diff --git a/CMakeLists.txt b/CMakeLists.txt
index 4dbe76ecc..157eebab8 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -36,6 +36,7 @@ set(NULL_ENTROPY_WARNING "${WARNING_BORDER}"
                          "${NULL_ENTROPY_WARN_L3}"
                          "${WARNING_BORDER}")
 
+find_package(PythonInterp)
 find_package(Perl)
 if(PERL_FOUND)
 
diff --git a/tests/CMakeLists.txt b/tests/CMakeLists.txt
index ab3f78fc8..e24bf4e6e 100644
--- a/tests/CMakeLists.txt
+++ b/tests/CMakeLists.txt
@@ -29,8 +29,8 @@ function(add_test_suite suite_name)
 
     add_custom_command(
         OUTPUT test_suite_${data_name}.c
-        COMMAND ${PYTHON_EXECUTABLE} ${CMAKE_CURRENT_SOURCE_DIR}/scripts/generate_code.py -f ${CMAKE_CURRENT_SOURCE_DIR}/suites/test_suite_${suite_name}.function -d ${CMAKE_CURRENT_SOURCE_DIR}/suites/test_suite_${data_name}.data -t ${CMAKE_CURRENT_SOURCE_DIR}/suites/main_test.function -p ${CMAKE_CURRENT_SOURCE_DIR}/suites/desktop_test.function -s ${CMAKE_CURRENT_SOURCE_DIR}/suites --help-file ${CMAKE_CURRENT_SOURCE_DIR}/suites/helpers.function -o .
-        DEPENDS ${CMAKE_CURRENT_SOURCE_DIR}/scripts/generate_code.py mbedtls ${CMAKE_CURRENT_SOURCE_DIR}/suites/helpers.function ${CMAKE_CURRENT_SOURCE_DIR}/suites/main_test.function ${CMAKE_CURRENT_SOURCE_DIR}/suites/desktop_test.function ${CMAKE_CURRENT_SOURCE_DIR}/suites/test_suite_${suite_name}.function ${CMAKE_CURRENT_SOURCE_DIR}/suites/test_suite_${data_name}.data
+        COMMAND ${PYTHON_EXECUTABLE} ${CMAKE_CURRENT_SOURCE_DIR}/scripts/generate_code.py -f ${CMAKE_CURRENT_SOURCE_DIR}/suites/test_suite_${suite_name}.function -d ${CMAKE_CURRENT_SOURCE_DIR}/suites/test_suite_${data_name}.data -t ${CMAKE_CURRENT_SOURCE_DIR}/suites/main_test.function -p ${CMAKE_CURRENT_SOURCE_DIR}/suites/host_test.function -s ${CMAKE_CURRENT_SOURCE_DIR}/suites --help-file ${CMAKE_CURRENT_SOURCE_DIR}/suites/helpers.function -o .
+        DEPENDS ${CMAKE_CURRENT_SOURCE_DIR}/scripts/generate_code.py mbedtls ${CMAKE_CURRENT_SOURCE_DIR}/suites/helpers.function ${CMAKE_CURRENT_SOURCE_DIR}/suites/main_test.function ${CMAKE_CURRENT_SOURCE_DIR}/suites/host_test.function ${CMAKE_CURRENT_SOURCE_DIR}/suites/test_suite_${suite_name}.function ${CMAKE_CURRENT_SOURCE_DIR}/suites/test_suite_${data_name}.data
     )
 
     include_directories(${CMAKE_CURRENT_SOURCE_DIR})
diff --git a/tests/Makefile b/tests/Makefile
index c544c8e0b..5e1458a0e 100644
--- a/tests/Makefile
+++ b/tests/Makefile
@@ -2,7 +2,7 @@
 # To compile on SunOS: add "-lsocket -lnsl" to LDFLAGS
 # To compile with PKCS11: add "-lpkcs11-helper" to LDFLAGS
 
-CFLAGS	?= -g3 #-O2
+CFLAGS	?= -O2
 WARNING_CFLAGS ?= -Wall -W -Wdeclaration-after-statement -Wno-unused-function -Wno-unused-value
 LDFLAGS ?=
 
@@ -186,12 +186,12 @@ $(DEP):
 C_FILES := $(addsuffix .c,$(APPS))
 
 .SECONDEXPANSION:
-$(C_FILES): %.c: suites/$$(func.$$*).function suites/%.data scripts/generate_code.py suites/helpers.function suites/main_test.function suites/desktop_test.function
+$(C_FILES): %.c: suites/$$(func.$$*).function suites/%.data scripts/generate_code.py suites/helpers.function suites/main_test.function suites/host_test.function
 	echo "  Gen   $@"
 	python scripts/generate_code.py -f suites/$(func.$*).function \
 		-d suites/$*.data \
 		-t suites/main_test.function \
-		-p suites/desktop_test.function \
+		-p suites/host_test.function \
 		-s suites  \
 		--help-file suites/helpers.function \
 		-o .
@@ -218,20 +218,15 @@ test: check
 # Create separate targets for generating embedded tests.
 EMBEDDED_TESTS := $(addprefix embedded_,$(APPS))
 
-# FIXME: description needs change
-# Each test suite name is stripped off of prefix test_suite_. mbed-os test dir
-# structure requires format TESTS/<testgroup>[/<sub testgroups..>]/<test case>
-# Test app names are split on "." and end part is used as the test dir name.
-# Prevous parts are used as the test group dirs. For tests without "." same
-# name is used as the test group dir.
+# Generate test code for target.
 
