diff --git a/avm/utilities/tools/Test-ModuleLocally.ps1 b/avm/utilities/tools/Test-ModuleLocally.ps1
index f29c2c90c1..277d96d476 100644
--- a/avm/utilities/tools/Test-ModuleLocally.ps1
+++ b/avm/utilities/tools/Test-ModuleLocally.ps1
@@ -138,6 +138,9 @@ function Test-ModuleLocally {
         [Parameter(Mandatory = $false)]
         [switch] $PesterTest,
 
+        [Parameter(Mandatory = $false)]
+        [switch] $PesterTestRecurse,
+
         [Parameter(Mandatory = $false)]
         [switch] $DeploymentTest,
 
@@ -167,7 +170,7 @@ function Test-ModuleLocally {
         ################
         # PESTER Tests #
         ################
-        if ($PesterTest) {
+        if ($PesterTest -or $PesterTestRecurse) {
             Write-Verbose "Pester Testing Module: $ModuleName"
 
             try {
@@ -176,11 +179,18 @@ function Test-ModuleLocally {
                     (Join-Path $moduleRoot 'tests' 'unit')         # Module Unit Tests
                 )
 
+                $moduleFolderPaths = @(Split-Path $TemplateFilePath -Parent)
+                if ($PesterTestRecurse) {
+                    $moduleFolderPaths += (Get-ChildItem -Path $moduleFolderPaths -Recurse -Directory -Force).FullName | Where-Object {
+                        (Get-ChildItem $_ -File -Depth 0 -Include @('main.json', 'main.bicep') -Force).Count -gt 0
+                    }
+                }
+
                 Invoke-Pester -Configuration @{
                     Run    = @{
                         Container = New-PesterContainer -Path $testFiles -Data @{
                             repoRootPath      = $repoRootPath
-                            moduleFolderPaths = Split-Path $TemplateFilePath -Parent
+                            moduleFolderPaths = $moduleFolderPaths
                         }
                     }
                     Output = @{