diff --git a/formatter.nix b/formatter.nix
index 5dbbc7754..e576411a4 100644
--- a/formatter.nix
+++ b/formatter.nix
@@ -108,13 +108,6 @@
           extraPythonPackages = (self'.packages.clan-app.devshellPyDeps pkgs.python3Packages);
           extraPythonPaths = [ "../../clan-cli" ];
         };
-        "generate-test-vars" = {
-          directory = "pkgs/generate-test-vars";
-          extraPythonPackages = [
-            (pkgs.python3.withPackages (ps: self'.packages.clan-cli.devshellPyDeps ps))
-          ];
-          extraPythonPaths = [ "../clan-cli" ];
-        };
       }
       // (
         if pkgs.stdenv.isLinux then
diff --git a/lib/clanTest/flake-module.nix b/lib/clanTest/flake-module.nix
index 503e348ab..2fede3e21 100644
--- a/lib/clanTest/flake-module.nix
+++ b/lib/clanTest/flake-module.nix
@@ -77,9 +77,7 @@ in
         ) machineModules
       );
 
-      update-vars-script = "${
-        self.packages.${hostPkgs.system}.generate-test-vars
-      }/bin/generate-test-vars";
+      update-vars-script = "${self.packages.${hostPkgs.system}.clan-cli}/bin/clan-generate-test-vars";
 
       relativeDir = removePrefix "${self}/" (toString config.clan.directory);
 
diff --git a/pkgs/clan-cli/bin/clan-generate-test-vars b/pkgs/clan-cli/bin/clan-generate-test-vars
new file mode 100755
index 000000000..b9bd295ca
--- /dev/null
+++ b/pkgs/clan-cli/bin/clan-generate-test-vars
@@ -0,0 +1,12 @@
+#!/usr/bin/env python3
+import os
+import sys
+
+sys.path.insert(
+    0, os.path.join(os.path.dirname(os.path.dirname(os.path.realpath(__file__))))
+)
+
+from clan_cli.generate_test_vars.cli import main  # NOQA
+
+if __name__ == "__main__":
+    main()
diff --git a/pkgs/generate-test-vars/generate_test_vars/__init_.py b/pkgs/clan-cli/clan_cli/generate_test_vars/__init_.py
similarity index 100%
rename from pkgs/generate-test-vars/generate_test_vars/__init_.py
rename to pkgs/clan-cli/clan_cli/generate_test_vars/__init_.py
diff --git a/pkgs/generate-test-vars/generate_test_vars/cli.py b/pkgs/clan-cli/clan_cli/generate_test_vars/cli.py
similarity index 82%
rename from pkgs/generate-test-vars/generate_test_vars/cli.py
rename to pkgs/clan-cli/clan_cli/generate_test_vars/cli.py
index e5dc44b4f..7ddf0856b 100755
--- a/pkgs/generate-test-vars/generate_test_vars/cli.py
+++ b/pkgs/clan-cli/clan_cli/generate_test_vars/cli.py
@@ -9,7 +9,7 @@ import subprocess
 from dataclasses import dataclass
 from pathlib import Path
 from tempfile import NamedTemporaryFile
-from typing import Any, override
+from typing import TYPE_CHECKING, Any, override
 
 from clan_cli.vars.generator import Generator
 from clan_cli.vars.prompt import PromptType
@@ -20,6 +20,12 @@ from clan_lib.machines.machines import Machine
 from clan_lib.nix import nix_config, nix_eval, nix_test_store
 from clan_lib.vars.generate import run_generators
 
+if TYPE_CHECKING:
+    from clan_lib.machines.actions import (
+        ListOptions,
+        MachineResponse,
+    )
+
 log = logging.getLogger(__name__)
 
 sops_priv_key = (
@@ -87,6 +93,26 @@ class TestFlake(Flake):
         full_selector = f'checks."{test_system}".{self.check_attr}.machinesCross.{system}."{machine_name}".{selector}'
         return self.select(full_selector)
 
+    # we don't want to evaluate all machines of the flake. Only the ones defined in the test
+    def set_machine_names(self, machine_names: list[str]) -> None:
+        """Set the machine names for this flake instance to fake the machines defined by the test"""
+        self._machine_names = machine_names
+
+    def list_machines(
+        self,
+        opts: "ListOptions | None" = None,  # noqa: ARG002
+    ) -> "dict[str, MachineResponse]":
+        """List machines of a clan"""
+        from clan_lib.machines.actions import (  # noqa: PLC0415
+            InventoryMachine,
+            MachineResponse,
+        )
+
+        res = {}
+        for name in self._machine_names:
+            res[name] = MachineResponse(data=InventoryMachine())
+        return res
+
 
 class TestMachine(Machine):
     """Machine class which is able to deal with not having an actual flake.
@@ -180,13 +206,13 @@ def parse_args() -> Options:
     )
 
