diff --git a/.github/workflows/qemu.yaml b/.github/workflows/qemu.yaml
index 6f68a6409e7ea7..b4a340f7d525df 100644
--- a/.github/workflows/qemu.yaml
+++ b/.github/workflows/qemu.yaml
@@ -54,12 +54,20 @@ jobs:
                   path: |
                    .environment/gn_out/.ninja_log
                    .environment/pigweed-venv/*.log
-            - name: Build example All Clusters App
-              timeout-minutes: 25
-              run: scripts/examples/esp_example.sh all-clusters-app
-            - name: Build ESP32 QEMU and Run Tests
-              timeout-minutes: 35
-              run: scripts/tests/esp32_qemu_tests.sh /tmp/test_logs
+            - name: Build ESP32 QEMU test images
+              timeout-minutes: 20
+              run: |
+                  scripts/run_in_build_env.sh "         \
+                      ./scripts/build/build_examples.py \
+                      --target esp32-qemu-tests         \
+                      build                             \
+                  "
+            - name: Run all tests
+              timeout-minutes: 30
+              run: |
+                  src/test_driver/esp32/run_qemu_image.py \
+                    --verbose                             \
+                    --file-image-list ./out/esp32-qemu-tests/test_images.txt
             - name: Uploading Logs
               uses: actions/upload-artifact@v2
               if: ${{ !env.ACT }}
diff --git a/scripts/build/build/targets.py b/scripts/build/build/targets.py
index 3dbaa16ea89e83..043fad9c5b1691 100644
--- a/scripts/build/build/targets.py
+++ b/scripts/build/build/targets.py
@@ -220,6 +220,8 @@ def Esp32Targets():
     yield devkitc.Extend('bridge', app=Esp32App.BRIDGE)
     yield devkitc.Extend('temperature-measurement', app=Esp32App.TEMPERATURE_MEASUREMENT)
 
+    yield esp32_target.Extend('qemu-tests', board=Esp32Board.QEMU, app=Esp32App.TESTS)
+
 
 def Efr32Targets():
     efr_target = Target('efr32', Efr32Builder)
diff --git a/scripts/build/builders/esp32.py b/scripts/build/builders/esp32.py
index f3f709e4e76e83..e99ab8e291b1b7 100644
--- a/scripts/build/builders/esp32.py
+++ b/scripts/build/builders/esp32.py
@@ -25,6 +25,7 @@ class Esp32Board(Enum):
     DevKitC = auto()
     M5Stack = auto()
     C3DevKit = auto()
+    QEMU = auto()
 
 
 class Esp32App(Enum):
@@ -33,19 +34,22 @@ class Esp32App(Enum):
     SHELL = auto()
     BRIDGE = auto()
     TEMPERATURE_MEASUREMENT = auto()
+    TESTS = auto()
 
     @property
-    def ExampleName(self):
+    def ExamplePath(self):
         if self == Esp32App.ALL_CLUSTERS:
-            return 'all-clusters-app'
+            return 'examples/all-clusters-app'
         elif self == Esp32App.LOCK:
-            return 'lock-app'
+            return 'examples/lock-app'
         elif self == Esp32App.SHELL:
-            return 'shell'
+            return 'examples/shell'
         elif self == Esp32App.BRIDGE:
-            return 'bridge-app'
+            return 'examples/bridge-app'
         elif self == Esp32App.TEMPERATURE_MEASUREMENT:
-            return 'temperature-measurement-app'
+            return 'examples/temperature-measurement-app'
+        elif self == Esp32App.TESTS:
+            return 'src/test_driver'
         else:
             raise Exception('Unknown app type: %r' % self)
 
@@ -61,15 +65,33 @@ def AppNamePrefix(self):
             return 'chip-bridge-app'
         elif self == Esp32App.TEMPERATURE_MEASUREMENT:
             return 'chip-temperature-measurement-app'
+        elif self == Esp32App.TESTS:
+            return None
         else:
             raise Exception('Unknown app type: %r' % self)
 
+    @property
     def FlashBundleName(self):
+        if not self.AppNamePrefix:
+            return None
+
         return self.AppNamePrefix + '.flashbundle.txt'
 
+    def IsCompatible(self, board: Esp32Board):
+        if board == Esp32Board.QEMU:
+            return self == Esp32App.TESTS
+        elif board == Esp32Board.M5Stack:
+            return self == Esp32App.ALL_CLUSTERS
+        elif board == Esp32Board.C3DevKit:
+            return self == Esp32App.ALL_CLUSTERS
+        else:
+            return (board == Esp32Board.DevKitC) and (self != Esp32App.TESTS)
+
 
 def DefaultsFileName(board: Esp32Board, app: Esp32App, enable_rpcs: bool):
-    if app != Esp32App.ALL_CLUSTERS:
+    if app == Esp32App.TESTS:
+        return 'sdkconfig_qemu.defaults'
+    elif app != Esp32App.ALL_CLUSTERS:
         return 'sdkconfig.defaults'
 
     rpc = "_rpc" if enable_rpcs else ""
@@ -99,6 +121,10 @@ def __init__(self,
         self.enable_rpcs = enable_rpcs
         self.enable_ipv4 = enable_ipv4
 
