diff --git a/noxfile.py b/noxfile.py
index ca8c157d19b..56f56b8b63f 100644
--- a/noxfile.py
+++ b/noxfile.py
@@ -52,11 +52,13 @@ def test_with_only_required_packages(session: nox.Session):
     # Logger
     # Metrics - Amazon CloudWatch EMF
     # Metrics - Base provider
+    # Middleware factory without tracer
     build_and_run_test(
         session,
         folders=[
             f"{PREFIX_TESTS_FUNCTIONAL}/logger/required_dependencies/",
             f"{PREFIX_TESTS_FUNCTIONAL}/metrics/required_dependencies/",
+            f"{PREFIX_TESTS_FUNCTIONAL}/middleware_factory/required_dependencies/",
         ],
     )
 
@@ -78,10 +80,12 @@ def test_with_datadog_as_required_package(session: nox.Session):
 def test_with_xray_sdk_as_required_package(session: nox.Session):
     """Tests that depends on AWS XRAY SDK library"""
     # Tracer
+    # Middleware factory with tracer
     build_and_run_test(
         session,
         folders=[
-            f"{PREFIX_TESTS_FUNCTIONAL}/tracing/aws_xray_sdk/",
+            f"{PREFIX_TESTS_FUNCTIONAL}/tracer/_aws_xray_sdk/",
+            f"{PREFIX_TESTS_FUNCTIONAL}/middleware_factory/_aws_xray_sdk/",
         ],
         extras="tracer",
     )
diff --git a/tests/functional/tracing/__init__.py b/tests/functional/middleware_factory/_aws_xray_sdk/__init__.py
similarity index 100%
rename from tests/functional/tracing/__init__.py
rename to tests/functional/middleware_factory/_aws_xray_sdk/__init__.py
diff --git a/tests/functional/middleware_factory/_aws_xray_sdk/test_middleware_factory_tracing.py b/tests/functional/middleware_factory/_aws_xray_sdk/test_middleware_factory_tracing.py
new file mode 100644
index 00000000000..0e19ac39aa3
--- /dev/null
+++ b/tests/functional/middleware_factory/_aws_xray_sdk/test_middleware_factory_tracing.py
@@ -0,0 +1,32 @@
+from aws_lambda_powertools.middleware_factory import lambda_handler_decorator
+
+
+def test_factory_explicit_tracing(monkeypatch):
+    monkeypatch.setenv("POWERTOOLS_TRACE_DISABLED", "true")
+
+    @lambda_handler_decorator(trace_execution=True)
+    def no_op(handler, event, context):
+        ret = handler(event, context)
+        return ret
+
+    @no_op
+    def lambda_handler(evt, ctx):
+        return True
+
+    lambda_handler({}, {})
+
+
+def test_factory_explicit_tracing_env_var(monkeypatch):
+    monkeypatch.setenv("POWERTOOLS_TRACE_MIDDLEWARES", "true")
+    monkeypatch.setenv("POWERTOOLS_TRACE_DISABLED", "true")
+
+    @lambda_handler_decorator
+    def no_op(handler, event, context):
+        ret = handler(event, context)
+        return ret
+
+    @no_op
+    def lambda_handler(evt, ctx):
+        return True
+
+    lambda_handler({}, {})
diff --git a/tests/functional/tracing/aws_xray_sdk/__init__.py b/tests/functional/middleware_factory/required_dependencies/__init__.py
similarity index 100%
rename from tests/functional/tracing/aws_xray_sdk/__init__.py
rename to tests/functional/middleware_factory/required_dependencies/__init__.py
diff --git a/tests/functional/test_middleware_factory.py b/tests/functional/middleware_factory/required_dependencies/test_middleware_factory.py
similarity index 80%
rename from tests/functional/test_middleware_factory.py
rename to tests/functional/middleware_factory/required_dependencies/test_middleware_factory.py
index fb868cef0ee..7481e2b8f6b 100644
--- a/tests/functional/test_middleware_factory.py
+++ b/tests/functional/middleware_factory/required_dependencies/test_middleware_factory.py
@@ -62,37 +62,6 @@ def lambda_handler(evt, ctx):
         lambda_handler({}, {})
 
 
-def test_factory_explicit_tracing(monkeypatch):
-    monkeypatch.setenv("POWERTOOLS_TRACE_DISABLED", "true")
-
-    @lambda_handler_decorator(trace_execution=True)
-    def no_op(handler, event, context):
-        ret = handler(event, context)
-        return ret
-
-    @no_op
-    def lambda_handler(evt, ctx):
-        return True
-
-    lambda_handler({}, {})
-
-
-def test_factory_explicit_tracing_env_var(monkeypatch):
-    monkeypatch.setenv("POWERTOOLS_TRACE_MIDDLEWARES", "true")
-    monkeypatch.setenv("POWERTOOLS_TRACE_DISABLED", "true")
-
-    @lambda_handler_decorator
-    def no_op(handler, event, context):
-        ret = handler(event, context)
-        return ret
-
-    @no_op
-    def lambda_handler(evt, ctx):
-        return True
-
-    lambda_handler({}, {})
-
-
 def test_factory_decorator_with_kwarg_params(capsys):
     @lambda_handler_decorator
     def log_event(handler, event, context, log_event=False):
diff --git a/tests/functional/tracer/__init__.py b/tests/functional/tracer/__init__.py
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/tests/functional/tracer/_aws_xray_sdk/__init__.py b/tests/functional/tracer/_aws_xray_sdk/__init__.py
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/tests/functional/tracing/aws_xray_sdk/test_tracing.py b/tests/functional/tracer/_aws_xray_sdk/test_tracing.py
similarity index 100%
rename from tests/functional/tracing/aws_xray_sdk/test_tracing.py
rename to tests/functional/tracer/_aws_xray_sdk/test_tracing.py