 
-def main() -> None:
-    logging.basicConfig(level=logging.DEBUG)
-    os.environ["CLAN_NO_COMMIT"] = "1"
-    opts = parse_args()
-    test_dir = opts.test_dir
-
-    if opts.clean:
+def generate_test_vars(
+    clean: bool,
+    repo_root: Path,
+    test_dir: Path,
+    check_attr: str,
+) -> None:
+    if clean:
         shutil.rmtree(test_dir / "vars", ignore_errors=True)
         shutil.rmtree(test_dir / "sops", ignore_errors=True)
 
@@ -196,25 +222,27 @@ def main() -> None:
     if system.endswith("-darwin"):
         test_system = system.rstrip("darwin") + "linux"
 
-    flake = TestFlake(opts.check_attr, test_dir, str(opts.repo_root))
+    flake = TestFlake(check_attr, test_dir, str(repo_root))
     machine_names = get_machine_names(
-        opts.repo_root,
-        opts.check_attr,
+        repo_root,
+        check_attr,
         test_system,
     )
 
+    flake.set_machine_names(machine_names)
+
     flake.precache(
         [
-            f"checks.{test_system}.{opts.check_attr}.machinesCross.{system}.{{{','.join(machine_names)}}}.config.clan.core.vars.generators.*.validationHash",
+            f"checks.{test_system}.{check_attr}.machinesCross.{system}.{{{','.join(machine_names)}}}.config.clan.core.vars.generators.*.validationHash",
         ],
     )
 
     # This hack is necessary because the sops store uses flake.path to find the machine keys
     # This hack does not work because flake.invalidate_cache resets _path
-    flake._path = opts.test_dir  # noqa: SLF001
+    flake._path = test_dir  # noqa: SLF001
 
     machines = [
-        TestMachine(name, flake, test_dir, opts.check_attr) for name in machine_names
+        TestMachine(name, flake, test_dir, check_attr) for name in machine_names
     ]
     user = "admin"
     admin_key_path = Path(test_dir.resolve() / "sops" / "users" / user / "key.json")
@@ -259,5 +287,17 @@ def main() -> None:
         run_generators(list(machines), prompt_values=mocked_prompts)
 
 
+def main() -> None:
+    logging.basicConfig(level=logging.DEBUG)
+    os.environ["CLAN_NO_COMMIT"] = "1"
+    args = parse_args()
+    generate_test_vars(
+        clean=args.clean,
+        repo_root=args.repo_root,
+        test_dir=args.repo_root / args.test_dir,
+        check_attr=args.check_attr,
+    )
+
+
 if __name__ == "__main__":
     main()
diff --git a/pkgs/clan-cli/clan_cli/generate_test_vars/test_generate_test_vars.py b/pkgs/clan-cli/clan_cli/generate_test_vars/test_generate_test_vars.py
new file mode 100644
index 000000000..130b603d8
--- /dev/null
+++ b/pkgs/clan-cli/clan_cli/generate_test_vars/test_generate_test_vars.py
@@ -0,0 +1,26 @@
+import shutil
+import subprocess
+from pathlib import Path
+
+import pytest
+from clan_cli.generate_test_vars.cli import generate_test_vars
+
+
+@pytest.mark.with_core
+def test_generate_test_vars(
+    clan_core: Path,
+    temp_dir: Path,
+) -> None:
+    test_dir_original = clan_core / "checks/service-dummy-test"
+    service_dir = temp_dir / "service-dummy-test"
+    shutil.copytree(test_dir_original, service_dir)
+
+    # Make the copied tree writable
+    subprocess.run(["chmod", "-R", "+w", str(service_dir)], check=True)
+
+    generate_test_vars(
+        clean=True,
+        repo_root=clan_core,
+        test_dir=service_dir,
+        check_attr="service-dummy-test",
+    )
diff --git a/pkgs/clan-cli/clan_lib/flake/flake.py b/pkgs/clan-cli/clan_lib/flake/flake.py
index 1b008dfe7..6814f9104 100644
--- a/pkgs/clan-cli/clan_lib/flake/flake.py
+++ b/pkgs/clan-cli/clan_lib/flake/flake.py
@@ -9,7 +9,7 @@ from functools import cache
 from hashlib import sha1
 from pathlib import Path
 from tempfile import NamedTemporaryFile
-from typing import Any
+from typing import TYPE_CHECKING, Any
 
 from clan_lib.cmd import Log, RunOpts, run
 from clan_lib.dirs import select_source, user_cache_dir
@@ -22,6 +22,12 @@ from clan_lib.nix import (
     nix_test_store,
 )
 
