diff --git a/libs/remix-tests/src/compiler.ts b/libs/remix-tests/src/compiler.ts
index c287ca3677..740a306931 100644
--- a/libs/remix-tests/src/compiler.ts
+++ b/libs/remix-tests/src/compiler.ts
@@ -1,6 +1,7 @@
 import fs from './fileSystem'
 import async from 'async'
 import path from 'path'
+import deepequal from 'deep-equal'
 import Log from './logger'
 import { Compiler as RemixCompiler } from '@remix-project/remix-solidity'
 import { SrcIfc, CompilerConfiguration, CompilationErrors } from './types'
@@ -170,7 +171,8 @@ export function compileFileOrFiles (filename: string, isDirectory: boolean, opts
  * @param opts Options
  * @param cb Callback
  */
-export function compileContractSources (sources: SrcIfc, compiler: any, opts: any, cb): void {
+export function compileContractSources (sources: SrcIfc, newCompConfig: any, importFileCb, UTRunner, opts: any, cb): void {
+  let compiler
   const filepath = opts.testFilePath || ''
   const testFileImportRegEx = /^(import)\s['"](remix_tests.sol|tests.sol)['"];/gm
 
@@ -183,8 +185,28 @@ export function compileContractSources (sources: SrcIfc, compiler: any, opts: an
   }
 
   async.waterfall([
-    function doCompilation (next) {
+    (next) => {
+      if (!deepequal(UTRunner.compilerConfig, newCompConfig)) {
+        UTRunner.compilerConfig = newCompConfig
+        const { currentCompilerUrl, evmVersion, optimize, runs, usingWorker } = newCompConfig
+        compiler = new RemixCompiler(importFileCb)
+        compiler.set('evmVersion', evmVersion)
+        compiler.set('optimize', optimize)
+        compiler.set('runs', runs)
+        compiler.loadVersion(usingWorker, currentCompilerUrl)
+        // @ts-ignore
+        compiler.event.register('compilerLoaded', this, (version) => {
+          next()
+        })
+      } else {
+        compiler = UTRunner.compiler
+        next()
+      }
+    },
+    (next) => {
       const compilationFinishedCb = (success, data, source) => {
+        // data.error usually exists for exceptions like worker error etc.
+        if (!data.error) UTRunner.compiler = compiler
         if (opts && opts.event) opts.event.emit('compilationFinished', success, data, source)
         next(null, data)
       }
diff --git a/libs/remix-tests/src/runTestSources.ts b/libs/remix-tests/src/runTestSources.ts
index 0f2a72cea5..40f0d87788 100644
--- a/libs/remix-tests/src/runTestSources.ts
+++ b/libs/remix-tests/src/runTestSources.ts
@@ -1,6 +1,4 @@
 import async, { ErrorCallback } from 'async'
-import deepequal from 'deep-equal'
-import { Compiler as RemixCompiler } from '@remix-project/remix-solidity'
 import { compileContractSources, writeTestAccountsContract } from './compiler'
 import { deployAll } from './deployer'
 import { runTest } from './testRunner'
@@ -50,29 +48,13 @@ export class UnitTestRunner {
    * @param importFileCb Import file callback
    * @param opts Options
    */
-  async runTestSources (contractSources: SrcIfc, compilerConfig: CompilerConfiguration, testCallback, resultCallback, deployCb:any, finalCallback: any, importFileCb, opts: Options) {
+  async runTestSources (contractSources: SrcIfc, newCompilerConfig: CompilerConfiguration, testCallback, resultCallback, deployCb:any, finalCallback: any, importFileCb, opts: Options) {
     opts = opts || {}
     const sourceASTs: any = {}
     if (opts.web3 || opts.accounts) this.init(opts.web3, opts.accounts)
-
     async.waterfall([
       (next) => {
-        if (!deepequal(this.compilerConfig, compilerConfig)) {
-          this.compilerConfig = compilerConfig
-          const { currentCompilerUrl, evmVersion, optimize, runs, usingWorker } = compilerConfig
-          this.compiler = new RemixCompiler(importFileCb)
-          this.compiler.set('evmVersion', evmVersion)
-          this.compiler.set('optimize', optimize)
-          this.compiler.set('runs', runs)
-          this.compiler.loadVersion(usingWorker, currentCompilerUrl)
-          // @ts-ignore
-          this.compiler.event.register('compilerLoaded', this, (version) => {
-            next()
-          })
-        } else next()
-      },
-      (next) => {
-        compileContractSources(contractSources, this.compiler, { accounts: this.testsAccounts, testFilePath: opts.testFilePath, event: this.event }, next)
+        compileContractSources(contractSources, newCompilerConfig, importFileCb, this, { accounts: this.testsAccounts, testFilePath: opts.testFilePath, event: this.event }, next)
       },
       (compilationResult: compilationInterface, asts: ASTInterface, next) => {
         for (const filename in asts) {
diff --git a/libs/remix-ui/solidity-unit-testing/src/lib/logic/testTabLogic.ts b/libs/remix-ui/solidity-unit-testing/src/lib/logic/testTabLogic.ts
index 6e1af409a4..87a6f33d80 100644
--- a/libs/remix-ui/solidity-unit-testing/src/lib/logic/testTabLogic.ts
+++ b/libs/remix-ui/solidity-unit-testing/src/lib/logic/testTabLogic.ts
@@ -21,23 +21,20 @@ export class TestTabLogic {
         this.currentPath = this.helper.removeMultipleSlashes(this.helper.removeTrailingSlashes(path))
     }
 