+        if not app.IsCompatible(board):
+            raise Exception(
+                "Incompatible app/board combination: %r and %r", app, board)
+
     def _IdfEnvExecute(self, cmd, title=None):
         # Run activate.sh after export.sh to ensure using the chip environment.
         self._Execute(
@@ -107,7 +133,7 @@ def _IdfEnvExecute(self, cmd, title=None):
 
     @property
     def ExamplePath(self):
-        return os.path.join('examples', self.app.ExampleName, 'esp32')
+        return os.path.join(self.app.ExamplePath, 'esp32')
 
     def generate(self):
         if os.path.exists(os.path.join(self.output_dir, 'build.ninja')):
@@ -162,6 +188,16 @@ def _build(self):
         self._IdfEnvExecute(cmd, title='Building ' + self.identifier)
 
     def build_outputs(self):
+        if self.app == Esp32App.TESTS:
+            # Include the runnable image names as artifacts
+            result = dict()
+            with open(os.path.join(self.output_dir, 'test_images.txt'), 'rt') as f:
+                for name in f.readlines():
+                    name = name.strip()
+                    result[name] = os.path.join(self.output_dir, name)
+
+            return result
+
         return {
             self.app.AppNamePrefix + '.elf':
                 os.path.join(self.output_dir, self.app.AppNamePrefix + '.elf'),
@@ -170,7 +206,10 @@ def build_outputs(self):
         }
 
     def flashbundle(self):
-        with open(os.path.join(self.output_dir, self.app.FlashBundleName()), 'r') as fp:
+        if not self.app.FlashBundleName:
+            return {}
+
+        with open(os.path.join(self.output_dir, self.app.FlashBundleName), 'r') as fp:
             return {
                 l.strip(): os.path.join(self.output_dir, l.strip()) for l in fp.readlines() if l.strip()
             }
diff --git a/scripts/build/testdata/all_targets_except_host.txt b/scripts/build/testdata/all_targets_except_host.txt
index 8c803ff3f2a1da..eb986fae869f64 100644
--- a/scripts/build/testdata/all_targets_except_host.txt
+++ b/scripts/build/testdata/all_targets_except_host.txt
@@ -70,6 +70,7 @@ esp32-m5stack-all-clusters
 esp32-m5stack-all-clusters-ipv6only
 esp32-m5stack-all-clusters-rpc
 esp32-m5stack-all-clusters-rpc-ipv6only
+esp32-qemu-tests
 infineon-p6-all-clusters
 infineon-p6-light
 infineon-p6-lock
diff --git a/scripts/build/testdata/build_all_except_host.txt b/scripts/build/testdata/build_all_except_host.txt
index cbe3c7d9d98b0c..e1df7360aa8336 100644
--- a/scripts/build/testdata/build_all_except_host.txt
+++ b/scripts/build/testdata/build_all_except_host.txt
@@ -410,6 +410,17 @@ bash -c 'source $IDF_PATH/export.sh; source scripts/activate.sh;
 export SDKCONFIG_DEFAULTS={out}/esp32-m5stack-all-clusters-rpc-ipv6only/sdkconfig.defaults
 idf.py -C examples/all-clusters-app/esp32 -B {out}/esp32-m5stack-all-clusters-rpc-ipv6only reconfigure'
 
+# Generating esp32-qemu-tests
+mkdir -p {out}/esp32-qemu-tests
+
+cp src/test_driver/esp32/sdkconfig_qemu.defaults {out}/esp32-qemu-tests/sdkconfig.defaults
+
+rm -f src/test_driver/esp32/sdkconfig
+
+bash -c 'source $IDF_PATH/export.sh; source scripts/activate.sh; 
+export SDKCONFIG_DEFAULTS={out}/esp32-qemu-tests/sdkconfig.defaults
+idf.py -C src/test_driver/esp32 -B {out}/esp32-qemu-tests reconfigure'
+
 # Generating infineon-p6-all-clusters
 gn gen --check --fail-on-unused-args --export-compile-commands --root={root}/examples/all-clusters-app/p6 '--args=p6_board="CY8CKIT-062S2-43012"' {out}/infineon-p6-all-clusters
 
@@ -1002,6 +1013,13 @@ bash -c 'source $IDF_PATH/export.sh; source scripts/activate.sh;
 export SDKCONFIG_DEFAULTS={out}/esp32-m5stack-all-clusters-rpc-ipv6only/sdkconfig.defaults
 idf.py -C examples/all-clusters-app/esp32 -B {out}/esp32-m5stack-all-clusters-rpc-ipv6only build'
 
+rm -f src/test_driver/esp32/sdkconfig
+
+# Building esp32-qemu-tests
+bash -c 'source $IDF_PATH/export.sh; source scripts/activate.sh; 
+export SDKCONFIG_DEFAULTS={out}/esp32-qemu-tests/sdkconfig.defaults
+idf.py -C src/test_driver/esp32 -B {out}/esp32-qemu-tests build'
+
 # Building infineon-p6-all-clusters
 ninja -C {out}/infineon-p6-all-clusters
 