+if TYPE_CHECKING:
+    from clan_lib.machines.actions import (
+        ListOptions,
+        MachineResponse,
+    )
+
 log = logging.getLogger(__name__)
 
 
@@ -1102,6 +1108,15 @@ class Flake:
         full_selector = f'clanInternals.machines."{system}"."{machine_name}".{selector}'
         return self.select(full_selector)
 
+    def list_machines(
+        self,
+        opts: "ListOptions | None" = None,
+    ) -> "dict[str, MachineResponse]":
+        """List machines of a clan"""
+        from clan_lib.machines.actions import list_machines  # noqa: PLC0415
+
+        return list_machines(self, opts)
+
 
 def require_flake(flake: Flake | None) -> Flake:
     """Require that a flake argument is provided, if not in a clan flake.
diff --git a/pkgs/clan-cli/clan_lib/vars/generate.py b/pkgs/clan-cli/clan_lib/vars/generate.py
index 8f7d12725..6c52558c3 100644
--- a/pkgs/clan-cli/clan_lib/vars/generate.py
+++ b/pkgs/clan-cli/clan_lib/vars/generate.py
@@ -8,7 +8,6 @@ from clan_cli.vars.migration import check_can_migrate, migrate_files
 
 from clan_lib.api import API
 from clan_lib.errors import ClanError
-from clan_lib.machines.actions import list_machines
 from clan_lib.machines.machines import Machine
 
 log = logging.getLogger(__name__)
@@ -39,7 +38,7 @@ def get_generators(
         msg = "At least one machine must be provided"
         raise ClanError(msg)
 
-    all_machines = list_machines(machines[0].flake).keys()
+    all_machines = machines[0].flake.list_machines().keys()
     requested_machines = [machine.name for machine in machines]
 
     all_generators_list = Generator.get_machine_generators(
diff --git a/pkgs/clan-cli/default.nix b/pkgs/clan-cli/default.nix
index c831ec063..a4c6cf6b5 100644
--- a/pkgs/clan-cli/default.nix
+++ b/pkgs/clan-cli/default.nix
@@ -26,7 +26,7 @@ let
     ps.argcomplete # Enables shell completions
 
     # uncomment web-pdb for debugging:
-    # (pkgs.callPackage ./python-deps.nix {}).web-pdb
+    # (pkgs.callPackage ./python-deps.nix { }).web-pdb
   ];
   devDeps = ps: [
     ps.ipython
diff --git a/pkgs/clan-cli/flake-module.nix b/pkgs/clan-cli/flake-module.nix
index bab9fe618..4e48ff24a 100644
--- a/pkgs/clan-cli/flake-module.nix
+++ b/pkgs/clan-cli/flake-module.nix
@@ -28,6 +28,10 @@
             "pkgs/zerotierone"
             "pkgs/minifakeroot"
             "pkgs/clan-cli/clan_cli/tests/flake-module.nix"
+
+            # needed for test_generate_test_vars.py
+            "checks/service-dummy-test"
+            "checks/flake-module.nix"
           ];
         };
       };
diff --git a/pkgs/clan-cli/pyproject.toml b/pkgs/clan-cli/pyproject.toml
index 077bac8c4..efbdde9b6 100644
--- a/pkgs/clan-cli/pyproject.toml
+++ b/pkgs/clan-cli/pyproject.toml
@@ -6,9 +6,12 @@ build-backend = "setuptools.build_meta"
 name = "clan"
 description = "clan cli tool"
 dynamic = ["version"]
-scripts = { clan = "clan_cli.cli:main" }
 license = { text = "MIT" }
 
