diff --git a/src/nimble.nim b/src/nimble.nim
index 25a54790e..1e969f237 100644
--- a/src/nimble.nim
+++ b/src/nimble.nim
@@ -1394,11 +1394,10 @@ proc develop(options: var Options) =
 
 proc test(options: Options) =
   ## Executes all tests starting with 't' in the ``tests`` directory.
-  ## Subdirectories are not walked.
   var pkgInfo = getPkgInfo(getCurrentDir(), options)
 
   var
-    files = toSeq(walkDir(getCurrentDir() / "tests"))
+    files = toSeq(walkDirRec(getCurrentDir() / "tests", {pcFile, pcLinkToFile}, relative = true))
     tests, failures: int
 
   if files.len < 1:
@@ -1408,24 +1407,23 @@ proc test(options: Options) =
   if not execHook(options, actionCustom, true):
     raise nimbleError("Pre-hook prevented further execution.")
 
-  files.sort((a, b) => cmp(a.path, b.path))
+  files.sort((a, b) => cmp(a, b))
+  files = files.map((a) => "tests" / a)
 
   for file in files:
-    let (_, name, ext) = file.path.splitFile()
-    if ext == ".nim" and name[0] == 't' and file.kind in {pcFile, pcLinkToFile}:
+    let (_, name, ext) = file.splitFile()
+    if ext == ".nim" and name[0] == 't':
       var optsCopy = options
       optsCopy.action = Action(typ: actionCompile)
-      optsCopy.action.file = file.path
+      optsCopy.action.file = file
       optsCopy.action.additionalArguments = options.action.arguments
       optsCopy.action.backend = pkgInfo.backend
       optsCopy.getCompilationFlags() = options.getCompilationFlags()
       # treat run flags as compile for default test task
       optsCopy.getCompilationFlags().add(options.action.custRunFlags)
       optsCopy.getCompilationFlags().add("-r")
+      optsCopy.getCompilationFlags().add("--out=" & ("build/" / file.changeFileExt(ExeExt)))
       optsCopy.getCompilationFlags().add("--path:.")
-      let
-        binFileName = file.path.changeFileExt(ExeExt)
-        existsBefore = fileExists(binFileName)
 
       if options.continueTestsOnFailure:
         inc tests
@@ -1436,15 +1434,6 @@ proc test(options: Options) =
       else:
         execBackend(pkgInfo, optsCopy)
 
-      let
-        existsAfter = fileExists(binFileName)
-        canRemove = not existsBefore and existsAfter
-      if canRemove:
-        try:
-          removeFile(binFileName)
-        except OSError as exc:
-          display("Warning:", "Failed to delete " & binFileName & ": " &
-                  exc.msg, Warning, MediumPriority)
 
   if failures == 0:
     display("Success:", "All tests passed", Success, HighPriority)
diff --git a/tests/ttestcommand.nim b/tests/ttestcommand.nim
index dc8dd1d9f..357f3f5a1 100644
--- a/tests/ttestcommand.nim
+++ b/tests/ttestcommand.nim
@@ -33,13 +33,6 @@ suite "test command":
       check outp.processOutput.inLines("overriden")
       check outp.processOutput.inLines("true")
 
-  test "certain files are ignored":
-    cd "testCommand/testsIgnore":
-      let (outp, exitCode) = execNimble("test")
-      check exitCode == QuitSuccess
-      check(not outp.processOutput.inLines("Should be ignored"))
-      check outp.processOutput.inLines("First test")
-
   test "CWD is root of package":
     cd "testCommand/testsCWD":
       let (outp, exitCode) = execNimble("test")