diff --git a/step-templates/tests/Invoke-PesterTests.ps1 b/step-templates/tests/Invoke-PesterTests.ps1
index 699045c6d..30e81c545 100644
--- a/step-templates/tests/Invoke-PesterTests.ps1
+++ b/step-templates/tests/Invoke-PesterTests.ps1
@@ -3,36 +3,60 @@ Set-StrictMode -Version "Latest";
 
 $thisScript = $MyInvocation.MyCommand.Path;
 $thisFolder = [System.IO.Path]::GetDirectoryName($thisScript);
-$rootFolder = [System.IO.Path]::GetDirectoryName($thisFolder);
-$parentFolder = [System.IO.Path]::GetDirectoryName($rootFolder);
-
-# Unpack any tests that are not present
-$testableScripts = Get-ChildItem -Path $thisFolder -Filter "*.ScriptBody.ps1"
-foreach ($script in $testableScripts) {
-    $filename = [System.IO.Path]::Combine($rootFolder, $script.Name)
-    if (-not [System.IO.File]::Exists($filename)) {
-        $searchpattern = $script.BaseName -replace "\.ScriptBody$"
-        $toolsFolder = [System.IO.Path]::Combine($parentFolder, "tools")
-        $converter = [System.IO.Path]::Combine($toolsFolder, "Converter.ps1")
-        & $converter -operation unpack -searchpattern $searchpattern
-    }
-    . $filename;
+$rootFolder = [System.IO.Path]::GetFullPath([System.IO.Path]::Combine($thisFolder, "..", "..")); # Adjust to always point to the root
+$testFiles = Get-ChildItem -Path "$thisFolder" -Filter "*.tests.ps1" -Recurse
+
+function Unpack-Scripts-Under-Test {
+  foreach ($testFile in $testFiles) {
+      $baseName = $testFile.BaseName -replace "\.ScriptBody.Tests$"
+      $scriptFileName = "$baseName.ScriptBody.ps1"
+      $scriptFilePath = [System.IO.Path]::Combine($rootFolder, "step-templates", $scriptFileName)
+
+      # If the .ps1 file is missing, find the corresponding .json file and unpack it
+      if (-not [System.IO.File]::Exists($scriptFilePath)) {
+          Write-Host "Unpacking script for $($testFile.Name) since $scriptFileName is missing..."
+
+          $jsonFileName = "$baseName.json"
+          $jsonFilePath = [System.IO.Path]::Combine($rootFolder, "step-templates", $jsonFileName)
+
+          if (-not [System.IO.File]::Exists($jsonFilePath)) {
+              throw "JSON file $jsonFileName not found. Cannot unpack script."
+          }
+
+          $converter = [System.IO.Path]::Combine($rootFolder, "tools", "Converter.ps1")
+          & $converter -operation unpack -searchpattern $baseName
+
+          if (-not [System.IO.File]::Exists($scriptFilePath)) {
+              throw "Failed to unpack $scriptFileName. Make sure the JSON template exists and the unpack operation succeeded."
+          }
+      } else {
+          Write-Host "Script $scriptFileName already exists, no need to unpack."
+      }
+  }
 }
 
-# Attempt to use local Pester module, fallback to global if not found
-try {
-    $packagesFolder = [System.IO.Path]::Combine($rootFolder, "packages")
-    $pester3Path = [System.IO.Path]::Combine($packagesFolder, "Pester\tools\Pester")
-    # Import the specific version of Pester 3.4.0
-    Import-Module -Name $pester3Path -RequiredVersion 3.4.0 -ErrorAction Stop
-} catch {
-    Write-Host "Using globally installed Pester module version 3.4.0."
-    # Specify the exact version of Pester 3.x you have installed
-    Import-Module -Name Pester -RequiredVersion 3.4.0 -ErrorAction Stop}
-
-# Find and run all Pester test files in the tests directory
-$testFiles = Get-ChildItem -Path "$thisFolder" -Filter "*.tests.ps1" -Recurse
-foreach ($testFile in $testFiles) {
-    Write-Host "Running tests in: $($testFile.FullName)"
-    Invoke-Pester -Path $testFile.FullName
+function Import-Pester {
+  # Attempt to use local Pester module, fallback to global if not found
+  try {
+      $packagesFolder = [System.IO.Path]::Combine($rootFolder, "packages")
+      $pester3Path = [System.IO.Path]::Combine($packagesFolder, "Pester\tools\Pester")
+      # Import the specific version of Pester 3.4.0
+      Import-Module -Name $pester3Path -RequiredVersion 3.4.0 -ErrorAction Stop
+  } catch {
+      Write-Host "Using globally installed Pester module version 3.4.0."
+      # Specify the exact version of Pester 3.x you have installed
+      Import-Module -Name Pester -RequiredVersion 3.4.0 -ErrorAction Stop
+  }
 }
+
+function Run-Tests {
+  # Find and run all Pester test files in the tests directory
+  foreach ($testFile in $testFiles) {
+      Write-Host "Running tests in: $($testFile.FullName)"
+      Invoke-Pester -Path $testFile.FullName
+  }
+}
+
+Import-Pester
+Unpack-Scripts-Under-Test
+Run-Tests