diff --git a/java-extension/com.microsoft.java.test.plugin/META-INF/MANIFEST.MF b/java-extension/com.microsoft.java.test.plugin/META-INF/MANIFEST.MF
index e1d9cf35..0cb13cb5 100644
--- a/java-extension/com.microsoft.java.test.plugin/META-INF/MANIFEST.MF
+++ b/java-extension/com.microsoft.java.test.plugin/META-INF/MANIFEST.MF
@@ -15,6 +15,7 @@ Require-Bundle: org.eclipse.jdt.core,
  org.eclipse.jdt.ls.core,
  org.eclipse.core.runtime,
  org.eclipse.core.resources,
- org.eclipse.jdt.core.manipulation
+ org.eclipse.jdt.core.manipulation,
+ org.eclipse.debug.core
 Bundle-ClassPath: .,
  lib/gson-2.7.jar
diff --git a/java-extension/com.microsoft.java.test.plugin/src/main/java/com/microsoft/java/test/plugin/util/RuntimeClassPathUtils.java b/java-extension/com.microsoft.java.test.plugin/src/main/java/com/microsoft/java/test/plugin/util/RuntimeClassPathUtils.java
index af300cc1..aa5ab926 100644
--- a/java-extension/com.microsoft.java.test.plugin/src/main/java/com/microsoft/java/test/plugin/util/RuntimeClassPathUtils.java
+++ b/java-extension/com.microsoft.java.test.plugin/src/main/java/com/microsoft/java/test/plugin/util/RuntimeClassPathUtils.java
@@ -15,15 +15,31 @@
 import org.eclipse.core.runtime.CoreException;
 import org.eclipse.core.runtime.IPath;
 import org.eclipse.core.runtime.Path;
+import org.eclipse.debug.core.ILaunchConfiguration;
+import org.eclipse.debug.internal.core.LaunchConfiguration;
+import org.eclipse.debug.internal.core.LaunchConfigurationInfo;
 import org.eclipse.jdt.core.IJavaProject;
+import org.eclipse.jdt.launching.IJavaLaunchConfigurationConstants;
+import org.eclipse.jdt.launching.IRuntimeClasspathEntry;
 import org.eclipse.jdt.launching.JavaRuntime;
 import org.eclipse.jdt.ls.core.internal.ProjectUtils;
+import org.w3c.dom.Element;
+import org.xml.sax.InputSource;
+import org.xml.sax.SAXException;
+import org.xml.sax.helpers.DefaultHandler;
 
+import javax.xml.parsers.DocumentBuilder;
+import javax.xml.parsers.DocumentBuilderFactory;
+import javax.xml.parsers.ParserConfigurationException;
+
+import java.io.IOException;
+import java.io.StringReader;
 import java.util.ArrayList;
 import java.util.Arrays;
-import java.util.Comparator;
+import java.util.Date;
 import java.util.HashSet;
 import java.util.Iterator;
+import java.util.LinkedHashSet;
 import java.util.List;
 import java.util.Set;
 import java.util.stream.Collectors;
@@ -58,22 +74,91 @@ public static String[] resolveRuntimeClassPath(List<Object> arguments) throws Co
 
         final List<String> classPathList = new ArrayList<>();
         for (final IJavaProject project : projectsToTest) {
-            final String[] classPathArray = JavaRuntime.computeDefaultRuntimeClassPath(project);
-            final Set<IPath> testEntriePaths = ProjectTestUtils.getTestOutputPath(project);
-            Arrays.sort(classPathArray, Comparator.comparing((String pathStr) -> {
-                final Path path = new Path(pathStr);
-                if (path.toFile().isFile()) {
-                    return 1;
-                }
-                for (final IPath testPath: testEntriePaths) {
-                    if (testPath.isPrefixOf(path)) {
-                        return -1;
-                    }
-                }
-                return 1;
-            }));
-            classPathList.addAll(Arrays.asList(classPathArray));
+            classPathList.addAll(Arrays.asList(resolveClasspath(project)));
         }
         return classPathList.toArray(new String[classPathList.size()]);
     }
+
+    private static String[] resolveClasspath(IJavaProject javaProject) throws CoreException {
+        // Use launch configuration to resolve the classpath.
+        // See: https://github.com/microsoft/vscode-java-test/issues/623.