diff --git a/scripts/build/testdata/glob_star_targets_except_host.txt b/scripts/build/testdata/glob_star_targets_except_host.txt
index 9e7403d0f346c7..b478d6c827af0e 100644
--- a/scripts/build/testdata/glob_star_targets_except_host.txt
+++ b/scripts/build/testdata/glob_star_targets_except_host.txt
@@ -28,6 +28,7 @@ esp32-m5stack-all-clusters
 esp32-m5stack-all-clusters-ipv6only
 esp32-m5stack-all-clusters-rpc
 esp32-m5stack-all-clusters-rpc-ipv6only
+esp32-qemu-tests
 infineon-p6-all-clusters
 infineon-p6-light
 infineon-p6-lock
diff --git a/scripts/tests/esp32_qemu_tests.sh b/scripts/tests/esp32_qemu_tests.sh
deleted file mode 100755
index 942c9403962f61..00000000000000
--- a/scripts/tests/esp32_qemu_tests.sh
+++ /dev/null
@@ -1,91 +0,0 @@
-#!/usr/bin/env bash
-#
-#
-#    Copyright (c) 2020 Project CHIP Authors
-#
-#    Licensed under the Apache License, Version 2.0 (the "License");
-#    you may not use this file except in compliance with the License.
-#    You may obtain a copy of the License at
-#
-#        http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS,
-#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-#    See the License for the specific language governing permissions and
-#    limitations under the License.
-#
-#
-#    Description:
-#      This is scripts builds ESP32 QEMU, and runs CHIP unit tests using it.
-#
-
-set -e
-set -o pipefail
-set -x
-
-here=$(cd "$(dirname "$0")" && pwd)
-chip_dir="$here"/../..
-
-if [[ -n "$1" ]]; then
-    log_dir=$1
-    shift
-fi
-
-# shellcheck source=/dev/null
-source "$chip_dir"/src/test_driver/esp32/idf.sh
-"$chip_dir"/src/test_driver/esp32/qemu_setup.sh
-
-if [ $? -ne 0 ]; then
-    echo "Setup failure"
-    exit 1
-fi
-
-really_run_suite() {
-    idf scripts/tools/qemu_run_test.sh src/test_driver/esp32/build/chip "$@"
-}
-
-run_suite() {
-    if [[ -d "${log_dir}" ]]; then
-        suite=${1%.a}
-        suite=${suite#lib}
-        really_run_suite "$@" 2>&1 | tee "$log_dir/$suite.log"
-    else
-        really_run_suite "$@"
-    fi
-}
-
-# Currently only crypto, inet, and system tests are configured to run on QEMU.
-# The specific qualifiers will be removed, once all CHIP unit tests are
-# updated to run on QEMU.
-SUITES=(
-)
-
-# TODO: libAppTests depends on MessagingTestHelpers, which depends on
-# NetworkTestHelpers.  That sort of depends on InetTestHelpers or
-# equivalent (to provide gSystemLayer, gInet, InitNetwork(),
-# ShutdownNetwork()) but there's only a POSIX implementation of that
-# last, which does not compile on ESP32.  Need to figure out how to
-# make that work.  See comments below for the transport layer tests,
-# which have the same issue.
-# run_suite libAppTests.a -lMessagingTestHelpers -lNetworkTestHelpers
-
-run_suite libASN1Tests.a
-run_suite libBleLayerTests.a
-run_suite libCoreTests.a
-run_suite libInetLayerTests.a
-run_suite libRetransmitTests.a
-run_suite libSystemLayerTests.a
-run_suite libChipCryptoTests.a "-lChipCertTestVectors"
-
-# TODO: Transport layer tests do not link:
-#    - getpid undefined
-#    - ArgParser for IPAddresses are not linked in
-#    - std::__throw_bad_alloc() linker errors
-# run_suite libRawTransportTests.a "-lNetworkTestHelpers -lInetTestHelpers"
-
-# TODO: Transport layer tests do not link:
-#    - getpid undefined
-#    - ArgParser for IPAddresses are not linked in
-#    - std::__throw_bad_alloc() linker errors
-# run_suite libTransportLayerTests.a "-lNetworkTestHelpers -lInetTestHelpers"
diff --git a/scripts/tools/esp32_qemu_run.sh b/scripts/tools/esp32_qemu_run.sh
deleted file mode 100755
index fb4e1e092a99d0..00000000000000
--- a/scripts/tools/esp32_qemu_run.sh
+++ /dev/null
@@ -1,74 +0,0 @@
-#!/usr/bin/env bash
-#
-#
-#    Copyright (c) 2020 Project CHIP Authors
-#
-#    Licensed under the Apache License, Version 2.0 (the "License");
-#    you may not use this file except in compliance with the License.
-#    You may obtain a copy of the License at
-#
-#        http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS,
-#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-#    See the License for the specific language governing permissions and
-#    limitations under the License.
-#
-
-#
-#    Description:
-#      This is a utility script that runs ESP32 QEMU using the given
-#      application image.
-#
-
-usage() {
-    exitcode=0
-    if [[ -n "$1" ]]; then
-        exitcode=1
-        echo "*** Error: $*"
-    fi
-    echo "Usage: $0 <flash image file>"
-    exit "$exitcode"
-}
-
-me=$(basename "$0")
-die() {
