diff --git a/crates/nu-std/tests/run.nu b/crates/nu-std/tests/run.nu
index b14ce12e7b..0ad59d8aa7 100644
--- a/crates/nu-std/tests/run.nu
+++ b/crates/nu-std/tests/run.nu
@@ -79,13 +79,16 @@ def main [
     let tests = (
         ls ($path | path join $module_search_pattern)
         | each {|row| {file: $row.name name: ($row.name | path parse | get stem)}}
-        | upsert test {|module|
-            nu -c $'use ($module.file) *; $nu.scope.commands | select name module_name | to nuon'
+        | upsert commands {|module|
+            nu -c $'use `($module.file)` *; $nu.scope.commands | select name module_name | to nuon'
             | from nuon
             | where module_name == $module.name
-            | where ($it.name | str starts-with "test_")
             | get name
         }
+        | upsert test {|module| $module.commands | where ($it | str starts-with "test_") }
+        | upsert setup {|module| "setup" in $module.commands }
+        | upsert teardown {|module| "teardown" in $module.commands }
+        | reject commands
         | flatten
         | rename file module name
     )
@@ -114,11 +117,27 @@ def main [
             log info $"Running tests in ($module.name)"
             $module.tests | each {|test|
                 log debug $"Running test ($test.name)"
-                nu -c $'
-                    use ($test.file) ($test.name)
+
+                let context_setup = if $test.setup {
+                    $"use `($test.file)` setup; let context = \(setup\)"
+                } else {
+                    "let context = {}"
+                }
+
+                let context_teardown = if $test.teardown {
+                    $"use `($test.file)` teardown; $context | teardown"
+                } else {
+                    ""
+                }
+
+                let nu_script = $'
+                    ($context_setup)
+                    use `($test.file)` ($test.name)
                     try {
-                        ($test.name)
+                        $context | ($test.name)
+                        ($context_teardown)
                     } catch { |err|
+                        ($context_teardown)
                         if $err.msg == "ASSERT:SKIP" {
                             exit 2
                         } else {
@@ -126,6 +145,8 @@ def main [
                         }
                     }
                 '
+                nu -c $nu_script
+
                 let result = match $env.LAST_EXIT_CODE {
                     0 => "pass",
                     2 => "skip",
diff --git a/crates/nu-std/tests/test_dirs.nu b/crates/nu-std/tests/test_dirs.nu
index 3d26434183..23866a578e 100644
--- a/crates/nu-std/tests/test_dirs.nu
+++ b/crates/nu-std/tests/test_dirs.nu
@@ -1,74 +1,55 @@
 use std "assert length"
 use std "assert equal"
 
-def clean [path: path] {
-    cd $path
+export def setup [] {
+    {base_path: ($nu.temp-path | path join $"test_dirs_(random uuid)")}
+}
+
+export def teardown [] {
+    let base_path = $in.base_path
+    cd $base_path
     cd ..
-    rm -r $path
+    rm -r $base_path
 }
 
 export def test_dirs_command [] {
     # need some directories to play with
-    let base_path = ($nu.temp-path | path join $"test_dirs_(random uuid)")
+    let base_path = $in.base_path
     let path_a = ($base_path | path join "a")
     let path_b = ($base_path | path join "b")
 
-    try {
-        mkdir $base_path $path_a $path_b
+    mkdir $base_path $path_a $path_b
 
-        cd $base_path
-        use std "dirs next"
-        use std "dirs prev"
-        use std "dirs add"
-        use std "dirs drop"
-        use std "dirs show"
+    cd $base_path
+    use std "dirs next"
+    use std "dirs prev"
+    use std "dirs add"
+    use std "dirs drop"
+    use std "dirs show"
 
-        assert length $env.DIRS_LIST 1 "list is just pwd after initialization"
-        assert equal $base_path $env.DIRS_LIST.0 "list is just pwd after initialization"
+    assert length $env.DIRS_LIST 1 "list is just pwd after initialization"
+    assert equal $base_path $env.DIRS_LIST.0 "list is just pwd after initialization"
 
-        dirs next
-        assert equal $base_path $env.DIRS_LIST.0 "next wraps at end of list"
+    dirs next
+    assert equal $base_path $env.DIRS_LIST.0 "next wraps at end of list"
 
-        dirs prev
-        assert equal $base_path $env.DIRS_LIST.0 "prev wraps at top of list"
+    dirs prev
+    assert equal $base_path $env.DIRS_LIST.0 "prev wraps at top of list"
 
-        dirs add $path_b $path_a
-        assert equal $path_b $env.PWD "add changes PWD to first added dir"
-        assert length $env.DIRS_LIST 3 "add in fact adds to list"
-        assert equal $path_a $env.DIRS_LIST.2 "add in fact adds to list"
+    dirs add $path_b $path_a
+    assert equal $path_b $env.PWD "add changes PWD to first added dir"
+    assert length $env.DIRS_LIST 3 "add in fact adds to list"
+    assert equal $path_a $env.DIRS_LIST.2 "add in fact adds to list"
 
