diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 32296767..cbbdbd31 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -59,7 +59,7 @@ jobs:
           node-version: ${{ matrix.node }}
 
       - name: Test
-        run: pnpm exec vitest --coverage
+        run: pnpm test:all --coverage
 
       - name: Submit coverage
         uses: coverallsapp/github-action@master
diff --git a/bin/read-package-json.ts b/bin/read-package-json.ts
index ea597d78..0bcad863 100644
--- a/bin/read-package-json.ts
+++ b/bin/read-package-json.ts
@@ -1,17 +1,13 @@
 import { readFileSync } from 'node:fs';
 import { createRequire } from 'node:module';
 
+const require = createRequire(import.meta.url);
+
 /**
  * Read the package.json file of `concurrently`
  */
 export function readPackageJson(): Record<string, unknown> {
-    let resolver;
-    try {
-        resolver = require.resolve;
-    } catch {
-        resolver = createRequire(import.meta.url).resolve;
-    }
-    const path = resolver('concurrently/package.json');
+    const path = require.resolve('concurrently/package.json');
     const content = readFileSync(path, 'utf8');
     return JSON.parse(content);
 }
diff --git a/package.json b/package.json
index d474b816..08cd7a7a 100644
--- a/package.json
+++ b/package.json
@@ -49,6 +49,8 @@
     "lint": "eslint",
     "prepublishOnly": "safe-publish-latest && pnpm run build",
     "test": "vitest --project unit",
+    "test:all": "vitest run",
+    "test:e2e": "vitest run --project e2e",
     "test:smoke": "vitest run --project smoke",
     "prepare": "husky"
   },
diff --git a/bin/__fixtures__/read-echo.js b/tests/e2e/__fixtures__/read-echo.js
similarity index 100%
rename from bin/__fixtures__/read-echo.js
rename to tests/e2e/__fixtures__/read-echo.js
diff --git a/bin/__fixtures__/sleep.js b/tests/e2e/__fixtures__/sleep.js
similarity index 100%
rename from bin/__fixtures__/sleep.js
rename to tests/e2e/__fixtures__/sleep.js
diff --git a/bin/index.spec.ts b/tests/e2e/index.spec.ts
similarity index 94%
rename from bin/index.spec.ts
rename to tests/e2e/index.spec.ts
index 4536a9d1..adb4f80d 100644
--- a/bin/index.spec.ts
+++ b/tests/e2e/index.spec.ts
@@ -1,18 +1,16 @@
 import { spawn } from 'node:child_process';
 import fs from 'node:fs';
-import os from 'node:os';
 import path from 'node:path';
 import readline from 'node:readline';
 
 import { subscribeSpyTo } from '@hirez_io/observer-spy';
 import { sendCtrlC, spawnWithWrapper } from 'ctrlc-wrapper';
-import { build } from 'esbuild';
 import Rx from 'rxjs';
 import { map } from 'rxjs/operators';
 import stringArgv from 'string-argv';
-import { afterAll, beforeAll, describe, expect, it } from 'vitest';
+import { describe, expect, it } from 'vitest';
 
-import { escapeRegExp } from '../lib/utils.js';
+import { escapeRegExp } from '../../lib/utils.js';
 
 const isWindows = process.platform === 'win32';
 const createKillMessage = (prefix: string, signal: 'SIGTERM' | 'SIGINT' | string) => {
@@ -24,37 +22,13 @@ const createKillMessage = (prefix: string, signal: 'SIGTERM' | 'SIGINT' | string
     return new RegExp(`${escapeRegExp(prefix)} exited with code ${map[signal] ?? signal}`);
 };
 
-let tmpDir: string;
-
-beforeAll(async () => {
-    // Build 'concurrently' and store it in a temporary directory
-    tmpDir = fs.mkdtempSync(path.join(os.tmpdir(), 'concurrently-'));
-    await build({
-        entryPoints: [path.join(__dirname, 'index.ts')],
-        platform: 'node',
-        bundle: true,
-        // it doesn't seem like esbuild is able to change a CJS module to ESM, so target CJS instead.
-        // https://github.com/evanw/esbuild/issues/1921
-        format: 'cjs',
-        outfile: path.join(tmpDir, 'concurrently.cjs'),
-    });
-    fs.copyFileSync(path.join(__dirname, '..', 'package.json'), path.join(tmpDir, 'package.json'));
-}, 8000);
-
-afterAll(() => {
-    // Remove the temporary directory where 'concurrently' was stored
-    if (tmpDir) {
-        fs.rmSync(tmpDir, { recursive: true });
-    }
-});
-
 /**
  * Creates a child process running 'concurrently' with the given args.
  * Returns observables for its combined stdout + stderr output, close events, pid, and stdin stream.
  */
 const run = (args: string, ctrlcWrapper?: boolean) => {
     const spawnFn = ctrlcWrapper ? spawnWithWrapper : spawn;
-    const child = spawnFn('node', [path.join(tmpDir, 'concurrently.cjs'), ...stringArgv(args)], {
+    const child = spawnFn('node', ['../../dist/bin/index.js', ...stringArgv(args)], {
         cwd: __dirname,
         env: {
             ...process.env,
@@ -126,7 +100,7 @@ it('prints help when no arguments are passed', async () => {
 });
 
 describe('has version command', () => {
-    const pkg = fs.readFileSync(path.join(__dirname, '..', 'package.json'), 'utf-8');
+    const pkg = fs.readFileSync(path.join(__dirname, '..', '..', 'package.json'), 'utf-8');
     const { version } = JSON.parse(pkg);
 
