diff --git a/functionaltests/engine/config.conf b/functionaltests/engine/config.conf
deleted file mode 100644
index 3e8be4b5..00000000
--- a/functionaltests/engine/config.conf
+++ /dev/null
@@ -1,8 +0,0 @@
-[murano]
-auth_url = http://127.0.0.1:5000/v2.0/
-user = admin
-password = admin
-tenant = admin
-murano_url = http://127.0.0.1:8082/v1/
-linux_image = default_linux
-windows_image = default_windows
diff --git a/functionaltests/post_test_hook.sh b/functionaltests/post_test_hook.sh
index f78b23bd..c46507c0 100755
--- a/functionaltests/post_test_hook.sh
+++ b/functionaltests/post_test_hook.sh
@@ -21,4 +21,4 @@ RETVAL=$?
 # Copy tempest log files to be published among other logs upon job completion
 sudo cp /opt/stack/new/murano/functionaltests/tempest.log /opt/stack/logs
 
-exit $RETVAL
\ No newline at end of file
+exit $RETVAL
diff --git a/functionaltests/run_tests.sh b/functionaltests/run_tests.sh
index c7ddca32..ed826a45 100755
--- a/functionaltests/run_tests.sh
+++ b/functionaltests/run_tests.sh
@@ -28,4 +28,4 @@ TEMPEST_DIR=${TEMPEST_DIR:-/opt/stack/new/tempest}
 # Add tempest source tree to PYTHONPATH
 export PYTHONPATH=$PYTHONPATH:$TEMPEST_DIR
 
-nosetests -sv api/v1
+nosetests -sv ../murano/tests/functional/api/v1
diff --git a/functionaltests/__init__.py b/murano/tests/functional/__init__.py
similarity index 100%
rename from functionaltests/__init__.py
rename to murano/tests/functional/__init__.py
diff --git a/functionaltests/api/__init__.py b/murano/tests/functional/api/__init__.py
similarity index 100%
rename from functionaltests/api/__init__.py
rename to murano/tests/functional/api/__init__.py
diff --git a/functionaltests/api/base.py b/murano/tests/functional/api/base.py
similarity index 100%
rename from functionaltests/api/base.py
rename to murano/tests/functional/api/base.py
diff --git a/functionaltests/api/v1/DummyTestApp/Classes/Controller.yaml b/murano/tests/functional/api/v1/DummyTestApp/Classes/Controller.yaml
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Classes/Controller.yaml
rename to murano/tests/functional/api/v1/DummyTestApp/Classes/Controller.yaml
diff --git a/functionaltests/api/v1/DummyTestApp/Classes/DomainHost.yaml b/murano/tests/functional/api/v1/DummyTestApp/Classes/DomainHost.yaml
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Classes/DomainHost.yaml
rename to murano/tests/functional/api/v1/DummyTestApp/Classes/DomainHost.yaml
diff --git a/functionaltests/api/v1/DummyTestApp/Classes/Dummy.yaml b/murano/tests/functional/api/v1/DummyTestApp/Classes/Dummy.yaml
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Classes/Dummy.yaml
rename to murano/tests/functional/api/v1/DummyTestApp/Classes/Dummy.yaml
diff --git a/functionaltests/api/v1/DummyTestApp/Classes/Host.yaml b/murano/tests/functional/api/v1/DummyTestApp/Classes/Host.yaml
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Classes/Host.yaml
rename to murano/tests/functional/api/v1/DummyTestApp/Classes/Host.yaml
diff --git a/functionaltests/api/v1/DummyTestApp/Classes/PrimaryController.yaml b/murano/tests/functional/api/v1/DummyTestApp/Classes/PrimaryController.yaml
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Classes/PrimaryController.yaml
rename to murano/tests/functional/api/v1/DummyTestApp/Classes/PrimaryController.yaml
diff --git a/functionaltests/api/v1/DummyTestApp/Classes/SecondaryController.yaml b/murano/tests/functional/api/v1/DummyTestApp/Classes/SecondaryController.yaml
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Classes/SecondaryController.yaml
rename to murano/tests/functional/api/v1/DummyTestApp/Classes/SecondaryController.yaml
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/AskDnsIp.template b/murano/tests/functional/api/v1/DummyTestApp/Resources/AskDnsIp.template
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/AskDnsIp.template
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/AskDnsIp.template
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/CreatePrimaryDC.template b/murano/tests/functional/api/v1/DummyTestApp/Resources/CreatePrimaryDC.template
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/CreatePrimaryDC.template
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/CreatePrimaryDC.template
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/CreateSecondaryDC.template b/murano/tests/functional/api/v1/DummyTestApp/Resources/CreateSecondaryDC.template
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/CreateSecondaryDC.template
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/CreateSecondaryDC.template
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/JoinDomain.template b/murano/tests/functional/api/v1/DummyTestApp/Resources/JoinDomain.template
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/JoinDomain.template
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/JoinDomain.template
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/SetPassword.template b/murano/tests/functional/api/v1/DummyTestApp/Resources/SetPassword.template
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/SetPassword.template
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/SetPassword.template
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/scripts/Get-DnsListeningIpAddress.ps1 b/murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Get-DnsListeningIpAddress.ps1
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/scripts/Get-DnsListeningIpAddress.ps1
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Get-DnsListeningIpAddress.ps1
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/scripts/ImportCoreFunctions.ps1 b/murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/ImportCoreFunctions.ps1
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/scripts/ImportCoreFunctions.ps1
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/ImportCoreFunctions.ps1
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/scripts/Install-RolePrimaryDomainController.ps1 b/murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Install-RolePrimaryDomainController.ps1
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/scripts/Install-RolePrimaryDomainController.ps1
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Install-RolePrimaryDomainController.ps1
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/scripts/Install-RoleSecondaryDomainController.ps1 b/murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Install-RoleSecondaryDomainController.ps1
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/scripts/Install-RoleSecondaryDomainController.ps1
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Install-RoleSecondaryDomainController.ps1
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/scripts/Join-Domain.ps1 b/murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Join-Domain.ps1
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/scripts/Join-Domain.ps1
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Join-Domain.ps1
diff --git a/functionaltests/api/v1/DummyTestApp/Resources/scripts/Set-LocalUserPassword.ps1 b/murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Set-LocalUserPassword.ps1
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/Resources/scripts/Set-LocalUserPassword.ps1
rename to murano/tests/functional/api/v1/DummyTestApp/Resources/scripts/Set-LocalUserPassword.ps1
diff --git a/functionaltests/api/v1/DummyTestApp/UI/ui.yaml b/murano/tests/functional/api/v1/DummyTestApp/UI/ui.yaml
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/UI/ui.yaml
rename to murano/tests/functional/api/v1/DummyTestApp/UI/ui.yaml
diff --git a/functionaltests/api/v1/DummyTestApp/logo2.png b/murano/tests/functional/api/v1/DummyTestApp/logo2.png
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/logo2.png
rename to murano/tests/functional/api/v1/DummyTestApp/logo2.png
diff --git a/functionaltests/api/v1/DummyTestApp/manifest.yaml b/murano/tests/functional/api/v1/DummyTestApp/manifest.yaml
similarity index 100%
rename from functionaltests/api/v1/DummyTestApp/manifest.yaml
rename to murano/tests/functional/api/v1/DummyTestApp/manifest.yaml
diff --git a/functionaltests/api/v1/__init__.py b/murano/tests/functional/api/v1/__init__.py
similarity index 100%
rename from functionaltests/api/v1/__init__.py
rename to murano/tests/functional/api/v1/__init__.py
diff --git a/functionaltests/api/v1/test_envs.py b/murano/tests/functional/api/v1/test_envs.py
similarity index 98%
rename from functionaltests/api/v1/test_envs.py
rename to murano/tests/functional/api/v1/test_envs.py
index 104c6281..44f8606c 100644
--- a/functionaltests/api/v1/test_envs.py
+++ b/murano/tests/functional/api/v1/test_envs.py
@@ -15,7 +15,7 @@
 from tempest import exceptions
 from tempest.test import attr
 
