diff --git a/lib/services/karma-execution.ts b/lib/services/karma-execution.ts
index c2314f6ff3..736b7c72ef 100644
--- a/lib/services/karma-execution.ts
+++ b/lib/services/karma-execution.ts
@@ -2,9 +2,10 @@ import * as path from "path";
 
 process.on("message", (data: any) => {
 	if (data.karmaConfig) {
-		const pathToKarma = path.join(
-			data.karmaConfig.projectDir,
-			"node_modules/karma"
+		const pathToKarma = path.dirname(
+			require.resolve("karma/package.json", {
+				paths: [data.karmaConfig.projectDir],
+			})
 		);
 		const KarmaServer = require(path.join(pathToKarma, "lib/server"));
 		const karma = new KarmaServer(data.karmaConfig, (exitCode: number) => {
diff --git a/lib/services/test-execution-service.ts b/lib/services/test-execution-service.ts
index b244e40ce5..472bb06212 100644
--- a/lib/services/test-execution-service.ts
+++ b/lib/services/test-execution-service.ts
@@ -139,13 +139,20 @@ export class TestExecutionService implements ITestExecutionService {
 		projectData: IProjectData
 	): Promise<boolean> {
 		let canStartKarmaServer = true;
-		const requiredDependencies = ["karma", "@nativescript/unit-test-runner"];
+		const requiredDependencies = ["@nativescript/unit-test-runner"]; // we need @nativescript/unit-test-runner at the local level because of hooks!
 		_.each(requiredDependencies, (dep) => {
 			if (!projectData.dependencies[dep] && !projectData.devDependencies[dep]) {
 				canStartKarmaServer = false;
 				return;
 			}
 		});
+		try {
+			require.resolve("karma/package.json", {
+				paths: [projectData.projectDir],
+			});
+		} catch (ignore) {
+			canStartKarmaServer = false;
+		}
 
 		return canStartKarmaServer;
 	}