diff --git a/nixos/tests/all-tests.nix b/nixos/tests/all-tests.nix
index 8b38e802e62e..4f3d46430ff3 100644
--- a/nixos/tests/all-tests.nix
+++ b/nixos/tests/all-tests.nix
@@ -82,6 +82,7 @@ in
   fish = handleTest ./fish.nix {};
   flannel = handleTestOn ["x86_64-linux"] ./flannel.nix {};
   flatpak = handleTest ./flatpak.nix {};
+  flatpak-builder = handleTest ./flatpak-builder.nix {};
   fsck = handleTest ./fsck.nix {};
   fwupd = handleTestOn ["x86_64-linux"] ./fwupd.nix {}; # libsmbios is unsupported on aarch64
   gdk-pixbuf = handleTest ./gdk-pixbuf.nix {};
diff --git a/nixos/tests/flatpak-builder.nix b/nixos/tests/flatpak-builder.nix
new file mode 100644
index 000000000000..2100631ec7f4
--- /dev/null
+++ b/nixos/tests/flatpak-builder.nix
@@ -0,0 +1,19 @@
+# run installed tests
+import ./make-test.nix ({ pkgs, ... }:
+
+{
+  name = "flatpak-builder";
+  meta = {
+    maintainers = pkgs.flatpak-builder.meta.maintainers;
+  };
+
+  machine = { pkgs, ... }: {
+    services.flatpak.enable = true;
+    environment.systemPackages = with pkgs; [ gnome-desktop-testing flatpak-builder ] ++ flatpak-builder.installedTestsDependencies;
+    virtualisation.diskSize = 2048;
+  };
+
+  testScript = ''
+    $machine->succeed("gnome-desktop-testing-runner -d '${pkgs.flatpak-builder.installedTests}/share' --timeout 3600");
+  '';
+})
diff --git a/pkgs/development/tools/flatpak-builder/default.nix b/pkgs/development/tools/flatpak-builder/default.nix
index b5d2583d5d2f..fa00b8e5f890 100644
--- a/pkgs/development/tools/flatpak-builder/default.nix
+++ b/pkgs/development/tools/flatpak-builder/default.nix
@@ -24,6 +24,9 @@
 , flatpak
 , gitMinimal
 , glib
+, glibcLocales
+, gnumake
+, gnupg
 , gnutar
 , json-glib
 , libcap
@@ -32,16 +35,19 @@
 , libyaml
 , ostree
 , patch
+, python2
 , rpm
 , unzip
 }:
 
 let
+  installed_testdir = "${placeholder "installedTests"}/libexec/installed-tests/flatpak-builder";
+  installed_test_metadir = "${placeholder "installedTests"}/share/installed-tests/flatpak-builder";
   version = "1.0.7";
 in stdenv.mkDerivation rec {
   name = "flatpak-builder-${version}";
 
-  outputs = [ "out" "doc" "man" ];
+  outputs = [ "out" "doc" "man" "installedTests" ];
 
   src = fetchurl {
     url = "https://github.com/flatpak/flatpak-builder/releases/download/${version}/${name}.tar.xz";
@@ -95,8 +101,38 @@ in stdenv.mkDerivation rec {
       eustrip = "${elfutils}/bin/eu-strip";
       euelfcompress = "${elfutils}/bin/eu-elfcompress";
     })
+
+    # The test scripts in Flatpak repo were updated so we are basing
+    # this on our patch for Flatpak 0.99.
+    (substituteAll {
+      src = ./fix-test-paths.patch;
+      inherit glibcLocales python2;
+    })
   ];
 
