diff --git a/CMakeLists.txt b/CMakeLists.txt
index 9747ae3ee9d..53072a428ee 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -560,7 +560,6 @@ add_subdirectory(boards)
 add_subdirectory(ext)
 add_subdirectory(subsys)
 add_subdirectory(drivers)
-add_subdirectory(tests)
 
 # Add all zephyr modules subdirectories.
 message("Including module(s): ${ZEPHYR_MODULES_NAME}")
diff --git a/Kconfig.zephyr b/Kconfig.zephyr
index 585ec158b0c..c1883561142 100644
--- a/Kconfig.zephyr
+++ b/Kconfig.zephyr
@@ -38,7 +38,7 @@ source "subsys/Kconfig"
 
 source "ext/Kconfig"
 
-source "tests/Kconfig"
+source "subsys/testsuite/Kconfig"
 
 source "$(PROJECT_BINARY_DIR)/Kconfig.modules"
 
diff --git a/doc/zephyr.doxyfile.in b/doc/zephyr.doxyfile.in
index 28266349a00..dc38bcbcd57 100644
--- a/doc/zephyr.doxyfile.in
+++ b/doc/zephyr.doxyfile.in
@@ -762,7 +762,7 @@ INPUT                  = @ZEPHYR_BASE@/include/ \
                          @ZEPHYR_BASE@/include/arch/nios2/ \
                          @ZEPHYR_BASE@/lib/libc/minimal/include/ \
                          @ZEPHYR_BASE@/include/net/dns_resolve.h \
-			 @ZEPHYR_BASE@/tests/ztest/include/ \
+			 @ZEPHYR_BASE@/subsys/testsuite/ztest/include/ \
 			 @ZEPHYR_BASE@/tests/kernel/
 
 # This tag can be used to specify the character encoding of the source files
diff --git a/subsys/CMakeLists.txt b/subsys/CMakeLists.txt
index 3696f5adf50..9977a523fe2 100644
--- a/subsys/CMakeLists.txt
+++ b/subsys/CMakeLists.txt
@@ -17,4 +17,5 @@ add_subdirectory_ifdef(CONFIG_SETTINGS             settings)
 add_subdirectory(fb)
 add_subdirectory(power)
 add_subdirectory(stats)
+add_subdirectory(testsuite)
 add_subdirectory_if_kconfig(jwt)
diff --git a/subsys/Kconfig b/subsys/Kconfig
index fce7f51997b..22b0b55e50c 100644
--- a/subsys/Kconfig
+++ b/subsys/Kconfig
@@ -35,6 +35,8 @@ source "subsys/storage/Kconfig"
 
 source "subsys/settings/Kconfig"
 
+source "subsys/testsuite/Kconfig"
+
 source "subsys/app_memory/Kconfig"
 
 source "subsys/fb/Kconfig"
diff --git a/tests/CMakeLists.txt b/subsys/testsuite/CMakeLists.txt
similarity index 75%
rename from tests/CMakeLists.txt
rename to subsys/testsuite/CMakeLists.txt
index 5326a0df85c..791677671d9 100644
--- a/tests/CMakeLists.txt
+++ b/subsys/testsuite/CMakeLists.txt
@@ -1,6 +1,6 @@
 add_subdirectory_if_kconfig(ztest)
 
 zephyr_include_directories_ifdef(CONFIG_TEST
-  $ENV{ZEPHYR_BASE}/tests/include
+  $ENV{ZEPHYR_BASE}/subsys/testsuite/include
   )
 add_subdirectory_ifdef(CONFIG_COVERAGE_GCOV coverage)
diff --git a/tests/Kconfig b/subsys/testsuite/Kconfig
similarity index 98%
rename from tests/Kconfig
rename to subsys/testsuite/Kconfig
index d9163469407..fab933e3b73 100644
--- a/tests/Kconfig
+++ b/subsys/testsuite/Kconfig
@@ -6,7 +6,7 @@
 
 menu Testing
 
-source "tests/ztest/Kconfig"
+source "subsys/testsuite/ztest/Kconfig"
 
 config TEST
 	bool "Mark project as a test"
diff --git a/tests/include/tc_util.h b/subsys/testsuite/include/tc_util.h
similarity index 100%
rename from tests/include/tc_util.h
rename to subsys/testsuite/include/tc_util.h
diff --git a/tests/include/test_asm_inline_gcc.h b/subsys/testsuite/include/test_asm_inline_gcc.h
similarity index 100%
rename from tests/include/test_asm_inline_gcc.h
rename to subsys/testsuite/include/test_asm_inline_gcc.h
diff --git a/tests/include/test_ecc_utils.h b/subsys/testsuite/include/test_ecc_utils.h
similarity index 100%
rename from tests/include/test_ecc_utils.h
rename to subsys/testsuite/include/test_ecc_utils.h
diff --git a/tests/include/test_utils.h b/subsys/testsuite/include/test_utils.h
similarity index 100%
rename from tests/include/test_utils.h
rename to subsys/testsuite/include/test_utils.h
diff --git a/tests/include/timestamp.h b/subsys/testsuite/include/timestamp.h
similarity index 100%
rename from tests/include/timestamp.h
rename to subsys/testsuite/include/timestamp.h
diff --git a/tests/unit/unittest.cmake b/subsys/testsuite/unittest.cmake
similarity index 92%
rename from tests/unit/unittest.cmake
rename to subsys/testsuite/unittest.cmake
index b03822686f4..ce79f3daa31 100644
--- a/tests/unit/unittest.cmake
+++ b/subsys/testsuite/unittest.cmake
@@ -26,8 +26,8 @@ add_dependencies(testbinary ${KOBJ_TYPES_H_TARGET})
 gen_kobj(KOBJ_GEN_DIR)
 
