diff --git a/.github/workflows/build.yaml b/.github/workflows/build.yaml
index 65e47f336..6fb661496 100644
--- a/.github/workflows/build.yaml
+++ b/.github/workflows/build.yaml
@@ -182,55 +182,6 @@ jobs:
         if: failure()
         uses: andymckay/cancel-action@0.2
 
-  test-unit:
-    name: Run unit tests
-    runs-on: ubuntu-latest
-    timeout-minutes: 5
-    steps:
-      - name: Checkout repo
-        uses: actions/checkout@v3
-
-      - name: Get changed files
-        id: changed-files
-        uses: tj-actions/changed-files@v23.2
-        with:
-          files: |
-            src/**
-
-      - name: Install Node.js v16
-        if: steps.changed-files.outputs.any_changed == 'true'
-        uses: actions/setup-node@v3
-        with:
-          node-version: "16"
-
-      - name: Fetch dependencies from cache
-        if: steps.changed-files.outputs.any_changed == 'true'
-        id: cache-yarn
-        uses: actions/cache@v3
-        with:
-          path: "node_modules"
-          key: yarn-build-${{ hashFiles('yarn.lock') }}
-          restore-keys: |
-            yarn-build-
-
-      - name: Install dependencies
-        if: steps.changed-files.outputs.any_changed == 'true' && steps.cache-yarn.outputs.cache-hit != 'true'
-        run: SKIP_SUBMODULE_DEPS=1 yarn --frozen-lockfile
-
-      - name: Run unit tests
-        if: steps.changed-files.outputs.any_changed == 'true'
-        run: yarn test:unit
-
-      - name: Upload coverage report to Codecov
-        uses: codecov/codecov-action@v3
-        with:
-          token: ${{ secrets.CODECOV_TOKEN }}
-        if: success()
-
-      - name: Fail workflow
-        if: failure()
-        uses: andymckay/cancel-action@0.2
-
   typecheck:
     name: Check TypeScript types
     runs-on: ubuntu-latest
@@ -341,6 +292,19 @@ jobs:
         if: steps.cache-vscode.outputs.cache-hit != 'true'
         run: yarn build:vscode
 
+      # Our code imports code from VS Code's `out` directory meaning VS Code
+      # must be built before running these tests.
+      # TODO: Move to its own step?
+      - name: Run code-server unit tests
+        run: yarn test:unit
+        if: success()
+
+      - name: Upload coverage report to Codecov
+        uses: codecov/codecov-action@v3
+        with:
+          token: ${{ secrets.CODECOV_TOKEN }}
+        if: success()
+
       # The release package does not contain any native modules
       # and is neutral to architecture/os/libc version.
       - name: Create release package
diff --git a/ci/dev/test-unit.sh b/ci/dev/test-unit.sh
new file mode 100755
index 000000000..e832c1031
--- /dev/null
+++ b/ci/dev/test-unit.sh
@@ -0,0 +1,31 @@
+#!/usr/bin/env bash
+set -euo pipefail
+
+main() {
+  cd "$(dirname "$0")/../.."
+
+  source ./ci/lib.sh
+
+  # Our code imports from `out` in order to work during development but if you
+  # have only built for production you will have not have this directory.  In
+  # that case symlink `out` to a production build directory.
+  if [[ ! -e lib/vscode/out ]]; then
+    pushd lib
+    local out=(vscode-reh-web-*)
+    if [[ -d "${out[0]}" ]]; then
+      ln -s "../${out[0]}/out" ./vscode/out
+    else
+      echo "Could not find lib/vscode/out or lib/vscode-reh-web-*"
+      echo "Code must be built before running unit tests"
+      # exit 1
+    fi
+    popd
+  fi
+
+  # We must keep jest in a sub-directory. See ../../test/package.json for more
+  # information. We must also run it from the root otherwise coverage will not
+  # include our source files.
+  CS_DISABLE_PLUGINS=true ./test/node_modules/.bin/jest "$@" --testRegex "./test/unit/.*ts" --testPathIgnorePatterns "./test/unit/node/test-plugin"
+}
+
+main "$@"
diff --git a/package.json b/package.json
index 9a5d61968..2833c02df 100644
--- a/package.json
+++ b/package.json
@@ -17,7 +17,7 @@
     "release:prep": "./ci/build/release-prep.sh",
     "test:e2e": "VSCODE_IPC_HOOK_CLI= ./ci/dev/test-e2e.sh",
     "test:e2e:proxy": "USE_PROXY=1 ./ci/dev/test-e2e.sh",
-    "test:unit": "CS_DISABLE_PLUGINS=true ./test/node_modules/.bin/jest --testRegex './test/unit/.*ts' --forceExit --detectOpenHandles",
+    "test:unit": "./ci/dev/test-unit.sh --forceExit --detectOpenHandles",
     "test:integration": "./ci/dev/test-integration.sh",
     "test:scripts": "./ci/dev/test-scripts.sh",
     "package": "./ci/build/build-packages.sh",