diff --git a/.ci/azure/linux.yml b/.ci/azure/linux.yml
index 665230b6099..74973a9b38a 100644
--- a/.ci/azure/linux.yml
+++ b/.ci/azure/linux.yml
@@ -380,6 +380,10 @@ jobs:
     displayName: 'Conditional Compilation Tests'
     continueOnError: false
 
+  - script: $(RUN_PREFIX) $(INSTALL_TEST_DIR)/paddle_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-PaddleTests.xml
+    displayName: 'Paddle Tests'
+    continueOnError: false
+
   - script: $(RUN_PREFIX) $(INSTALL_TEST_DIR)/ov_ir_frontend_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-IRFrontend.xml
     displayName: 'IR Frontend Tests'
     continueOnError: false
diff --git a/.ci/azure/windows.yml b/.ci/azure/windows.yml
index 8bb4a6e1652..ecb861a004c 100644
--- a/.ci/azure/windows.yml
+++ b/.ci/azure/windows.yml
@@ -278,6 +278,10 @@ jobs:
     displayName: 'Conditional Compilation Tests'
     continueOnError: false
 
+  - script: call $(SETUPVARS) && $(INSTALL_TEST_DIR)\paddle_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)\TEST-PaddleTests.xml
+    displayName: 'Paddle Tests'
+    continueOnError: false
+
   - script: call $(SETUPVARS) && $(INSTALL_TEST_DIR)\ov_ir_frontend_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)\TEST-IRFrontend.xml
     displayName: 'IR Frontend Tests'
     continueOnError: false
diff --git a/src/frontends/paddle/tests/CMakeLists.txt b/src/frontends/paddle/tests/CMakeLists.txt
index b8752151cc4..376ab0eadf6 100644
--- a/src/frontends/paddle/tests/CMakeLists.txt
+++ b/src/frontends/paddle/tests/CMakeLists.txt
@@ -12,11 +12,12 @@ ov_add_test_target(
             openvino_paddle_frontend
             paddle_fe_standalone_build_test
         LINK_LIBRARIES
-            cnpy 
+            cnpy
             frontend_shared_test_classes
-            openvino_paddle_frontend 
-            openvino::runtime 
+            openvino_paddle_frontend
+            openvino::runtime
             gtest_main_manifest
+            funcTestUtils
         ADD_CLANG_FORMAT
         LABELS
             OV
diff --git a/src/tests/functional/inference_engine/paddle_reader/lib_close.cpp b/src/frontends/paddle/tests/lib_close.cpp
similarity index 93%
rename from src/tests/functional/inference_engine/paddle_reader/lib_close.cpp
rename to src/frontends/paddle/tests/lib_close.cpp
index 32f8a344523..295a828c0a2 100644
--- a/src/tests/functional/inference_engine/paddle_reader/lib_close.cpp
+++ b/src/frontends/paddle/tests/lib_close.cpp
@@ -1,7 +1,7 @@
 // Copyright (C) 2018-2022 Intel Corporation
 // SPDX-License-Identifier: Apache-2.0
 //
-#include "lib_close.hpp"
+#include "functional_test_utils/lib_close.hpp"
 
 #include <gtest/gtest.h>
 
diff --git a/src/frontends/paddle/tests/read_paddle_model_test.cpp b/src/frontends/paddle/tests/read_paddle_model_test.cpp
new file mode 100644
index 00000000000..3524fe11cf8
--- /dev/null
+++ b/src/frontends/paddle/tests/read_paddle_model_test.cpp
@@ -0,0 +1,73 @@
+// Copyright (C) 2018-2022 Intel Corporation
+// SPDX-License-Identifier: Apache-2.0
+//
+
+#include <file_utils.h>
+#include <gtest/gtest.h>
+#include <ie_blob.h>
+
+#include <fstream>
+#include <ie_core.hpp>
+#include <set>
+#include <string>
+
+#include "common_test_utils/ngraph_test_utils.hpp"
+#include "common_test_utils/unicode_utils.hpp"
+#include "frontend/shared/include/utils.hpp"
+#include "openvino/openvino.hpp"
+#include "openvino/opsets/opset1.hpp"
+#include "transformations/serialize.hpp"
+
+TEST(Paddle_Reader_Tests, ImportBasicModelToCore) {
+    auto model = std::string(TEST_PADDLE_MODELS_DIRNAME) + "relu/relu.pdmodel";
+
+    ov::Core core;
+    auto function = core.read_model(FrontEndTestUtils::make_model_path(model));
+
+    const auto inputType = ov::element::f32;
+    const auto inputShape = ov::Shape{3};
+    const auto data = std::make_shared<ov::opset1::Parameter>(inputType, inputShape);
+    data->set_friendly_name("x");
+    data->output(0).get_tensor().add_names({"x"});
+    const auto relu = std::make_shared<ov::opset1::Relu>(data->output(0));
+    relu->set_friendly_name("relu_0.tmp_0");
+    relu->output(0).get_tensor().add_names({"relu_0.tmp_0"});