-    echo "$me: *** ERROR: " "${*}"
-    exit 1
-}
-
-realpath() {
-    path=$1 # input
-
-    [[ -z $path ]] && return 0
-
-    # trim trailing slashes
-    while [[ ${#path} -gt 1 && $path = */ ]]; do
-        path=${path%/}
-    done
-
-    # if we're at root we're done
-    if [[ $path = / ]]; then
-        echo "$path"
-        return 0
-    fi
-
-    [[ $path != /* ]] && path=$PWD/$path
-
-    if [[ -d $path ]]; then
-        (cd "$path" && pwd)
-    else
-        echo "$(realpath "${path%/*}")/${path##*/}"
-    fi
-}
-
-[[ $# -eq 1 ]] || usage "Incorrect number of arguments"
-
-[[ -n $QEMU_ESP32 ]] || die "Environment variable QEMU_ESP32 is undefined."
-
-flash_image=$(realpath "$1")
-
-[[ -r $flash_image ]] || usage "Could not read file $flash_image"
-
-"$QEMU_ESP32" -nographic -machine esp32 -drive file="$flash_image",if=mtd,format=raw -no-reboot
diff --git a/scripts/tools/qemu_run_test.sh b/scripts/tools/qemu_run_test.sh
deleted file mode 100755
index c2196bf7c657b7..00000000000000
--- a/scripts/tools/qemu_run_test.sh
+++ /dev/null
@@ -1,59 +0,0 @@
-#!/usr/bin/env bash
-#
-#
-#    Copyright (c) 2020 Project CHIP Authors
-#
-#    Licensed under the Apache License, Version 2.0 (the "License");
-#    you may not use this file except in compliance with the License.
-#    You may obtain a copy of the License at
-#
-#        http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS,
-#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-#    See the License for the specific language governing permissions and
-#    limitations under the License.
-#
-#
-#    Description:
-#      This is a utility script that runs CHIP tests using ESP32 QEMU.
-#
-
-set -e
-set -x
-
-die() {
-    echo "${me:?}: *** ERROR: " "${*}"
-    exit 1
-}
-
-SRC_DIR="$(dirname "$0")/../.."
-BUILD_DIR="$1"
-shift
-QEMU_TEST_TARGET="$1"
-shift
-EXTRA_COMPILE_ARGUMENTS="$*" # generally -lFooHelperLibrary
-
-# shellcheck source=/dev/null
-source "$BUILD_DIR"/env.sh
-bash "$BUILD_DIR"/esp32_elf_builder.sh "$BUILD_DIR/lib/$QEMU_TEST_TARGET" "$EXTRA_COMPILE_ARGUMENTS"
-
-flash_image_file=$(mktemp)
-log_file=$(mktemp)
-trap '{ rm -f $flash_image_file $log_file; }' EXIT
-
-"$SRC_DIR"/scripts/tools/build_esp32_flash_image.sh "$BUILD_DIR"/chip-tests.bin "$flash_image_file"
-"$SRC_DIR"/scripts/tools/esp32_qemu_run.sh "$flash_image_file" | tee "$log_file"
-
-# If the logs contain failure message
-if grep -F "] : FAILED" "$log_file"; then
-    die 'Some tests failed.'
-fi
-
-# If the logs do not contain final success status
-if grep -F "CHIP-tests: CHIP test status: 0" "$log_file"; then
-    echo "$me: All tests passed"
-else
-    die 'Tests did not run to completion.'
-fi
diff --git a/src/crypto/tests/qemu_crypto_tests.sh b/src/crypto/tests/qemu_crypto_tests.sh
deleted file mode 120000
index 8fbe617c97a267..00000000000000
--- a/src/crypto/tests/qemu_crypto_tests.sh
+++ /dev/null
@@ -1 +0,0 @@
-../../../scripts/tools/qemu_run_test.sh
\ No newline at end of file
diff --git a/src/inet/tests/qemu_inet_tests.sh b/src/inet/tests/qemu_inet_tests.sh
deleted file mode 120000
index 8fbe617c97a267..00000000000000
--- a/src/inet/tests/qemu_inet_tests.sh
+++ /dev/null
@@ -1 +0,0 @@
-../../../scripts/tools/qemu_run_test.sh
\ No newline at end of file
diff --git a/src/system/tests/qemu_system_tests.sh b/src/system/tests/qemu_system_tests.sh
deleted file mode 120000
index 8fbe617c97a267..00000000000000
--- a/src/system/tests/qemu_system_tests.sh
+++ /dev/null
@@ -1 +0,0 @@
-../../../scripts/tools/qemu_run_test.sh
\ No newline at end of file
diff --git a/src/test_driver/esp32/.gitignore b/src/test_driver/esp32/.gitignore
index 84c048a73cc2e5..a90ab6f1e57d5a 100644
--- a/src/test_driver/esp32/.gitignore
+++ b/src/test_driver/esp32/.gitignore
@@ -1 +1,3 @@
 /build/
+/sdkconfig
+/sdkconfig.old
diff --git a/src/test_driver/esp32/CMakeLists.txt b/src/test_driver/esp32/CMakeLists.txt
new file mode 100644
index 00000000000000..c14242b906908b
--- /dev/null
+++ b/src/test_driver/esp32/CMakeLists.txt
@@ -0,0 +1,57 @@
+#
+#    Copyright (c) 2021 Project CHIP Authors
+#    All rights reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License");
+#    you may not use this file except in compliance with the License.
+#    You may obtain a copy of the License at
+#
+#        http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS,
+#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#    See the License for the specific language governing permissions and
+#    limitations under the License.
+
