diff --git a/.gitignore b/.gitignore
index 6bfdce8..a3d3236 100644
--- a/.gitignore
+++ b/.gitignore
@@ -34,15 +34,15 @@ yubico-piv-tool-*.tar.gz
 yubico-piv-tool-*.tar.gz.sig
 yubico-piv-tool-*-mac.zip
 yubico-piv-tool-*-mac.zip.sig
-tests/test-suite.log
-tests/basic
-tests/basic.log
-tests/basic.o
-tests/basic.trs
-tests/parse_key
-tests/parse_key.log
-tests/parse_key.o
-tests/parse_key.trs
+lib/tests/basic
+lib/tests/basic.log
+lib/tests/basic.o
+lib/tests/basic.trs
+lib/tests/parse_key
+lib/tests/parse_key.log
+lib/tests/parse_key.o
+lib/tests/parse_key.trs
+lib/tests/test-suite.log
 lib/error.lo
 lib/error.o
 lib/libykpiv.la
diff --git a/Makefile.am b/Makefile.am
index 566d588..0f442c2 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -24,7 +24,7 @@
 # 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 = lib tool tests
+SUBDIRS = lib tool
 
 ACLOCAL_AMFLAGS = -I m4
 
diff --git a/configure.ac b/configure.ac
index a3fc0dc..80e04d6 100644
--- a/configure.ac
+++ b/configure.ac
@@ -150,9 +150,9 @@ fi
 AC_CONFIG_FILES([
   Makefile
   lib/Makefile
+  lib/tests/Makefile
   tool/Makefile
   tool/tests/Makefile
-  tests/Makefile
   lib/ykpiv-version.h
   lib/ykpiv.pc
 ])
diff --git a/lib/Makefile.am b/lib/Makefile.am
index 729b57d..7a02a82 100644
--- a/lib/Makefile.am
+++ b/lib/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) $(PCSC_CFLAGS)
 
diff --git a/tests/Makefile.am b/lib/tests/Makefile.am
similarity index 98%
rename from tests/Makefile.am
rename to lib/tests/Makefile.am
index ba7b69c..6fefb8f 100644
--- a/tests/Makefile.am
+++ b/lib/tests/Makefile.am
@@ -28,7 +28,7 @@ AM_CFLAGS = $(WARN_CFLAGS)
 AM_CPPFLAGS = -I$(top_srcdir)/lib -I$(top_builddir)/lib
 
 AM_LDFLAGS = -no-install
-LDADD = ../lib/libykpiv.la
+LDADD = ../libykpiv.la
 
 check_PROGRAMS = basic parse_key
 TESTS = $(check_PROGRAMS)
diff --git a/tests/basic.c b/lib/tests/basic.c
similarity index 100%
rename from tests/basic.c
rename to lib/tests/basic.c
diff --git a/tests/parse_key.c b/lib/tests/parse_key.c
similarity index 100%
rename from tests/parse_key.c
rename to lib/tests/parse_key.c