diff --git a/.github/workflows/build.yaml b/.github/workflows/build.yaml
index 6fb661496..65e47f336 100644
--- a/.github/workflows/build.yaml
+++ b/.github/workflows/build.yaml
@@ -182,6 +182,55 @@ 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
@@ -292,19 +341,6 @@ 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: ${{ secrets.CODECOV_TOKEN }}
-        if: success()
-
       # The release package does not contain any native modules
       # and is neutral to architecture/os/libc version.
       - name: Create release package
diff --git a/ci/dev/test-unit.sh b/ci/dev/test-unit.sh
deleted file mode 100755
index e832c1031..000000000
--- a/ci/dev/test-unit.sh
+++ /dev/null
@@ -1,31 +0,0 @@
-#!/usr/bin/env bash
-set -euo pipefail
-
-main() {
-  cd "$(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 2833c02df..9a5d61968 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": "./ci/dev/test-unit.sh --forceExit --detectOpenHandles",
+    "test:unit": "CS_DISABLE_PLUGINS=true ./test/node_modules/.bin/jest --testRegex './test/unit/.*ts' --forceExit --detectOpenHandles",
     "test:integration": "./ci/dev/test-integration.sh",
     "test:scripts": "./ci/dev/test-scripts.sh",
     "package": "./ci/build/build-packages.sh",