+# The following lines of boilerplate have to be in your project's
+# CMakeLists in this exact order for cmake to work correctly
+cmake_minimum_required(VERSION 3.5)
+include($ENV{IDF_PATH}/tools/cmake/project.cmake)
+
+include(${CMAKE_CURRENT_SOURCE_DIR}/cmake/esp32_unit_tests.cmake)
+
+set(EXTRA_COMPONENT_DIRS
+    "${CMAKE_CURRENT_LIST_DIR}/third_party/connectedhomeip/config/esp32/components"
+)
+
+project(test-driver)
+
+# C++17 is required for RPC build.
+idf_build_set_property(CXX_COMPILE_OPTIONS "-std=gnu++17;-Os;-DLWIP_IPV6_SCOPES=0;-DCHIP_HAVE_CONFIG_H" APPEND)
+idf_build_set_property(C_COMPILE_OPTIONS "-Os;-DLWIP_IPV6_SCOPES=0" APPEND)
+
+# TODO: libAppTests depends on MessagingTestHelpers, which depends on
+# NetworkTestHelpers.  That sort of depends on InetTestHelpers or
+# equivalent (to provide gSystemLayer, gInet, InitNetwork(),
+# ShutdownNetwork()) but there's only a POSIX implementation of that
+# last, which does not compile on ESP32.  Need to figure out how to
+# make that work.  See comments below for the transport layer tests,
+# which have the same issue.
+#
+# libAppTests.a -lMessagingTestHelpers -lNetworkTestHelpers
+# 
+# TODO: ble tests do not compile using CMake (library is not auto-built)
+# libBleLayerTests.a
+
+esp32_unit_test(NAME testASN1 LIBRARY ASN1Tests)
+esp32_unit_test(NAME testChipCrypto LIBRARY ChipCryptoTests EXTRA_LIBRARIES -lChipCertTestVectors)
+esp32_unit_test(NAME testCore LIBRARY CoreTests)
+esp32_unit_test(NAME testInetLayer LIBRARY InetLayerTests)
+esp32_unit_test(NAME testRetransmit LIBRARY RetransmitTests)
+esp32_unit_test(NAME testSystemLayer LIBRARY SystemLayerTests)
+
+
+# allow other tools to discover what images are available without grepping for '.img'
+string (REPLACE ";" "\n" BUILT_IMAGES "${ESP32_TEST_IMAGES}")
+file(WRITE "${CMAKE_CURRENT_BINARY_DIR}/test_images.txt" "${BUILT_IMAGES}")
diff --git a/src/test_driver/esp32/Makefile b/src/test_driver/esp32/Makefile
deleted file mode 100644
index f9f19c729c574f..00000000000000
--- a/src/test_driver/esp32/Makefile
+++ /dev/null
@@ -1,30 +0,0 @@
-#
-# This is a project Makefile. It is assumed the directory this Makefile resides in is a
-# project subdirectory.
-#
-
-PROJECT_NAME := chip-tests
-
-CXXFLAGS += -DCHIP_SUPPORT_FOREIGN_TEST_DRIVERS -DCHIP_TARGET_STYLE_EMBEDDED -Wno-deprecated-declarations
-
-CXXFLAGS += -DLWIP_IPV6_SCOPES=0 -std=gnu++14
-CPPFLAGS += -DLWIP_IPV6_SCOPES=0 -DCHIP_HAVE_CONFIG_H
-CFLAGS += -DLWIP_IPV6_SCOPES=0 -std=gnu11
-
-EXTRA_COMPONENT_DIRS += $(PROJECT_PATH)/third_party/connectedhomeip/config/esp32/components
-
-include $(IDF_PATH)/make/project.mk
-
-esp32_elf_builder: all
-	mkdir -p build/chip/
-	echo "#!/bin/sh" > build/chip/esp32_elf_builder.sh
-	echo set -e >> build/chip/esp32_elf_builder.sh
-	echo set -x >> build/chip/esp32_elf_builder.sh
-	echo $(CXX) $(CXXFLAGS) $(CPPFLAGS) -L$(PROJECT_PATH)/build/chip/lib -Wl,--whole-archive '$$1' -Wl,--no-whole-archive \
-		 -lnlunit-test $(LDFLAGS) -lnlfaultinjection '$$2' -o $(PROJECT_PATH)/build/chip-tests.elf -Wl,-Map=$(APP_MAP) >> build/chip/esp32_elf_builder.sh
-	echo $(ESPTOOLPY) elf2image $(ESPTOOL_FLASH_OPTIONS) $(ESPTOOL_ELF2IMAGE_OPTIONS) \
-		 -o $(PROJECT_PATH)/build/chip/chip-tests.bin $(PROJECT_PATH)/build/chip-tests.elf >> build/chip/esp32_elf_builder.sh
-	ln -sf $(PROJECT_PATH)/build/partitions.bin $(PROJECT_PATH)/build/chip/partitions.bin
-	mkdir -p build/chip/bootloader
-	ln -sf $(PROJECT_PATH)/build/bootloader/bootloader.bin $(PROJECT_PATH)/build/chip/bootloader.bin
-	ln -sf $(PROJECT_PATH)/idf.sh $(PROJECT_PATH)/build/chip/env.sh
diff --git a/src/test_driver/esp32/cmake/esp32_unit_tests.cmake b/src/test_driver/esp32/cmake/esp32_unit_tests.cmake
new file mode 100644
index 00000000000000..62abc5fba42934
--- /dev/null
+++ b/src/test_driver/esp32/cmake/esp32_unit_tests.cmake
@@ -0,0 +1,100 @@
+
+# Defines a stand-alone elf unit test that can be executed in QEMU
+#
+# Parameters:
+#    NAME    - the elf file name
+#    LIBRARY - the library that contains the registered unit tests. 
+#              for libASN1Tests.a use ASN1Tests as name.
+#    EXTRA_LIBRAIRES - what else to add to link libraries, generally dependencies
+#                      of $LIBRARY   
+#
+# The list ESP32_TEST_IMAGES keeps track of all output images that could
+# be used for testing
+#
+# TODO: several paths are hard-coded here and could use some updates:
+#      - always links to idf::main
+#      - assumes esp-idf/chip/lib is where the built libraries reside
+#      - assumes a "dummy.c" source exists to be able to "add_executable"