-from functionaltests.api import base
+from murano.tests.functional.api import base
 
 
 class TestEnvironments(base.TestCase):
diff --git a/functionaltests/api/v1/test_repository.py b/murano/tests/functional/api/v1/test_repository.py
similarity index 99%
rename from functionaltests/api/v1/test_repository.py
rename to murano/tests/functional/api/v1/test_repository.py
index f1150aeb..efb3dca1 100644
--- a/functionaltests/api/v1/test_repository.py
+++ b/murano/tests/functional/api/v1/test_repository.py
@@ -21,7 +21,7 @@ from tempest.test import attr
 
 from tempest import exceptions
 
-from functionaltests.api import base
+from murano.tests.functional.api import base
 
 
 class TestCaseRepository(base.TestCase):
diff --git a/functionaltests/api/v1/test_services.py b/murano/tests/functional/api/v1/test_services.py
similarity index 99%
rename from functionaltests/api/v1/test_services.py
rename to murano/tests/functional/api/v1/test_services.py
index 8b8c04ec..fa2b0b4c 100644
--- a/functionaltests/api/v1/test_services.py
+++ b/murano/tests/functional/api/v1/test_services.py
@@ -17,7 +17,7 @@ import testtools
 from tempest import exceptions
 from tempest.test import attr
 
-from functionaltests.api import base
+from murano.tests.functional.api import base
 
 
 class TestServices(base.TestCase):
diff --git a/functionaltests/api/v1/test_sessions.py b/murano/tests/functional/api/v1/test_sessions.py
similarity index 98%
rename from functionaltests/api/v1/test_sessions.py
rename to murano/tests/functional/api/v1/test_sessions.py
index 7d43f34a..d2d5ef05 100644
--- a/functionaltests/api/v1/test_sessions.py
+++ b/murano/tests/functional/api/v1/test_sessions.py
@@ -15,7 +15,7 @@
 from tempest import exceptions
 from tempest.test import attr
 
-from functionaltests.api import base
+from murano.tests.functional.api import base
 
 
 class TestSessions(base.TestCase):
diff --git a/functionaltests/engine/__init__.py b/murano/tests/functional/engine/__init__.py
similarity index 100%
rename from functionaltests/engine/__init__.py
rename to murano/tests/functional/engine/__init__.py
diff --git a/functionaltests/engine/base.py b/murano/tests/functional/engine/base.py
similarity index 99%
rename from functionaltests/engine/base.py
rename to murano/tests/functional/engine/base.py
index 26f478d4..9a996a2d 100644
--- a/functionaltests/engine/base.py
+++ b/murano/tests/functional/engine/base.py
@@ -24,7 +24,7 @@ import uuid
 from heatclient import client as heatclient
 from keystoneclient.v2_0 import client as ksclient
 
-import functionaltests.engine.config as cfg
+import murano.tests.functional.engine.config as cfg
 
