diff --git a/tests/README.md b/tests/README.md
index 1688d6a7a..420fb75f6 100644
--- a/tests/README.md
+++ b/tests/README.md
@@ -36,6 +36,87 @@ Here we test Kruize [Local monitoring APIs](/design/KruizeLocalAPI.md).
 
   For details refer this [doc](/tests/scripts/local_monitoring_tests/Local_monitoring_tests.md)
 
+### Authentication Test:
+
+Kruize 0.2 onwards supports the authentication which provides the user an option to pass authentication details in the YAML for the service they are using.
+
+The authentication test is a standalone shell-based test. It contains various valid and invalid scenarios for testing.
+
+It can be run directly from the shell test location, for example:
+
+`tests/config_tests/authentication_tests.sh`
+
+#### Scenarios
+**_valid_**: a valid path to the token
+
+**_expired_**: an expired token value
+
+**_invalid_**: an invalid path to the token
+
+**_empty_**: a blank input in place of the token file path
+
+### Datasource Availability/Serviceability Test:
+
+Kruize supports multiple datasources such as Prometheus and Thanos Querier. During startup, Kruize validates the reachability of all configured datasources before proceeding.
+
+The datasource availability/serviceability test is a standalone shell-based test and is not part of the pytest-based functional/local monitoring suite.
+It validates Kruize behavior when one or more datasources are reachable or unreachable.
+
+Kruize startup behavior follows these rules:
+
+* Kruize continues startup if at least one datasource is reachable.
+* Kruize logs an error for each unreachable datasource.
+* Kruize fails startup only when all configured datasources are unreachable.
+
+The test can be run using the command below:
+
+```
+./test_autotune.sh -c <cluster-type> -i <image-name> --testsuite=datasource_tests
+```
+
+#### Scenarios
+
+Both cluster types support multiple datasources. Scenarios vary by which datasources are in the cluster YAML:
+- **OpenShift:** YAML has Prometheus + Thanos (both available in cluster)
+- **Minikube/Kind:** YAML has Prometheus only (Thanos not running; multiple Prometheus datasources are also valid)
+
+**both-valid** (OpenShift)
+
+Both datasources are reachable.
+
+**✔ Expected:** Kruize starts successfully.
+
+**valid-invalid** (OpenShift)
+
+Datasource 1 is reachable, datasource 2 is unreachable.
+
+**✔ Expected:** Kruize starts successfully and logs an error for datasource 2.
+
+**invalid-valid** (OpenShift)
+
+Datasource 1 is unreachable, datasource 2 is reachable.
+
+**✔ Expected:** Kruize starts successfully and logs an error for datasource 1.
+
+**both-invalid** (OpenShift)
+
+Both datasources are unreachable.
+
+**❌ Expected:** Kruize fails to start and exits with an error.
+
+**valid** (Minikube/Kind)
+
+Datasource is reachable.
+
+**✔ Expected:** Kruize starts successfully.
+
+**invalid** (Minikube/Kind)
+
+Datasource is unreachable.
+
+**❌ Expected:** Kruize fails to start and exits with an error.
+
+
 ## Supported Clusters
 - Minikube, Openshift
 
diff --git a/tests/scripts/local_monitoring_tests/authentication_tests.sh b/tests/config_tests/authentication_tests.sh
similarity index 86%
rename from tests/scripts/local_monitoring_tests/authentication_tests.sh
rename to tests/config_tests/authentication_tests.sh
index c593ca287..df872aefd 100644
--- a/tests/scripts/local_monitoring_tests/authentication_tests.sh
+++ b/tests/config_tests/authentication_tests.sh
@@ -17,10 +17,10 @@
 #
 
 # Get the path of the test dir
-LOCAL_MONITORING_TEST_DIR="${KRUIZE_REPO}/tests/scripts/local_monitoring_tests"
+CONFIG_TEST_DIR="${KRUIZE_REPO}/tests/config_tests"
 