+macro(esp32_unit_test)
+    cmake_parse_arguments(
+        UNIT_TEST
+          ""                 # options
+          "NAME;LIBRARY"     # one value arguments
+          "EXTRA_LIBRARIES"  # multi value arguments
+          ${ARGN}
+    )
+
+    ######################## Elf  binary #######################
+
+    add_executable(${UNIT_TEST_NAME} dummy.c)
+
+    target_link_directories(${UNIT_TEST_NAME} PUBLIC 
+        ${CMAKE_CURRENT_BINARY_DIR}/esp-idf/chip/lib
+    )
+
+    target_link_libraries(${UNIT_TEST_NAME} PUBLIC
+        idf::main 
+        -Wl,--whole-archive ${UNIT_TEST_LIBRARY} -Wl,--no-whole-archive
+        ${UNIT_TEST_EXTRA_LIBRARIES}
+        nlunit-test
+        nlfaultinjection
+    )
+
+    add_dependencies(${UNIT_TEST_NAME} idf::main)
+    add_dependencies(${UNIT_TEST_NAME} idf::chip)
+    # TODO:
+    #   - this does NOT properly handle dependencies  on UNIT_TEST_LIBRARY and such,
+    #     so changes in the tests themselves will not re-gen
+
+    idf_build_executable(${UNIT_TEST_NAME})
+
+    ######################## flashable image #######################
+
+    # This is very hacky: ESP build system will generate this, but only for the FIRST
+    # executable that is used
+
+    add_custom_command(
+      OUTPUT "${CMAKE_CURRENT_BINARY_DIR}/${UNIT_TEST_NAME}.bin_timestamp"
+      COMMAND ${ESPTOOLPY} elf2image ${ESPTOOLPY_FLASH_OPTIONS} ${esptool_elf2image_args}
+          -o "${CMAKE_CURRENT_BINARY_DIR}/${UNIT_TEST_NAME}.bin" "${UNIT_TEST_NAME}"
+      COMMAND ${CMAKE_COMMAND} -E echo "Generated ${UNIT_TEST_NAME}.bin"
+      COMMAND ${CMAKE_COMMAND} -E md5sum "${CMAKE_CURRENT_BINARY_DIR}/${UNIT_TEST_NAME}" > "${CMAKE_CURRENT_BINARY_DIR}/${UNIT_TEST_NAME}.bin_timestamp"
+      DEPENDS ${UNIT_TEST_NAME}
+      VERBATIM                                                                                                                                                  
+      WORKING_DIRECTORY ${CMAKE_CURRENT_BINARY_DIR}
+      COMMENT "Generating binary image from ${UNIT_TEST_NAME}"
+    )                                                                                                                                                         
+    add_custom_target(gen_binary_${UNIT_TEST_NAME} ALL DEPENDS "${build_dir}/${UNIT_TEST_NAME}.bin_timestamp")
+
+
+    ###################### Image executable in QEMU #################
+
+
+    # A runnable image is a 4MB file with:
+    #   bootloader at 0x1000
+    #   partition table at 0x8000
+    #   image at 0x10000
+    add_custom_command(
+      OUTPUT "${CMAKE_CURRENT_BINARY_DIR}/${UNIT_TEST_NAME}.img_timestamp"
+
+      COMMAND dd if=/dev/zero bs=1024 count=4096 of=${UNIT_TEST_NAME}.img
+      COMMAND dd if=${CMAKE_CURRENT_BINARY_DIR}/bootloader/bootloader.bin bs=1 seek=4096 of=${UNIT_TEST_NAME}.img conv=notrunc
+      COMMAND dd if=${CMAKE_CURRENT_BINARY_DIR}/partition_table/partition-table.bin bs=1 seek=32768 of=${UNIT_TEST_NAME}.img conv=notrunc
+      COMMAND dd if=${CMAKE_CURRENT_BINARY_DIR}/${UNIT_TEST_NAME}.bin bs=1 seek=65536 of=${UNIT_TEST_NAME}.img conv=notrunc
+
+      COMMAND ${CMAKE_COMMAND} -E echo "Generated ${UNIT_TEST_NAME}.img"
+      COMMAND ${CMAKE_COMMAND} -E md5sum "${CMAKE_CURRENT_BINARY_DIR}/${UNIT_TEST_NAME}.img" > "${CMAKE_CURRENT_BINARY_DIR}/${UNIT_TEST_NAME}.img_timestamp"
+
+      DEPENDS gen_binary_${UNIT_TEST_NAME}
+      VERBATIM                                                                                                                                                  
+      WORKING_DIRECTORY ${CMAKE_CURRENT_BINARY_DIR}
+      COMMENT "Generating binary image from ${UNIT_TEST_NAME}"
+    )                                                                                                                                                         
+    add_custom_target(gen_image_${UNIT_TEST_NAME} ALL DEPENDS "${build_dir}/${UNIT_TEST_NAME}.img_timestamp")
+
+    LIST(APPEND ESP32_TEST_IMAGES ${UNIT_TEST_NAME}.img)
+
+
+    # IMAGE CAN BE RUN AS
+    # $QEMU_ESP32 -nographic -no-reboot -machine esp32 -drive file=out/esp32-qemu-tests/testASN1.img,if=mtd,format=raw
+endmacro()
diff --git a/src/test_driver/esp32/dummy.c b/src/test_driver/esp32/dummy.c
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/src/test_driver/esp32/main/CMakeLists.txt b/src/test_driver/esp32/main/CMakeLists.txt
new file mode 100644
index 00000000000000..ded51eb78bee8c
--- /dev/null
+++ b/src/test_driver/esp32/main/CMakeLists.txt
@@ -0,0 +1,42 @@
