diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index e5cae2e..5fd1f2f 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -6,6 +6,10 @@ on:
   pull_request:
     branches: '*'
 
+defaults:
+  run:
+    shell: bash -l {0}
+
 jobs:
   build:
     runs-on: ubuntu-latest
@@ -103,17 +107,26 @@ jobs:
       with:
         name: extension-artifacts
 
+    - name: Install Conda environment with Micromamba
+      uses: mamba-org/setup-micromamba@v1
+      with:
+        environment-name: test-env
+        create-args: >-
+          pip
+
     - name: Install the extension
       run: |
         set -eux
-        python -m pip install "jupyterlab>=4.0.0,<5" jupyterlite_xeus*.whl
+        python -m pip install "jupyterlab>=4.0.0,<5" jupyterlite jupyterlite_xeus*.whl
 
     - name: Install dependencies
       working-directory: ui-tests
       env:
         YARN_ENABLE_IMMUTABLE_INSTALLS: 0
         PLAYWRIGHT_SKIP_BROWSER_DOWNLOAD: 1
-      run: jlpm install
+      run: |
+        jlpm install
+        jlpm run build
 
     - name: Set up browser cache
       uses: actions/cache@v3
diff --git a/.github/workflows/update-integration-tests.yml b/.github/workflows/update-integration-tests.yml
index 7ea5a66..c0508e7 100644
--- a/.github/workflows/update-integration-tests.yml
+++ b/.github/workflows/update-integration-tests.yml
@@ -42,6 +42,12 @@ jobs:
           jlpm
           python -m pip install .
 
+      - name: Install ui-tests
+        run: |
+          jlpm
+          jlpm run build
+        working-directory: ui-tests
+
       - uses: jupyterlab/maintainer-tools/.github/actions/update-snapshots@v1
         with:
           github_token: ${{ secrets.GITHUB_TOKEN }}
diff --git a/.gitignore b/.gitignore
index df4d4f4..c080c6f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -124,8 +124,9 @@ dmypy.json
 # Yarn cache
 .yarn/
 