 list(APPEND INCLUDE
-  tests/ztest/include
-  tests/include
+  subsys/testsuite/ztest/include
+  subsys/testsuite/include
   include
   .
 )
@@ -61,8 +61,8 @@ if(LIBS)
 endif()
 
 target_sources(testbinary PRIVATE
-  $ENV{ZEPHYR_BASE}/tests/ztest/src/ztest.c
-  $ENV{ZEPHYR_BASE}/tests/ztest/src/ztest_mock.c
+  $ENV{ZEPHYR_BASE}/subsys/testsuite/ztest/src/ztest.c
+  $ENV{ZEPHYR_BASE}/subsys/testsuite/ztest/src/ztest_mock.c
   )
 
 target_compile_definitions(testbinary PRIVATE ZTEST_UNITTEST)
diff --git a/tests/ztest/CMakeLists.txt b/subsys/testsuite/ztest/CMakeLists.txt
similarity index 65%
rename from tests/ztest/CMakeLists.txt
rename to subsys/testsuite/ztest/CMakeLists.txt
index 28edda457b7..1d79cf18f40 100644
--- a/tests/ztest/CMakeLists.txt
+++ b/subsys/testsuite/ztest/CMakeLists.txt
@@ -1,6 +1,6 @@
 zephyr_include_directories(
-  $ENV{ZEPHYR_BASE}/tests/include
-  $ENV{ZEPHYR_BASE}/tests/ztest/include
+  $ENV{ZEPHYR_BASE}/subsys/testsuite/include
+  $ENV{ZEPHYR_BASE}/subsys/testsuite/ztest/include
   )
 
 zephyr_library()
diff --git a/tests/ztest/Kconfig b/subsys/testsuite/ztest/Kconfig
similarity index 100%
rename from tests/ztest/Kconfig
rename to subsys/testsuite/ztest/Kconfig
diff --git a/tests/ztest/include/arch/cpu.h b/subsys/testsuite/ztest/include/arch/cpu.h
similarity index 100%
rename from tests/ztest/include/arch/cpu.h
rename to subsys/testsuite/ztest/include/arch/cpu.h
diff --git a/tests/ztest/include/kernel_arch_thread.h b/subsys/testsuite/ztest/include/kernel_arch_thread.h
similarity index 100%
rename from tests/ztest/include/kernel_arch_thread.h
rename to subsys/testsuite/ztest/include/kernel_arch_thread.h
diff --git a/tests/ztest/include/offsets.h b/subsys/testsuite/ztest/include/offsets.h
similarity index 100%
rename from tests/ztest/include/offsets.h
rename to subsys/testsuite/ztest/include/offsets.h
diff --git a/tests/ztest/include/syscall_list.h b/subsys/testsuite/ztest/include/syscall_list.h
similarity index 100%
rename from tests/ztest/include/syscall_list.h
rename to subsys/testsuite/ztest/include/syscall_list.h
diff --git a/tests/ztest/include/syscall_macros.h b/subsys/testsuite/ztest/include/syscall_macros.h
similarity index 100%
rename from tests/ztest/include/syscall_macros.h
rename to subsys/testsuite/ztest/include/syscall_macros.h
diff --git a/tests/ztest/include/syscalls/kernel.h b/subsys/testsuite/ztest/include/syscalls/kernel.h
similarity index 100%
rename from tests/ztest/include/syscalls/kernel.h
rename to subsys/testsuite/ztest/include/syscalls/kernel.h
diff --git a/tests/ztest/include/ztest.h b/subsys/testsuite/ztest/include/ztest.h
similarity index 100%
rename from tests/ztest/include/ztest.h
rename to subsys/testsuite/ztest/include/ztest.h
diff --git a/tests/ztest/include/ztest_assert.h b/subsys/testsuite/ztest/include/ztest_assert.h
similarity index 100%
rename from tests/ztest/include/ztest_assert.h
rename to subsys/testsuite/ztest/include/ztest_assert.h
diff --git a/tests/ztest/include/ztest_mock.h b/subsys/testsuite/ztest/include/ztest_mock.h
similarity index 100%
rename from tests/ztest/include/ztest_mock.h
rename to subsys/testsuite/ztest/include/ztest_mock.h
diff --git a/tests/ztest/include/ztest_test.h b/subsys/testsuite/ztest/include/ztest_test.h
similarity index 100%
rename from tests/ztest/include/ztest_test.h
rename to subsys/testsuite/ztest/include/ztest_test.h
diff --git a/tests/ztest/src/ztest.c b/subsys/testsuite/ztest/src/ztest.c
similarity index 100%
rename from tests/ztest/src/ztest.c
rename to subsys/testsuite/ztest/src/ztest.c
diff --git a/tests/ztest/src/ztest_mock.c b/subsys/testsuite/ztest/src/ztest_mock.c
similarity index 100%
rename from tests/ztest/src/ztest_mock.c
rename to subsys/testsuite/ztest/src/ztest_mock.c
diff --git a/tests/unit/lib/crc/CMakeLists.txt b/tests/unit/lib/crc/CMakeLists.txt
index 32fbe11e8a7..20578b805ba 100644
--- a/tests/unit/lib/crc/CMakeLists.txt
+++ b/tests/unit/lib/crc/CMakeLists.txt
@@ -1,3 +1,3 @@
 project(crc)
-include($ENV{ZEPHYR_BASE}/tests/unit/unittest.cmake)
+include($ENV{ZEPHYR_BASE}/subsys/testsuite/unittest.cmake)
 
