diff --git a/.ci/azure/linux.yml b/.ci/azure/linux.yml
index 9594b4a2c26..57c018946e3 100644
--- a/.ci/azure/linux.yml
+++ b/.ci/azure/linux.yml
@@ -217,7 +217,7 @@ jobs:
 
   - script: |
       export MO_ROOT=$(INSTALL_DIR)/tools/model_optimizer
-      . $(SETUPVARS) -pyver 3.8 && python3 -m pytest -s $(INSTALL_DIR)/tools/model_optimizer/unit_tests --junitxml=TEST-ModelOptimizer.xml
+      . $(SETUPVARS) -pyver 3.8 && python3 -m pytest -s $(INSTALL_DIR)/tests/model_optimizer/unit_tests --junitxml=TEST-ModelOptimizer.xml
     displayName: 'Model Optimizer UT'
     continueOnError: false
 
diff --git a/model-optimizer/CMakeLists.txt b/model-optimizer/CMakeLists.txt
index 0f7f2bffa62..f6e44fd82fe 100644
--- a/model-optimizer/CMakeLists.txt
+++ b/model-optimizer/CMakeLists.txt
@@ -46,17 +46,17 @@ install(DIRECTORY ${CMAKE_CURRENT_SOURCE_DIR}/
         )
 
 install(FILES requirements_dev.txt
-        DESTINATION tools/model_optimizer
+        DESTINATION tests/model_optimizer
         COMPONENT tests
         EXCLUDE_FROM_ALL)
 
 install(DIRECTORY unit_tests
-        DESTINATION tools/model_optimizer
+        DESTINATION tests/model_optimizer
         COMPONENT tests
         EXCLUDE_FROM_ALL)
 
 install(DIRECTORY automation
-        DESTINATION tools/model_optimizer
+        DESTINATION tests/model_optimizer
         COMPONENT tests
         EXCLUDE_FROM_ALL)
 
diff --git a/model-optimizer/unit_tests/mo/bom_test.py b/model-optimizer/unit_tests/mo/bom_test.py
index 454be1912c9..11511deaf6c 100644
--- a/model-optimizer/unit_tests/mo/bom_test.py
+++ b/model-optimizer/unit_tests/mo/bom_test.py
@@ -28,13 +28,15 @@ class TestBOMFile(unittest.TestCase):
     def setUpClass(cls):
         cls.existing_files = []
         cur_path = os.path.join(os.path.realpath(__file__), os.pardir)
-        cls.output_dir = os.path.abspath(os.path.join(cur_path, os.pardir, os.pardir))
-        with open(os.path.join(cls.output_dir, 'automation', 'package_BOM.txt'), 'r') as bom_file:
+        mo_path = os.path.abspath(os.path.join(cur_path, os.pardir, os.pardir))
+        with open(os.path.join(mo_path, 'automation', 'package_BOM.txt'), 'r') as bom_file:
             if platform.system() == 'Windows':
                 cls.existing_files = [name.rstrip().replace('/', '\\') for name in bom_file.readlines()]
             else:
                 cls.existing_files = [name.rstrip() for name in bom_file.readlines()]
 
+        # output_dir is the model_optimizer directory that is located in 'pkg/tools'
+        cls.output_dir = mo_path.replace('tests', 'tools')
         cls.expected_header = [re.compile(pattern) for pattern in [
             r'^# Copyright \([cC]\) [0-9\-]+ Intel Corporation$',
             r'^# SPDX-License-Identifier: Apache-2.0$',