diff --git a/cmd/test.go b/cmd/test.go
index ac4adbf45e..62e8aac05e 100644
--- a/cmd/test.go
+++ b/cmd/test.go
@@ -113,7 +113,7 @@ Example test run:
 }
 
 func opaTest(args []string) int {
-	ctx, cancel := context.WithTimeout(context.Background(), testParams.timeout)
+	ctx, cancel := context.WithCancel(context.Background())
 	defer cancel()
 
 	filter := loaderFilter{
@@ -175,7 +175,8 @@ func opaTest(args []string) int {
 		EnableFailureLine(testParams.failureLine).
 		SetRuntime(info).
 		SetModules(modules).
-		SetBundles(bundles)
+		SetBundles(bundles).
+		SetTimeout(testParams.timeout)
 
 	ch, err := runner.RunTests(ctx, txn)
 	if err != nil {
diff --git a/tester/runner.go b/tester/runner.go
index ae8008db0d..940c8e448e 100644
--- a/tester/runner.go
+++ b/tester/runner.go
@@ -99,6 +99,7 @@ type Runner struct {
 	trace       bool
 	runtime     *ast.Term
 	failureLine bool
+	timeout     time.Duration
 	modules     map[string]*ast.Module
 	bundles     map[string]*bundle.Bundle
 }
@@ -151,6 +152,12 @@ func (r *Runner) SetRuntime(term *ast.Term) *Runner {
 	return r
 }
 
+// SetTimeout sets the timeout for the individual test cases
+func (r *Runner) SetTimeout(timout time.Duration) *Runner {
+	r.timeout = timout
+	return r
+}
+
 // SetModules will add modules to the Runner which will be compiled then used
 // for discovering and evaluating tests.
 func (r *Runner) SetModules(modules map[string]*ast.Module) *Runner {
@@ -259,7 +266,9 @@ func (r *Runner) RunTests(ctx context.Context, txn storage.Transaction) (ch chan
 				if !strings.HasPrefix(string(rule.Head.Name), TestPrefix) {
 					continue
 				}
-				tr, stop := r.runTest(ctx, txn, module, rule)
+				runCtx, cancel := context.WithTimeout(ctx, r.timeout)
+				defer cancel()
+				tr, stop := r.runTest(runCtx, txn, module, rule)
 				ch <- tr
 				if stop {
 					return
diff --git a/tester/runner_test.go b/tester/runner_test.go
index ecebc4b3fa..dc4de2416b 100644
--- a/tester/runner_test.go
+++ b/tester/runner_test.go
@@ -154,20 +154,8 @@ func TestRun(t *testing.T) {
 
 func TestRunnerCancel(t *testing.T) {
 
-	ast.RegisterBuiltin(&ast.Builtin{
-		Name: "test.sleep",
-		Decl: types.NewFunction(
-			types.Args(types.S),
-			types.NewNull(),
-		),
-	})
-
-	topdown.RegisterFunctionalBuiltin1("test.sleep", func(a ast.Value) (ast.Value, error) {
-		d, _ := time.ParseDuration(string(a.(ast.String)))
-		time.Sleep(d)
-		return ast.Null{}, nil
-	})
-
+	registerSleepBuiltin()
+	
 	ctx, cancel := context.WithCancel(context.Background())
 	cancel()
 
@@ -189,5 +177,57 @@ func TestRunnerCancel(t *testing.T) {
 			t.Fatalf("Expected cancel error but got: %v", results[0].Error)
 		}
 	})
+}
+
+func TestRunner_Timeout(t *testing.T) {
+
+	registerSleepBuiltin()
+
+	ctx := context.Background()
+
+	files := map[string]string{
+		"/a_test.rego": `package foo
+
+		test_1 { test.sleep("100ms") }
+		test_2 { true }`,
+	}
 
+	test.WithTempFS(files, func(d string) {
+		paths := []string{d}
+		modules, store, err := tester.Load(paths, nil)
+		if err != nil {
+			t.Fatal(err)
+		}
+		duration, err := time.ParseDuration("1ns")
+		if err != nil {
+			t.Fatal(err)
+		}
+		ch, err := tester.NewRunner().SetTimeout(duration).SetStore(store).Run(ctx, modules)
+		if err != nil {
+			t.Fatal(err)
+		}
+		var results []*tester.Result
+		for r := range ch {
+			results = append(results, r)
+		}
+		if !topdown.IsCancel(results[0].Error) {
+			t.Fatalf("Expected cancel error but got: %v", results[0].Error)
+		}
+	})
 }
+
+func registerSleepBuiltin() {
+	ast.RegisterBuiltin(&ast.Builtin{
+		Name: "test.sleep",
+		Decl: types.NewFunction(
+			types.Args(types.S),
+			types.NewNull(),
+		),
+	})
+
+	topdown.RegisterFunctionalBuiltin1("test.sleep", func(a ast.Value) (ast.Value, error) {
+		d, _ := time.ParseDuration(string(a.(ast.String)))
+		time.Sleep(d)
+		return ast.Null{}, nil
+	})
+}
\ No newline at end of file