 # Source the common functions scripts
-. ${LOCAL_MONITORING_TEST_DIR}/../common/common_functions.sh
+. ${KRUIZE_REPO}/tests/scripts/common/common_functions.sh
 
 APP_DEPLOYMENT="kruize"
 
@@ -33,7 +33,15 @@ tokens=(
   ["empty"]=""
 )
 # Tests to validate authentication types in Kruize
+# Note: Skipped on minikube/kind - the minikube YAML has no datasource authentication block,
+# and Prometheus on minikube typically does not require bearer auth. These tests only apply
+# to OpenShift where Prometheus enforces OAuth/bearer token authentication.
 function authentication_tests() {
+	if [ "$cluster_type" == "minikube" ] || [ "$cluster_type" == "kind" ]; then
+		echo "Skipping authentication_tests: datasource auth is not configured on ${cluster_type} (Prometheus does not require bearer token)."
+		return 0
+	fi
+
 	start_time=$(get_date)
 	FAILED_CASES=()
 	TESTS=0
@@ -56,10 +64,10 @@ function authentication_tests() {
 
   if [ "$cluster_type" == "minikube" ] || [ "$cluster_type" == "kind" ]; then
   	NAMESPACE="monitoring"
-  	YAML_FILE="${LOCAL_MONITORING_TEST_DIR}/../../../manifests/crc/default-db-included-installation/minikube/kruize-crc-minikube.yaml"
+  	YAML_FILE="${KRUIZE_REPO}/manifests/crc/default-db-included-installation/minikube/kruize-crc-minikube.yaml"
 	elif [ "$cluster_type" == "openshift" ]; then
   	NAMESPACE="openshift-tuning"
-		YAML_FILE="${LOCAL_MONITORING_TEST_DIR}/../../../manifests/crc/default-db-included-installation/openshift/kruize-crc-openshift.yaml"
+		YAML_FILE="${KRUIZE_REPO}/manifests/crc/default-db-included-installation/openshift/kruize-crc-openshift.yaml"
 	else
 		echo "Invalid cluster type found: ${cluster_type}"
 	fi
@@ -130,7 +138,7 @@ deploy_and_check_pod() {
   $kubectl_cmd wait --for=condition=Ready pod -l app=$APP_DEPLOYMENT --timeout=120s > /dev/null
  # Check pod logs for errors
   echo "Checking logs for the pod..."
- 	POD_NAME=$($kubectl_cmd get pods | grep 'kruize' | grep -v -E 'kruize-db|kruize-ui' | awk 'NR==1{print $1}')
+  POD_NAME=$($kubectl_cmd get pods | grep 'kruize' | grep -v -E 'kruize-db|kruize-ui' | awk 'NR==1{print $1}')
   echo "$kubectl_cmd logs -f ${POD_NAME} > ${POD_LOG} 2>&1 &"
 	$kubectl_cmd logs -f "${POD_NAME}" > "${POD_LOG}" 2>&1 &
   sleep 10
diff --git a/tests/scripts/local_monitoring_tests/datasource_tests.sh b/tests/config_tests/datasource_tests.sh
similarity index 66%
rename from tests/scripts/local_monitoring_tests/datasource_tests.sh
rename to tests/config_tests/datasource_tests.sh
index e80d3e532..4d0d86f76 100644
--- a/tests/scripts/local_monitoring_tests/datasource_tests.sh
+++ b/tests/config_tests/datasource_tests.sh
@@ -17,28 +17,40 @@
 #
 
 # Get the absolute path of current directory
-LOCAL_MONITORING_TEST_DIR="${KRUIZE_REPO}/tests/scripts/local_monitoring_tests"
+CONFIG_TEST_DIR="${KRUIZE_REPO}/tests/config_tests"
 
 # Source the common functions scripts
-. ${LOCAL_MONITORING_TEST_DIR}/../common/common_functions.sh
+. ${KRUIZE_REPO}/tests/scripts/common/common_functions.sh
 
