diff --git a/examples/gno.land/r/demo/tests/tests.gno b/examples/gno.land/r/demo/tests/tests.gno
index dd2518e2e49..fb49b2273ae 100644
--- a/examples/gno.land/r/demo/tests/tests.gno
+++ b/examples/gno.land/r/demo/tests/tests.gno
@@ -3,7 +3,7 @@ package tests
 import (
 	"std"
 
-	"gno.land/r/demo/tests/subtests"
+	rsubtests "gno.land/r/demo/tests/subtests"
 )
 
 var counter int
@@ -78,8 +78,8 @@ func GetPrevRealm() std.Realm {
 	return std.PrevRealm()
 }
 
-func GetPSubtestsPrevRealm() std.Realm {
-	return subtests.GetPrevRealm()
+func GetRSubtestsPrevRealm() std.Realm {
+	return rsubtests.GetPrevRealm()
 }
 
 func Exec(fn func()) {
diff --git a/examples/gno.land/r/demo/tests/tests_test.gno b/examples/gno.land/r/demo/tests/tests_test.gno
index 6efc3f35672..3dcbeecf18c 100644
--- a/examples/gno.land/r/demo/tests/tests_test.gno
+++ b/examples/gno.land/r/demo/tests/tests_test.gno
@@ -1,6 +1,7 @@
 package tests
 
 import (
+	"std"
 	"testing"
 
 	"gno.land/p/demo/testutils"
@@ -30,3 +31,18 @@ func TestAssertOriginCall(t *testing.T) {
 		AssertOriginCall()
 	}()
 }
+
+func TestPrevRealm(t *testing.T) {
+	var (
+		user1Addr  = std.DerivePkgAddr("user1.gno")
+		rTestsAddr = std.DerivePkgAddr("gno.land/r/demo/tests")
+	)
+	// When a single realm in the frames, PrevRealm returns the user
+	if addr := GetPrevRealm().Addr(); addr != user1Addr {
+		t.Errorf("want GetPrevRealm().Addr==%s, got %s", user1Addr, addr)
+	}
+	// When 2 or more realms in the frames, PrevRealm returns the second to last
+	if addr := GetRSubtestsPrevRealm().Addr(); addr != rTestsAddr {
+		t.Errorf("want GetRSubtestsPrevRealm().Addr==%s, got %s", rTestsAddr, addr)
+	}
+}
diff --git a/gnovm/cmd/gno/main_test.go b/gnovm/cmd/gno/main_test.go
index 6b9a6f5c0d8..bc4fd8eb4b8 100644
--- a/gnovm/cmd/gno/main_test.go
+++ b/gnovm/cmd/gno/main_test.go
@@ -92,7 +92,7 @@ func testMainCaseRun(t *testing.T, tc []testMainCase) {
 					require.False(t, recoverShouldBeEmpty, "should panic")
 					require.True(t, errShouldBeEmpty, "should not return an error")
 					if test.recoverShouldContain != "" {
-						require.Contains(t, output, test.recoverShouldContain, "recover should contain")
+						require.Regexpf(t, test.recoverShouldContain, output, "recover should contain")
 					}
 					if test.recoverShouldBe != "" {
 						require.Equal(t, test.recoverShouldBe, output, "recover should be")
diff --git a/gnovm/cmd/gno/test.go b/gnovm/cmd/gno/test.go
index f5e180e694a..b99645df0b4 100644
--- a/gnovm/cmd/gno/test.go
+++ b/gnovm/cmd/gno/test.go
@@ -14,13 +14,16 @@ import (
 	"text/template"
 	"time"
 
+	"go.uber.org/multierr"
+
 	gno "github.com/gnolang/gno/gnovm/pkg/gnolang"
+	"github.com/gnolang/gno/gnovm/pkg/gnomod"
 	"github.com/gnolang/gno/gnovm/tests"
 	"github.com/gnolang/gno/tm2/pkg/commands"
 	"github.com/gnolang/gno/tm2/pkg/errors"
+	"github.com/gnolang/gno/tm2/pkg/random"
 	"github.com/gnolang/gno/tm2/pkg/std"
 	"github.com/gnolang/gno/tm2/pkg/testutils"
-	"go.uber.org/multierr"
 )
 
 type testCfg struct {
@@ -240,11 +243,9 @@ func gnoTestPkg(
 		stdin  = io.In
 		stdout = io.Out
 		stderr = io.Err
+		errs   error
 	)
 
-	filter := splitRegexp(runFlag)
-	var errs error
-
 	mode := tests.ImportModeStdlibsOnly
 	if cfg.withNativeFallback {
 		// XXX: display a warn?
@@ -267,14 +268,23 @@ func gnoTestPkg(
 
