diff --git a/.gitignore b/.gitignore
index 52cb21d07..7243e1fc0 100644
--- a/.gitignore
+++ b/.gitignore
@@ -18,6 +18,7 @@ TAGS
 *.stp
 *.exe
 *.def
+*.test
 
 # autofoo stuff here
 compile
diff --git a/configure.ac b/configure.ac
index 47bcfb493..787334c37 100644
--- a/configure.ac
+++ b/configure.ac
@@ -258,7 +258,12 @@ AC_ARG_ENABLE(modular_tests,
               AS_HELP_STRING([--disable-modular-tests],
                              [Disable build of test programs (default: no)]),,
               [enable_modular_tests=yes])
-AM_CONDITIONAL(BUILD_MODULAR_TESTS, test x$enable_modular_tests = xyes)
+AC_ARG_ENABLE(installed_tests,
+              AS_HELP_STRING([--enable-installed-tests],
+                             [Install test programs (default: no)]),,
+              [enable_installed_tests=no])
+AM_CONDITIONAL(BUILD_MODULAR_TESTS, test x$enable_modular_tests = xyes || test x$enable_installed_tests=xyes)
+AM_CONDITIONAL(BUILDOPT_INSTALL_TESTS, test x$enable_installed_tests = xyes)
 
 AC_MSG_CHECKING([whether to enable garbage collector friendliness])
 AS_IF([test "x$enable_gc_friendly" = "xyes"], [
diff --git a/glib/tests/Makefile.am b/glib/tests/Makefile.am
index 9d19871fb..c1a3dd949 100644
--- a/glib/tests/Makefile.am
+++ b/glib/tests/Makefile.am
@@ -1,6 +1,8 @@
 include $(top_srcdir)/Makefile.decl
 NULL =
 
+insttestdir=$(pkglibexecdir)/installed-tests
+
 bookmark_test_files = \
 	bookmarks/fail-01.xbel \
 	bookmarks/fail-02.xbel \
@@ -65,7 +67,12 @@ AM_CFLAGS = $(GLIB_WARN_CFLAGS)
 
 LDADD = $(top_builddir)/glib/libglib-2.0.la -lm
 
-TEST_PROGS += 				\
+TEST_PROGS +=				\
+	1bit-emufutex			\
+	gwakeup				\
+	$(NULL)
+
+all_test_programs = 			\
 	array-test			\
 	asyncqueue			\
 	atomic				\
@@ -86,7 +93,6 @@ TEST_PROGS += 				\
 	fileutils			\
 	gdatetime			\
 	gvariant			\
-	gwakeup				\
 	hash				\
 	hmac				\
 	hook				\
@@ -137,11 +143,43 @@ TEST_PROGS += 				\
 	unicode				\
 	uri				\
 	1bit-mutex			\
-	1bit-emufutex			\
 	642026				\
 	642026-ec
 
-noinst_PROGRAMS = $(TEST_PROGS) test-spawn-echo
+if OS_UNIX
+all_test_programs += unix
+all_test_programs += include
+endif
+
+extra_test_binaries = test-spawn-echo
+
+if BUILD_MODULAR_TESTS
+TEST_PROGS += $(all_test_programs)
+noinst_PROGRAMS = $(TEST_PROGS) $(extra_test_binaries)
+endif
+
+if BUILDOPT_INSTALL_TESTS
+insttest_PROGRAMS = $(all_test_programs) $(extra_test_binaries)
+testmetadir = $(datadir)/installed-tests/$(PACKAGE)
+testmeta_DATA = $(all_test_programs:=.test)
+
+testdatadir=$(insttestdir)
+testdata_DATA = $(test_files)
+
+testdata_SCRIPTS = $(test_script_files)
+
+bookmarksdir=$(insttestdir)/bookmarks
+bookmarks_DATA = $(bookmark_test_files)
+
+markupsdir=$(insttestdir)/markups
+markups_DATA = $(all_markup_test_files)
+endif
+
+%.test: % Makefile
+	$(AM_V_GEN) (echo '[Test]' > $@.tmp; \
+	 echo 'Type=session' >> $@.tmp; \
+	 echo 'Exec=env G_TEST_DATA=$(pkglibexecdir)/installed-tests $(pkglibexecdir)/installed-tests/$<' >> $@.tmp; \
+	 mv $@.tmp $@)
 
 atomic_CFLAGS  = $(AM_CFLAGS)
 if HAVE_GCC
@@ -164,9 +202,6 @@ endif
 
 if OS_UNIX
 
-TEST_PROGS += unix
-TEST_PROGS += include
-
 # some testing of gtester functionality
 XMLLINT = xmllint
 
diff --git a/glib/tests/bookmarkfile.c b/glib/tests/bookmarkfile.c
index 10efaa59d..22df6a9c9 100644
--- a/glib/tests/bookmarkfile.c
+++ b/glib/tests/bookmarkfile.c
@@ -268,6 +268,7 @@ main (int argc, char *argv[])
   GError *error;
   const gchar *name;
   gchar *path;
+  const gchar *datapath;
 
   g_test_init (&argc, &argv, NULL);
 
