diff --git a/.gitignore b/.gitignore
index 9363123..6bfdce8 100644
--- a/.gitignore
+++ b/.gitignore
@@ -34,8 +34,6 @@ yubico-piv-tool-*.tar.gz
 yubico-piv-tool-*.tar.gz.sig
 yubico-piv-tool-*-mac.zip
 yubico-piv-tool-*-mac.zip.sig
-tests/basic.sh.log
-tests/basic.sh.trs
 tests/test-suite.log
 tests/basic
 tests/basic.log
@@ -68,4 +66,6 @@ tool/libpiv_cmd_la-cmdline.o
 tool/libpiv_util.la
 tool/util.lo
 tool/util.o
-
+tool/tests/basic.sh.log
+tool/tests/basic.sh.trs
+tool/tests/test-suite.log
diff --git a/configure.ac b/configure.ac
index 9184a28..a3fc0dc 100644
--- a/configure.ac
+++ b/configure.ac
@@ -151,6 +151,7 @@ AC_CONFIG_FILES([
   Makefile
   lib/Makefile
   tool/Makefile
+  tool/tests/Makefile
   tests/Makefile
   lib/ykpiv-version.h
   lib/ykpiv.pc
diff --git a/tests/Makefile.am b/tests/Makefile.am
index 1c47722..ba7b69c 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -24,8 +24,6 @@
 # non-source form of such a combination shall include the source code
 # for the parts of OpenSSL used as well as that of the covered work.
 
-TESTS_ENVIRONMENT = export VERSION=$(VERSION); export EXEEXT=$(EXEEXT);
-
 AM_CFLAGS = $(WARN_CFLAGS)
 AM_CPPFLAGS = -I$(top_srcdir)/lib -I$(top_builddir)/lib
 
@@ -33,4 +31,4 @@ AM_LDFLAGS = -no-install
 LDADD = ../lib/libykpiv.la
 
 check_PROGRAMS = basic parse_key
-TESTS = basic.sh $(check_PROGRAMS)
+TESTS = $(check_PROGRAMS)
diff --git a/tool/Makefile.am b/tool/Makefile.am
index 657f09e..a3d609f 100644
--- a/tool/Makefile.am
+++ b/tool/Makefile.am
@@ -24,6 +24,8 @@
 # non-source form of such a combination shall include the source code
 # for the parts of OpenSSL used as well as that of the covered work.
 
+SUBDIRS = . tests
+
 AM_CFLAGS = $(WERROR_CFLAGS) $(WARN_CFLAGS)
 AM_CPPFLAGS = $(OPENSSL_CFLAGS)
 AM_CPPFLAGS += -I$(top_srcdir)/lib -I$(top_builddir)/lib
diff --git a/tool/tests/Makefile.am b/tool/tests/Makefile.am
new file mode 100644
index 0000000..88b2b85
--- /dev/null
+++ b/tool/tests/Makefile.am
@@ -0,0 +1,29 @@
+# Copyright (c) 2014 Yubico AB
+# All rights reserved.
+# 
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program. If not, see <http://www.gnu.org/licenses/>.
+#
+# Additional permission under GNU GPL version 3 section 7
+#
+# If you modify this program, or any covered work, by linking or
+# combining it with the OpenSSL project's OpenSSL library (or a
+# modified version of that library), containing parts covered by the
+# terms of the OpenSSL or SSLeay licenses, We grant you additional 
+# permission to convey the resulting work. Corresponding Source for a
+# non-source form of such a combination shall include the source code
+# for the parts of OpenSSL used as well as that of the covered work.
+
+TESTS_ENVIRONMENT = export VERSION=$(VERSION); export EXEEXT=$(EXEEXT);
+
+TESTS = basic.sh
diff --git a/tests/basic.sh b/tool/tests/basic.sh
similarity index 97%
rename from tests/basic.sh
rename to tool/tests/basic.sh
index 5a58b81..daf3c33 100755
--- a/tests/basic.sh
+++ b/tool/tests/basic.sh
@@ -31,7 +31,7 @@
 
 set -e
 
-BIN="../tool/yubico-piv-tool${EXEEXT}"
+BIN="../yubico-piv-tool${EXEEXT}"
 
 HELP_OUTPUT=$($BIN --help)