-    generateTestFolder (path:string) {
+    async generateTestFolder (path:string) {
         // Todo move this check to File Manager after refactoring
         // Checking to ignore the value which contains only whitespaces
         if (!path || !(/\S/.test(path))) return
         path = this.helper.removeMultipleSlashes(path)
         const fileProvider = this.fileManager.fileProviderOf(path.split('/')[0])
-        fileProvider.exists(path).then((res: boolean) => {
-        if (!res) fileProvider.createDir(path)
-        })
+        if(!await fileProvider.exists(path)) fileProvider.createDir(path)
     }
 
     async pathExists (path: string) {
         // Checking to ignore the value which contains only whitespaces
         if (!path || !(/\S/.test(path))) return
         const fileProvider = this.fileManager.fileProviderOf(path.split('/')[0])
-        const res = await fileProvider.exists(path, (e: Error, res: boolean) => { return res })
-        return res
+        return await fileProvider.exists(path)
     }
 
     // eslint-disable-next-line @typescript-eslint/no-explicit-any
diff --git a/libs/remix-ui/solidity-unit-testing/src/lib/solidity-unit-testing.tsx b/libs/remix-ui/solidity-unit-testing/src/lib/solidity-unit-testing.tsx
index 6cb5bc3820..2acb1ee4e4 100644
--- a/libs/remix-ui/solidity-unit-testing/src/lib/solidity-unit-testing.tsx
+++ b/libs/remix-ui/solidity-unit-testing/src/lib/solidity-unit-testing.tsx
@@ -222,7 +222,8 @@ export const SolidityUnitTesting = (props: Record<string, any>) => { // eslint-d
     if (path !== '/') path = helper.removeTrailingSlashes(path)
     if (inputPath === '') inputPath = defaultPath
     setInputPathValue(path)
-    testTabLogic.generateTestFolder(inputPath)
+    await testTabLogic.generateTestFolder(inputPath)
+    setToasterMsg('Folder created successfully')
     setDisableCreateButton(true)
     setDisableGenerateButton(false)
     testTabLogic.setCurrentPath(inputPath)
@@ -672,6 +673,7 @@ export const SolidityUnitTesting = (props: Record<string, any>) => { // eslint-d
               value={inputPathValue}
               title="Press 'Enter' to change the path for test files."
               style={{ backgroundImage: "var(--primary)" }}
+              onKeyDown={() => { if (inputPathValue === '/') setInputPathValue('')} }
               onKeyUp={handleTestDirInput}
               onChange={handleEnter}
               onClick = {() => { if (inputPathValue === '/') setInputPathValue('')} }