 	// testing with *_test.gno
 	if len(unittestFiles) > 0 {
-		memPkg := gno.ReadMemPackage(pkgPath, pkgPath)
+		// Determine gnoPkgPath by reading gno.mod
+		var gnoPkgPath string
+		modfile, err := gnomod.ParseAt(pkgPath)
+		if err == nil {
+			gnoPkgPath = modfile.Module.Mod.Path
+		} else {
+			// unable to read pkgPath from gno.mod, generate a random realm path
+			gnoPkgPath = gno.GnoRealmPkgsPrefixBefore + random.RandStr(8)
+		}
+		memPkg := gno.ReadMemPackage(pkgPath, gnoPkgPath)
 
 		// tfiles, ifiles := gno.ParseMemPackageTests(memPkg)
 		tfiles, ifiles := parseMemPackageTests(memPkg)
 
 		// run test files in pkg
 		{
-			m := tests.TestMachine(testStore, stdout, "main")
+			m := tests.TestMachine(testStore, stdout, gnoPkgPath)
 			if printRuntimeMetrics {
 				// from tm2/pkg/sdk/vm/keeper.go
 				// XXX: make maxAllocTx configurable.
@@ -305,6 +315,7 @@ func gnoTestPkg(
 
 	// testing with *_filetest.gno
 	{
+		filter := splitRegexp(runFlag)
 		for _, testFile := range filetestFiles {
 			testFileName := filepath.Base(testFile)
 			testName := "file/" + testFileName
@@ -377,7 +388,7 @@ func runTestFiles(
 	}
 
 	m.RunFiles(files.Files...)
-	n := gno.MustParseFile("testmain.go", testmain)
+	n := gno.MustParseFile("main_test.gno", testmain)
 	m.RunFiles(n)
 
 	for _, test := range testFuncs.Tests {
diff --git a/gnovm/cmd/gno/test_test.go b/gnovm/cmd/gno/test_test.go
index 9059bc365dc..67df26facd7 100644
--- a/gnovm/cmd/gno/test_test.go
+++ b/gnovm/cmd/gno/test_test.go
@@ -153,7 +153,7 @@ func TestTest(t *testing.T) {
 		},
 		{
 			args:                 []string{"test", "--verbose", "../../tests/integ/native-lib"},
-			recoverShouldContain: "./../../tests/integ/native-lib/contract.gno:1: unknown import path net",
+			recoverShouldContain: "gno.land/r/\\w{8}/contract.gno:1: unknown import path net",
 		},
 		{
 			args:                []string{"test", "--verbose", "--with-native-fallback", "../../tests/integ/native-lib"},
@@ -161,11 +161,11 @@ func TestTest(t *testing.T) {
 		},
 		{
 			args:                 []string{"test", "--verbose", "../../tests/integ/unknown-lib"},
-			recoverShouldContain: "./../../tests/integ/unknown-lib/contract.gno:1: unknown import path foobarbaz",
+			recoverShouldContain: "gno.land/r/\\w{8}/contract.gno:1: unknown import path foobarbaz",
 		},
 		{
 			args:                 []string{"test", "--verbose", "--with-native-fallback", "../../tests/integ/unknown-lib"},
-			recoverShouldContain: "./../../tests/integ/unknown-lib/contract.gno:1: unknown import path foobarbaz",
+			recoverShouldContain: "gno.land/r/\\w{8}/contract.gno:1: unknown import path foobarbaz",
 		},
 		{
 			args:                []string{"test", "--verbose", "--print-runtime-metrics", "../../../examples/gno.land/p/demo/ufmt"},
diff --git a/gnovm/pkg/doc/dirs.go b/gnovm/pkg/doc/dirs.go
index df8640a65cb..21216828ce4 100644
--- a/gnovm/pkg/doc/dirs.go
+++ b/gnovm/pkg/doc/dirs.go
@@ -70,6 +70,9 @@ func newDirs(dirs []string, modDirs []string) *bfsDirs {
 
