diff --git a/drivers/usb/tests/TESTS/usb_device/README.md b/drivers/usb/tests/TESTS/usb_device/README.md
index 6af69a00c10..74c7b7d58c5 100644
--- a/drivers/usb/tests/TESTS/usb_device/README.md
+++ b/drivers/usb/tests/TESTS/usb_device/README.md
@@ -1,12 +1,8 @@
 # Testing the Mbed OS USB device
 
 ## Setup
-Before running tests, please make sure to install all the
-required Python modules.
-
-```
-pip install -r mbed-os/tools/requirements-ci-build.txt
-```
+> [!NOTE]  
+> all required Python modules are instaled into the Python virtual enviroment (venv) automatically with first build of Greentea.
 
 Additional, platform-specific setup is described below.
 See also [Known issues](#known-issues).
diff --git a/tools/cmake/mbed_python_interpreter.cmake b/tools/cmake/mbed_python_interpreter.cmake
index 1d563c3ac28..6c5e2a5dd33 100644
--- a/tools/cmake/mbed_python_interpreter.cmake
+++ b/tools/cmake/mbed_python_interpreter.cmake
@@ -19,6 +19,9 @@ if(MBED_CREATE_PYTHON_VENV)
     set(VENV_STAMP_FILE ${MBED_VENV_LOCATION}/mbed-venv.stamp)
     set(MBED_PYPROJECT_TOML_LOCATION "${MBED_CE_TOOLS_BASE_DIR}/pyproject.toml")
 
+    # a separate stamp file to track whether greentea dependencies have been installed
+    set(GT_STAMP_FILE ${MBED_VENV_LOCATION}/mbed-gt.stamp)
+
     # Make it so modifying pyproject.toml will trigger a reconfigure
     set_property(DIRECTORY APPEND PROPERTY CMAKE_CONFIGURE_DEPENDS ${MBED_PYPROJECT_TOML_LOCATION})
 
@@ -66,6 +69,11 @@ if(MBED_CREATE_PYTHON_VENV)
         set(NEED_TO_INSTALL_PACKAGES TRUE)
     endif()
 
+    # If greentea tests are being built, we need to ensure greentea dependencies are installed
+    if(MBED_BUILD_GREENTEA_TESTS AND NOT EXISTS "${GT_STAMP_FILE}")
+        set(NEED_TO_INSTALL_PACKAGES TRUE)
+    endif()   
+
     if(NEED_TO_CREATE_VENV)
         # Create venv.
         # Using approach from here: https://discourse.cmake.org/t/possible-to-create-a-python-virtual-env-from-cmake-and-then-find-it-with-findpython3/1132/2
@@ -92,13 +100,29 @@ if(MBED_CREATE_PYTHON_VENV)
             COMMAND ${Python3_EXECUTABLE} -m pip install --upgrade pip
             COMMAND_ERROR_IS_FATAL ANY
         )
-        execute_process(
-            COMMAND ${Python3_EXECUTABLE} -m pip install -e ${MBED_CE_TOOLS_BASE_DIR}
-            COMMAND_ERROR_IS_FATAL ANY
-        )
+
+        #
+        if(MBED_BUILD_GREENTEA_TESTS)
+            # Enable the extra dependencies for the GT
+            execute_process(
+                COMMAND ${Python3_EXECUTABLE} -m pip install -e "${MBED_CE_TOOLS_BASE_DIR}[greentea]"
+                COMMAND_ERROR_IS_FATAL ANY
+            )
+        else()
+             # The dependencies for regular build
+            execute_process(
+                COMMAND ${Python3_EXECUTABLE} -m pip install -e "${MBED_CE_TOOLS_BASE_DIR}"
+                COMMAND_ERROR_IS_FATAL ANY
+            )
+        endif()
 
         message(STATUS "Mbed: venv created successfully")
         file(TOUCH ${VENV_STAMP_FILE})
+        if(MBED_BUILD_GREENTEA_TESTS)
+            # If greentea tests are being built, we need create a greentea stamp file
+            file(TOUCH ${GT_STAMP_FILE})
+        endif()
+        
     endif()
 
     # When using the venv, scripts will always be installed to the directory where Python itself is installed
@@ -175,4 +199,4 @@ function(mbed_check_or_install_python_package FOUND_VAR PACKAGE_IMPORT_NAME PACK
             message(WARNING "Mbed: ${PACKAGE_IMPORT_NAME} cannot be installed because the Mbed virtualenv is not being used. Please install ${PACKAGE_INSTALL_CONSTRAINT} into Mbed's Python interpeter manually.")
         endif()
     endif()
-endfunction(mbed_check_or_install_python_package)
\ No newline at end of file
+endfunction(mbed_check_or_install_python_package)
diff --git a/tools/pyproject.toml b/tools/pyproject.toml
index 0087c13fcb0..8635a110000 100644
--- a/tools/pyproject.toml
+++ b/tools/pyproject.toml
@@ -71,6 +71,13 @@ unit-tests = [
     "beautifulsoup4",
     "lxml"
 ]
+greentea = [
+    ## Additional requirements to install into the Mbed environment when running Greentea tests
+    # For USB Device host tests
+    "hidapi>=0.7.99",
+    "pyusb>=1.2.0",
+    "wmi>=1.5; platform_system == 'Windows'",
+]
 
 [tool.hatch.build.targets.wheel]
 packages = [
@@ -88,4 +95,4 @@ mbedhtrun = "mbed_host_tests.mbedhtrun:main"
 mbedls = "mbed_lstools.main:mbedls_main"
 mbed-tools = "mbed_tools.cli.main:cli"
 memap = "memap.memap:main"
-ambiq_svl = "ambiq_svl.svl:cli"
\ No newline at end of file
+ambiq_svl = "ambiq_svl.svl:cli"
diff --git a/tools/requirements-greentea.txt b/tools/requirements-greentea.txt
deleted file mode 100644
index b4ae78d2285..00000000000
--- a/tools/requirements-greentea.txt
+++ /dev/null
@@ -1,6 +0,0 @@
-## Additional requirements to install into the Mbed environment when running Greentea tests
-
-# For USB Device host tests
-hidapi>=0.7.99
-pyusb>=1.2.0
-wmi>=1.5; platform_system == "Windows"
\ No newline at end of file