 
 CONF = cfg.cfg.CONF
@@ -149,6 +149,7 @@ class MuranoBase(testtools.TestCase, testtools.testcase.WithAttributes,
         cls.packages_path = '/'.join(cls.location.split('/')[:-1:])
 
         def upload_package(package_name, body, app):
+            #TODO(efedorova): Use muranoclient to upload packages
             files = {'%s' % package_name: open(
                 os.path.join(cls.packages_path, app), 'rb')}
 
diff --git a/murano/tests/functional/engine/config.conf b/murano/tests/functional/engine/config.conf
new file mode 100644
index 00000000..7ae3ed70
--- /dev/null
+++ b/murano/tests/functional/engine/config.conf
@@ -0,0 +1,8 @@
+[murano]
+auth_url = http://172.16.116.5:5000/v2.0/
+user = kate
+password = swordfish
+tenant = kate
+murano_url = http://localhost:8082/v1/
+linux_image = default_linux
+windows_image = default_windows
diff --git a/functionaltests/engine/config.py b/murano/tests/functional/engine/config.py
similarity index 100%
rename from functionaltests/engine/config.py
rename to murano/tests/functional/engine/config.py
diff --git a/murano/tests/api/__init__.py b/murano/tests/unit/__init__.py
similarity index 100%
rename from murano/tests/api/__init__.py
rename to murano/tests/unit/__init__.py
diff --git a/murano/tests/api/v1/__init__.py b/murano/tests/unit/api/__init__.py
similarity index 100%
rename from murano/tests/api/v1/__init__.py
rename to murano/tests/unit/api/__init__.py
diff --git a/murano/tests/api/base.py b/murano/tests/unit/api/base.py
similarity index 98%
rename from murano/tests/api/base.py
rename to murano/tests/unit/api/base.py
index 5b47c7b1..c176e4cd 100644
--- a/murano/tests/api/base.py
+++ b/murano/tests/unit/api/base.py
@@ -23,8 +23,8 @@ from murano.api.v1 import request_statistics
 from murano.common import rpc
 from murano.openstack.common import timeutils
 from murano.openstack.common import wsgi
-from murano.tests import base
-from murano.tests import utils
+from murano.tests.unit import base
+from murano.tests.unit import utils
 
 TEST_DEFAULT_LOGLEVELS = {'migrate': logging.WARN, 'sqlalchemy': logging.WARN}
 
diff --git a/murano/tests/common/__init__.py b/murano/tests/unit/api/v1/__init__.py
similarity index 100%
rename from murano/tests/common/__init__.py
rename to murano/tests/unit/api/v1/__init__.py
diff --git a/murano/tests/api/v1/test_catalog.py b/murano/tests/unit/api/v1/test_catalog.py
similarity index 98%
rename from murano/tests/api/v1/test_catalog.py
rename to murano/tests/unit/api/v1/test_catalog.py
index 59784336..70deb366 100644
--- a/murano/tests/api/v1/test_catalog.py
+++ b/murano/tests/unit/api/v1/test_catalog.py
@@ -19,7 +19,7 @@ from murano.api.v1 import catalog
 from murano.common import policy
 from murano.db.catalog import api as db_catalog_api
 from murano.packages import load_utils
-import murano.tests.api.base as test_base
+import murano.tests.unit.api.base as test_base
 import os
 
 
diff --git a/murano/tests/api/v1/test_environments.py b/murano/tests/unit/api/v1/test_environments.py
similarity index 98%
rename from murano/tests/api/v1/test_environments.py
rename to murano/tests/unit/api/v1/test_environments.py
index dcec720b..ec286db2 100644
--- a/murano/tests/api/v1/test_environments.py
+++ b/murano/tests/unit/api/v1/test_environments.py
@@ -21,8 +21,8 @@ from murano.api.v1 import environments
 from murano.common import policy
 from murano.db import models
 from murano.openstack.common import timeutils
-import murano.tests.api.base as tb
-import murano.tests.utils as test_utils
+import murano.tests.unit.api.base as tb
+import murano.tests.unit.utils as test_utils
 
 
 @mock.patch.object(policy, 'check')
diff --git a/murano/tests/base.py b/murano/tests/unit/base.py
similarity index 100%
rename from murano/tests/base.py
rename to murano/tests/unit/base.py
diff --git a/murano/tests/common/helpers/__init__.py b/murano/tests/unit/common/__init__.py
similarity index 100%
rename from murano/tests/common/helpers/__init__.py
rename to murano/tests/unit/common/__init__.py
diff --git a/murano/tests/db/__init__.py b/murano/tests/unit/common/helpers/__init__.py
similarity index 100%
rename from murano/tests/db/__init__.py
rename to murano/tests/unit/common/helpers/__init__.py
diff --git a/murano/tests/common/helpers/token_sanitizer_tests.py b/murano/tests/unit/common/helpers/token_sanitizer_tests.py
similarity index 98%
rename from murano/tests/common/helpers/token_sanitizer_tests.py
rename to murano/tests/unit/common/helpers/token_sanitizer_tests.py
index 3fb3f99e..0a47d167 100644
--- a/murano/tests/common/helpers/token_sanitizer_tests.py
+++ b/murano/tests/unit/common/helpers/token_sanitizer_tests.py
@@ -13,7 +13,7 @@
 #    under the License.
 
 from murano.common.helpers import token_sanitizer
-from murano.tests import base
+from murano.tests.unit import base
 
 
 class TokenSanitizerTests(base.MuranoTestCase):
diff --git a/murano/tests/common/is_different_tests.py b/murano/tests/unit/common/is_different_tests.py
similarity index 98%
rename from murano/tests/common/is_different_tests.py
rename to murano/tests/unit/common/is_different_tests.py
index 9d3d4e49..9fc1fe26 100644
--- a/murano/tests/common/is_different_tests.py
+++ b/murano/tests/unit/common/is_different_tests.py
@@ -13,7 +13,7 @@
 #    under the License.
 