+#
+#    Copyright (c) 2021 Project CHIP Authors
+#    All rights reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License");
+#    you may not use this file except in compliance with the License.
+#    You may obtain a copy of the License at
+#
+#        http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS,
+#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#    See the License for the specific language governing permissions and
+#    limitations under the License.
+#
+
+# (Uses default behaviour of compiling all source files in directory, adding 'include' to include path.)
+# The list of src and include dirs must be in sync with that in all-clusters-app/esp32/main/component.mk
+set(PRIV_INCLUDE_DIRS_LIST
+                      "${CMAKE_CURRENT_LIST_DIR}/include"
+)
+
+set(SRC_DIRS_LIST
+                      "${CMAKE_CURRENT_LIST_DIR}"
+)
+
+set(EXTRA_COMPONENT_DIRS
+    "${CMAKE_CURRENT_LIST_DIR}/../third_party/connectedhomeip/config/esp32/components"
+    "${IDF_PATH}/examples/common_components"
+)
+
+if (CONFIG_OPENTHREAD_ENABLED)
+    list(APPEND PRIV_REQUIRES_LIST openthread)
+endif()
+
+idf_component_register(PRIV_INCLUDE_DIRS ${PRIV_INCLUDE_DIRS_LIST}
+                       SRC_DIRS ${SRC_DIRS_LIST}
+                       PRIV_REQUIRES ${PRIV_REQUIRES_LIST})
+
+set_property(TARGET ${COMPONENT_LIB} PROPERTY CXX_STANDARD 17)
+target_compile_options(${COMPONENT_LIB} PRIVATE "-DLWIP_IPV6_SCOPES=0" "-DCHIP_HAVE_CONFIG_H")
diff --git a/src/test_driver/esp32/main/component.mk b/src/test_driver/esp32/main/component.mk
deleted file mode 100644
index e00ee9dea96ffc..00000000000000
--- a/src/test_driver/esp32/main/component.mk
+++ /dev/null
@@ -1,22 +0,0 @@
-#
-#    Copyright (c) 2020 Project CHIP Authors
-#    All rights reserved.
-#
-#    Licensed under the Apache License, Version 2.0 (the "License");
-#    you may not use this file except in compliance with the License.
-#    You may obtain a copy of the License at
-#
-#        http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS,
-#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-#    See the License for the specific language governing permissions and
-#    limitations under the License.
-#
-#    Description:
-#      Component makefile for the ESP32 demo application.
-#
-# (Uses default behaviour of compiling all source files in directory, adding 'include' to include path.)
-
-COMPONENT_DEPENDS := chip
diff --git a/src/test_driver/esp32/qemu_setup.sh b/src/test_driver/esp32/qemu_setup.sh
deleted file mode 100755
index fac58a636271d7..00000000000000
--- a/src/test_driver/esp32/qemu_setup.sh
+++ /dev/null
@@ -1,40 +0,0 @@
-#!/usr/bin/env bash
-#
-#
-#    Copyright (c) 2020 Project CHIP Authors
-#
-#    Licensed under the Apache License, Version 2.0 (the "License");
-#    you may not use this file except in compliance with the License.
-#    You may obtain a copy of the License at
-#
-#        http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS,
-#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-#    See the License for the specific language governing permissions and
-#    limitations under the License.
-#
-#
-#    Description:
-#      This is a utility script that compiles ESP32 QEMU and sets it up
-#      for testing.
-#
-
-here=$(cd "$(dirname "$0")" && pwd)
-
-set -e
-
-die() {
-    echo "${me:?}: *** ERROR: " "${*}"
-    exit 1
-}
-
-# move to the example folder, I don't work anywhere else
-cd "$here" || die 'ack!, where am I?!?'
-
-# shellcheck source=/dev/null
-source idf.sh
-rm -f ./build/sdkconfig
-SDKCONFIG=./build/sdkconfig SDKCONFIG_DEFAULTS=sdkconfig_qemu.defaults idf make defconfig
-SDKCONFIG=./build/sdkconfig idf make -j8 esp32_elf_builder
diff --git a/src/test_driver/esp32/run_qemu_image.py b/src/test_driver/esp32/run_qemu_image.py
new file mode 100755
index 00000000000000..d871083a0c1c77
--- /dev/null
+++ b/src/test_driver/esp32/run_qemu_image.py
@@ -0,0 +1,133 @@
+#!/usr/bin/env python3
+# Copyright (c) 2021 Project CHIP Authors
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#   http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import coloredlogs
+import click
+import logging
+import os
+import sys
+import subprocess
+
+# Supported log levels, mapping string values required for argument
+# parsing into logging constants
+__LOG_LEVELS__ = {
+    'debug': logging.DEBUG,
+    'info': logging.INFO,
+    'warn': logging.WARN,
+    'fatal': logging.FATAL,
+}
+
+
+@click.command()
+@click.option(
+    '--log-level',
