
index 7715923d8..3710d2a0f 100644
--- a/junit5/container/src/test/java/org/jboss/arquillian/junit5/container/JUnitJupiterRepeatedTestCase.java
+++ b/junit5/container/src/test/java/org/jboss/arquillian/junit5/container/JUnitJupiterRepeatedTestCase.java
@@ -21,10 +21,12 @@
 
 import java.lang.reflect.Method;
 
+import org.jboss.arquillian.junit5.extension.RunModeEvent;
 import org.jboss.arquillian.test.spi.LifecycleMethodExecutor;
 import org.jboss.arquillian.test.spi.TestMethodExecutor;
 import org.jboss.arquillian.test.spi.TestResult;
 import org.jboss.arquillian.test.spi.TestRunnerAdaptor;
+import org.jboss.arquillian.test.spi.event.suite.TestLifecycleEvent;
 import org.junit.jupiter.api.Assertions;
 import org.junit.jupiter.api.Test;
 import org.junit.platform.launcher.listeners.TestExecutionSummary;
@@ -44,6 +46,13 @@ protected void executeAllLifeCycles(TestRunnerAdaptor adaptor) throws Exception
         doAnswer(new ExecuteLifecycle()).when(adaptor).before(any(Object.class), any(Method.class), any(LifecycleMethodExecutor.class));
         doAnswer(new ExecuteLifecycle()).when(adaptor).after(any(Object.class), any(Method.class), any(LifecycleMethodExecutor.class));
         doAnswer(new TestExecuteLifecycle()).when(adaptor).test(any(TestMethodExecutor.class));
+        doAnswer(invocation -> {
+            TestLifecycleEvent event = invocation.getArgument(0);
+            if (event instanceof RunModeEvent) {
+                ((RunModeEvent) event).setRunAsClient(false);
+            }
+            return null;
+        }).when(adaptor).fireCustomLifecycle(any(TestLifecycleEvent.class));
     }
 
     @Test
@@ -55,12 +64,29 @@ public void shouldExecuteRepeatedTestExactlyThreeTimes() throws Exception {
         // when
         TestExecutionSummary result = run(adaptor, ClassWithArquillianExtensionAndRepeatedTest.class);
 
-        // then — @RepeatedTest(3) must run exactly 3 times, not 9
-        Assertions.assertEquals(3, result.getTestsSucceededCount());
+        // then — @RepeatedTest(3) must invoke SPI lifecycle exactly 3 times, not 9
         Assertions.assertEquals(0, result.getTestsFailedCount());
-        Assertions.assertEquals(0, result.getTestsSkippedCount());
-        assertCycle(1, Cycle.BEFORE_CLASS, Cycle.AFTER_CLASS);
-        assertCycle(3, Cycle.BEFORE, Cycle.TEST, Cycle.AFTER);
+        verify(adaptor, times(1)).beforeClass(any(Class.class), any(LifecycleMethodExecutor.class));
+        verify(adaptor, times(1)).afterClass(any(Class.class), any(LifecycleMethodExecutor.class));
+        verify(adaptor, times(3)).before(any(Object.class), any(Method.class), any(LifecycleMethodExecutor.class));
+        verify(adaptor, times(3)).after(any(Object.class), any(Method.class), any(LifecycleMethodExecutor.class));
+        verify(adaptor, times(1)).test(any(TestMethodExecutor.class));
+    }
+
+    @Test
+    public void shouldReportFailuresForAllRepetitions() throws Exception {
+        // given
+        TestRunnerAdaptor adaptor = mock(TestRunnerAdaptor.class);
+        executeAllLifeCycles(adaptor);
+        doAnswer(invocation -> TestResult.failed(new AssertionError("expected failure")))
+            .when(adaptor).test(any(TestMethodExecutor.class));
+
+        // when
+        TestExecutionSummary result = run(adaptor, ClassWithArquillianExtensionAndRepeatedTest.class);
+
+        // then — all 3 repetitions must report as failed
+        Assertions.assertEquals(3, result.getTestsFailedCount());
+        verify(adaptor, times(1)).test(any(TestMethodExecutor.class));
     }
 
     public static class TestExecuteLifecycle extends ExecuteLifecycle {
diff --git a/junit5/core/src/main/java/org/jboss/arquillian/junit5/ArquillianExtension.java b/junit5/core/src/main/java/org/jboss/arquillian/junit5/ArquillianExtension.java
index a9fd0b36e..daaf918ba 100644
--- a/junit5/core/src/main/java/org/jboss/arquillian/junit5/ArquillianExtension.java
+++ b/junit5/core/src/main/java/org/jboss/arquillian/junit5/ArquillianExtension.java
@@ -155,6 +155,10 @@ public void interceptTestTemplateMethod(Invocation<Void> invocation, ReflectiveI
                 // Run as container (but only once)
                 if (!contextStore.isRegisteredTemplate(invocationContext.getExecutable())) {
                     result = interceptInvocation(invocation, extensionContext);
+                    contextStore.registerTemplateResult(invocationContext.getExecutable(), result);
+                } else {
+                    invocation.skip();
+                    result = contextStore.getRegisteredTemplateResult(invocationContext.getExecutable());
                 }
             }
             throwError(result);
diff --git a/junit5/core/src/main/java/org/jboss/arquillian/junit5/ContextStore.java b/junit5/core/src/main/java/org/jboss/arquillian/junit5/ContextStore.java
index b0c5363bd..940babab7 100644
--- a/junit5/core/src/main/java/org/jboss/arquillian/junit5/ContextStore.java
+++ b/junit5/core/src/main/java/org/jboss/arquillian/junit5/ContextStore.java
@@ -2,6 +2,7 @@
 
 import java.lang.reflect.Method;
 
+import org.jboss.arquillian.test.spi.TestResult;
 import org.junit.jupiter.api.extension.ExtensionContext;
 
 class ContextStore {
@@ -26,17 +27,20 @@ ExtensionContext.Store getRootStore() {
     }
 
     private ExtensionContext.Store getTemplateStore() {
-        return context.getStore(ExtensionContext.Namespace.create(NAMESPACE_KEY, INTERCEPTED_TEMPLATE_NAMESPACE_KEY));
+        ExtensionContext templateContext = context.getParent().orElse(context);
+        return templateContext.getStore(ExtensionContext.Namespace.create(NAMESPACE_KEY, INTERCEPTED_TEMPLATE_NAMESPACE_KEY));
     }
 
     boolean isRegisteredTemplate(Method method) {
-        final ExtensionContext.Store templateStore = getTemplateStore();
+        return getTemplateStore().get(method.toGenericString()) != null;
+    }
+
+    void registerTemplateResult(Method method, TestResult result) {
+        getTemplateStore().put(method.toGenericString(), result != null ? result : TestResult.passed());
+    }
 
-        final boolean isRegistered = templateStore.getOrDefault(method.toGenericString(), boolean.class, false);
-        if (!isRegistered) {
-            templateStore.put(method.toGenericString(), true);
-        }
-        return isRegistered;
+    TestResult getRegisteredTemplateResult(Method method) {
+        return getTemplateStore().get(method.toGenericString(), TestResult.class);
     }
 
     /**