diff --git a/tests/ztest/test/base/CMakeLists.txt b/tests/ztest/base/CMakeLists.txt
similarity index 83%
rename from tests/ztest/test/base/CMakeLists.txt
rename to tests/ztest/base/CMakeLists.txt
index 25baf46f6e5..c5a979494f5 100644
--- a/tests/ztest/test/base/CMakeLists.txt
+++ b/tests/ztest/base/CMakeLists.txt
@@ -2,7 +2,7 @@ cmake_minimum_required(VERSION 3.13.1)
 if(BOARD STREQUAL unit_testing)
   list(APPEND SOURCES src/main.c)
 
-  include($ENV{ZEPHYR_BASE}/tests/unit/unittest.cmake)
+  include($ENV{ZEPHYR_BASE}/subsys/testsuite/unittest.cmake)
   project(base)
 else()
   include($ENV{ZEPHYR_BASE}/cmake/app/boilerplate.cmake NO_POLICY_SCOPE)
diff --git a/tests/ztest/test/base/prj_verbose_0.conf b/tests/ztest/base/prj_verbose_0.conf
similarity index 100%
rename from tests/ztest/test/base/prj_verbose_0.conf
rename to tests/ztest/base/prj_verbose_0.conf
diff --git a/tests/ztest/test/base/prj_verbose_1.conf b/tests/ztest/base/prj_verbose_1.conf
similarity index 100%
rename from tests/ztest/test/base/prj_verbose_1.conf
rename to tests/ztest/base/prj_verbose_1.conf
diff --git a/tests/ztest/test/base/prj_verbose_2.conf b/tests/ztest/base/prj_verbose_2.conf
similarity index 100%
rename from tests/ztest/test/base/prj_verbose_2.conf
rename to tests/ztest/base/prj_verbose_2.conf
diff --git a/tests/ztest/test/base/src/main.c b/tests/ztest/base/src/main.c
similarity index 100%
rename from tests/ztest/test/base/src/main.c
rename to tests/ztest/base/src/main.c
diff --git a/tests/ztest/test/base/testcase.yaml b/tests/ztest/base/testcase.yaml
similarity index 100%
rename from tests/ztest/test/base/testcase.yaml
rename to tests/ztest/base/testcase.yaml
diff --git a/tests/ztest/test/mock/CMakeLists.txt b/tests/ztest/mock/CMakeLists.txt
similarity index 83%
rename from tests/ztest/test/mock/CMakeLists.txt
rename to tests/ztest/mock/CMakeLists.txt
index 508e83c93da..d475ce6f1f2 100644
--- a/tests/ztest/test/mock/CMakeLists.txt
+++ b/tests/ztest/mock/CMakeLists.txt
@@ -2,7 +2,7 @@ cmake_minimum_required(VERSION 3.13.1)
 if(BOARD STREQUAL unit_testing)
   list(APPEND SOURCES src/main.c)
 
-  include($ENV{ZEPHYR_BASE}/tests/unit/unittest.cmake)
+  include($ENV{ZEPHYR_BASE}/subsys/testsuite/unittest.cmake)
   project(mock)
 else()
   include($ENV{ZEPHYR_BASE}/cmake/app/boilerplate.cmake NO_POLICY_SCOPE)
diff --git a/tests/ztest/test/mock/prj.conf b/tests/ztest/mock/prj.conf
similarity index 100%
rename from tests/ztest/test/mock/prj.conf
rename to tests/ztest/mock/prj.conf
diff --git a/tests/ztest/test/mock/src/main.c b/tests/ztest/mock/src/main.c
similarity index 100%
rename from tests/ztest/test/mock/src/main.c
rename to tests/ztest/mock/src/main.c
diff --git a/tests/ztest/test/mock/testcase.yaml b/tests/ztest/mock/testcase.yaml
similarity index 100%
rename from tests/ztest/test/mock/testcase.yaml
rename to tests/ztest/mock/testcase.yaml