diff --git a/.github/workflows/unit-test.yaml b/.github/workflows/unit-test.yaml
index c32bb5c34..6c3f99fbf 100644
--- a/.github/workflows/unit-test.yaml
+++ b/.github/workflows/unit-test.yaml
@@ -29,4 +29,4 @@ jobs:
 
     - name: Run basic unit tests
       run: |
-        make test
+        make test-unit
diff --git a/Makefile b/Makefile
index 15215f9ee..398ff957e 100644
--- a/Makefile
+++ b/Makefile
@@ -67,14 +67,18 @@ vet: ## Run go vet against code.
 	go vet ./...
 
 .PHONY: test test-e2e e2e kind-load kind-cluster kind-cluster-cleanup
-test: manifests generate fmt vet envtest test-e2e ## Run all tests.
-	KUBEBUILDER_ASSETS="$(shell $(ENVTEST) use $(ENVTEST_K8S_VERSION) --bin-dir $(LOCALBIN) -p path)" go test ./... -coverprofile cover.out
+test: manifests generate fmt vet test-unit test-e2e ## Run all tests.
 
 FOCUS := $(if $(TEST),-v -focus "$(TEST)")
 E2E_FLAGS ?= ""
 test-e2e: ginkgo ## Run the e2e tests
 	$(GINKGO) --tags $(GO_BUILD_TAGS) $(E2E_FLAGS) -trace -progress $(FOCUS) test/e2e
 
+ENVTEST_VERSION = $(shell go list -m k8s.io/client-go | cut -d" " -f2 | sed 's/^v0\.\([[:digit:]]\{1,\}\)\.[[:digit:]]\{1,\}$$/1.\1.x/')
+UNIT_TEST_DIRS=$(shell go list ./... | grep -v /test/)
+test-unit: envtest ## Run the unit tests
+	eval $$($(ENVTEST) use -p env $(ENVTEST_VERSION)) && go test -tags $(GO_BUILD_TAGS) -count=1 -short $(UNIT_TEST_DIRS) -coverprofile cover.out
+
 e2e: KIND_CLUSTER_NAME=operator-controller-e2e
 e2e: run test-e2e kind-cluster-cleanup ## Run e2e test suite on local kind cluster
 
diff --git a/test/e2e/install_test.go b/test/e2e/install_test.go
new file mode 100644
index 000000000..260a4f454
--- /dev/null
+++ b/test/e2e/install_test.go
@@ -0,0 +1,55 @@
+package e2e
+
+import (
+	"context"
+	"fmt"
+	"time"
+
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/apimachinery/pkg/types"
+	"k8s.io/apimachinery/pkg/util/rand"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	operatorv1alpha1 "github.com/operator-framework/operator-controller/api/v1alpha1"
+)
+
+const (
+	defaultTimeout = 30 * time.Second
+	defaultPoll    = 1 * time.Second
+)
+
+var _ = Describe("Operator Install", func() {
+	It("resolves the specified package with correct bundle path", func() {
+		var (
+			ctx      context.Context            = context.Background()
+			pkgName  string                     = "prometheus"
+			operator *operatorv1alpha1.Operator = &operatorv1alpha1.Operator{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: fmt.Sprintf("operator-%s", rand.String(8)),
+				},
+				Spec: operatorv1alpha1.OperatorSpec{
+					PackageName: pkgName,
+				},
+			}
+		)
+		ctx = context.Background()
+		By("creating the Operator resource")
+		err := c.Create(ctx, operator)
+		Expect(err).ToNot(HaveOccurred())
+
+		// TODO dfranz: This test currently relies on the hard-coded CatalogSources found in bundle_cache.go
+		// and should be re-worked to use a real or test catalog source when the hard-coded stuff is removed
+		By("eventually reporting a successful resolution and bundle path")
+		Eventually(func(g Gomega) {
+			err = c.Get(ctx, types.NamespacedName{Name: operator.Name}, operator)
+			g.Expect(err).ToNot(HaveOccurred())
+			g.Expect(len(operator.Status.Conditions)).To(Equal(1))
+			g.Expect(operator.Status.Conditions[0].Message).To(Equal("resolution was successful"))
+		}).WithTimeout(defaultTimeout).WithPolling(defaultPoll).Should(Succeed())
+
+		By("deleting the Operator resource")
+		err = c.Delete(ctx, operator)
+		Expect(err).ToNot(HaveOccurred())
+	})
+})
diff --git a/test/e2e/reconcile_test.go b/test/e2e/reconcile_test.go
deleted file mode 100644
index d2b993d55..000000000
--- a/test/e2e/reconcile_test.go
+++ /dev/null
@@ -1,46 +0,0 @@
-package e2e
-
-import (
-	"context"
-	"fmt"
-
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/apimachinery/pkg/util/rand"
-
-	. "github.com/onsi/ginkgo/v2"
-	. "github.com/onsi/gomega"
-	operatorv1alpha1 "github.com/operator-framework/operator-controller/api/v1alpha1"
-)
-
-var _ = Describe("Operator Install", func() {
-	When("a valid Operator CR specifying a package", func() {
-		var (
-			operator *operatorv1alpha1.Operator
-			ctx      context.Context
-			err      error
-		)
-		BeforeEach(func() {
-			ctx = context.Background()
-
-			operator = &operatorv1alpha1.Operator{
-				ObjectMeta: metav1.ObjectMeta{
-					Name: fmt.Sprintf("operator-%s", rand.String(8)),
-				},
-				Spec: operatorv1alpha1.OperatorSpec{
-					PackageName: "my-cool-package",
-				},
-			}
-			err = c.Create(ctx, operator)
-			Expect(err).To(Not(HaveOccurred()))
-		})
-		AfterEach(func() {
-			By("deleting the testing Operator resource")
-			err = c.Delete(ctx, operator)
-			Expect(err).To(Not(HaveOccurred()))
-		})
-		PIt("installs the specified package", func() {
-			// Pending until we actually have some code to test
-			// Expect that a CRD and Deployment were successfully installed by rukpak
-		})
-	})
-})