     it.each(['--version', '-V', '-v'])('%s', async (arg) => {
diff --git a/tests/package.json b/tests/package.json
index f803ee8d..66d310b9 100644
--- a/tests/package.json
+++ b/tests/package.json
@@ -1,8 +1,6 @@
 {
+  "type": "module",
   "dependencies": {
     "concurrently": "workspace:*"
-  },
-  "scripts": {
-    "test": "pnpm --workspace-root test:smoke"
   }
 }
diff --git a/tests/setup.ts b/tests/setup.ts
new file mode 100644
index 00000000..31c9ef82
--- /dev/null
+++ b/tests/setup.ts
@@ -0,0 +1,36 @@
+import { exec as originalExec } from 'node:child_process';
+import util from 'node:util';
+
+import type { TestProject, TestSpecification } from 'vitest/node';
+
+const exec = util.promisify(originalExec);
+
+function buildProject() {
+    return exec('pnpm run build');
+}
+
+function isBuildRequired(testFiles: TestSpecification[]) {
+    for (const file of testFiles) {
+        if (file.project.name === 'e2e' || file.project.name === 'smoke') {
+            return true;
+        }
+    }
+    return false;
+}
+
+export default async function setup(project: TestProject) {
+    // @ts-expect-error not typed
+    const pattern: string[] | undefined = project.vitest.filenamePattern;
+
+    const testFiles = await project.vitest.getRelevantTestSpecifications(pattern);
+
+    if (isBuildRequired(testFiles)) {
+        await buildProject();
+    }
+
+    project.onTestsRerun(async (testFiles) => {
+        if (isBuildRequired(testFiles)) {
+            await buildProject();
+        }
+    });
+}
diff --git a/tests/cjs-import/package.json b/tests/smoke/cjs-import/package.json
similarity index 100%
rename from tests/cjs-import/package.json
rename to tests/smoke/cjs-import/package.json
diff --git a/tests/cjs-import/smoke-test.ts b/tests/smoke/cjs-import/smoke-test.ts
similarity index 100%
rename from tests/cjs-import/smoke-test.ts
rename to tests/smoke/cjs-import/smoke-test.ts
diff --git a/tests/cjs-import/tsconfig.json b/tests/smoke/cjs-import/tsconfig.json
similarity index 100%
rename from tests/cjs-import/tsconfig.json
rename to tests/smoke/cjs-import/tsconfig.json
diff --git a/tests/cjs-require/package.json b/tests/smoke/cjs-require/package.json
similarity index 100%
rename from tests/cjs-require/package.json
rename to tests/smoke/cjs-require/package.json
diff --git a/tests/cjs-require/smoke-test.ts b/tests/smoke/cjs-require/smoke-test.ts
similarity index 100%
rename from tests/cjs-require/smoke-test.ts
rename to tests/smoke/cjs-require/smoke-test.ts
diff --git a/tests/cjs-require/tsconfig.json b/tests/smoke/cjs-require/tsconfig.json
similarity index 100%
rename from tests/cjs-require/tsconfig.json
rename to tests/smoke/cjs-require/tsconfig.json
diff --git a/tests/esm/package.json b/tests/smoke/esm/package.json
similarity index 100%
rename from tests/esm/package.json
rename to tests/smoke/esm/package.json
diff --git a/tests/esm/smoke-test.ts b/tests/smoke/esm/smoke-test.ts
similarity index 100%
rename from tests/esm/smoke-test.ts
rename to tests/smoke/esm/smoke-test.ts
diff --git a/tests/esm/tsconfig.json b/tests/smoke/esm/tsconfig.json
similarity index 100%
rename from tests/esm/tsconfig.json
rename to tests/smoke/esm/tsconfig.json
diff --git a/tests/smoke-tests.spec.ts b/tests/smoke/index.spec.ts
similarity index 69%
rename from tests/smoke-tests.spec.ts
rename to tests/smoke/index.spec.ts
index 6035a951..cfc9d7a1 100644
--- a/tests/smoke-tests.spec.ts
+++ b/tests/smoke/index.spec.ts
@@ -1,18 +1,10 @@
 import { exec as originalExec } from 'node:child_process';
 import util from 'node:util';
 
-import { beforeAll, expect, it } from 'vitest';
+import { expect, it } from 'vitest';
 
 const exec = util.promisify(originalExec);
 
-beforeAll(async () => {
-    await exec('pnpm run build');
-}, 20_000);
-
-it('spawns binary', async () => {
-    await expect(exec('node dist/bin/index.js "echo test"')).resolves.toBeDefined();
-});
-
 it.each(['cjs-import', 'cjs-require', 'esm'])('loads library in %s context', async (project) => {
     // Use as separate execs as tsc outputs to stdout, instead of stderr, and so its text isn't shown
     await exec(`tsc -p ${project}`, { cwd: __dirname }).catch((err) => Promise.reject(err.stdout));
diff --git a/vitest.config.ts b/vitest.config.ts
index 3f50728e..47ef6a72 100644
--- a/vitest.config.ts
+++ b/vitest.config.ts
@@ -7,19 +7,24 @@ export default defineConfig({
             // lcov is used for coveralls
             reporter: ['text', 'html', 'lcov'],
         },
+        globalSetup: 'tests/setup.ts',
         projects: [
             {
-                extends: true,
                 test: {
                     name: 'unit',
-                    include: ['{bin,lib}/**/*.spec.ts'],
+                    include: ['lib/**/*.spec.ts'],
+                },
+            },
+            {
+                test: {
+                    name: 'e2e',
+                    include: ['tests/e2e/*.spec.ts'],
                 },
             },
             {
-                extends: true,
                 test: {
                     name: 'smoke',
-                    include: ['tests/**/*.spec.ts'],
+                    include: ['tests/smoke/*.spec.ts'],
                 },
             },
         ],