 from murano.common import utils
-from murano.tests import base
+from murano.tests.unit import base
 
 
 class IsDifferentTests(base.MuranoTestCase):
diff --git a/murano/tests/common/traverse_helper_tests.py b/murano/tests/unit/common/traverse_helper_tests.py
similarity index 99%
rename from murano/tests/common/traverse_helper_tests.py
rename to murano/tests/unit/common/traverse_helper_tests.py
index e3543a35..418a447a 100644
--- a/murano/tests/common/traverse_helper_tests.py
+++ b/murano/tests/unit/common/traverse_helper_tests.py
@@ -13,7 +13,7 @@
 #    under the License.
 
 from murano.common import utils
-from murano.tests import base
+from murano.tests.unit import base
 
 
 class TraverseHelperTests(base.MuranoTestCase):
diff --git a/murano/tests/core_library/instance/test_destroy/meta/Agent.yaml b/murano/tests/unit/core_library/instance/test_destroy/meta/Agent.yaml
similarity index 100%
rename from murano/tests/core_library/instance/test_destroy/meta/Agent.yaml
rename to murano/tests/unit/core_library/instance/test_destroy/meta/Agent.yaml
diff --git a/murano/tests/core_library/instance/test_destroy/meta/Environment.yaml b/murano/tests/unit/core_library/instance/test_destroy/meta/Environment.yaml
similarity index 100%
rename from murano/tests/core_library/instance/test_destroy/meta/Environment.yaml
rename to murano/tests/unit/core_library/instance/test_destroy/meta/Environment.yaml
diff --git a/murano/tests/core_library/instance/test_destroy/meta/HeatStack.yaml b/murano/tests/unit/core_library/instance/test_destroy/meta/HeatStack.yaml
similarity index 100%
rename from murano/tests/core_library/instance/test_destroy/meta/HeatStack.yaml
rename to murano/tests/unit/core_library/instance/test_destroy/meta/HeatStack.yaml
diff --git a/murano/tests/core_library/instance/test_destroy/meta/InstanceNotifier.yaml b/murano/tests/unit/core_library/instance/test_destroy/meta/InstanceNotifier.yaml
similarity index 100%
rename from murano/tests/core_library/instance/test_destroy/meta/InstanceNotifier.yaml
rename to murano/tests/unit/core_library/instance/test_destroy/meta/InstanceNotifier.yaml
diff --git a/murano/tests/core_library/instance/test_destroy/meta/Resources.yaml b/murano/tests/unit/core_library/instance/test_destroy/meta/Resources.yaml
similarity index 100%
rename from murano/tests/core_library/instance/test_destroy/meta/Resources.yaml
rename to murano/tests/unit/core_library/instance/test_destroy/meta/Resources.yaml
diff --git a/murano/tests/core_library/instance/test_destroy/test_destroy.py b/murano/tests/unit/core_library/instance/test_destroy/test_destroy.py
similarity index 95%
rename from murano/tests/core_library/instance/test_destroy/test_destroy.py
rename to murano/tests/unit/core_library/instance/test_destroy/test_destroy.py
index b908eb3b..7af04268 100644
--- a/murano/tests/core_library/instance/test_destroy/test_destroy.py
+++ b/murano/tests/unit/core_library/instance/test_destroy/test_destroy.py
@@ -12,8 +12,8 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 TEMPLATE = {
diff --git a/murano/tests/db/migration/__init__.py b/murano/tests/unit/db/__init__.py
similarity index 100%
rename from murano/tests/db/migration/__init__.py
rename to murano/tests/unit/db/__init__.py
diff --git a/murano/tests/dsl/__init__.py b/murano/tests/unit/db/migration/__init__.py
similarity index 100%
rename from murano/tests/dsl/__init__.py
rename to murano/tests/unit/db/migration/__init__.py
diff --git a/murano/tests/db/migration/test_migrations.conf b/murano/tests/unit/db/migration/test_migrations.conf
similarity index 100%
rename from murano/tests/db/migration/test_migrations.conf
rename to murano/tests/unit/db/migration/test_migrations.conf
diff --git a/murano/tests/db/migration/test_migrations.py b/murano/tests/unit/db/migration/test_migrations.py
similarity index 98%
rename from murano/tests/db/migration/test_migrations.py
rename to murano/tests/unit/db/migration/test_migrations.py
index dd1293dd..6b9941ea 100644
--- a/murano/tests/db/migration/test_migrations.py
+++ b/murano/tests/unit/db/migration/test_migrations.py
@@ -20,7 +20,7 @@ from sqlalchemy import exc
 from murano.db.migration import migration
 from murano.db import models  # noqa
 from murano.openstack.common.db.sqlalchemy import utils as db_utils
-from murano.tests.db.migration import test_migrations_base as base
+from murano.tests.unit.db.migration import test_migrations_base as base
 
