diff --git a/functionaltests/api/v1/__init__.py b/functionaltests/api/v1/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/functionaltests/post_test_hook.sh b/functionaltests/post_test_hook.sh
index daf660eb..d510cfaa 100755
--- a/functionaltests/post_test_hook.sh
+++ b/functionaltests/post_test_hook.sh
@@ -17,10 +17,15 @@
 
 RETVAL=0
 
+cd /opt/stack/new/
+
+echo "Repository: $ZUUL_PROJECT"
+
 #Run API tests only for mistral repository
 if [[ "$ZUUL_PROJECT" == "stackforge/mistral" ]]; then
-    cd /opt/stack/new/mistral/functionaltests
-    sudo ./run_tests.sh
+    cd mistral/
+    echo "Run mistral API tests"
+    sudo bash ./functionaltests/run_tests.sh
     RETVAL=$?
     # Copy tempest log files to be published among other logs upon job completion
     sudo cp /opt/stack/new/mistral/functionaltests/tempest.log /opt/stack/logs
@@ -28,8 +33,9 @@ fi
 
 #Run client tests for both repositories: mistral and python-mistralclient
 if [[ RETVAL -eq 0 ]]; then
-    cd /opt/stack/new/python-mistralclient/functionaltests
-    sudo ./run_tests.sh
+    cd /opt/stack/new/python-mistralclient/
+    echo "Run mistralclient tests"
+    sudo bash ./functionaltests/run_tests.sh
     RETVAL=$?
 fi
 
diff --git a/functionaltests/run_tests.sh b/functionaltests/run_tests.sh
index 516d398e..32cc071e 100755
--- a/functionaltests/run_tests.sh
+++ b/functionaltests/run_tests.sh
@@ -25,7 +25,15 @@ echo "Successfully contacted Mistral API"
 # Where tempest code lives
 TEMPEST_DIR=${TEMPEST_DIR:-/opt/stack/new/tempest}
 
-# Add tempest source tree to PYTHONPATH
-export PYTHONPATH=$PYTHONPATH:$TEMPEST_DIR
+# Where mistral code and mistralclient code live
+MISTRAL_DIR=/opt/stack/new/mistral
+MISTRALCLIENT_DIR=/opt/stack/new/python-mistralclient
 
-nosetests -sv api/v1
+# Define PYTHONPATH
+export PYTHONPATH=$PYTHONPATH:$TEMPEST_DIR
+export PYTHONPATH=$PYTHONPATH:$MISTRAL_DIR
+export PYTHONPATH=$PYTHONPATH:$MISTRALCLIENT_DIR
+
+echo $PYTHONPATH
+pwd
+nosetests -sv functionaltests