+    const auto result = std::make_shared<ov::opset1::Result>(relu->output(0));
+    result->set_friendly_name("relu_0.tmp_0/Result");
+    const auto reference = std::make_shared<ov::Model>(ov::NodeVector{result}, ov::ParameterVector{data}, "Model0");
+    const FunctionsComparator func_comparator = FunctionsComparator::with_default().enable(FunctionsComparator::NAMES);
+    const FunctionsComparator::Result res = func_comparator(function, reference);
+    ASSERT_TRUE(res.valid) << res.message;
+}
+
+#if defined(OPENVINO_ENABLE_UNICODE_PATH_SUPPORT) && defined(_WIN32)
+TEST(Paddle_Reader_Tests, ImportBasicModelToCoreWstring) {
+    std::string win_dir_path{TEST_PADDLE_MODELS_DIRNAME "relu/relu.pdmodel"};
+    win_dir_path = FrontEndTestUtils::make_model_path(win_dir_path);
+    std::wstring wmodel =
+        CommonTestUtils::addUnicodePostfixToPath(win_dir_path, CommonTestUtils::test_unicode_postfix_vector[0]);
+    bool is_copy_successfully = CommonTestUtils::copyFile(win_dir_path, wmodel);
+    if (!is_copy_successfully) {
+        FAIL() << "Unable to copy from '" << win_dir_path << "' to '" << ov::util::wstring_to_string(wmodel) << "'";
+    }
+
+    ov::Core core;
+    auto function = core.read_model(wmodel);
+    CommonTestUtils::removeFile(wmodel);
+
+    const auto inputType = ov::element::f32;
+    const auto inputShape = ov::Shape{3};
+    const auto data = std::make_shared<ov::opset1::Parameter>(inputType, inputShape);
+    data->set_friendly_name("x");
+    data->output(0).get_tensor().add_names({"x"});
+    const auto relu = std::make_shared<ov::opset1::Relu>(data->output(0));
+    relu->set_friendly_name("relu_0.tmp_0");
+    relu->output(0).get_tensor().add_names({"relu_0.tmp_0"});
+    const auto result = std::make_shared<ov::opset1::Result>(relu->output(0));
+    result->set_friendly_name("relu_0.tmp_0/Result");
+    const auto reference = std::make_shared<ov::Model>(ov::NodeVector{result}, ov::ParameterVector{data}, "Model0");
+    const FunctionsComparator func_comparator = FunctionsComparator::with_default().enable(FunctionsComparator::NAMES);
+    const FunctionsComparator::Result res = func_comparator(function, reference);
+    ASSERT_TRUE(res.valid) << res.message;
+}
+#endif
diff --git a/src/frontends/paddle/tests/skip_tests_config.cpp b/src/frontends/paddle/tests/skip_tests_config.cpp
new file mode 100644
index 00000000000..6eb55500b0d
--- /dev/null
+++ b/src/frontends/paddle/tests/skip_tests_config.cpp
@@ -0,0 +1,17 @@
+// Copyright (C) 2018-2022 Intel Corporation
+// SPDX-License-Identifier: Apache-2.0
+//
+
+#include "functional_test_utils/skip_tests_config.hpp"
+
+#include <string>
+#include <vector>
+
+std::vector<std::string> disabledTestPatterns() {
+    return {
+#ifndef BUILD_SHARED_LIBS
+        // Disable tests for static libraries
+        ".*FrontendLibCloseTest.*"
+#endif
+    };
+}
diff --git a/src/tests/functional/inference_engine/paddle_reader/models/relu.pdmodel b/src/tests/functional/inference_engine/paddle_reader/models/relu.pdmodel
deleted file mode 100644
index 9bb64f2a50d..00000000000
Binary files a/src/tests/functional/inference_engine/paddle_reader/models/relu.pdmodel and /dev/null differ
diff --git a/src/tests/functional/inference_engine/paddle_reader/read_paddle_model_test.cpp b/src/tests/functional/inference_engine/paddle_reader/read_paddle_model_test.cpp
deleted file mode 100644
index fd46cf35d10..00000000000
--- a/src/tests/functional/inference_engine/paddle_reader/read_paddle_model_test.cpp
+++ /dev/null
@@ -1,90 +0,0 @@
-// Copyright (C) 2018-2022 Intel Corporation
-// SPDX-License-Identifier: Apache-2.0
-//
-
-#include <gtest/gtest.h>
-#include <set>
-#include <string>
-#include <fstream>
-
-#include <ie_blob.h>
-#include <ie_core.hpp>
-#include <file_utils.h>
-#include <ngraph/ngraph.hpp>
-#include <ngraph/opsets/opset8.hpp>
-#include "common_test_utils/ngraph_test_utils.hpp"
-#include "common_test_utils/unicode_utils.hpp"
-
-TEST(Paddle_Reader_Tests, ImportBasicModelToCore) {
-    auto model = std::string(PADDLE_TEST_MODELS) + "relu.pdmodel";
-    InferenceEngine::Core ie;
-    auto cnnNetwork = ie.ReadNetwork(model);