+  configureFlags = [
+    "--enable-installed-tests"
+  ];
+
+  makeFlags = [
+    "installed_testdir=${installed_testdir}"
+    "installed_test_metadir=${installed_test_metadir}"
+  ];
+
+  # Some scripts used by tests  need to use shebangs that are available in Flatpak runtimes.
+  dontPatchShebangs = true;
+
+  # Installed tests
+  postFixup = ''
+    for file in ${installed_testdir}/{test-builder.sh,test-builder-python.sh}; do
+      patchShebangs $file
+    done
+  '';
+
+  passthru = {
+    installedTestsDependencies = [ gnupg ostree python2 gnumake ];
+  };
+
   meta = with stdenv.lib; {
     description = "Tool to build flatpaks from source";
     homepage = https://flatpak.org/;
diff --git a/pkgs/development/tools/flatpak-builder/fix-test-paths.patch b/pkgs/development/tools/flatpak-builder/fix-test-paths.patch
new file mode 100644
index 000000000000..96212a30fcf8
--- /dev/null
+++ b/pkgs/development/tools/flatpak-builder/fix-test-paths.patch
@@ -0,0 +1,111 @@
+--- a/tests/libtest.sh
++++ b/tests/libtest.sh
+@@ -301,7 +301,7 @@
+ }
+ 
+ skip_without_python2 () {
+-    if ! test -f /usr/bin/python2 || ! /usr/bin/python2 -c "import sys; sys.exit(0 if sys.version_info >= (2, 7) else 1)" ; then
++    if ! test -f @python2@/bin/python2 || ! @python2@/bin/python2 -c "import sys; sys.exit(0 if sys.version_info >= (2, 7) else 1)" ; then
+         echo "1..0 # SKIP this test requires /usr/bin/python2 (2.7) support"
+         exit 0
+     fi
+--- a/tests/make-test-runtime.sh
++++ b/tests/make-test-runtime.sh
+@@ -26,6 +26,7 @@
+ PATH="$PATH:/usr/sbin:/sbin"
+ 
+ # Add bash and dependencies
++mkdir -p ${DIR}/nix/store
+ mkdir -p ${DIR}/usr/bin
+ mkdir -p ${DIR}/usr/lib
+ ln -s ../lib ${DIR}/usr/lib64
+@@ -35,73 +36,28 @@
+ else
+     cp `which ldconfig` ${DIR}/usr/bin
+ fi
+-LIBS=`mktemp`
+-BINS=`mktemp`
+-
+-add_bin() {
+-    local f=$1
+-    shift
+-
+-    if grep -qFe "${f}" $BINS; then
+-        # Already handled
+-        return 0
+-    fi
+-
+-    echo $f >> $BINS
+-
+-    # Add library dependencies
+-    (ldd "${f}" | sed "s/.* => //"  | awk '{ print $1}' | grep ^/ | sort -u -o $LIBS $LIBS -)  || true
+-
+-    local shebang=$(sed -n '1s/^#!\([^ ]*\).*/\1/p' "${f}")
+-    if [ x$shebang != x ]; then
+-        add_bin "$shebang"
+-    fi
+-}
+ 
+ for i in $@; do
+-    I=`which $i`
+-    add_bin $I
+-    if test $i == python2; then
+-        mkdir -p ${DIR}/usr/lib/python2.7/lib-dynload
+-        # This is a hardcoded minimal set of modules we need in the current tests.
+-        # Pretty hacky stuff. Add modules as needed.
+-        PYDIR=/usr/lib/python2.7
+-        if test -d /usr/lib64/python2.7; then PYDIR=/usr/lib64/python2.7; fi
+-        for py in site os stat posixpath genericpath warnings \
+-                       linecache types UserDict abc _abcoll \
+-                       _weakrefset copy_reg traceback sysconfig \
+-                       re sre_compile sre_parse sre_constants \
+-                       _sysconfigdata ; do
+-            cp ${PYDIR}/$py.py ${DIR}/usr/lib/python2.7
+-        done
+-        # These might not exist, depending how Python was configured; and the
+-        # part after ${so} might be "module" or ".x86_64-linux-gnu" or
+-        # something else
+-        for so in _locale strop ; do
+-            cp ${PYDIR}/lib-dynload/${so}*.so ${DIR}/usr/lib/python2.7/lib-dynload || :
+-        done
+-        for plat in $( cd ${PYDIR} && echo plat-* ); do
+-            test -e ${PYDIR}/${plat} || continue
+-            mkdir -p ${DIR}/usr/lib/python2.7/${plat}
+-            cp ${PYDIR}/${plat}/*.py ${DIR}/usr/lib/python2.7/${plat}/
+-        done
+-    fi
+-done
+-for i in `cat $BINS`; do
+-    echo Adding binary $i 1>&2
+-    cp "$i" ${DIR}/usr/bin/
+-done
+-for i in `cat $LIBS`; do
+-    echo Adding library $i 1>&2
+-    cp "$i" ${DIR}/usr/lib/
++    I=$(readlink -f $(which $i))
++    requisites=$(nix-store --query --requisites "$I")
++    for r in $requisites; do
++        # a single store item can be needed by multiple paths, no need to copy it again
++        if [ ! -e ${DIR}/$r ]; then
++            cp -r $r ${DIR}/$r
++        fi
++    done
++    ln -s $I ${DIR}/usr/bin/$i
+ done
+ ln -s bash ${DIR}/usr/bin/sh
+ 
+-# We copy the C.UTF8 locale and call it en_US. Its a bit of a lie, but
+-# the real en_US locale is often not available, because its in the
+-# local archive.
++mv ${DIR}/nix/store ${DIR}/usr/store # files outside /usr are not permitted, we will have to replace /nix/store with /usr/store
++chmod -R u+w ${DIR} # nix store has read-only directories which would cause problems during clean-up, files need to be writable for sed
++find ${DIR} -type f -print0 | xargs -0 sed -i 's~/nix/store/~/usr/store/~g' # replace hardcoded paths
++find ${DIR} -type l | xargs -I '{}' sh -c 'tg="$(readlink "$1")"; newtg="${tg#/nix/store/}"; if [ "$tg" != "$newtg" ]; then ln -fs "/usr/store/$newtg" "$1"; fi' -- '{}' # replace symlink targets
++
++# We copy the whole locale archive because we do not have C.UTF8 locale
+ mkdir -p ${DIR}/usr/lib/locale/
+-cp -r /usr/lib/locale/C.* ${DIR}/usr/lib/locale/en_US
++cp @glibcLocales@/lib/locale/locale-archive ${DIR}/usr/lib/locale/locale-archive
+ 
+ if [ x$COLLECTION_ID != x ]; then
+     collection_args=--collection-id=${COLLECTION_ID}