A method and system for partial scan testing of integrated circuits is disclosed. The invention includes determining at least one failed functional block during testing of the integrated circuit. The failed functional block is then logically isolated from the remaining non-failing functional blocks. Scan testing of the remainder of the non-failing functional blocks then occurs to determine the integrity of the remainder of the integrated circuit. The data coming out of the failing functional block is not allowed into the other functional blocks as input data. The invention allows the integrated circuit to be used and sold at a reduced functionality for applications not requiring the failed functional block(s).