diff --git a/scripts/run_standalone_tests.sh b/scripts/run_standalone_tests.sh
new file mode 100755
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+++ b/scripts/run_standalone_tests.sh
@@ -0,0 +1,152 @@
+#!/bin/bash
+# Copyright The Lightning AI team.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+# THIS FILE ASSUMES IT IS RUN INSIDE THE tests DIRECTORY.
+
+# Batch size for testing: Determines how many standalone test invocations run in parallel
+# It can be set through the env variable NUM_PARALLEL_TESTS and defaults to 5 if not set
+test_batch_size="${NUM_PARALLEL_TESTS:-5}"
+
+# Source directory for coverage runs can be set with CODECOV_SOURCE and defaults to lightning.
+codecov_source="${COVERAGE_SOURCE:-"lightning"}"
+
+# The test directory is passed as the first argument to the script
+test_dir=$1 # parse the first argument
+
+# There is also timeout for the tests.
+# It can be set through the env variable TEST_TIMEOUT and defaults to 1200 seconds if not set 1200 seconds
+test_timeout="${TEST_TIMEOUT:-1200}"
+
+# Temporary file to store the collected tests
+COLLECTED_TESTS_FILE="collected_tests.txt"
+
+ls -lh .  # show the contents of the directory
+
+# Python arguments for running the tests and coverage
+defaults=" -m coverage run --source ${codecov_source} --append -m pytest --no-header -v -s --color=yes --timeout=${test_timeout} --durations=0 "
+echo "Using defaults: ${defaults}"
+
+# Get the list of parametrizations. we need to call them separately. the last two lines are removed.
+# note: if there's a syntax error, this will fail with some garbled output
+python -um pytest ${test_dir} -q --collect-only --pythonwarnings ignore 2>&1 > $COLLECTED_TESTS_FILE
+# Early terminate if collection failed (e.g. syntax error)
+if [[ $? != 0 ]]; then
+  cat $COLLECTED_TESTS_FILE
+  printf "ERROR: test collection failed!\n"
+  exit 1
+fi
+
+# Initialize empty array
+tests=()
+
+# Read from file line by line
+while IFS= read -r line; do
+    # Only keep lines containing "test_"
+    if [[ $line == *"test_"* ]]; then
+        # Extract part after test_dir/
+        pruned_line="${line#*${test_dir}/}"
+        tests+=("${test_dir}/$pruned_line")
+    fi
+done < $COLLECTED_TESTS_FILE
+
+# Count tests
+test_count=${#tests[@]}
+
+# Display results
+printf "collected $test_count tests:\n-------------------\n"
+printf "%s\n" "${tests[@]}"
+printf "\n===================\n"
+
+# if test count is one print warning
+if [[ $test_count -eq 1 ]]; then
+  printf "WARNING: only one test found!\n"
+elif [ $test_count -eq 0 ]; then
+  printf "ERROR: no tests found!\n"
+  exit 1
+fi
+
+# clear all the collected reports
+rm -f parallel_test_output-*.txt  # in case it exists, remove it
+
+status=0 # aggregated script status
+report="" # final report
+pids=() # array of PID for running tests
+test_ids=() # array of indexes of running tests
+failed_tests=() # array of failed tests
+printf "Running $test_count tests in batches of $test_batch_size:\n"
+for i in "${!tests[@]}"; do
+  test=${tests[$i]}
+  printf "* Running test $((i+1))/$test_count: $test\n"
+
+  # execute the test in the background
+  # redirect to a log file that buffers test output. since the tests will run in the background,
+  # we cannot let them output to std{out,err} because the outputs would be garbled together
+  python ${defaults} "$test" &> "parallel_test_output-$i.txt" &
+  test_ids+=($i) # save the test's id in an array with running tests
+  pids+=($!) # save the PID in an array with running tests
+
+  # if we reached the batch size, wait for all tests to finish
+  if (( (($i + 1) % $test_batch_size == 0) || $i == $test_count-1 )); then
+    printf "-> Waiting for batch to finish: $(IFS=' '; echo "${pids[@]}")\n"
+    # wait for running tests
+    for j in "${!test_ids[@]}"; do
+      i=${test_ids[$j]} # restore the global test's id
+      pid=${pids[$j]} # restore the particular PID
+      test=${tests[$i]} # restore the test name
+      printf "? Waiting for $tests >> parallel_test_output-$i.txt (PID: $pid)\n"
+      wait -n $pid
+      # get the exit status of the test
+      test_status=$?
+      # add row to the final report
+      report+="Ran\t$test\t>> exit:$test_status\n"
+      if [[ $test_status != 0 ]]; then
+        # add the test to the failed tests array
+        failed_tests+=($i)
+        # Process exited with a non-zero exit status
+        status=$test_status
+      fi
+    done
+    printf "Starting over with a new batch...\n"
+    test_ids=()  # reset the test's id array
+    pids=()  # reset the PID array
+  fi
+done
+
+# print test report with exit code for each test
+printf '=%.s' {1..80}
+printf "\n$report"
+printf '=%.s' {1..80}
+printf '\n'
+
+# print failed tests from duped logs
+if [[ ${#failed_tests[@]} -gt 0 ]]; then
+  printf "Failed tests:\n"
+  for i in "${failed_tests[@]}"; do
+    printf '\n%.s' {1..5}
+    printf '=%.s' {1..80}
+    printf "\n${tests[$i]}\n"
+    printf '-%.s' {1..80}
+    printf "\n"
+    # show the output of the failed test
+    cat "parallel_test_output-$i.txt"
+    printf "\n"
+    printf '=%.s' {1..80}
+  done
+else
+  printf "All tests passed!\n"
+fi
+
+# exit with the worse test result
+exit $status