diff --git a/nixos/tests/all-tests.nix b/nixos/tests/all-tests.nix
index 0934c25ff9d6..753cefb9bbe0 100644
--- a/nixos/tests/all-tests.nix
+++ b/nixos/tests/all-tests.nix
@@ -700,7 +700,7 @@ in {
   nixos-generate-config = handleTest ./nixos-generate-config.nix {};
   nixos-rebuild-install-bootloader = handleTestOn ["x86_64-linux"] ./nixos-rebuild-install-bootloader.nix {};
   nixos-rebuild-specialisations = handleTestOn ["x86_64-linux"] ./nixos-rebuild-specialisations.nix {};
-  nixos-rebuild-target-host = handleTest ./nixos-rebuild-target-host.nix {};
+  nixos-rebuild-target-host = runTest ./nixos-rebuild-target-host.nix;
   nixpkgs = pkgs.callPackage ../modules/misc/nixpkgs/test.nix { inherit evalMinimalConfig; };
   nixseparatedebuginfod = handleTest ./nixseparatedebuginfod.nix {};
   node-red = handleTest ./node-red.nix {};
diff --git a/nixos/tests/nixos-rebuild-target-host.nix b/nixos/tests/nixos-rebuild-target-host.nix
index 4a210f94fd22..88a0317656d2 100644
--- a/nixos/tests/nixos-rebuild-target-host.nix
+++ b/nixos/tests/nixos-rebuild-target-host.nix
@@ -1,8 +1,12 @@
-import ./make-test-python.nix ({ pkgs, ... }: {
+{ hostPkgs, ... }: {
   name = "nixos-rebuild-target-host";
 
+  # TODO: remove overlay from  nixos/modules/profiles/installation-device.nix
+  #        make it a _small package instead, then remove pkgsReadOnly = false;.
+  node.pkgsReadOnly = false;
+
   nodes = {
-    deployer = { lib, ... }: let
+    deployer = { lib, pkgs, ... }: let
       inherit (import ./ssh-keys.nix pkgs) snakeOilPrivateKey snakeOilPublicKey;
     in {
       imports = [ ../modules/profiles/installation-device.nix ];
@@ -71,13 +75,13 @@ import ./make-test-python.nix ({ pkgs, ... }: {
         StrictHostKeyChecking=no
       '';
 
-      targetConfigJSON = pkgs.writeText "target-configuration.json"
+      targetConfigJSON = hostPkgs.writeText "target-configuration.json"
         (builtins.toJSON nodes.target.system.build.targetConfig);
 
-      targetNetworkJSON = pkgs.writeText "target-network.json"
+      targetNetworkJSON = hostPkgs.writeText "target-network.json"
         (builtins.toJSON nodes.target.system.build.networkConfig);
 
-      configFile = hostname: pkgs.writeText "configuration.nix" ''
+      configFile = hostname: hostPkgs.writeText "configuration.nix" ''
         { lib, modulesPath, ... }: {
           imports = [
             (modulesPath + "/virtualisation/qemu-vm.nix")
@@ -140,4 +144,4 @@ import ./make-test-python.nix ({ pkgs, ... }: {
         deployer.succeed(f"mkdir -p {tmp_dir}")
         deployer.succeed(f"TMPDIR={tmp_dir} nixos-rebuild switch -I nixos-config=/root/configuration-1.nix --target-host root@target &>/dev/console")
     '';
-})
+}