diff --git a/tests/Makefile.am b/tests/Makefile.am
index 90981dcf31..74f7f5a73e 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -462,8 +462,6 @@ TESTS = $(test_programs) \
 # intermediate shell variable, but must do all the expansion in make
 
 lv_abs_top_builddir=$(shell cd '$(top_builddir)' && pwd)
-path_add = $(subst :,$(PATH_SEPARATOR),\
-	$(subst !,$(lv_abs_top_builddir)/,!daemon:!tools:!tests))
 
 VIR_TEST_EXPENSIVE ?= $(VIR_TEST_EXPENSIVE_DEFAULT)
 TESTS_ENVIRONMENT =				\
@@ -472,7 +470,6 @@ TESTS_ENVIRONMENT =				\
   abs_builddir=$(abs_builddir)			\
   abs_srcdir=$(abs_srcdir)			\
   CONFIG_HEADER="$(lv_abs_top_builddir)/config.h"	\
-  PATH="$(path_add)$(PATH_SEPARATOR)$$PATH"	\
   SHELL="$(SHELL)"				\
   LIBVIRT_DRIVER_DIR="$(lv_abs_top_builddir)/src/.libs" \
   LIBVIRT_AUTOSTART=0				\
diff --git a/tests/testutils.c b/tests/testutils.c
index 88c4d4b253..2df4250bb6 100644
--- a/tests/testutils.c
+++ b/tests/testutils.c
@@ -806,6 +806,24 @@ virTestGetRegenerate(void)
     return testRegenerate;
 }
 
+static int
+virTestSetEnvPath(void)
+{
+    int ret = -1;
+    const char *path = getenv("PATH");
+    char *new_path = NULL;
+
+    if (strstr(path, abs_builddir) != path &&
+        (virAsprintf(&new_path, "%s:%s", abs_builddir, path) < 0 ||
+         setenv("PATH", new_path, 1) < 0))
+        goto cleanup;
+
+    ret = 0;
+ cleanup:
+    VIR_FREE(new_path);
+    return ret;
+}
+
 int virtTestMain(int argc,
                  char **argv,
                  int (*func)(void))
@@ -818,6 +836,9 @@ int virtTestMain(int argc,
 
     virFileActivateDirOverride(argv[0]);
 
+    if (virTestSetEnvPath() < 0)
+        return EXIT_AM_HARDFAIL;
+
     if (!virFileExists(abs_srcdir))
         return EXIT_AM_HARDFAIL;