-        dirs next 2
-        assert equal $base_path $env.PWD "next wraps at end of list"
+    dirs next 2
+    assert equal $base_path $env.PWD "next wraps at end of list"
 
-        dirs prev 1
-        assert equal $path_a $env.PWD "prev wraps at start of list"
+    dirs prev 1
+    assert equal $path_a $env.PWD "prev wraps at start of list"
 
-        dirs drop
-        assert length $env.DIRS_LIST 2 "drop removes from list"
-        assert equal $base_path $env.PWD "drop changes PWD to next in list (after dropped element)"
+    dirs drop
+    assert length $env.DIRS_LIST 2 "drop removes from list"
+    assert equal $base_path $env.PWD "drop changes PWD to next in list (after dropped element)"
 
-        assert equal (dirs show) [[active path]; [true $base_path] [false $path_b]] "show table contains expected information"
-    } catch { |error|
-        clean $base_path
-
-        let error = (
-            $error
-            | get debug
-            | str replace "{" "("
-            | str replace "}" ")"
-            | parse 'GenericError("{msg}", "{text}", Some(Span ( start: {start}, end: {end} )), {rest})'
-            | reject rest
-            | get 0
-        )
-        error make {
-            msg: $error.msg
-            label: {
-                text: $error.text
-                start: ($error.start | into int)
-                end: ($error.end | into int)
-            }
-        }
-    }
-
-    try { clean $base_path }
+    assert equal (dirs show) [[active path]; [true $base_path] [false $path_b]] "show table contains expected information"
 }
diff --git a/crates/nu-std/tests/test_setup_teardown.nu b/crates/nu-std/tests/test_setup_teardown.nu
new file mode 100644
index 0000000000..9861c4d4e0
--- /dev/null
+++ b/crates/nu-std/tests/test_setup_teardown.nu
@@ -0,0 +1,32 @@
+use std "log debug"
+use std "log error"
+use std "assert"
+use std "assert skip"
+
+export def setup [] {
+    log debug "Setup is running"
+    {msg: "This is the context"}
+}
+
+export def teardown [] {
+    log debug $"Teardown is running. Context: ($in)"
+}
+
+export def test_assert_pass [] {
+    log debug $"Assert is running. Context: ($in)"
+}
+
+export def test_assert_skip [] {
+    log debug $"Assert is running. Context: ($in)"
+    assert skip
+}
+
+export def test_assert_fail_skipped_by_default [] {
+    assert skip # Comment this line if you want to see what happens if a test fails
+    log debug $"Assert is running. Context: ($in)"
+    assert false
+}
+
+export def unrelated [] {
+    log error "This should not run"
+}
diff --git a/crates/nu-std/tests/test_xml.nu b/crates/nu-std/tests/test_xml.nu
index d5037f529d..27054d8406 100644
--- a/crates/nu-std/tests/test_xml.nu
+++ b/crates/nu-std/tests/test_xml.nu
@@ -3,8 +3,23 @@ use std "xupdate"
 use std "xinsert"
 use std "assert equal"
 
+export def setup [] {
+    {sample_xml: ('
+        <a>
+            <b>
+                <c a="b"></c>
+            </b>
+            <c></c>
+            <d>
+                <e>z</e>
+                <e>x</e>
+            </d>
+        </a>' | from xml)
+    }
+}
+
 export def test_xml_xaccess [] {
-    let sample_xml = ('<a><b><c a="b"></c></b><c></c><d><e>z</e><e>x</e></d></a>' | from xml)
+    let sample_xml = $in.sample_xml
 
     assert equal ($sample_xml | xaccess [a]) [$sample_xml]
     assert equal ($sample_xml | xaccess [*]) [$sample_xml]
@@ -14,7 +29,7 @@ export def test_xml_xaccess [] {
 }
 
 export def test_xml_xupdate [] {
-    let sample_xml = ('<a><b><c a="b"></c></b><c></c><d><e>z</e><e>x</e></d></a>' | from xml)
+    let sample_xml = $in.sample_xml
 
     assert equal ($sample_xml | xupdate [*] {|x| $x | update attributes {i: j}}) ('<a i="j"><b><c a="b"></c></b><c></c><d><e>z</e><e>x</e></d></a>' | from xml)
     assert equal ($sample_xml | xupdate [* d e *] {|x| $x | update content 'nushell'}) ('<a><b><c a="b"></c></b><c></c><d><e>nushell</e><e>nushell</e></d></a>' | from xml)
@@ -22,7 +37,7 @@ export def test_xml_xupdate [] {
 }
 
 export def test_xml_xinsert [] {
-    let sample_xml = ('<a><b><c a="b"></c></b><c></c><d><e>z</e><e>x</e></d></a>' | from xml)
+    let sample_xml = $in.sample_xml
 
     assert equal ($sample_xml | xinsert [a] {tag: b attributes:{} content: []}) ('<a><b><c a="b"></c></b><c></c><d><e>z</e><e>x</e></d><b></b></a>' | from xml)
     assert equal ($sample_xml | xinsert [a d *] {tag: null attributes: null content: 'n'} | to xml) '<a><b><c a="b"></c></b><c></c><d><e>zn</e><e>xn</e></d></a>'