diff --git a/.github/workflows/tests.yaml b/.github/workflows/tests.yaml
index c462203ae6cd0d..48135fd924afa5 100644
--- a/.github/workflows/tests.yaml
+++ b/.github/workflows/tests.yaml
@@ -427,7 +427,7 @@ jobs:
 
             - name: Build Python REPL and example apps
               run: |
-                  scripts/run_in_build_env.sh './scripts/build_python.sh --install_virtual_env out/venv --extra_packages "mobly"'
+                  scripts/run_in_build_env.sh './scripts/build_python.sh --install_virtual_env out/venv'
                   ./scripts/run_in_build_env.sh \
                    "./scripts/build/build_examples.py \
                       --target linux-x64-all-clusters-ipv6only-no-ble-no-wifi-tsan-clang-test \
diff --git a/integrations/docker/images/chip-cert-bins/Dockerfile b/integrations/docker/images/chip-cert-bins/Dockerfile
index 47d7cc0b606742..6c3872df43102e 100644
--- a/integrations/docker/images/chip-cert-bins/Dockerfile
+++ b/integrations/docker/images/chip-cert-bins/Dockerfile
@@ -3,7 +3,7 @@ FROM ubuntu:22.04 as chip-build-cert
 LABEL org.opencontainers.image.source https://github.com/project-chip/connectedhomeip
 ARG TARGETPLATFORM
 # COMMITHASH defines the target commit to build from. May be passed in using --build-arg.
-ARG COMMITHASH=7b99e6399c6069037c613782d78132c69b9dcabb
+ARG COMMITHASH=c1ec2d777456924dcaa59b53351b00d73caf378f
 
 # Ensure TARGETPLATFORM is set
 RUN case ${TARGETPLATFORM} in \
@@ -268,5 +268,11 @@ COPY --from=chip-build-cert-bins /root/connectedhomeip/out/chip-app1 chip-app1
 # Stage 3.1 Setup the Matter Python environment
 COPY --from=chip-build-cert-bins /root/connectedhomeip/out/python_lib python_lib
 COPY --from=chip-build-cert-bins /root/connectedhomeip/src/python_testing python_testing
-RUN pip install click websockets lark diskcache
+
+COPY --from=chip-build-cert-bins /root/connectedhomeip/scripts/tests/requirements.txt /tmp/requirements.txt
+RUN pip install -r /tmp/requirements.txt && rm /tmp/requirements.txt
+
+COPY --from=chip-build-cert-bins /root/connectedhomeip/src/python_testing/requirements.txt /tmp/requirements.txt
+RUN pip install -r /tmp/requirements.txt && rm /tmp/requirements.txt
+
 RUN pip install --no-cache-dir python_lib/controller/python/chip*.whl
diff --git a/scripts/build_python.sh b/scripts/build_python.sh
index 08ad42965d5b99..5a0a12f9df84fe 100755
--- a/scripts/build_python.sh
+++ b/scripts/build_python.sh
@@ -64,7 +64,8 @@ Input Options:
                                                             <path> represents where the virtual environment is to be created.
   -c, --clean_virtual_env  <yes|no>                         When installing a virtual environment, create/clean it first.
                                                             Defaults to yes.
-  --include_pytest_deps  <yes|no>                           Install requirements.python_tests.txt.
+  --include_pytest_deps  <yes|no>                           Install requirements.txt for running scripts/tests and
+                                                            src/python_testing scripts.
                                                             Defaults to yes.
   --extra_packages PACKAGES                                 Install extra Python packages from PyPI
   --include_yamltests                                       Whether to install the matter_yamltests wheel.
@@ -214,7 +215,8 @@ if [ -n "$install_virtual_env" ]; then
 
     if [ "$install_pytest_requirements" = "yes" ]; then
         echo_blue "Installing python test dependencies ..."
-        "$ENVIRONMENT_ROOT"/bin/pip install -r "$CHIP_ROOT/scripts/setup/requirements.python_tests.txt"
+        "$ENVIRONMENT_ROOT"/bin/pip install -r "$CHIP_ROOT/scripts/tests/requirements.txt"
+        "$ENVIRONMENT_ROOT"/bin/pip install -r "$CHIP_ROOT/src/python_testing/requirements.txt"
     fi
 
     echo ""
diff --git a/scripts/py_matter_idl/setup.cfg b/scripts/py_matter_idl/setup.cfg
index 2a7d386375a2e7..57f93c3dd9aa82 100644
--- a/scripts/py_matter_idl/setup.cfg
+++ b/scripts/py_matter_idl/setup.cfg
@@ -21,6 +21,10 @@ description = Parse matter idl files
 [options]
 packages = find:
 zip_safe = False
+install_requires=
+   lark
+   jinja2
+   stringcase
 
 [options.package_data]
 matter_idl =
diff --git a/scripts/py_matter_yamltests/setup.cfg b/scripts/py_matter_yamltests/setup.cfg
index 497022ce1459d9..f115c8e28e17be 100644
--- a/scripts/py_matter_yamltests/setup.cfg
+++ b/scripts/py_matter_yamltests/setup.cfg
@@ -20,5 +20,7 @@ description = Parse matter yaml tests files
 
 [options]
 packages = find:
-
 zip_safe = False
+install_requires=
+   websockets
+   lark
diff --git a/scripts/setup/requirements.python_tests.txt b/scripts/setup/requirements.python_tests.txt
deleted file mode 100644
index 92d6db9016814e..00000000000000
--- a/scripts/setup/requirements.python_tests.txt
+++ /dev/null
@@ -1,16 +0,0 @@
-# scripts/tests
-click
-colorama
-diskcache
-websockets
-
-# scripts/py_matter_idl
-# TODO: these should be wheel dependencies
-lark
-jinja2
-stringcase
-
-# src/python_testing
-mobly
-pyasn1
-pyasn1_modules
diff --git a/scripts/tests/requirements.txt b/scripts/tests/requirements.txt
new file mode 100644
index 00000000000000..d3c26e9cba23c6
--- /dev/null
+++ b/scripts/tests/requirements.txt
@@ -0,0 +1,5 @@
+# Python requirements for scripts in this location
+click
+colorama
+diskcache
+websockets
diff --git a/src/python_testing/requirements.txt b/src/python_testing/requirements.txt
new file mode 100644
index 00000000000000..84196f3f9e48f2
--- /dev/null
+++ b/src/python_testing/requirements.txt
@@ -0,0 +1,3 @@
+mobly
+pyasn1
+pyasn1_modules