diff --git a/Lib/test/test_embed.py b/Lib/test/test_embed.py
index e00b1d8f481c77..add39e4e05f9c5 100644
--- a/Lib/test/test_embed.py
+++ b/Lib/test/test_embed.py
@@ -7,12 +7,16 @@
 import re
 import subprocess
 import sys
+import sysconfig
 
 
 class EmbeddingTestsMixin:
     def setUp(self):
-        here = os.path.abspath(__file__)
-        basepath = os.path.dirname(os.path.dirname(os.path.dirname(here)))
+        if not sysconfig.is_python_build():
+            self.skipTest('testing installed tree')
+
+        basepath = sysconfig._PROJECT_BASE
+
         exename = "_testembed"
         if sys.platform.startswith("win"):
             ext = ("_d" if "_d" in sys.executable else "") + ".exe"
diff --git a/Misc/NEWS.d/next/Tests/2018-07-28-14-48-59.bpo-34255.AKSqSY.rst b/Misc/NEWS.d/next/Tests/2018-07-28-14-48-59.bpo-34255.AKSqSY.rst
new file mode 100644
index 00000000000000..394345b05f5bae
--- /dev/null
+++ b/Misc/NEWS.d/next/Tests/2018-07-28-14-48-59.bpo-34255.AKSqSY.rst
@@ -0,0 +1 @@
+Ensure that test.test_embed works when building outside of the source tree