 CONF = cfg.CONF
 
diff --git a/murano/tests/db/migration/test_migrations_base.py b/murano/tests/unit/db/migration/test_migrations_base.py
similarity index 100%
rename from murano/tests/db/migration/test_migrations_base.py
rename to murano/tests/unit/db/migration/test_migrations_base.py
diff --git a/murano/tests/db/test_catalog.py b/murano/tests/unit/db/test_catalog.py
similarity index 97%
rename from murano/tests/db/test_catalog.py
rename to murano/tests/unit/db/test_catalog.py
index 79f68efb..d95169d4 100644
--- a/murano/tests/db/test_catalog.py
+++ b/murano/tests/unit/db/test_catalog.py
@@ -17,8 +17,8 @@ from webob import exc
 
 from murano.db.catalog import api
 from murano.openstack.common.db import exception as db_exception
-from murano.tests import base
-from murano.tests import utils
+from murano.tests.unit import base
+from murano.tests.unit import utils
 
 
 class CatalogDBTestCase(base.MuranoWithDBTestCase):
diff --git a/murano/tests/db/test_models.py b/murano/tests/unit/db/test_models.py
similarity index 97%
rename from murano/tests/db/test_models.py
rename to murano/tests/unit/db/test_models.py
index 91a4fcc4..9fd045c8 100644
--- a/murano/tests/db/test_models.py
+++ b/murano/tests/unit/db/test_models.py
@@ -15,7 +15,7 @@
 
 from murano.db import models
 from murano.db import session
-from murano.tests import base
+from murano.tests.unit import base
 
 
 class TestModels(base.MuranoWithDBTestCase):
diff --git a/murano/tests/dsl/foundation/__init__.py b/murano/tests/unit/dsl/__init__.py
similarity index 100%
rename from murano/tests/dsl/foundation/__init__.py
rename to murano/tests/unit/dsl/__init__.py
diff --git a/murano/tests/packages/__init__.py b/murano/tests/unit/dsl/foundation/__init__.py
similarity index 100%
rename from murano/tests/packages/__init__.py
rename to murano/tests/unit/dsl/foundation/__init__.py
diff --git a/murano/tests/dsl/foundation/object_model.py b/murano/tests/unit/dsl/foundation/object_model.py
similarity index 100%
rename from murano/tests/dsl/foundation/object_model.py
rename to murano/tests/unit/dsl/foundation/object_model.py
diff --git a/murano/tests/dsl/foundation/runner.py b/murano/tests/unit/dsl/foundation/runner.py
similarity index 98%
rename from murano/tests/dsl/foundation/runner.py
rename to murano/tests/unit/dsl/foundation/runner.py
index 8974f44f..cbb763ab 100644
--- a/murano/tests/dsl/foundation/runner.py
+++ b/murano/tests/unit/dsl/foundation/runner.py
@@ -21,7 +21,7 @@ from murano.dsl import executor
 from murano.dsl import murano_object
 from murano.dsl import results_serializer
 from murano.engine import environment
-from murano.tests.dsl.foundation import object_model
+from murano.tests.unit.dsl.foundation import object_model
 
 
 class Runner(object):
diff --git a/murano/tests/dsl/foundation/test_case.py b/murano/tests/unit/dsl/foundation/test_case.py
similarity index 90%
rename from murano/tests/dsl/foundation/test_case.py
rename to murano/tests/unit/dsl/foundation/test_case.py
index d38dc864..85f8752c 100644
--- a/murano/tests/dsl/foundation/test_case.py
+++ b/murano/tests/unit/dsl/foundation/test_case.py
@@ -18,9 +18,9 @@ import os.path
 
 import eventlet.debug
 
-from murano.tests import base
-from murano.tests.dsl.foundation import runner
-from murano.tests.dsl.foundation import test_class_loader
+from murano.tests.unit import base
+from murano.tests.unit.dsl.foundation import runner
+from murano.tests.unit.dsl.foundation import test_class_loader
 