-
-
 # experiments
 experiment.sh
-env.yml
\ No newline at end of file
+env.yml
+
+# Jupyterlite cache
+.jupyterlite.doit.db
diff --git a/environment-dev.yaml b/environment-dev.yaml
index 5c819f5..da603fe 100644
--- a/environment-dev.yaml
+++ b/environment-dev.yaml
@@ -4,7 +4,7 @@ channels:
 dependencies:
   - black
   - build
-  - empack >=3.3 
+  - empack >=3.3
   - hatch-jupyter-builder
   - hatch-nodejs-version
   - jupyterlab >=4.0
@@ -18,4 +18,4 @@ dependencies:
   - ruff
   - traitlets
   - typer
-  - yarn
\ No newline at end of file
+  - yarn
diff --git a/ui-tests/build.py b/ui-tests/build.py
new file mode 100644
index 0000000..780e0aa
--- /dev/null
+++ b/ui-tests/build.py
@@ -0,0 +1,13 @@
+from pathlib import Path
+from subprocess import run
+
+import jupyterlab
+
+extra_labextensions_path = str(Path(jupyterlab.__file__).parent / "galata")
+cmd = f"jupyter lite build --FederatedExtensionAddon.extra_labextensions_path={extra_labextensions_path}"
+
+run(
+    cmd,
+    check=True,
+    shell=True,
+)
diff --git a/ui-tests/environment.yml b/ui-tests/environment.yml
new file mode 100644
index 0000000..dd8cf5d
--- /dev/null
+++ b/ui-tests/environment.yml
@@ -0,0 +1,9 @@
+name: jupyterlite-xeus-tests
+channels:
+  - https://repo.mamba.pm/emscripten-forge
+  - https://repo.mamba.pm/conda-forge
+dependencies:
+  - xeus-python
+  - xeus-lua
+  - pandas
+  - bqplot
diff --git a/ui-tests/jupyter-lite.json b/ui-tests/jupyter-lite.json
new file mode 100644
index 0000000..6d73c21
--- /dev/null
+++ b/ui-tests/jupyter-lite.json
@@ -0,0 +1,7 @@
+{
+  "jupyter-lite-schema-version": 0,
+  "jupyter-config-data": {
+    "appName": "JupyterLite UI Tests",
+    "exposeAppInBrowser": true
+  }
+}
diff --git a/ui-tests/jupyter_lite_config.json b/ui-tests/jupyter_lite_config.json
new file mode 100644
index 0000000..11bf946
--- /dev/null
+++ b/ui-tests/jupyter_lite_config.json
@@ -0,0 +1,5 @@
+{
+  "LiteBuildConfig": {
+    "output_dir": "dist"
+  }
+}
diff --git a/ui-tests/jupyter_server_test_config.py b/ui-tests/jupyter_server_test_config.py
deleted file mode 100644
index f2a9478..0000000
--- a/ui-tests/jupyter_server_test_config.py
+++ /dev/null
@@ -1,12 +0,0 @@
-"""Server configuration for integration tests.
-
-!! Never use this configuration in production because it
-opens the server to the world and provide access to JupyterLab
-JavaScript objects through the global window variable.
-"""
-from jupyterlab.galata import configure_jupyter_server
-
-configure_jupyter_server(c)
-
-# Uncomment to set server log level to debug level
-# c.ServerApp.log_level = "DEBUG"
diff --git a/ui-tests/package.json b/ui-tests/package.json
index 0b09167..dc00b9a 100644
--- a/ui-tests/package.json
+++ b/ui-tests/package.json
@@ -4,12 +4,20 @@
   "description": "JupyterLab @jupyterlite/xeus Integration Tests",
   "private": true,
   "scripts": {
-    "start": "jupyter lab --config jupyter_server_test_config.py",
-    "test": "jlpm playwright test",
-    "test:update": "jlpm playwright test --update-snapshots"
+    "build": "yarn run clean && python build.py",
+    "clean": "rimraf dist",
+    "start": "cd dist && python -m http.server -b 127.0.0.1 8000",
+    "start:detached": "yarn run start&",
+    "test": "playwright test",
+    "test:debug": "PWDEBUG=1 playwright test",
+    "test:report": "http-server ./playwright-report -a localhost -o",
+    "test:update": "playwright test --update-snapshots"
   },
   "devDependencies": {
-    "@jupyterlab/galata": "^5.0.5",
-    "@playwright/test": "^1.37.0"
+    "@playwright/test": "^1.37.0",
+    "rimraf": "^5.0.5"
+  },
+  "dependencies": {
+    "@jupyterlab/galata": "~5.0.5"
   }
 }
diff --git a/ui-tests/playwright.config.js b/ui-tests/playwright.config.js
index 9ece6fa..e6f28f9 100644
--- a/ui-tests/playwright.config.js
+++ b/ui-tests/playwright.config.js
@@ -1,14 +1,28 @@
-/**
- * Configuration for Playwright using default from @jupyterlab/galata
- */
 const baseConfig = require('@jupyterlab/galata/lib/playwright-config');
 
 module.exports = {
   ...baseConfig,
-  webServer: {
-    command: 'jlpm start',
-    url: 'http://localhost:8888/lab',
-    timeout: 120 * 1000,
-    reuseExistingServer: !process.env.CI
-  }
+  reporter: [[process.env.CI ? 'dot' : 'list'], ['html']],
+  use: {
+    acceptDownloads: true,
+    appPath: '',
+    autoGoto: false,
+    baseURL: 'http://localhost:8000',
+    trace: 'on-first-retry',
+    video: 'retain-on-failure'
+  },
+  retries: 1,
+  expect: {
+    toMatchSnapshot: {
+      maxDiffPixelRatio: 0.05
+    }
+  },
+  webServer: [
+    {
+      command: 'yarn start',
+      port: 8000,
+      timeout: 120 * 1000,
+      reuseExistingServer: true
+    }
+  ]
 };
diff --git a/ui-tests/tests/jupyterlite_xeus.spec.ts b/ui-tests/tests/jupyterlite_xeus.spec.ts
index bef0b61..cc58405 100644
--- a/ui-tests/tests/jupyterlite_xeus.spec.ts
+++ b/ui-tests/tests/jupyterlite_xeus.spec.ts
@@ -1,19 +1,46 @@
-import { expect, test } from '@jupyterlab/galata';
+import { test } from '@jupyterlab/galata';
 