+[project.scripts]
+clan = "clan_cli.cli:main"
+clan-generate-test-vars = "clan_cli.generate_test_vars.cli:main"
+
 [project.urls]
 Homepage = "https://clan.lol/"
 Documentation = "https://docs.clan.lol/"
@@ -55,4 +58,4 @@ warn_redundant_casts = true
 disallow_untyped_calls = true
 disallow_untyped_defs = true
 no_implicit_optional = true
-exclude = "clan_lib.nixpkgs"
\ No newline at end of file
+exclude = "clan_lib.nixpkgs"
diff --git a/pkgs/clan-cli/clan_cli/python-deps.nix b/pkgs/clan-cli/python-deps.nix
similarity index 100%
rename from pkgs/clan-cli/clan_cli/python-deps.nix
rename to pkgs/clan-cli/python-deps.nix
diff --git a/pkgs/flake-module.nix b/pkgs/flake-module.nix
index d0a6e375a..bcdacba07 100644
--- a/pkgs/flake-module.nix
+++ b/pkgs/flake-module.nix
@@ -6,7 +6,6 @@
     ./clan-vm-manager/flake-module.nix
     ./installer/flake-module.nix
     ./icon-update/flake-module.nix
-    ./generate-test-vars/flake-module.nix
     ./clan-core-flake/flake-module.nix
     ./clan-app/flake-module.nix
     ./testing/flake-module.nix
diff --git a/pkgs/generate-test-vars/default.nix b/pkgs/generate-test-vars/default.nix
deleted file mode 100644
index 783ac7a96..000000000
--- a/pkgs/generate-test-vars/default.nix
+++ /dev/null
@@ -1,19 +0,0 @@
-{
-  buildPythonApplication,
-  python,
-  clan-cli,
-}:
-buildPythonApplication {
-  name = "generate-test-vars";
-  src = ./.;
-  format = "pyproject";
-  dependencies = [ (python.pkgs.toPythonModule clan-cli) ];
-  nativeBuildInputs = [
-    (python.withPackages (ps: [ ps.setuptools ]))
-  ];
-  checkPhase = ''
-    runHook preCheck
-    $out/bin/generate-test-vars --help
-    runHook preCheck
-  '';
-}
diff --git a/pkgs/generate-test-vars/flake-module.nix b/pkgs/generate-test-vars/flake-module.nix
deleted file mode 100644
index d8178940e..000000000
--- a/pkgs/generate-test-vars/flake-module.nix
+++ /dev/null
@@ -1,19 +0,0 @@
-{ ... }:
-{
-  perSystem =
-    {
-      config,
-      pkgs,
-      self',
-      ...
-    }:
-    {
-      devShells.vars-generator = pkgs.callPackage ./shell.nix {
-        inherit (self'.packages) generate-test-vars;
-      };
-
-      packages.generate-test-vars = pkgs.python3.pkgs.callPackage ./default.nix {
-        inherit (config.packages) clan-cli;
-      };
-    };
-}
diff --git a/pkgs/generate-test-vars/pyproject.toml b/pkgs/generate-test-vars/pyproject.toml
deleted file mode 100644
index e3d0472e2..000000000
--- a/pkgs/generate-test-vars/pyproject.toml
+++ /dev/null
@@ -1,34 +0,0 @@
-[build-system]
-requires = ["setuptools"]
-build-backend = "setuptools.build_meta"
-
-
-[project]
-name = "generate-test-vars"
-description = "vars generate"
-dynamic = ["version"]
-scripts = { generate-test-vars = "generate_test_vars.cli:main" }
-
-[project.urls]
-Homepage = "https://clan.lol/"
-Documentation = "https://docs.clan.lol/"
-Repository = "https://git.clan.lol/clan/clan-core"
-
-[tool.setuptools.packages.find]
-exclude = ["result", "**/__pycache__"]
-
-[tool.pytest.ini_options]
-testpaths = "tests"
-faulthandler_timeout = 60
-log_level = "DEBUG"
-log_format = "%(levelname)s: %(message)s\n       %(pathname)s:%(lineno)d::%(funcName)s"
-addopts = "--durations 5 --color=yes --new-first" # Add --pdb for debugging
-norecursedirs = "tests/helpers"
-
-[tool.mypy]
-python_version = "3.13"
-warn_redundant_casts = true
-disallow_untyped_calls = true
-disallow_untyped_defs = true
-no_implicit_optional = true
-
diff --git a/pkgs/generate-test-vars/shell.nix b/pkgs/generate-test-vars/shell.nix
deleted file mode 100644
index 903dd3ed5..000000000
--- a/pkgs/generate-test-vars/shell.nix
+++ /dev/null
@@ -1,7 +0,0 @@
-{ pkgs, generate-test-vars }:
-pkgs.mkShell {
-  inputsFrom = [
-    generate-test-vars
-  ];
-  # packages = with pkgs; [ python3 ];
-}
diff --git a/pkgs/generate-test-vars/test/vars.nix b/pkgs/generate-test-vars/test/vars.nix
deleted file mode 100644
index 48d1d063f..000000000
--- a/pkgs/generate-test-vars/test/vars.nix
+++ /dev/null
@@ -1,21 +0,0 @@
-# Test that we can generate vars
-{
-  vars.generators = {
-    test_generator_1 = {
-      files.hello = {
-        secret = false;
-      };
-      script = ''
-        echo "hello world 1" > $out/hello
-      '';
-    };
-    test_generator_2 = {
-      files.hello = {
-        secret = false;
-      };
-      script = ''
-        echo "hello world 2" > $out/hello
-      '';
-    };
-  };
-}