diff --git a/CHANGELOG.md b/CHANGELOG.md
index ce73c0a3a2..3a8143050b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -27,6 +27,7 @@ Changelog
 
 ### Chores
 
+- Improved the unit and e2e test setup ([PR 1743](https://github.com/input-output-hk/daedalus/pull/1743))
 - Updated to react-polymorph@0.9.0-rc.25 which includes a theme var for checkbox icon color (([PR 1742](https://github.com/input-output-hk/daedalus/pull/1742)))
 - Updated `cardano-wallet` to latest master branch revision which includes Jormungandr 0.8.0-rc7 ([PR 1739](https://github.com/input-output-hk/daedalus/pull/1739))
 - Updated stake header info component and adds new information with the countdown timer for next epoch ([PR 1729](https://github.com/input-output-hk/daedalus/pull/1729))
diff --git a/package.json b/package.json
index 95bcf9b944..d4e8352858 100644
--- a/package.json
+++ b/package.json
@@ -11,12 +11,12 @@
     "dev": "IS_WATCH_MODE=true gulp dev",
     "dev:itn": "NETWORK=itn_rewards_v1 IS_WATCH_MODE=true gulp dev",
     "test": "NODE_ENV=test yarn build && yarn test:unit && yarn test:e2e",
-    "test:unit": "yarn cucumber --require 'tests/**/unit/*.js' --tags '@unit and not @skip and not @wip'",
+    "test:unit": "yarn cucumber --require 'tests/**/unit/**/*.js' --tags '@unit and not @skip and not @wip'",
     "test:unit:watch": "nodemon --watch source --watch tests --exec \"yarn test:unit --tags '@unit and @watch'\"",
     "test:unit:unbound": "yarn cucumber --require 'tests/**/unit/*.js' --tags '@unbound and not @skip and not @wip'",
-    "test:e2e": "yarn cucumber --require 'tests/**/e2e/*.js' --tags '@e2e and not @skip and not @wip'",
+    "test:e2e": "yarn cucumber --require 'tests/setup-e2e.js' --require 'tests/**/e2e/**/*.js' --tags '@e2e and not @skip and not @wip'",
     "test:e2e:watch": "gulp test:e2e:watch",
-    "cucumber": "cross-env NODE_ENV=test cucumber-js tests --require 'tests/**/*.js' --require-module @babel/register -f node_modules/cucumber-pretty --format-options '{\"snippetInterface\": \"async-await\"}'",
+    "cucumber": "cross-env NODE_ENV=test cucumber-js tests --require 'tests/setup-common.js' --require-module @babel/register -f node_modules/cucumber-pretty --format-options '{\"snippetInterface\": \"async-await\"}'",
     "test:e2e:watch:once": "KEEP_APP_AFTER_TESTS=true yarn test:e2e --tags '@e2e and @watch'",
     "debug": "gulp debug",
     "package": "gulp build && cross-env NODE_ENV=production node -r @babel/register -r @babel/polyfill scripts/package.js",
diff --git a/tests/setup-common.js b/tests/setup-common.js
new file mode 100644
index 0000000000..85f02f60d6
--- /dev/null
+++ b/tests/setup-common.js
@@ -0,0 +1,6 @@
+import { Before } from 'cucumber';
+
+// Add context object to share data between steps
+Before(function() {
+  this.context = {};
+});
diff --git a/tests/setup.js b/tests/setup-e2e.js
similarity index 98%
rename from tests/setup.js
rename to tests/setup-e2e.js
index def1e8e214..dde3c0568a 100644
--- a/tests/setup.js
+++ b/tests/setup-e2e.js
@@ -134,11 +134,6 @@ Before({ tags: '@e2e', timeout: DEFAULT_TIMEOUT * 2 }, async function(testCase)
   });
 });
 
-// adds context object to webdriver
-Before(function() {
-  this.context = {};
-});
-
 Before({ tags: '@newsfeed' }, function() {
   setNewsFeedIsOpen(this.client, false);
   resetTestNews(this.client);