 
 class DslTestCase(base.MuranoTestCase):
@@ -29,7 +29,7 @@ class DslTestCase(base.MuranoTestCase):
         directory = os.path.join(os.path.dirname(
             inspect.getfile(self.__class__)), 'meta')
         root_meta_directory = os.path.join(
-            os.path.dirname(__file__), '../../../../meta')
+            os.path.dirname(__file__), '../../../../../meta')
         sys_class_loader = test_class_loader.TestClassLoader(
             os.path.join(root_meta_directory, 'io.murano/Classes'),
             'murano.io')
diff --git a/murano/tests/dsl/foundation/test_class_loader.py b/murano/tests/unit/dsl/foundation/test_class_loader.py
similarity index 100%
rename from murano/tests/dsl/foundation/test_class_loader.py
rename to murano/tests/unit/dsl/foundation/test_class_loader.py
diff --git a/murano/tests/dsl/meta/CommonParent.yaml b/murano/tests/unit/dsl/meta/CommonParent.yaml
similarity index 100%
rename from murano/tests/dsl/meta/CommonParent.yaml
rename to murano/tests/unit/dsl/meta/CommonParent.yaml
diff --git a/murano/tests/dsl/meta/ContractExamples.yaml b/murano/tests/unit/dsl/meta/ContractExamples.yaml
similarity index 100%
rename from murano/tests/dsl/meta/ContractExamples.yaml
rename to murano/tests/unit/dsl/meta/ContractExamples.yaml
diff --git a/murano/tests/dsl/meta/DerivedFrom2Classes.yaml b/murano/tests/unit/dsl/meta/DerivedFrom2Classes.yaml
similarity index 100%
rename from murano/tests/dsl/meta/DerivedFrom2Classes.yaml
rename to murano/tests/unit/dsl/meta/DerivedFrom2Classes.yaml
diff --git a/murano/tests/dsl/meta/ExceptionHandling.yaml b/murano/tests/unit/dsl/meta/ExceptionHandling.yaml
similarity index 100%
rename from murano/tests/dsl/meta/ExceptionHandling.yaml
rename to murano/tests/unit/dsl/meta/ExceptionHandling.yaml
diff --git a/murano/tests/dsl/meta/MacroExamples.yaml b/murano/tests/unit/dsl/meta/MacroExamples.yaml
similarity index 100%
rename from murano/tests/dsl/meta/MacroExamples.yaml
rename to murano/tests/unit/dsl/meta/MacroExamples.yaml
diff --git a/murano/tests/dsl/meta/ParentClass1.yaml b/murano/tests/unit/dsl/meta/ParentClass1.yaml
similarity index 100%
rename from murano/tests/dsl/meta/ParentClass1.yaml
rename to murano/tests/unit/dsl/meta/ParentClass1.yaml
diff --git a/murano/tests/dsl/meta/ParentClass2.yaml b/murano/tests/unit/dsl/meta/ParentClass2.yaml
similarity index 100%
rename from murano/tests/dsl/meta/ParentClass2.yaml
rename to murano/tests/unit/dsl/meta/ParentClass2.yaml
diff --git a/murano/tests/dsl/meta/SampleClass1.yaml b/murano/tests/unit/dsl/meta/SampleClass1.yaml
similarity index 100%
rename from murano/tests/dsl/meta/SampleClass1.yaml
rename to murano/tests/unit/dsl/meta/SampleClass1.yaml
diff --git a/murano/tests/dsl/meta/SampleClass2.yaml b/murano/tests/unit/dsl/meta/SampleClass2.yaml
similarity index 100%
rename from murano/tests/dsl/meta/SampleClass2.yaml
rename to murano/tests/unit/dsl/meta/SampleClass2.yaml
diff --git a/murano/tests/dsl/meta/SampleClass3.yaml b/murano/tests/unit/dsl/meta/SampleClass3.yaml
similarity index 100%
rename from murano/tests/dsl/meta/SampleClass3.yaml
rename to murano/tests/unit/dsl/meta/SampleClass3.yaml
diff --git a/murano/tests/dsl/meta/SingleInheritanceChild.yaml b/murano/tests/unit/dsl/meta/SingleInheritanceChild.yaml
similarity index 100%
rename from murano/tests/dsl/meta/SingleInheritanceChild.yaml
rename to murano/tests/unit/dsl/meta/SingleInheritanceChild.yaml
diff --git a/murano/tests/dsl/meta/SingleInheritanceParent.yaml b/murano/tests/unit/dsl/meta/SingleInheritanceParent.yaml
similarity index 100%
rename from murano/tests/dsl/meta/SingleInheritanceParent.yaml
rename to murano/tests/unit/dsl/meta/SingleInheritanceParent.yaml
diff --git a/murano/tests/dsl/meta/TestEngineFunctions.yaml b/murano/tests/unit/dsl/meta/TestEngineFunctions.yaml
similarity index 100%
rename from murano/tests/dsl/meta/TestEngineFunctions.yaml
rename to murano/tests/unit/dsl/meta/TestEngineFunctions.yaml
diff --git a/murano/tests/dsl/test_assignments.py b/murano/tests/unit/dsl/test_assignments.py
similarity index 91%
rename from murano/tests/dsl/test_assignments.py
rename to murano/tests/unit/dsl/test_assignments.py
index f7a4da39..8718010f 100644
--- a/murano/tests/dsl/test_assignments.py
+++ b/murano/tests/unit/dsl/test_assignments.py
@@ -12,8 +12,8 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestAssignments(test_case.DslTestCase):
diff --git a/murano/tests/dsl/test_contracts.py b/murano/tests/unit/dsl/test_contracts.py
similarity index 98%
rename from murano/tests/dsl/test_contracts.py
rename to murano/tests/unit/dsl/test_contracts.py
index d3e66978..239a19f3 100644
--- a/murano/tests/dsl/test_contracts.py
+++ b/murano/tests/unit/dsl/test_contracts.py
@@ -16,8 +16,8 @@ import types
 
 from murano.dsl import exceptions
 from murano.dsl import murano_object
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestContracts(test_case.DslTestCase):
diff --git a/murano/tests/dsl/test_engine_yaql_functions.py b/murano/tests/unit/dsl/test_engine_yaql_functions.py
similarity index 98%
rename from murano/tests/dsl/test_engine_yaql_functions.py
rename to murano/tests/unit/dsl/test_engine_yaql_functions.py
index cbf8848f..54954da4 100644
--- a/murano/tests/dsl/test_engine_yaql_functions.py
+++ b/murano/tests/unit/dsl/test_engine_yaql_functions.py
@@ -17,8 +17,8 @@ import types
 from testtools import matchers
 import yaql.exceptions as yaql_exc
 
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestEngineYaqlFunctions(test_case.DslTestCase):
diff --git a/murano/tests/dsl/test_exceptions.py b/murano/tests/unit/dsl/test_exceptions.py
similarity index 96%
rename from murano/tests/dsl/test_exceptions.py
rename to murano/tests/unit/dsl/test_exceptions.py
index 5d1f31fb..bdc98a4b 100644
--- a/murano/tests/dsl/test_exceptions.py
+++ b/murano/tests/unit/dsl/test_exceptions.py
@@ -19,8 +19,8 @@ import re
 from testtools import matchers
 
 from murano.dsl import dsl_exception
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestExceptions(test_case.DslTestCase):
diff --git a/murano/tests/dsl/test_execution.py b/murano/tests/unit/dsl/test_execution.py
similarity index 94%
rename from murano/tests/dsl/test_execution.py
rename to murano/tests/unit/dsl/test_execution.py
index 56ee678d..ff85718d 100644
--- a/murano/tests/dsl/test_execution.py
+++ b/murano/tests/unit/dsl/test_execution.py
@@ -14,8 +14,8 @@
 