 .SECONDEXPANSION:
-$(EMBEDDED_TESTS): embedded_%: suites/$$(func.$$*).function suites/%.data scripts/generate_code.py suites/helpers.function suites/main_test.function suites/embedded_test.function
+$(EMBEDDED_TESTS): embedded_%: suites/$$(func.$$*).function suites/%.data scripts/generate_code.py suites/helpers.function suites/main_test.function suites/target_test.function
 	echo "  Gen  ./TESTS/mbedtls/$*/$*.c"
 	python scripts/generate_code.py -f suites/$(func.$*).function \
 		-d suites/$*.data \
 		-t suites/main_test.function \
-		-p suites/embedded_test.function \
+		-p suites/target_test.function \
 		-s suites  \
 		--help-file suites/helpers.function \
 		-o ./TESTS/mbedtls/$*
diff --git a/tests/scripts/generate_code.py b/tests/scripts/generate_code.py
index 6554937ab..58020f100 100644
--- a/tests/scripts/generate_code.py
+++ b/tests/scripts/generate_code.py
@@ -1,18 +1,22 @@
 """
-mbed TLS
-Copyright (c) 2017 ARM Limited
+  Test suites code generator.
 
-Licensed under the Apache License, Version 2.0 (the "License");
-you may not use this file except in compliance with the License.
-You may obtain a copy of the License at
+  Copyright (C) 2006-2017, ARM Limited, All Rights Reserved
+  SPDX-License-Identifier: Apache-2.0
 
-    http://www.apache.org/licenses/LICENSE-2.0
+  Licensed under the Apache License, Version 2.0 (the "License"); you may
+  not use this file except in compliance with the License.
+  You may obtain a copy of the License at
 
-Unless required by applicable law or agreed to in writing, software
-distributed under the License is distributed on an "AS IS" BASIS,
-WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-See the License for the specific language governing permissions and
-limitations under the License.
+  http://www.apache.org/licenses/LICENSE-2.0
+
+  Unless required by applicable law or agreed to in writing, software
+  distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+  WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  See the License for the specific language governing permissions and
+  limitations under the License.
+
+  This file is part of mbed TLS (https://tls.mbed.org)
 """
 
 import os
diff --git a/tests/scripts/mbedtls_test.py b/tests/scripts/mbedtls_test.py
index b43e613ef..b8f8a3752 100644
--- a/tests/scripts/mbedtls_test.py
+++ b/tests/scripts/mbedtls_test.py
@@ -1,18 +1,22 @@
 """
-mbed SDK
-Copyright (c) 2017 ARM Limited
+  Greentea host test script for on-target tests.
 
-Licensed under the Apache License, Version 2.0 (the "License");
-you may not use this file except in compliance with the License.
-You may obtain a copy of the License at
+  Copyright (C) 2006-2017, ARM Limited, All Rights Reserved
+  SPDX-License-Identifier: Apache-2.0
 
-    http://www.apache.org/licenses/LICENSE-2.0
+  Licensed under the Apache License, Version 2.0 (the "License"); you may
+  not use this file except in compliance with the License.
+  You may obtain a copy of the License at
 
-Unless required by applicable law or agreed to in writing, software
-distributed under the License is distributed on an "AS IS" BASIS,
-WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-See the License for the specific language governing permissions and
-limitations under the License.
+  http://www.apache.org/licenses/LICENSE-2.0
+
+  Unless required by applicable law or agreed to in writing, software
+  distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+  WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  See the License for the specific language governing permissions and
+  limitations under the License.
+
+  This file is part of mbed TLS (https://tls.mbed.org)
 """
 
 import re
diff --git a/tests/suites/desktop_test.function b/tests/suites/host_test.function
similarity index 99%
rename from tests/suites/desktop_test.function
rename to tests/suites/host_test.function
index 4c790a85e..a4a5a8265 100644
--- a/tests/suites/desktop_test.function
+++ b/tests/suites/host_test.function
@@ -1,4 +1,4 @@
-#line 2 "suites/desktop_test.function"
+#line 2 "suites/host_test.function"
 
 /**
  * \brief       Varifies that string is in string parameter format i.e. "<str>"
diff --git a/tests/suites/embedded_test.function b/tests/suites/target_test.function
similarity index 99%
rename from tests/suites/embedded_test.function
rename to tests/suites/target_test.function
index 3f1e77add..0bafe454f 100644
--- a/tests/suites/embedded_test.function
+++ b/tests/suites/target_test.function
@@ -1,4 +1,4 @@
-#line 2 "embedded_test.function"
+#line 2 "suites/target_test.function"
 
 #include "greentea-client/test_env.h"