 APP_DEPLOYMENT="kruize"
 
 # Datasource serviceName overrides to simulate reachability
 declare -A datasource_scenarios
 datasource_scenarios=(
+  # OpenShift YAML: Prometheus + Thanos (both available in cluster)
   ["both-invalid"]="invalid invalid"
   ["both-valid"]="prometheus-k8s thanos-querier"
-  ["prom-valid-thanos-invalid"]="prometheus-k8s invalid-thanos"
-  ["prom-invalid-thanos-valid"]="invalid-prometheus thanos-querier"
+  ["valid-invalid"]="prometheus-k8s invalid-thanos"
+  ["invalid-valid"]="invalid-prometheus thanos-querier"
+  # Minikube/Kind YAML: Prometheus only (Thanos not running; could add more Prometheus DS)
+  ["invalid"]="invalid invalid"
+  ["valid"]="prometheus-k8s invalid"
 )
-datasource_scenario_order=(
+
+# OpenShift: test with Prometheus + Thanos (both in cluster YAML)
+openshift_scenario_order=(
   "both-invalid"
-  "prom-invalid-thanos-valid"
-  "prom-valid-thanos-invalid"
+  "invalid-valid"
+  "valid-invalid"
   "both-valid"
 )
 
+# Minikube/Kind: test with Prometheus only (Thanos not in cluster; YAML has one DS)
+non_openshift_scenario_order=(
+  "invalid"
+  "valid"
+)
+
 function datasource_tests() {
 	start_time=$(get_date)
 	FAILED_CASES=()
@@ -55,10 +67,10 @@ function datasource_tests() {
 	echo ""
 	if [ "$cluster_type" == "minikube" ] || [ "$cluster_type" == "kind" ]; then
 		NAMESPACE="monitoring"
-		YAML_FILE="${LOCAL_MONITORING_TEST_DIR}/../../../manifests/crc/default-db-included-installation/minikube/kruize-crc-minikube.yaml"
+		YAML_FILE="${KRUIZE_REPO}/manifests/crc/default-db-included-installation/minikube/kruize-crc-minikube.yaml"
 	elif [ "$cluster_type" == "openshift" ]; then
 		NAMESPACE="openshift-tuning"
-		YAML_FILE="${LOCAL_MONITORING_TEST_DIR}/../../../manifests/crc/default-db-included-installation/openshift/kruize-crc-openshift.yaml"
+		YAML_FILE="${KRUIZE_REPO}/manifests/crc/default-db-included-installation/openshift/kruize-crc-openshift.yaml"
 	else
 		echo "Invalid cluster type found: ${cluster_type}"
 		return
@@ -76,12 +88,24 @@ function datasource_tests() {
 
 	kubectl_cmd="kubectl -n ${NAMESPACE}"
 
+	# Select scenarios based on cluster type:
+	# - OpenShift: Prometheus + Thanos in YAML, test both
+	# - Minikube/Kind: Prometheus only in YAML (Thanos not running)
+	# Both cluster types support multiple datasources
+	if [ "$cluster_type" == "openshift" ]; then
+		scenario_order=("${openshift_scenario_order[@]}")
+		echo "Cluster type: OpenShift - Testing with Prometheus and Thanos datasources"
+	else
+		scenario_order=("${non_openshift_scenario_order[@]}")
+		echo "Cluster type: ${cluster_type} - Testing with Prometheus datasource (Thanos not available)"
+	fi
+
 	echo ""
 	echo "******************* Executing test suite ${FUNCNAME} ****************"
 	echo ""
 
-  suffix=1
-	for scenario in "${datasource_scenario_order[@]}"; do
+	suffix=1
+	for scenario in "${scenario_order[@]}"; do
 		echo ""
 		echo "~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~"
 		echo " Running datasource scenario: ${scenario}"
@@ -121,13 +145,15 @@ run_datasource_scenario() {
 	suffix=$2
 	POD_LOG="${TEST_SUITE_DIR}/${scenario}-pod.log"
 