@@ -278,12 +279,18 @@ main (int argc, char *argv[])
     }
 
   error = NULL;
-  dir = g_dir_open (SRCDIR "/bookmarks", 0, &error);
+  if (g_getenv ("G_TEST_DATA"))
+    datapath = g_getenv ("G_TEST_DATA");
+  else
+    datapath = SRCDIR;
+  path = g_build_filename (datapath, "bookmarks", NULL);
+  dir = g_dir_open (path, 0, &error);
+  g_free (path);
   g_assert_no_error (error);
   while ((name = g_dir_read_name (dir)) != NULL)
     {
       path = g_strdup_printf ("/bookmarks/parse/%s", name);
-      g_test_add_data_func_full (path, g_build_filename (SRCDIR, "bookmarks", name, NULL),
+      g_test_add_data_func_full (path, g_build_filename (datapath, "bookmarks", name, NULL),
                                  test_file, g_free);
       g_free (path);
     }
diff --git a/glib/tests/keyfile.c b/glib/tests/keyfile.c
index 671637b81..d37a9a010 100644
--- a/glib/tests/keyfile.c
+++ b/glib/tests/keyfile.c
@@ -3,6 +3,8 @@
 #include <string.h>
 #include <stdlib.h>
 
+static const gchar *datapath;
+
 static GKeyFile *
 load_data (const gchar   *data,
            GKeyFileFlags  flags)
@@ -1337,10 +1339,13 @@ test_load_fail (void)
 {
   GKeyFile *file;
   GError *error;
+  gchar *path;
 
   file = g_key_file_new ();
   error = NULL;
-  g_assert (!g_key_file_load_from_file (file, SRCDIR "/keyfile.c", 0, &error));
+  path = g_build_filename (datapath, "keyfile.c", NULL);
+  g_assert (!g_key_file_load_from_file (file, path, 0, &error));
+  g_free (path);
   g_assert_error (error, G_KEY_FILE_ERROR, G_KEY_FILE_ERROR_PARSE);
   g_clear_error (&error);
   g_assert (!g_key_file_load_from_file (file, "/nosuchfile", 0, &error));
@@ -1395,6 +1400,7 @@ test_page_boundary (void)
   GKeyFile *file;
   GError *error;
   gint i;
+  gchar *path;
 
 #define GROUP "main_section"
 #define KEY_PREFIX "fill_abcdefghijklmnopqrstuvwxyzabcdefghijklmnopqrstuvw_"
@@ -1407,7 +1413,9 @@ test_page_boundary (void)
   file = g_key_file_new ();
 
   error = NULL;
-  g_key_file_load_from_file (file, SRCDIR "/pages.ini", G_KEY_FILE_NONE, &error);
+  path = g_build_filename (datapath, "pages.ini", NULL);
+  g_key_file_load_from_file (file, path, G_KEY_FILE_NONE, &error);
+  g_free (path);
   g_assert_no_error (error);
 
   for (i = FIRST_KEY; i <= LAST_KEY; i++)
@@ -1569,8 +1577,13 @@ test_roundtrip (void)
 int
 main (int argc, char *argv[])
 {
+  if (g_getenv ("G_TEST_DATA"))
+    datapath = g_getenv ("G_TEST_DATA");
+  else
+    datapath = SRCDIR;
+
 #ifdef G_OS_UNIX
-  g_setenv ("XDG_DATA_HOME", SRCDIR, TRUE);
+  g_setenv ("XDG_DATA_HOME", datapath, TRUE);
 #endif
 
   g_test_init (&argc, &argv, NULL);
diff --git a/glib/tests/mappedfile.c b/glib/tests/mappedfile.c
index caa3ee612..f366ee9a7 100644
--- a/glib/tests/mappedfile.c
+++ b/glib/tests/mappedfile.c
@@ -11,14 +11,19 @@
 #include <sys/types.h>
 #include <fcntl.h>
 
+static const gchar *datapath;
+
 static void
 test_basic (void)
 {
   GMappedFile *file;
   GError *error;
+  gchar *path;
 
   error = NULL;
-  file = g_mapped_file_new (SRCDIR "/empty", FALSE, &error);
+  path = g_build_filename (datapath, "empty", NULL);
+  file = g_mapped_file_new (path, FALSE, &error);
+  g_free (path);
   g_assert_no_error (error);
 
   g_mapped_file_ref (file);
@@ -32,9 +37,12 @@ test_empty (void)
 {
   GMappedFile *file;
   GError *error;
+  gchar *path;
 
   error = NULL;
-  file = g_mapped_file_new (SRCDIR "/empty", FALSE, &error);
+  path = g_build_filename (datapath, "empty", NULL);
+  file = g_mapped_file_new (path, FALSE, &error);
+  g_free (path);
   g_assert_no_error (error);
 
   g_assert (g_mapped_file_get_contents (file) == NULL);
@@ -82,7 +90,7 @@ test_writable (void)
   char *srcpath;
   gchar *tmp_copy_path;
 