-/**
- * Don't load JupyterLab webpage before running the tests.
- * This is required to ensure we capture all log messages.
- */
-test.use({ autoGoto: false });
+import { expect } from '@playwright/test';
 
-test('should emit an activation console message', async ({ page }) => {
-  const logs: string[] = [];
+test.describe('General Tests', () => {
+  test.beforeEach(({ page }) => {
+    page.setDefaultTimeout(600000);
 
-  page.on('console', message => {
-    logs.push(message.text());
+    page.on('console', message => {
+      console.log('CONSOLE MSG ---', message.text());
+    });
   });
 
-  await page.goto();
+  test('Launcher should contain xeus-python and xeus-lua kernels', async ({
+    page
+  }) => {
+    await page.goto('lab/index.html');
 
-  expect(1).toEqual(1);
+    expect(await page.screenshot()).toMatchSnapshot(
+      'jupyter-xeus-launcher.png'
+    );
+  });
+
+  test('xeus-python should execute some code', async ({ page }) => {
+    await page.goto('lab/index.html');
+
+    // Launch a Python notebook
+    const xpython = page.locator('[title="Python 3.12 (XPython)"]').first();
+    await xpython.click();
+
+    // Wait for kernel to be idle
+    await page.locator('#jp-main-statusbar').getByText('Idle').waitFor();
+
+    await page.notebook.addCell('code', 'import bqplot; print("ok")');
+    await page.notebook.runCell(1);
+
+    // Wait for kernel to be idle
+    await page.locator('#jp-main-statusbar').getByText('Idle').waitFor();
+
+    const cell = await page.notebook.getCellOutput(1);
+
+    expect(await cell?.screenshot()).toMatchSnapshot(
+      'jupyter-xeus-execute.png'
+    );
+  });
 });
diff --git a/ui-tests/tests/jupyterlite_xeus.spec.ts-snapshots/jupyter-xeus-launcher-linux.png b/ui-tests/tests/jupyterlite_xeus.spec.ts-snapshots/jupyter-xeus-launcher-linux.png
new file mode 100644
index 0000000..e18b914
Binary files /dev/null and b/ui-tests/tests/jupyterlite_xeus.spec.ts-snapshots/jupyter-xeus-launcher-linux.png differ
diff --git a/ui-tests/yarn.lock b/ui-tests/yarn.lock
index 2ecba77..ea63c1c 100644
--- a/ui-tests/yarn.lock
+++ b/ui-tests/yarn.lock
@@ -665,7 +665,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@jupyterlab/galata@npm:^5.0.5":
+"@jupyterlab/galata@npm:~5.0.5":
   version: 5.0.10
   resolution: "@jupyterlab/galata@npm:5.0.10"
   dependencies:
@@ -957,8 +957,9 @@ __metadata:
   version: 0.0.0-use.local
   resolution: "@jupyterlite/xeus-ui-tests@workspace:."
   dependencies:
-    "@jupyterlab/galata": ^5.0.5
+    "@jupyterlab/galata": ~5.0.5
     "@playwright/test": ^1.37.0
+    rimraf: ^5.0.5
   languageName: unknown
   linkType: soft
 
@@ -2425,7 +2426,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"glob@npm:^10.2.2, glob@npm:^10.3.10":
+"glob@npm:^10.2.2, glob@npm:^10.3.10, glob@npm:^10.3.7":
   version: 10.3.10
   resolution: "glob@npm:10.3.10"
   dependencies:
@@ -3199,6 +3200,17 @@ __metadata:
   languageName: node
   linkType: hard
 
+"rimraf@npm:^5.0.5":
+  version: 5.0.5
+  resolution: "rimraf@npm:5.0.5"
+  dependencies:
+    glob: ^10.3.7
+  bin:
+    rimraf: dist/esm/bin.mjs
+  checksum: d66eef829b2e23b16445f34e73d75c7b7cf4cbc8834b04720def1c8f298eb0753c3d76df77325fad79d0a2c60470525d95f89c2475283ad985fd7441c32732d1
+  languageName: node
+  linkType: hard
+
 "robust-predicates@npm:^3.0.0":
   version: 3.0.2
   resolution: "robust-predicates@npm:3.0.2"