-	read PROM_SERVICE THANOS_SERVICE <<< "${datasource_scenarios[$scenario]}"
+	read DS1_SERVICE DS2_SERVICE <<< "${datasource_scenarios[$scenario]}"
 
 	echo "Updating YAML:"
-	echo "  Prometheus serviceName = ${PROM_SERVICE}"
-	echo "  Thanos serviceName     = ${THANOS_SERVICE}"
+	echo "  Datasource 1 serviceName = ${DS1_SERVICE}"
+	if [ "$cluster_type" == "openshift" ]; then
+		echo "  Datasource 2 serviceName = ${DS2_SERVICE}"
+	fi
 
-	update_yaml_with_datasources "${PROM_SERVICE}" "${THANOS_SERVICE}" "${suffix}"
+	update_yaml_with_datasources "${DS1_SERVICE}" "${DS2_SERVICE}" "${suffix}"
 
 	$kubectl_cmd apply -f "$YAML_FILE" > /dev/null
   $kubectl_cmd rollout restart deployment kruize
@@ -139,10 +165,10 @@ run_datasource_scenario() {
 		sleep 5
 		$kubectl_cmd logs "$POD_NAME" > "$POD_LOG" 2>&1
 
-		if [[ "$scenario" == "both-invalid" ]]; then
-		  echo "inside both-invalid"
+		if [[ "$scenario" == "both-invalid" ]] || [[ "$scenario" == "invalid" ]]; then
+		  echo "inside ${scenario} (expecting datasource failure)"
       if grep -i "No datasource could be added or are serviceable" "$POD_LOG"; then
-        echo "Expected failure detected (both datasources invalid)"
+        echo "Expected failure detected (datasource(s) invalid)"
         ((TESTS_PASSED++))
       else
         echo "Expected failure NOT detected"
@@ -178,28 +204,28 @@ cleanup_datasources_from_yaml() {
 }
 
 update_yaml_with_datasources() {
-	local prom_service=$1
-	local thanos_service=$2
-	# create unique datasource name for each scenario
+	local ds1_service=$1
+	local ds2_service=$2
+	# create unique datasource name for each scenario (YAML keys: prometheus-1, thanos-1)
 	SUFFIX=$3
-	PROM_DS_NAME="prometheus-${SUFFIX}"
-	THANOS_DS_NAME="thanos-${SUFFIX}"
+	DS1_NAME="prometheus-${SUFFIX}"
+	DS2_NAME="thanos-${SUFFIX}"
 
 	echo "Using datasource names:"
-	echo "  Prometheus: ${PROM_DS_NAME}"
-	echo "  Thanos:     ${THANOS_DS_NAME}"
+	echo "  Datasource 1: ${DS1_NAME}"
+	echo "  Datasource 2: ${DS2_NAME}"
 
 	# Backup once
 	cp "$YAML_FILE" "${YAML_FILE}.ds.bak"
 
 	sed -i '
 	/"name": *"prometheus-1"/,/}/{
-		s/"name": *"[^"]*"/"name": "'"$PROM_DS_NAME"'"/
-		s/"serviceName": *"[^"]*"/"serviceName": "'"$prom_service"'"/
+		s/"name": *"[^"]*"/"name": "'"$DS1_NAME"'"/
+		s/"serviceName": *"[^"]*"/"serviceName": "'"$ds1_service"'"/
 	}
 	/"name": *"thanos-1"/,/}/{
-		s/"name": *"[^"]*"/"name": "'"$THANOS_DS_NAME"'"/
-		s/"serviceName": *"[^"]*"/"serviceName": "'"$thanos_service"'"/
+		s/"name": *"[^"]*"/"name": "'"$DS2_NAME"'"/
+		s/"serviceName": *"[^"]*"/"serviceName": "'"$ds2_service"'"/
 	}
 	' "$YAML_FILE"
 