+        final ILaunchConfiguration launchConfig = new JUnitLaunchConfiguration(javaProject.getProject());
+        final IRuntimeClasspathEntry[] unresolved = JavaRuntime.computeUnresolvedRuntimeClasspath(launchConfig);
+        final IRuntimeClasspathEntry[] resolved = JavaRuntime.resolveRuntimeClasspath(unresolved, launchConfig);
+        final Set<String> classpaths = new LinkedHashSet<>();
+        for (final IRuntimeClasspathEntry entry : resolved) {
+            final String location = entry.getLocation();
+            if (location != null) {
+                if (entry.getClasspathProperty() == IRuntimeClasspathEntry.USER_CLASSES ||
+                        entry.getClasspathProperty() == IRuntimeClasspathEntry.CLASS_PATH) {
+                    classpaths.add(location);
+                }
+                // TODO: support module path
+            }
+        }
+        return classpaths.toArray(new String[classpaths.size()]);
+    }
+
+    private static class JUnitLaunchConfiguration extends LaunchConfiguration {
+        public static final String JUNIT_LAUNCH = "<?xml version=\"1.0\" encoding=\"UTF-8\"" +
+                " standalone=\"no\"?>\n" +
+                "<launchConfiguration type=\"org.eclipse.jdt.junit.launchconfig\">\n" +
+                "<listAttribute key=\"org.eclipse.debug.core.MAPPED_RESOURCE_PATHS\">\n" +
+                "</listAttribute>\n" +
+                "<listAttribute key=\"org.eclipse.debug.core.MAPPED_RESOURCE_TYPES\">\n" +
+                "<listEntry value=\"1\"/>\n" +
+                "</listAttribute>\n" +
+                "<booleanAttribute key=\"org.eclipse.jdt.launching.ATTR_EXCLUDE_TEST_CODE\" value=\"false\"/>\n" +
+                "</launchConfiguration>";
+        private final IProject project;
+        private String classpathProvider;
+        private String sourcepathProvider;
+        private final LaunchConfigurationInfo launchInfo;
+
+        protected JUnitLaunchConfiguration(IProject project) throws CoreException {
+            super(String.valueOf(new Date().getTime()), null, false);
+            this.project = project;
+            if (ProjectUtils.isMavenProject(project)) {
+                classpathProvider = "org.eclipse.m2e.launchconfig.classpathProvider";
+                sourcepathProvider = "org.eclipse.m2e.launchconfig.sourcepathProvider";
+            } else if (ProjectUtils.isGradleProject(project)) {
+                classpathProvider = "org.eclipse.buildship.core.classpathprovider";
+            }
+            this.launchInfo = new JavaLaunchConfigurationInfo(JUNIT_LAUNCH);
+        }
+
+        @Override
+        public String getAttribute(String attributeName, String defaultValue) throws CoreException {
+            if (IJavaLaunchConfigurationConstants.ATTR_PROJECT_NAME.equalsIgnoreCase(attributeName)) {
+                return project.getName();
+            } else if (IJavaLaunchConfigurationConstants.ATTR_CLASSPATH_PROVIDER.equalsIgnoreCase(attributeName)) {
+                return classpathProvider;
+            } else if (IJavaLaunchConfigurationConstants.ATTR_SOURCE_PATH_PROVIDER.equalsIgnoreCase(attributeName)) {
+                return sourcepathProvider;
+            }
+
+            return super.getAttribute(attributeName, defaultValue);
+        }
+
+        @Override
+        protected LaunchConfigurationInfo getInfo() throws CoreException {
+            return this.launchInfo;
+        }
+    }
+
+    private static class JavaLaunchConfigurationInfo extends LaunchConfigurationInfo {
+        public JavaLaunchConfigurationInfo(String launchXml) {
+            super();
+            try {
+                final DocumentBuilder parser = DocumentBuilderFactory.newInstance().newDocumentBuilder();
+                parser.setErrorHandler(new DefaultHandler());
+                final StringReader reader = new StringReader(launchXml);
+                final InputSource source = new InputSource(reader);
+                final Element root = parser.parse(source).getDocumentElement();
+                initializeFromXML(root);
+            } catch (ParserConfigurationException | SAXException | IOException | CoreException e) {
+                // do nothing
+            }
+        }
+    }
 }