diff --git a/tests/integration_tests/functional/test_pvtime.py b/tests/integration_tests/functional/test_pvtime.py
new file mode 100644
index 00000000000..c71ae14a518
--- /dev/null
+++ b/tests/integration_tests/functional/test_pvtime.py
@@ -0,0 +1,27 @@
+# Copyright 2025 Amazon.com, Inc. or its affiliates. All Rights Reserved.
+# SPDX-License-Identifier: Apache-2.0
+
+"""Tests for verifying the PVTime device is enabled on aarch64."""
+
+import pytest
+
+from framework.properties import global_props
+
+
+@pytest.mark.skipif(
+    global_props.cpu_architecture != "aarch64", reason="Only run in aarch64"
+)
+def test_guest_has_pvtime_enabled(uvm_plain):
+    """
+    Check that the guest kernel has enabled PV steal time.
+    """
+    vm = uvm_plain
+    vm.spawn()
+    vm.basic_config()
+    vm.add_net_iface()
+    vm.start()
+
+    _, stdout, _ = vm.ssh.run("dmesg | grep 'stolen time PV'")
+    assert (
+        "stolen time PV" in stdout
+    ), "Guest kernel did not report PV steal time enabled"
diff --git a/tests/integration_tests/functional/test_steal_time.py b/tests/integration_tests/performance/test_steal_time.py
similarity index 81%
rename from tests/integration_tests/functional/test_steal_time.py
rename to tests/integration_tests/performance/test_steal_time.py
index 8653cf3f8ec..a3bad923b3a 100644
--- a/tests/integration_tests/functional/test_steal_time.py
+++ b/tests/integration_tests/performance/test_steal_time.py
@@ -1,14 +1,10 @@
 # Copyright 2025 Amazon.com, Inc. or its affiliates. All Rights Reserved.
 # SPDX-License-Identifier: Apache-2.0
 
-"""Tests for verifying the PVTime device behavior under contention and across snapshots."""
+"""Tests for verifying the steal time behavior under contention and across snapshots."""
 
 import time
 
-import pytest
-
-from framework.properties import global_props
-
 
 def get_steal_time_ms(vm):
     """Returns total steal time of vCPUs in VM in milliseconds"""
@@ -18,25 +14,6 @@ def get_steal_time_ms(vm):
     return steal_time_tck / clk_tck * 1000
 
 
-@pytest.mark.skipif(
-    global_props.cpu_architecture != "aarch64", reason="Only run in aarch64"
-)
-def test_guest_has_pvtime_enabled(uvm_plain):
-    """
-    Check that the guest kernel has enabled PV steal time.
-    """
-    vm = uvm_plain
-    vm.spawn()
-    vm.basic_config()
-    vm.add_net_iface()
-    vm.start()
-
-    _, stdout, _ = vm.ssh.run("dmesg | grep 'stolen time PV'")
-    assert (
-        "stolen time PV" in stdout
-    ), "Guest kernel did not report PV steal time enabled"
-
-
 def test_pvtime_steal_time_increases(uvm_plain):
     """
     Test that PVTime steal time increases when both vCPUs are contended on the same pCPU.