+    default='INFO',
+    type=click.Choice(__LOG_LEVELS__.keys(), case_sensitive=False),
+    help='Determines the verbosity of script output.')
+@click.option(
+    '--no-log-timestamps',
+    default=False,
+    is_flag=True,
+    help='Skip timestaps in log output')
+@click.option(
+    '--image',
+    default=[],
+    multiple=True,
+    help='What images to execute (will be executed one after another)'
+)
+@click.option(
+    '--file-image-list',
+    default=None,
+    help='Read the images from the given file (contains images one per line)'
+)
+@click.option(
+    '--qemu',
+    default=os.environ.get('QEMU_ESP32', 'qemu-system-xtensa'),
+    help='QEMU binary to run (generally path to qemu-system-xtensa)'
+)
+@click.option(
+    '--verbose',
+    default=False,
+    is_flag=True,
+    help='More verbose output')
+def main(log_level, no_log_timestamps, image, file_image_list, qemu, verbose):
+    # Ensures somewhat pretty logging of what is going on
+    log_fmt = '%(asctime)s %(levelname)-7s %(message)s'
+    if no_log_timestamps:
+        log_fmt = '%(levelname)-7s %(message)s'
+    coloredlogs.install(level=__LOG_LEVELS__[log_level], fmt=log_fmt)
+
+    image = list(image)
+
+    if file_image_list:
+        logging.info("Reading image list from %s", file_image_list)
+
+        basedir = os.path.dirname(file_image_list)
+
+        with open(file_image_list, 'rt') as f:
+            for name in f.readlines():
+                name = name.strip()
+
+                image_path = name
+                if not os.path.isabs(name):
+                    image_path = os.path.join(basedir, name)
+
+                logging.info("    Found %s => %s", name, image_path)
+                image.append(image_path)
+
+    # the list "image" contains all the images that need to run
+    for path in image:
+        logging.info("Executing image %s", path)
+
+        status = subprocess.run([qemu, "-nographic", "-no-reboot", "-machine", "esp32",
+                                 "-drive", "file=%s,if=mtd,format=raw" % path], capture_output=True)
+
+        # Encoding is NOT valid, but want to not try to decode potential
+        # invalid UTF-8 sequences. The strings we care about are ascii anyway
+        output = status.stdout.decode('ascii')
+
+        try:
+            if status.returncode != 0:
+                raise Exception("Execution of %s failed with code %d" %
+                                (path, status.returncode))
+
+            # Parse output of the unit test. Generally expect things like:
+            # Failed Tests:   0 / 5
+            # Failed Asserts: 0 / 77
+            # I (3034) CHIP-tests: CHIP test status: 0
+            for line in output.split('\n'):
+                if line.startswith('Failed Tests:') and not line.startswith('Failed Tests:   0 /'):
+                    raise Exception("Tests seem failed: %s" % line)
+
+                if line.startswith('Failed Asserts:') and not line.startswith('Failed Asserts: 0 /'):
+                    raise Exception("Asserts seem failed: %s" % line)
+
+                if 'CHIP test status: ' in line and 'CHIP test status: 0' not in line:
+                    raise Exception("CHIP test status is NOT 0: %s" % line)
+
+            if verbose:
+                print("========== TEST OUTPUT BEGIN ============")
+                print(output)
+                print("========== TEST OUTPUT END   ============")
+
+            logging.info("Image %s PASSED", path)
+        except:
+            # make sure output is visible in stdout
+            print(output)
+            raise
+
+
+if __name__ == '__main__':
+    main()
diff --git a/src/test_driver/esp32/sdkconfig_qemu.defaults b/src/test_driver/esp32/sdkconfig_qemu.defaults
index 21cf961c44b80a..31a991644d1377 100644
--- a/src/test_driver/esp32/sdkconfig_qemu.defaults
+++ b/src/test_driver/esp32/sdkconfig_qemu.defaults
@@ -31,8 +31,8 @@ CONFIG_MBEDTLS_HARDWARE_MPI=n
 CONFIG_MBEDTLS_HARDWARE_SHA=n
 CONFIG_CHIP_TASK_STACK_SIZE=32768
 CONFIG_ESP_MAIN_TASK_STACK_SIZE=32768
-CONFIG_ESP32_PANIC_PRINT_REBOOT=y
-CONFIG_ESP32_PANIC_PRINT_HALT=n
+CONFIG_ESP_SYSTEM_PANIC_PRINT_REBOOT=y
+CONFIG_ESP_SYSTEM_PANIC_PRINT_HALT=n
 
 # enable BT
 CONFIG_BT_ENABLED=n
diff --git a/src/transport/tests/qemu_transport_tests.sh b/src/transport/tests/qemu_transport_tests.sh
deleted file mode 120000
index 8fbe617c97a267..00000000000000
--- a/src/transport/tests/qemu_transport_tests.sh
+++ /dev/null
@@ -1 +0,0 @@
-../../../scripts/tools/qemu_run_test.sh
\ No newline at end of file