 from murano.dsl import dsl_exception
 from murano.dsl import exceptions
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestExecution(test_case.DslTestCase):
diff --git a/murano/tests/dsl/test_macros.py b/murano/tests/unit/dsl/test_macros.py
similarity index 97%
rename from murano/tests/dsl/test_macros.py
rename to murano/tests/unit/dsl/test_macros.py
index 327e555c..f530ebc3 100644
--- a/murano/tests/dsl/test_macros.py
+++ b/murano/tests/unit/dsl/test_macros.py
@@ -17,8 +17,8 @@ from testtools import matchers
 
 from murano.dsl import exceptions
 
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestMacros(test_case.DslTestCase):
diff --git a/murano/tests/dsl/test_multiple_inheritance.py b/murano/tests/unit/dsl/test_multiple_inheritance.py
similarity index 94%
rename from murano/tests/dsl/test_multiple_inheritance.py
rename to murano/tests/unit/dsl/test_multiple_inheritance.py
index 80e87d03..22163abb 100644
--- a/murano/tests/dsl/test_multiple_inheritance.py
+++ b/murano/tests/unit/dsl/test_multiple_inheritance.py
@@ -12,8 +12,8 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestMultipleInheritance(test_case.DslTestCase):
diff --git a/murano/tests/dsl/test_property_access.py b/murano/tests/unit/dsl/test_property_access.py
similarity index 97%
rename from murano/tests/dsl/test_property_access.py
rename to murano/tests/unit/dsl/test_property_access.py
index 24a57887..113e634b 100644
--- a/murano/tests/dsl/test_property_access.py
+++ b/murano/tests/unit/dsl/test_property_access.py
@@ -13,8 +13,8 @@
 #    under the License.
 
 from murano.dsl import exceptions
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestPropertyAccess(test_case.DslTestCase):
diff --git a/murano/tests/dsl/test_single_inheritance.py b/murano/tests/unit/dsl/test_single_inheritance.py
similarity index 90%
rename from murano/tests/dsl/test_single_inheritance.py
rename to murano/tests/unit/dsl/test_single_inheritance.py
index eeb76a42..db46b027 100644
--- a/murano/tests/dsl/test_single_inheritance.py
+++ b/murano/tests/unit/dsl/test_single_inheritance.py
@@ -12,8 +12,8 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
-from murano.tests.dsl.foundation import object_model as om
-from murano.tests.dsl.foundation import test_case
+from murano.tests.unit.dsl.foundation import object_model as om
+from murano.tests.unit.dsl.foundation import test_case
 
 
 class TestSingleInheritance(test_case.DslTestCase):
diff --git a/murano/tests/packages/versions/__init__.py b/murano/tests/unit/packages/__init__.py
similarity index 100%
rename from murano/tests/packages/versions/__init__.py
rename to murano/tests/unit/packages/__init__.py
diff --git a/murano/tests/packages/test_packages/test.hot.v1.app/manifest.yaml b/murano/tests/unit/packages/test_packages/test.hot.v1.app/manifest.yaml
similarity index 100%
rename from murano/tests/packages/test_packages/test.hot.v1.app/manifest.yaml
rename to murano/tests/unit/packages/test_packages/test.hot.v1.app/manifest.yaml
diff --git a/murano/tests/packages/test_packages/test.hot.v1.app/template.yaml b/murano/tests/unit/packages/test_packages/test.hot.v1.app/template.yaml
similarity index 100%
rename from murano/tests/packages/test_packages/test.hot.v1.app/template.yaml
rename to murano/tests/unit/packages/test_packages/test.hot.v1.app/template.yaml
diff --git a/murano/tests/packages/test_packages/test.hot.v1.app/test_logo.png b/murano/tests/unit/packages/test_packages/test.hot.v1.app/test_logo.png
similarity index 100%
rename from murano/tests/packages/test_packages/test.hot.v1.app/test_logo.png
rename to murano/tests/unit/packages/test_packages/test.hot.v1.app/test_logo.png
diff --git a/murano/tests/packages/test_packages/test.hot.v1.app/test_supplier_logo.png b/murano/tests/unit/packages/test_packages/test.hot.v1.app/test_supplier_logo.png
similarity index 100%
rename from murano/tests/packages/test_packages/test.hot.v1.app/test_supplier_logo.png
rename to murano/tests/unit/packages/test_packages/test.hot.v1.app/test_supplier_logo.png
diff --git a/murano/tests/packages/test_packages/test.mpl.v1.app/Classes/Thing.yaml b/murano/tests/unit/packages/test_packages/test.mpl.v1.app/Classes/Thing.yaml
similarity index 100%
rename from murano/tests/packages/test_packages/test.mpl.v1.app/Classes/Thing.yaml
rename to murano/tests/unit/packages/test_packages/test.mpl.v1.app/Classes/Thing.yaml
diff --git a/murano/tests/packages/test_packages/test.mpl.v1.app/manifest.yaml b/murano/tests/unit/packages/test_packages/test.mpl.v1.app/manifest.yaml
similarity index 100%
rename from murano/tests/packages/test_packages/test.mpl.v1.app/manifest.yaml
rename to murano/tests/unit/packages/test_packages/test.mpl.v1.app/manifest.yaml
diff --git a/murano/tests/packages/test_packages/test.mpl.v1.app/test_logo.png b/murano/tests/unit/packages/test_packages/test.mpl.v1.app/test_logo.png
similarity index 100%
rename from murano/tests/packages/test_packages/test.mpl.v1.app/test_logo.png
rename to murano/tests/unit/packages/test_packages/test.mpl.v1.app/test_logo.png
diff --git a/murano/tests/packages/test_packages/test.mpl.v1.app/test_supplier_logo.png b/murano/tests/unit/packages/test_packages/test.mpl.v1.app/test_supplier_logo.png
similarity index 100%
rename from murano/tests/packages/test_packages/test.mpl.v1.app/test_supplier_logo.png
rename to murano/tests/unit/packages/test_packages/test.mpl.v1.app/test_supplier_logo.png
diff --git a/murano/tests/unit/packages/versions/__init__.py b/murano/tests/unit/packages/versions/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/murano/tests/packages/versions/test_hot_v1.py b/murano/tests/unit/packages/versions/test_hot_v1.py
similarity index 95%
rename from murano/tests/packages/versions/test_hot_v1.py
rename to murano/tests/unit/packages/versions/test_hot_v1.py
index 2aa50dc3..a445bd2e 100644
--- a/murano/tests/packages/versions/test_hot_v1.py
+++ b/murano/tests/unit/packages/versions/test_hot_v1.py
@@ -13,8 +13,8 @@
 
