diff --git a/Docs/ProjectSpec.md b/Docs/ProjectSpec.md
index 11cd2787..916f0855 100644
--- a/Docs/ProjectSpec.md
+++ b/Docs/ProjectSpec.md
@@ -172,7 +172,7 @@ Settings are merged in the following order: groups, base, configs.
 - [ ] **dependencies**: **[[Dependency](#dependency)]** - Dependencies for the target
 - [ ] **templates**: **[String]** - A list of target templates that will be merged in order
 - [ ] **transitivelyLinkDependencies**: **Bool** - If this is not specified the value from the project set in [Options](#options)`.transitivelyLinkDependencies` will be used.
-- [ ] **directlyEmbedCarthageDependencies**: **Bool** - If this is `true` Carthage dependencies will be embedded using an `Embed Frameworks` build phase instead of the `copy-frameworks` script. Defaults to `true` for `macOS` `platform`.
+- [ ] **directlyEmbedCarthageDependencies**: **Bool** - If this is `true` Carthage dependencies will be embedded using an `Embed Frameworks` build phase instead of the `copy-frameworks` script. Defaults to `true` for `macOS` `platform` targets and all tests.
 - [ ] **requiresObjCLinking**: **Bool** - If this is `true` any targets that link to this target will have `-ObjC` added to their `OTHER_LDFLAGS`. This is required if a static library has any catagories or extensions on Objective-C code. See [this guide](https://pewpewthespells.com/blog/objc_linker_flags.html#objc) for more details. Defaults to `true` if `type` is `library.static`. If you are 100% sure you don't have catagories or extensions on Objective-C code (pure Swift with no use of Foundation/UIKit) you can set this to `false`, otherwise it's best to leave it alone.
 - [ ] **prebuildScripts**: **[[Build Script](#build-script)]** - Build scripts that run *before* any other build phases
 - [ ] **postbuildScripts**: **[[Build Script](#build-script)]** - Build scripts that run *after* any other build phases
diff --git a/Sources/XcodeGenKit/PBXProjGenerator.swift b/Sources/XcodeGenKit/PBXProjGenerator.swift
index 554b5bae..c67da102 100644
--- a/Sources/XcodeGenKit/PBXProjGenerator.swift
+++ b/Sources/XcodeGenKit/PBXProjGenerator.swift
@@ -436,7 +436,7 @@ public class PBXProjGenerator {
         let targetDependencies = (target.transitivelyLinkDependencies ?? project.options.transitivelyLinkDependencies) ?
             getAllDependenciesPlusTransitiveNeedingEmbedding(target: target) : target.dependencies
         
-        let directlyEmbedCarthage = target.directlyEmbedCarthageDependencies ?? (target.platform == .macOS)
+        let directlyEmbedCarthage = target.directlyEmbedCarthageDependencies ?? (target.platform == .macOS || target.type.isTest)
 
         for dependency in targetDependencies {
 
diff --git a/Tests/Fixtures/TestProject/Project.xcodeproj/project.pbxproj b/Tests/Fixtures/TestProject/Project.xcodeproj/project.pbxproj
index e4992247..0a214855 100644
--- a/Tests/Fixtures/TestProject/Project.xcodeproj/project.pbxproj
+++ b/Tests/Fixtures/TestProject/Project.xcodeproj/project.pbxproj
@@ -671,7 +671,6 @@
 			buildConfigurationList = CL_123503999387 /* Build configuration list for PBXNativeTarget "App_iOS_UITests" */;
 			buildPhases = (
 				SBP_12350399938 /* Sources */,
-				SSBP_3150067808 /* Carthage */,
 			);
 			buildRules = (
 			);
@@ -832,7 +831,6 @@
 			buildConfigurationList = CL_783122899910 /* Build configuration list for PBXNativeTarget "App_iOS_Tests" */;
 			buildPhases = (
 				SBP_78312289991 /* Sources */,
-				SSBP_6451525835 /* Carthage */,
 			);
 			buildRules = (
 			);
@@ -1006,22 +1004,6 @@
 			shellPath = /bin/sh;
 			shellScript = "echo \"You ran a script\"\n";
 		};
-		SSBP_3150067808 /* Carthage */ = {
-			isa = PBXShellScriptBuildPhase;
-			buildActionMask = 2147483647;
-			files = (
-			);
-			inputPaths = (
-				"$(SRCROOT)/Carthage/Build/iOS/Alamofire.framework",
-			);
-			name = Carthage;
-			outputPaths = (
-				"$(BUILT_PRODUCTS_DIR)/$(FRAMEWORKS_FOLDER_PATH)/Alamofire.framework",
-			);
-			runOnlyForDeploymentPostprocessing = 0;
-			shellPath = /bin/sh;
-			shellScript = "carthage copy-frameworks\n";
-		};
 		SSBP_3886691194 /* MyScript */ = {
 			isa = PBXShellScriptBuildPhase;
 			buildActionMask = 2147483647;
@@ -1080,22 +1062,6 @@
 			shellPath = /bin/sh;
 			shellScript = "echo \"You ran a script\"\n";
 		};
-		SSBP_6451525835 /* Carthage */ = {
-			isa = PBXShellScriptBuildPhase;
-			buildActionMask = 2147483647;
-			files = (
-			);
-			inputPaths = (
-				"$(SRCROOT)/Carthage/Build/iOS/Alamofire.framework",
-			);
-			name = Carthage;
-			outputPaths = (
-				"$(BUILT_PRODUCTS_DIR)/$(FRAMEWORKS_FOLDER_PATH)/Alamofire.framework",
-			);
-			runOnlyForDeploymentPostprocessing = 0;
-			shellPath = /bin/sh;
-			shellScript = "carthage copy-frameworks\n";
-		};
 		SSBP_8106229290 /* Carthage */ = {
 			isa = PBXShellScriptBuildPhase;
 			buildActionMask = 2147483647;
diff --git a/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift b/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
index a1f912d4..aa7fedf4 100644
--- a/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
+++ b/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
@@ -477,7 +477,8 @@ class ProjectGeneratorTests: XCTestCase {
                         Dependency(type: .target, reference: app.name),
                         Dependency(type: .target, reference: iosFrameworkB.name),
                         Dependency(type: .carthage, reference: "CarthageD"),
-                    ]
+                    ],
+                    directlyEmbedCarthageDependencies: false
                 )
                 expectedResourceFiles[appTest.name] = Set([
                     resourceBundle.filename,