diff --git a/ci/README.md b/ci/README.md
index 0bb983ef..19d6778e 100644
--- a/ci/README.md
+++ b/ci/README.md
@@ -52,7 +52,7 @@ Make sure you have `$GITHUB_TOKEN` set and [hub](https://github.com/github/hub)
 
 Currently, we run a command to manually generate the code coverage shield. Follow these steps:
 
-1. Run `yarn test` and make sure all the tests are passing
+1. Run `yarn test:unit` and make sure all the tests are passing
 2. Run `yarn badges`
 3. Go into the README and change the color from `red` to `green` in this line:
 
@@ -72,8 +72,10 @@ This directory contains scripts used for the development of code-server.
   - Runs formatters.
 - [./ci/dev/lint.sh](./dev/lint.sh) (`yarn lint`)
   - Runs linters.
-- [./ci/dev/test.sh](./dev/test.sh) (`yarn test`)
-  - Runs tests.
+- [./ci/dev/test-unit.sh](./dev/test-unit.sh) (`yarn test:unit`)
+  - Runs unit tests.
+- [./ci/dev/test-e2e.sh](./dev/test-e2e.sh) (`yarn test:e2e`)
+  - Runs end-to-end tests.
 - [./ci/dev/ci.sh](./dev/ci.sh) (`yarn ci`)
   - Runs `yarn fmt`, `yarn lint` and `yarn test`.
 - [./ci/dev/watch.ts](./dev/watch.ts) (`yarn watch`)
@@ -142,11 +144,13 @@ This directory contains the scripts used in CI.
 Helps avoid clobbering the CI configuration.
 
 - [./steps/fmt.sh](./steps/fmt.sh)
-  - Runs `yarn fmt` after ensuring VS Code is patched.
+  - Runs `yarn fmt`.
 - [./steps/lint.sh](./steps/lint.sh)
-  - Runs `yarn lint` after ensuring VS Code is patched.
-- [./steps/test.sh](./steps/test.sh)
-  - Runs `yarn test` after ensuring VS Code is patched.
+  - Runs `yarn lint`.
+- [./steps/test-unit.sh](./steps/test-unit.sh)
+  - Runs `yarn test:unit`.
+- [./steps/test-e2e.sh](./steps/test-e2e.sh)
+  - Runs `yarn test:e2e`.
 - [./steps/release.sh](./steps/release.sh)
   - Runs the release process.
   - Generates the npm package at `./release`.
diff --git a/ci/dev/ci.sh b/ci/dev/ci.sh
index e9268286..92265a97 100755
--- a/ci/dev/ci.sh
+++ b/ci/dev/ci.sh
@@ -6,7 +6,7 @@ main() {
 
   yarn fmt
   yarn lint
-  yarn test
+  yarn test:unit
 }
 
 main "$@"
diff --git a/ci/dev/test.sh b/ci/dev/test-e2e.sh
similarity index 85%
rename from ci/dev/test.sh
rename to ci/dev/test-e2e.sh
index 82f6ad36..d81d25cb 100755
--- a/ci/dev/test.sh
+++ b/ci/dev/test-e2e.sh
@@ -3,12 +3,9 @@ set -euo pipefail
 
 main() {
   cd "$(dirname "$0")/../.."
-  cd test/test-plugin
-  make -s out/index.js
   # We must keep jest in a sub-directory. See ../../test/package.json for more
   # information. We must also run it from the root otherwise coverage will not
   # include our source files.
-  cd "$OLDPWD"
   if [[ -z ${PASSWORD-} ]] || [[ -z ${CODE_SERVER_ADDRESS-} ]]; then
     echo "The end-to-end testing suites rely on your local environment"
     echo -e "\n"
@@ -21,7 +18,7 @@ main() {
     echo -e "\n"
     exit 1
   fi
-  CS_DISABLE_PLUGINS=true ./test/node_modules/.bin/jest "$@"
+  CS_DISABLE_PLUGINS=true ./test/node_modules/.bin/jest "$@" --config ./test/jest.e2e.config.ts
 }
 
 main "$@"
diff --git a/ci/dev/test-unit.sh b/ci/dev/test-unit.sh
new file mode 100755
index 00000000..f2e76ee5
--- /dev/null
+++ b/ci/dev/test-unit.sh
@@ -0,0 +1,15 @@
+#!/usr/bin/env bash
+set -euo pipefail
+
+main() {
+  cd "$(dirname "$0")/../.."
+  cd test/unit/test-plugin
+  make -s out/index.js
+  # We must keep jest in a sub-directory. See ../../test/package.json for more
+  # information. We must also run it from the root otherwise coverage will not
+  # include our source files.
+  cd "$OLDPWD"
+  CS_DISABLE_PLUGINS=true ./test/node_modules/.bin/jest "$@"
+}
+
+main "$@"
diff --git a/ci/steps/test-e2e.sh b/ci/steps/test-e2e.sh
new file mode 100755
index 00000000..c1aa148a
--- /dev/null
+++ b/ci/steps/test-e2e.sh
@@ -0,0 +1,12 @@
+#!/usr/bin/env bash
+set -euo pipefail
+
+main() {
+  cd "$(dirname "$0")/../.."
+
+  ./release-packages/code-server*-linux-amd64/bin/code-server --home $CODE_SERVER_ADDRESS/healthz &
+  yarn --frozen-lockfile
+  yarn test:e2e
+}
+
+main "$@"
diff --git a/ci/steps/test.sh b/ci/steps/test-unit.sh
similarity index 87%
rename from ci/steps/test.sh
rename to ci/steps/test-unit.sh
index 72aa3ca2..77fd547c 100755
--- a/ci/steps/test.sh
+++ b/ci/steps/test-unit.sh
@@ -6,7 +6,7 @@ main() {
 
   yarn --frozen-lockfile
 
-  yarn test
+  yarn test:unit
 }
 
 main "$@"
diff --git a/package.json b/package.json
index 6c3eebdf..50541dda 100644
--- a/package.json
+++ b/package.json
@@ -16,9 +16,9 @@
     "release:standalone": "./ci/build/build-standalone-release.sh",
     "release:github-draft": "./ci/build/release-github-draft.sh",
     "release:github-assets": "./ci/build/release-github-assets.sh",
-    "test:e2e": "./ci/dev/test.sh",
+    "test:e2e": "./ci/dev/test-e2e.sh",
     "test:standalone-release": "./ci/build/test-standalone-release.sh",
-    "test:unit": "./ci/dev/test.sh",
+    "test:unit": "./ci/dev/test-unit.sh",
     "package": "./ci/build/build-packages.sh",
     "postinstall": "./ci/dev/postinstall.sh",
     "update:vscode": "./ci/dev/update-vscode.sh",
@@ -126,7 +126,8 @@
     "testPathIgnorePatterns": [
       "node_modules",
       "lib",
-      "out"
+      "out",
+      "test/e2e"
     ],
     "collectCoverage": true,
     "collectCoverageFrom": [
@@ -146,8 +147,6 @@
         "lines": 40
       }
     },
-    "testTimeout": 30000,
-    "globalSetup": "<rootDir>/test/globalSetup.ts",
     "modulePathIgnorePatterns": [
       "<rootDir>/lib/vscode",
       "<rootDir>/release-packages",
@@ -158,7 +157,7 @@
       "<rootDir>/release-images"
     ],
     "moduleNameMapper": {
-      "^.+\\.(css|less)$": "<rootDir>/test/cssStub.ts"
+      "^.+\\.(css|less)$": "<rootDir>/test/utils/cssStub.ts"
     }
   }
 }