-  srcpath = g_build_filename (SRCDIR, "4096-random-bytes", NULL);
+  srcpath = g_build_filename (datapath, "4096-random-bytes", NULL);
   tmp_copy_path = g_build_filename (g_get_user_runtime_dir (), "glib-test-4096-random-bytes", NULL);
 
   g_file_get_contents (srcpath, &contents, &len, &error);
@@ -129,7 +137,7 @@ test_writable_fd (void)
   char *srcpath;
   gchar *tmp_copy_path;
 
-  srcpath = g_build_filename (SRCDIR, "4096-random-bytes", NULL);
+  srcpath = g_build_filename (datapath, "4096-random-bytes", NULL);
   tmp_copy_path = g_build_filename (g_get_user_runtime_dir (), "glib-test-4096-random-bytes", NULL);
 
   g_file_get_contents (srcpath, &contents, &len, &error);
@@ -174,9 +182,12 @@ test_gbytes (void)
   GMappedFile *file;
   GBytes *bytes;
   GError *error;
+  gchar *path;
 
   error = NULL;
-  file = g_mapped_file_new (SRCDIR "/empty", FALSE, &error);
+  path = g_build_filename (datapath, "empty", NULL);
+  file = g_mapped_file_new (path, FALSE, &error);
+  g_free (path);
   g_assert_no_error (error);
 
   bytes = g_mapped_file_get_bytes (file);
@@ -189,6 +200,11 @@ test_gbytes (void)
 int
 main (int argc, char *argv[])
 {
+  if (g_getenv ("G_TEST_DATA"))
+    datapath = g_getenv ("G_TEST_DATA");
+  else
+    datapath = SRCDIR;
+
   g_test_init (&argc, &argv, NULL);
 
   g_test_add_func ("/mappedfile/basic", test_basic);
diff --git a/glib/tests/markup-parse.c b/glib/tests/markup-parse.c
index 40839465e..e2c8e9a86 100644
--- a/glib/tests/markup-parse.c
+++ b/glib/tests/markup-parse.c
@@ -8,6 +8,7 @@
 
 static int depth = 0;
 static GString *string;
+static const gchar *datapath;
 
 static void
 indent (int extra)
@@ -277,6 +278,11 @@ main (int argc, char *argv[])
   const gchar *name;
   gchar *path;
 
+  if (g_getenv ("G_TEST_DATA"))
+    datapath = g_getenv ("G_TEST_DATA");
+  else
+    datapath = SRCDIR;
+
   g_setenv ("LANG", "en_US.utf-8", TRUE);
   setlocale (LC_ALL, "");
 
@@ -292,7 +298,9 @@ main (int argc, char *argv[])
     }
 
   error = NULL;
-  dir = g_dir_open (SRCDIR "/markups", 0, &error);
+  path = g_build_filename (datapath, "markups", NULL);
+  dir = g_dir_open (path, 0, &error);
+  g_free (path);
   g_assert_no_error (error);
   while ((name = g_dir_read_name (dir)) != NULL)
     {
@@ -300,7 +308,7 @@ main (int argc, char *argv[])
         continue;
 
       path = g_strdup_printf ("/markup/parse/%s", name);
-      g_test_add_data_func_full (path, g_build_filename (SRCDIR, "markups", name, NULL),
+      g_test_add_data_func_full (path, g_build_filename (datapath, "markups", name, NULL),
                                  test_parse, g_free);
       g_free (path);
     }
diff --git a/glib/tests/protocol.c b/glib/tests/protocol.c
index cad7ed3ae..1783630bf 100644
--- a/glib/tests/protocol.c
+++ b/glib/tests/protocol.c
@@ -30,6 +30,8 @@
 #define pipe(fds) _pipe(fds, 4096, _O_BINARY)
 #endif
 
+static const char *argv0;
+
 static void
 debug (void)
 {
@@ -119,7 +121,7 @@ static void
 test_message (void)
 {
   gchar* argv[] = {
-          "./protocol",
+          argv0,
           NULL,
           "--GTestSubprocess",
           "-p", "/glib/testing/protocol/debug",
@@ -239,7 +241,7 @@ test_error (void)
   for (i = 0; i < G_N_ELEMENTS (tests); i++)
     {
       gchar* argv[] = {
-              "./protocol",
+              argv0,
               NULL,
               "--GTestSubprocess",
               "-p", tests[i],
@@ -336,6 +338,8 @@ int
 main (int   argc,
       char**argv)
 {
+  argv0 = argv[0];
+
   g_test_init (&argc, &argv, NULL);
 
   /* we use ourself as the testcase, these are the ones we need internally */