-    auto function = cnnNetwork.getFunction();
-
-    const auto inputType = ngraph::element::f32;
-    const auto inputShape = ngraph::Shape{ 3 };
-
-    const auto data = std::make_shared<ngraph::opset8::Parameter>(inputType, inputShape);
-    data->set_friendly_name("x");
-    data->output(0).get_tensor().add_names({ "x" });
-    const auto relu = std::make_shared<ngraph::opset8::Relu>(data->output(0));
-    relu->set_friendly_name("relu_0.tmp_0");
-    relu->output(0).get_tensor().add_names({ "relu_0.tmp_0" });
-    const auto scale = std::make_shared<ngraph::opset8::Constant>(ngraph::element::f32, ngraph::Shape{ 1 }, std::vector<float>{1});
-    const auto bias = std::make_shared<ngraph::opset8::Constant>(ngraph::element::f32, ngraph::Shape{ 1 }, std::vector<float>{0});
-    const auto node_multiply = std::make_shared<ngraph::opset8::Multiply>(relu->output(0), scale);
-    const auto node_add = std::make_shared<ngraph::opset8::Add>(node_multiply, bias);
-    node_add->set_friendly_name("save_infer_model/scale_0.tmp_1");
-    node_add->output(0).get_tensor().add_names({ "save_infer_model/scale_0.tmp_1" });
-    const auto result = std::make_shared<ngraph::opset8::Result>(node_add->output(0));
-    result->set_friendly_name("save_infer_model/scale_0.tmp_1/Result");
-    const auto reference = std::make_shared<ngraph::Function>(
-        ngraph::NodeVector{ result },
-        ngraph::ParameterVector{ data },
-        "RefPaddleFunction");
-    const FunctionsComparator func_comparator = FunctionsComparator::with_default().enable(FunctionsComparator::NAMES);
-    const FunctionsComparator::Result res = func_comparator(function, reference);
-    ASSERT_TRUE(res.valid) << res.message;
-}
-
-#if defined(OPENVINO_ENABLE_UNICODE_PATH_SUPPORT) && defined(_WIN32)
-TEST(Paddle_Reader_Tests, ImportBasicModelToCoreWstring) {
-    std::string win_dir_path{ PADDLE_TEST_MODELS "relu.pdmodel" };
-    std::wstring wmodel = CommonTestUtils::addUnicodePostfixToPath(win_dir_path,
-        CommonTestUtils::test_unicode_postfix_vector[0]);
-    bool is_copy_successfully = CommonTestUtils::copyFile(win_dir_path, wmodel);
-    if (!is_copy_successfully) {
-        FAIL() << "Unable to copy from '" << win_dir_path << "' to '"
-                << ov::util::wstring_to_string(wmodel) << "'";
-    }
-    InferenceEngine::Core ie;
-    auto cnnNetwork = ie.ReadNetwork(wmodel);
-    CommonTestUtils::removeFile(wmodel);
-    auto function = cnnNetwork.getFunction();
-
-    const auto inputType = ngraph::element::f32;
-    const auto inputShape = ngraph::Shape{ 3 };
-
-    const auto data = std::make_shared<ngraph::opset8::Parameter>(inputType, inputShape);
-    data->set_friendly_name("x");
-    data->output(0).get_tensor().add_names({ "x" });
-    const auto relu = std::make_shared<ngraph::opset8::Relu>(data->output(0));
-    relu->set_friendly_name("relu_0.tmp_0");
-    relu->output(0).get_tensor().add_names({ "relu_0.tmp_0" });
-    const auto scale = std::make_shared<ngraph::opset8::Constant>(ngraph::element::f32, ngraph::Shape{ 1 }, std::vector<float>{1});
-    const auto bias = std::make_shared<ngraph::opset8::Constant>(ngraph::element::f32, ngraph::Shape{ 1 }, std::vector<float>{0});
-    const auto node_multiply = std::make_shared<ngraph::opset8::Multiply>(relu->output(0), scale);
-    const auto node_add = std::make_shared<ngraph::opset8::Add>(node_multiply, bias);
-    node_add->set_friendly_name("save_infer_model/scale_0.tmp_1");
-    node_add->output(0).get_tensor().add_names({ "save_infer_model/scale_0.tmp_1" });
-    const auto result = std::make_shared<ngraph::opset8::Result>(node_add->output(0));
-    result->set_friendly_name("save_infer_model/scale_0.tmp_1/Result");
-    const auto reference = std::make_shared<ngraph::Function>(
-        ngraph::NodeVector{ result },
-        ngraph::ParameterVector{ data },
-        "RefPaddleFunction");
-    const FunctionsComparator func_comparator = FunctionsComparator::with_default().enable(FunctionsComparator::NAMES);
-    const FunctionsComparator::Result res = func_comparator(function, reference);
-    ASSERT_TRUE(res.valid) << res.message;
-}
-#endif