diff --git a/.github/workflows/tests.yaml b/.github/workflows/tests.yaml
index 27c5ac86a1c1e6..a44b72f81262c8 100644
--- a/.github/workflows/tests.yaml
+++ b/.github/workflows/tests.yaml
@@ -183,8 +183,6 @@ jobs:
             - name: Build Apps
               run: |
                   scripts/run_in_build_env.sh './scripts/build_python.sh --install_virtual_env out/venv --include_yamltests'
-                  scripts/run_in_python_env.sh out/venv 'pip install -r scripts/setup/requirements.build.txt'
-                  scripts/run_in_python_env.sh out/venv 'pip install -r scripts/setup/requirements.yaml_tests.txt'
                   ./scripts/run_in_build_env.sh \
                      "./scripts/build/build_examples.py \
                         --target linux-x64-chip-tool${CHIP_TOOL_VARIANT}-${BUILD_VARIANT} \
@@ -424,8 +422,6 @@ jobs:
             - name: Build Python REPL and example apps
               run: |
                   scripts/run_in_build_env.sh './scripts/build_python.sh --install_virtual_env out/venv --extra_packages "mobly"'
-                  scripts/run_in_python_env.sh out/venv 'pip install -r scripts/setup/requirements.build.txt'
-                  scripts/run_in_python_env.sh out/venv 'pip install colorama pyasn1 pyasn1_modules'
                   ./scripts/run_in_build_env.sh \
                    "./scripts/build/build_examples.py \
                       --target linux-x64-all-clusters-ipv6only-no-ble-no-wifi-tsan-clang-test \
@@ -499,8 +495,6 @@ jobs:
             - name: Build Python REPL and example apps
               run: |
                   scripts/run_in_build_env.sh './scripts/build_python.sh --install_virtual_env out/venv'
-                  scripts/run_in_python_env.sh out/venv 'pip install -r scripts/setup/requirements.build.txt'
-                  scripts/run_in_python_env.sh out/venv 'pip install colorama'
                   ./scripts/run_in_build_env.sh \
                    "./scripts/build/build_examples.py \
                       --target darwin-x64-all-clusters-${BUILD_VARIANT}-test \
diff --git a/scripts/build_python.sh b/scripts/build_python.sh
index 6cc3d09469bb9c..0952f3adbf7386 100755
--- a/scripts/build_python.sh
+++ b/scripts/build_python.sh
@@ -43,6 +43,7 @@ declare chip_mdns
 declare case_retry_delta
 declare install_virtual_env
 declare clean_virtual_env=yes
+declare install_pytest_requirements=yes
 
 help() {
 
@@ -63,6 +64,8 @@ Input Options:
                                                             <path> represents where the virtual environment is to be created.
   -c, --clean_virtual_env  <yes|no>                         When installing a virtual environment, create/clean it first.
                                                             Defaults to yes.
+  --include_pytest_deps  <yes|no>                           Install requirements.python_tests.txt.
+                                                            Defaults to yes.
   --extra_packages PACKAGES                                 Install extra Python packages from PyPI
   --include_yamltests                                       Whether to install the matter_yamltests wheel.
   -z --pregen_dir DIRECTORY                                 Directory where generated zap files have been pre-generated.
@@ -101,6 +104,10 @@ while (($#)); do
             clean_virtual_env=$2
             shift
             ;;
+        --include_pytest_deps)
+            install_pytest_requirements=$2
+            shift
+            ;;
         --extra_packages)
             extra_packages=$2
             shift
@@ -178,13 +185,22 @@ if [ -n "$install_virtual_env" ]; then
 
     if [ "$clean_virtual_env" = "yes" ]; then
         # Create a virtual environment that has access to the built python tools
+        echo_blue "Creating a clear VirtualEnv in '$ENVIRONMENT_ROOT' ..."
         virtualenv --clear "$ENVIRONMENT_ROOT"
+    elif [ ! -f "$ENVIRONMENT_ROOT"/bin/activate ]; then
+        echo_blue "Creating a new VirtualEnv in '$ENVIRONMENT_ROOT' ..."
+        virtualenv "$ENVIRONMENT_ROOT"
     fi
 
     source "$ENVIRONMENT_ROOT"/bin/activate
     "$ENVIRONMENT_ROOT"/bin/python -m pip install --upgrade pip
     "$ENVIRONMENT_ROOT"/bin/pip install --upgrade "${WHEEL[@]}"
 
+    if [ "$install_pytest_requirements" = "yes" ]; then
+        echo_blue "Installing python test dependencies ..."
+        "$ENVIRONMENT_ROOT"/bin/pip install -r "$CHIP_ROOT/scripts/setup/requirements.python_tests.txt"
+    fi
+
     echo ""
     echo_green "Compilation completed and WHL package installed in: "
     echo_blue "  $ENVIRONMENT_ROOT"
diff --git a/scripts/setup/requirements.python_tests.txt b/scripts/setup/requirements.python_tests.txt
new file mode 100644
index 00000000000000..92d6db9016814e
--- /dev/null
+++ b/scripts/setup/requirements.python_tests.txt
@@ -0,0 +1,16 @@
+# scripts/tests
+click
+colorama
+diskcache
+websockets
+
+# scripts/py_matter_idl
+# TODO: these should be wheel dependencies
+lark
+jinja2
+stringcase
+
+# src/python_testing
+mobly
+pyasn1
+pyasn1_modules