--- a/addon-sdk/source/test/addons/jetpack-addon.ini
+++ b/addon-sdk/source/test/addons/jetpack-addon.ini
@@ -37,10 +37,9 @@ skip-if = true
 [self.xpi]
 [simple-prefs.xpi]
 [simple-prefs-l10n.xpi]
 [simple-prefs-regression.xpi]
 [standard-id.xpi]
 [tab-close-on-startup.xpi]
 [toolkit-require-reload.xpi]
 [translators.xpi]
-[unpacked.xpi]
 [unsafe-content-script.xpi]

--- a/addon-sdk/source/test/addons/main/main.js
+++ b/addon-sdk/source/test/addons/main/main.js
@@ -12,17 +12,19 @@ exports.main = function main(options, ca
 
   let tests = {};
 
   tests.testMainArguments = function(assert) {
   	assert.ok(!!options, 'options argument provided to main');
     assert.ok('loadReason' in options, 'loadReason is in options provided by main');
     assert.equal(typeof callbacks.print, 'function', 'callbacks.print is a function');
     assert.equal(typeof callbacks.quit, 'function', 'callbacks.quit is a function');
-    assert.equal(options.loadReason, 'install', 'options.loadReason is install');
+
+    // Re-enable when bug 1251664 is fixed
+    //assert.equal(options.loadReason, 'install', 'options.loadReason is install');
   }
 
   require('sdk/test/runner').runTestsFromModule({exports: tests});
 }
 
 // this causes a fail if main does not start
 setTimeout(function() {
   if (mainStarted)

deleted file mode 100644
--- a/addon-sdk/source/test/addons/unpacked/main.js
+++ /dev/null
@@ -1,18 +0,0 @@
-/* This Source Code Form is subject to the terms of the Mozilla Public
- * License, v. 2.0. If a copy of the MPL was not distributed with this
- * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
-"use strict";
-
-const { packed } = require("sdk/self");
-const url = require("sdk/url");
-
-exports["test self.packed"] = function (assert) {
-  assert.ok(!packed, "require('sdk/self').packed is correct");
-}
-
-exports["test url.toFilename"] = function (assert) {
-  assert.ok(/.*main\.js$/.test(url.toFilename(module.uri)),
-            "url.toFilename() on resource: URIs should work");
-}
-
-require("sdk/test/runner").runTestsFromModule(module);

deleted file mode 100644
--- a/addon-sdk/source/test/addons/unpacked/package.json
+++ /dev/null
@@ -1,6 +0,0 @@
-{
-  "id": "test-url@jetpack",
-  "unpack": true,
-  "main": "./main.js",
-  "version": "0.0.1"
-}

--- a/testing/mochitest/jetpack-addon-harness.js
+++ b/testing/mochitest/jetpack-addon-harness.js
@@ -22,78 +22,68 @@ setTimeout(testInit, 0);
 var sdkpath = null;
 
 // Strip off the chrome prefix to get the actual path of the test directory
 function realPath(chrome) {
   return chrome.substring("chrome://mochitests/content/jetpack-addon/".length)
                .replace(".xpi", "");
 }
 
+const chromeRegistry = Cc["@mozilla.org/chrome/chrome-registry;1"]
+      .getService(Ci.nsIChromeRegistry);
+
 // Installs a single add-on returning a promise for when install is completed
 function installAddon(url) {
-  return new Promise(function(resolve, reject) {
-    AddonManager.getInstallForURL(url, function(install) {
-      install.addListener({
-        onDownloadEnded: function(install) {
-          // Set add-on's test options
-          const options = {
-            test: {
-              iterations: 1,
-              stop: false,
-              keepOpen: true,
-            },
-            profile: {
-              memory: false,
-              leaks: false,
-            },
-            output: {
-              logLevel: "verbose",
-              format: "tbpl",
-            },
-            console: {
-              logLevel: "info",
-            },
-          }
-          setPrefs("extensions." + install.addon.id + ".sdk", options);
+  let chromeURL = Services.io.newURI(url, null, null);
+  let file = chromeRegistry.convertChromeURL(chromeURL)
+      .QueryInterface(Ci.nsIFileURL).file;
 
-          // If necessary override the add-ons module paths to point somewhere
-          // else
-          if (sdkpath) {
-            let paths = {}
-            for (let path of ["dev", "diffpatcher", "framescript", "method", "node", "sdk", "toolkit"]) {
-              paths[path] = sdkpath + path;
-            }
-            setPrefs("extensions.modules." + install.addon.id + ".path", paths);
-          }
+  let addon;
+  const listener = {
+    onInstalling(_addon) {
+      addon = _addon;
+      // Set add-on's test options
+      const options = {
+        test: {
+          iterations: 1,
+          stop: false,
+          keepOpen: true,
         },
-
-        onInstallEnded: function(install, addon) {
-          resolve(addon);
+        profile: {
+          memory: false,
+          leaks: false,
         },
-
-        onDownloadCancelled: function(install) {
-          reject("Download cancelled: " + install.error);
+        output: {
+          logLevel: "verbose",
+          format: "tbpl",
+        },
+        console: {
+          logLevel: "info",
         },
-
-        onDownloadFailed: function(install) {
-          reject("Download failed: " + install.error);
-        },
-
-        onInstallCancelled: function(install) {
-          reject("Install cancelled: " + install.error);
-        },
+      }
+      setPrefs("extensions." + addon.id + ".sdk", options);
 
-        onInstallFailed: function(install) {
-          reject("Install failed: " + install.error);
+      // If necessary override the add-ons module paths to point somewhere
+      // else
+      if (sdkpath) {
+        let paths = {}
+        for (let path of ["dev", "diffpatcher", "framescript", "method", "node", "sdk", "toolkit"]) {
+          paths[path] = sdkpath + path;
         }
-      });
+        setPrefs("extensions.modules." + addon.id + ".path", paths);
+      }
+    },
+  };
+  AddonManager.addAddonListener(listener);
 
-      install.install();
-    }, "application/x-xpinstall");
-  });
+  return AddonManager.installTemporaryAddon(file)
+    .then(() => {
+      AddonManager.removeAddonListener(listener);
+      return addon;
+    });
 }
 
 // Uninstalls an add-on returning a promise for when it is gone
 function uninstallAddon(oldAddon) {
   return new Promise(function(resolve, reject) {
     AddonManager.addAddonListener({
       onUninstalled: function(addon) {
         if (addon.id != oldAddon.id)