 import imghdr
 import murano.packages.load_utils as load_utils
-import murano.tests.base as test_base
-import murano.tests.utils as test_utils
+import murano.tests.unit.base as test_base
+import murano.tests.unit.utils as test_utils
 import os
 from oslo.config import cfg
 
diff --git a/murano/tests/packages/versions/test_mpl_v1.py b/murano/tests/unit/packages/versions/test_mpl_v1.py
similarity index 95%
rename from murano/tests/packages/versions/test_mpl_v1.py
rename to murano/tests/unit/packages/versions/test_mpl_v1.py
index 2298c6a4..f2010699 100644
--- a/murano/tests/packages/versions/test_mpl_v1.py
+++ b/murano/tests/unit/packages/versions/test_mpl_v1.py
@@ -13,8 +13,8 @@
 
 import imghdr
 import murano.packages.load_utils as load_utils
-import murano.tests.base as test_base
-import murano.tests.utils as test_utils
+import murano.tests.unit.base as test_base
+import murano.tests.unit.utils as test_utils
 import os
 from oslo.config import cfg
 
diff --git a/murano/tests/test_actions.py b/murano/tests/unit/test_actions.py
similarity index 98%
rename from murano/tests/test_actions.py
rename to murano/tests/unit/test_actions.py
index dd240645..fa47ac47 100644
--- a/murano/tests/test_actions.py
+++ b/murano/tests/unit/test_actions.py
@@ -16,7 +16,7 @@ import mock
 
 from murano.dsl import murano_method
 from murano.dsl import results_serializer
-from murano.tests import base
+from murano.tests.unit import base
 
 
 class TestActionsSerializer(base.MuranoTestCase):
diff --git a/murano/tests/test_engine.py b/murano/tests/unit/test_engine.py
similarity index 99%
rename from murano/tests/test_engine.py
rename to murano/tests/unit/test_engine.py
index e290c80a..d8e56acd 100644
--- a/murano/tests/test_engine.py
+++ b/murano/tests/unit/test_engine.py
@@ -21,7 +21,7 @@ import yaql
 import murano.dsl.helpers as helpers
 import murano.dsl.namespace_resolver as ns_resolver
 import murano.dsl.yaql_expression as yaql_expression
-from murano.tests import base
+from murano.tests.unit import base
 
 ROOT_CLASS = 'io.murano.Object'
 
diff --git a/murano/tests/test_heat_stack.py b/murano/tests/unit/test_heat_stack.py
similarity index 99%
rename from murano/tests/test_heat_stack.py
rename to murano/tests/unit/test_heat_stack.py
index 9df4c076..f615a395 100644
--- a/murano/tests/test_heat_stack.py
+++ b/murano/tests/unit/test_heat_stack.py
@@ -14,7 +14,7 @@
 # limitations under the License.
 
 import mock
-from murano.tests import base
+from murano.tests.unit import base
 
 from murano.dsl import murano_object
 from murano.engine.system import heat_stack
diff --git a/murano/tests/test_log.py b/murano/tests/unit/test_log.py
similarity index 98%
rename from murano/tests/test_log.py
rename to murano/tests/unit/test_log.py
index 86d81c37..7e2236fb 100644
--- a/murano/tests/test_log.py
+++ b/murano/tests/unit/test_log.py
@@ -17,7 +17,7 @@ import logging
 import sys
 
 from murano.openstack.common import log
-from murano.tests import base
+from murano.tests.unit import base
 
 
 class SysLogHandlersTestCase(base.MuranoTestCase):
diff --git a/murano/tests/utils.py b/murano/tests/unit/utils.py
similarity index 100%
rename from murano/tests/utils.py
rename to murano/tests/unit/utils.py
diff --git a/tox.ini b/tox.ini
index 204872f0..c9539707 100644
--- a/tox.ini
+++ b/tox.ini
@@ -8,7 +8,7 @@ usedevelop = True
 install_command  = pip install -U {opts} {packages}
 setenv =
     VIRTUAL_ENV={envdir}
-    DISCOVER_DIRECTORY=murano/tests
+    DISCOVER_DIRECTORY=murano/tests/unit
 deps = -r{toxinidir}/requirements.txt
        -r{toxinidir}/test-requirements.txt
 commands = python setup.py test --slowest --testr-args="{posargs}"