 // tries to parse gno mod file given the filename, using Parse and Validate from
 // the gnomod package
+//
+// TODO(tb): replace by `gnomod.ParseAt` ? The key difference is the latter
+// looks for gno.mod in parent directories, while this function doesn't.
 func parseGnoMod(fname string) (*gnomod.File, error) {
 	file, err := os.Stat(fname)
 	if err != nil {
diff --git a/gnovm/pkg/gnolang/realm.go b/gnovm/pkg/gnolang/realm.go
index 40f770c7720..567aea58284 100644
--- a/gnovm/pkg/gnolang/realm.go
+++ b/gnovm/pkg/gnolang/realm.go
@@ -1121,6 +1121,10 @@ func copyValueWithRefs(parent Object, val Value) Value {
 		}
 	case *FuncValue:
 		source := toRefNode(cv.Source)
+		if strings.HasSuffix(source.Location.File, "_test.gno") {
+			// Ignore _test files
+			return nil
+		}
 		var closure Value
 		if cv.Closure != nil {
 			closure = toRefValue(parent, cv.Closure)
@@ -1502,7 +1506,7 @@ func isUnsaved(oo Object) bool {
 
 func IsRealmPath(pkgPath string) bool {
 	// TODO: make it more distinct to distinguish from normal paths.
-	if strings.HasPrefix(pkgPath, "gno.land/r/") {
+	if strings.HasPrefix(pkgPath, GnoRealmPkgsPrefixBefore) {
 		return true
 	} else {
 		return false
diff --git a/gnovm/pkg/gnomod/parse.go b/gnovm/pkg/gnomod/parse.go
index a23a5a06b46..5bda3c31f70 100644
--- a/gnovm/pkg/gnomod/parse.go
+++ b/gnovm/pkg/gnomod/parse.go
@@ -2,6 +2,8 @@ package gnomod
 
 import (
 	"fmt"
+	"os"
+	"path/filepath"
 	"reflect"
 	"strings"
 
@@ -9,6 +11,37 @@ import (
 	"golang.org/x/mod/module"
 )
 
+// ParseAt parses, validates and returns a gno.mod file located at dir or at
+// dir's parents.
+func ParseAt(dir string) (*File, error) {
+	ferr := func(err error) (*File, error) {
+		return nil, fmt.Errorf("parsing gno.mod at %s: %w", dir, err)
+	}
+
+	// FindRootDir requires absolute path, make sure its the case
+	absDir, err := filepath.Abs(dir)
+	if err != nil {
+		return ferr(err)
+	}
+	rd, err := FindRootDir(absDir)
+	if err != nil {
+		return ferr(err)
+	}
+	fname := filepath.Join(rd, "gno.mod")
+	b, err := os.ReadFile(fname)
+	if err != nil {
+		return ferr(err)
+	}
+	gm, err := Parse(fname, b)
+	if err != nil {
+		return ferr(err)
+	}
+	if err := gm.Validate(); err != nil {
+		return ferr(err)
+	}
+	return gm, nil
+}
+
 // Parse parses and returns a gno.mod file.
 //
 // - file is the name of the file, used in positions and errors.
diff --git a/gnovm/tests/files/zrealm_crossrealm11.gno b/gnovm/tests/files/zrealm_crossrealm11.gno
index ecb3555c29c..b250b07bbac 100644
--- a/gnovm/tests/files/zrealm_crossrealm11.gno
+++ b/gnovm/tests/files/zrealm_crossrealm11.gno
@@ -65,7 +65,7 @@ func main() {
 		},
 		{
 			callStackAdd: " -> r/demo/tests -> r/demo/tests/subtests",
-			callerFn:     rtests.GetPSubtestsPrevRealm,
+			callerFn:     rtests.GetRSubtestsPrevRealm,
 		},
 		{
 			callStackAdd: " -> p/demo/tests -> r/demo/tests",
diff --git a/gnovm/tests/files/zrealm_tests0.gno b/gnovm/tests/files/zrealm_tests0.gno
index bc07acea1b4..cfb1f08c6f4 100644
--- a/gnovm/tests/files/zrealm_tests0.gno
+++ b/gnovm/tests/files/zrealm_tests0.gno
@@ -972,7 +972,7 @@ func main() {
 //                 },
 //                 "FileName": "tests.gno",
 //                 "IsMethod": false,
-//                 "Name": "GetPSubtestsPrevRealm",
+//                 "Name": "GetRSubtestsPrevRealm",
 //                 "PkgPath": "gno.land/r/demo/tests",
 //                 "Source": {
 //                     "@type": "/gno.RefNode",
diff --git a/gnovm/tests/imports.go b/gnovm/tests/imports.go
index 58d62f02d8d..0af77f9c59c 100644
--- a/gnovm/tests/imports.go
+++ b/gnovm/tests/imports.go
@@ -104,7 +104,8 @@ func TestStore(rootDir, filesPath string, stdin io.Reader, stdout, stderr io.Wri
 					Output:  stdout,
 					Store:   store,
 				})
-				return m2.RunMemPackage(memPkg, true)
+				save := pkgPath != "testing" // never save the "testing" package
+				return m2.RunMemPackage(memPkg, save)
 			}
 		}