diff --git a/tests/scripts/local_monitoring_tests/Local_monitoring_tests.md b/tests/scripts/local_monitoring_tests/Local_monitoring_tests.md
index ea34c0351..8d1294317 100644
--- a/tests/scripts/local_monitoring_tests/Local_monitoring_tests.md
+++ b/tests/scripts/local_monitoring_tests/Local_monitoring_tests.md
@@ -358,66 +358,3 @@ Else, you can change the workload name and namespace name in the test to match w
 
 Note: The test will fail if it's run as is if there are no matching workloads that the test looks for. This test result can be ignored in case of a non-gpu workload
 
-### Authentication Test:
-
-Kruize 0.2 supports the authentication which provides the user an option to pass authentication details in the yaml for the service they are using.
-
-The authentication test is part of functional bucket and has a separate script similar to local_monitoring tests. It contains various valid and invalid scenarios for testing.
-
-It can be run as shown in the example below:
-
-`/test_autotune.sh -c <cluster-type> -i <image-name> -r benchmarks/ --testsuite=authentication_tests`
-
-#### Scenarios
-**_valid_**: a valid path to the token
-
-**_expired_**: an expired token value
-
-**_invalid_**: an invalid path to the token
-
-**_empty_**: a blank input in place of the token file path
-
-### Datasource Availability/Serviceability Test:
-
-Kruize supports multiple datasources such as Prometheus and Thanos Querier. During startup, Kruize validates the reachability of all configured datasources before proceeding.
-
-The datasource availability/serviceability test is part of the functional test bucket and is implemented as a standalone shell script, similar to the authentication tests.
-It validates Kruize behavior when one or more datasources are reachable or unreachable.
-
-Kruize startup behavior follows these rules:
-
-* Kruize continues startup if at least one datasource is reachable.
-* Kruize logs an error for each unreachable datasource.
-* Kruize fails startup only when all configured datasources are unreachable.
-
-The test can be run using the command below:
-
-```
-./test_autotune.sh -c <cluster-type> -i <image-name> -r benchmarks/ --testsuite=datasource_tests
-```
-
-#### Scenarios
-
-**both-valid**
-
-Both Prometheus and Thanos Querier datasources are reachable.
-
-**✔ Expected:** Kruize starts successfully.
-
-**prom-valid-thanos-invalid**
-
-Prometheus is reachable and Thanos Querier is unreachable.
-
-**✔ Expected:** Kruize starts successfully and logs an error for Thanos.
-
-**prom-invalid-thanos-valid**
-
-Prometheus is unreachable and Thanos Querier is reachable.
-
-**✔ Expected:** Kruize starts successfully and logs an error for Prometheus.
-
-**both-invalid**
-
-Both Prometheus and Thanos Querier datasources are unreachable.
-
-**❌ Expected:** Kruize fails to start and exits with an error.
diff --git a/tests/test_autotune.sh b/tests/test_autotune.sh
index 57053cf76..ce94fa0b8 100755
--- a/tests/test_autotune.sh
+++ b/tests/test_autotune.sh
@@ -25,8 +25,8 @@ SCRIPTS_DIR="${CURRENT_DIR}/scripts"
 # Source the test suite scripts
 . ${SCRIPTS_DIR}/remote_monitoring_tests/remote_monitoring_tests.sh
 . ${SCRIPTS_DIR}/local_monitoring_tests/local_monitoring_tests.sh
-. ${SCRIPTS_DIR}/local_monitoring_tests/authentication_tests.sh
-. ${SCRIPTS_DIR}/local_monitoring_tests/datasource_tests.sh
+. ${CURRENT_DIR}/config_tests/authentication_tests.sh
+. ${CURRENT_DIR}/config_tests/datasource_tests.sh
 
 
 resultsdir="${CURRENT_DIR}"