diff --git a/lib/rules/template-no-let-reference.js b/lib/rules/template-no-let-reference.js
index b264da6dcb..107027f8e9 100644
--- a/lib/rules/template-no-let-reference.js
+++ b/lib/rules/template-no-let-reference.js
@@ -18,8 +18,13 @@ module.exports = {
 
   create: (context) => {
     const sourceCode = context.sourceCode;
+    const pathname = context.physicalFilename;
 
     function checkIfWritableReferences(node, scope) {
+      // Return if the pathname starts with '/start/'
+      if (pathname.startsWith('/tests/')) {
+        return;
+      }
       const ref = scope.references.find((v) => v.identifier === node);
       if (!ref) {
         return;
diff --git a/tests/lib/rules/template-no-let-reference.js b/tests/lib/rules/template-no-let-reference.js
index c9399aaf4c..23fd3a80f6 100644
--- a/tests/lib/rules/template-no-let-reference.js
+++ b/tests/lib/rules/template-no-let-reference.js
@@ -43,6 +43,25 @@ ruleTester.run('template-no-let-reference', rule, {
       <ab></ab>
       </template>
     `,
+    // Test cases for '/tests/' path, to allow let or var  in tests directory
+    {
+      filename: '/tests/integration/components/simulate-test.js',
+      code: `
+      let a = '';
+      <template>
+      {{a}}
+      </template>
+      `,
+    },
+    {
+      filename: '/tests/integration/components/simulate-test.js',
+      code: `
+      var a = '';
+      <template>
+      {{a}}
+      </template>
+      `,
+    },
   ],
 
   invalid: [