diff --git a/tests/run_functests.sh b/tests/run_functests.sh
index 6a965dfaf..a51b860b0 100755
--- a/tests/run_functests.sh
+++ b/tests/run_functests.sh
@@ -6,7 +6,7 @@ set -o pipefail
 BASE_DIR=$(cd $(dirname "$0")/.. && pwd)
 
 # then execute tests for elements
-export DIB_CMD=disk-image-create
+export DIB_CMD="disk-image-create"
 export DIB_ELEMENTS=$(python -c '
 import diskimage_builder.paths
 diskimage_builder.paths.show_path("elements")')
@@ -114,6 +114,7 @@ function run_disk_element_test() {
     local element=$2
     local dont_use_tmp=$3
     local output_format="$4"
+    local logfile="$5"
 
     local use_tmp_flag=""
     local dest_dir=$(mktemp -d)
@@ -132,6 +133,7 @@ function run_disk_element_test() {
         ELEMENTS_PATH=$DIB_ELEMENTS/$element/test-elements \
         $DIB_CMD -x -t ${output_format} \
                        ${use_tmp_flag} \
+                       ${logfile} \
                        -o $dest_dir/image -n $element $test_element 2>&1 \
            | log_with_prefix "${element}/${test_element}"; then
 
@@ -220,11 +222,12 @@ done
 JOB_MAX_CNT=1
 LOG_DATESTAMP=0
 KEEP_OUTPUT=0
+LOG_DIRECTORY=''
 
 #
 # Parse args
 #
-while getopts ":hlj:t" opt; do
+while getopts ":hlj:tL:" opt; do
     case $opt in
         h)
             echo "run_functests.sh [-h] [-l] <test> <test> ..."
@@ -233,6 +236,7 @@ while getopts ":hlj:t" opt; do
             echo "  -j : parallel job count (default to 1)"
             echo "  -t : prefix log messages with timestamp"
             echo "  -k : keep output directories"
+            echo "  -L : output logs into this directory"
             echo "  <test> : functional test to run"
             echo "           Special test 'all' will run all tests"
             exit 0
@@ -261,6 +265,9 @@ while getopts ":hlj:t" opt; do
         k)
             KEEP_OUTPUT=1
             ;;
+        L)
+            LOG_DIRECTORY=${OPTARG}
+            ;;
         \?)
             echo "Invalid option: -$OPTARG"
             exit 1
@@ -305,6 +312,11 @@ else
     done
 fi
 
+if [[ -n "${LOG_DIRECTORY}" ]]; then
+   mkdir -p "${LOG_DIRECTORY}"
+   export DIB_QUIET=1
+fi
+
 # print a little status info
 echo "------"
 echo ${title}
@@ -365,8 +377,16 @@ for test in "${TESTS_TO_RUN[@]}"; do
         element_output=$(cat ${element_output_override})
     fi
 
+    log_argument=' '
+    if [[ -n "${LOG_DIRECTORY}" ]]; then
+        mkdir -p "${LOG_DIRECTORY}/${element}"
+        log_argument="--logfile ${LOG_DIRECTORY}/${element}/${test_element}.log"
+    fi
+
     echo "Running $test ($element_type)"
-    run_${element_type}_element_test $test_element $element ${DONT_USE_TMP} "${element_output}" &
+    run_${element_type}_element_test \
+        $test_element $element \
+        ${DONT_USE_TMP} "${element_output}" "$log_argument" &
 done
 
 # Wait for the rest of the jobs