diff --git a/doc/neotest.txt b/doc/neotest.txt
index 9ef95f81..2b8cc33d 100644
--- a/doc/neotest.txt
+++ b/doc/neotest.txt
@@ -104,6 +104,7 @@ Default values:
     jump = {
       enabled = true
     },
+    log_level = 3,
     output = {
       enabled = true,
       open_on_run = "short"
@@ -173,6 +174,7 @@ Fields~
 Class~
 {neotest.Config:} neotest.CoreConfig
 Fields~
+{log_level} `(number)` Minimum log levels, one of vim.log.levels
 {consumers} `(table<string, neotest.Consumer>)`
 {icons} `(table<string, string>)`
 {highlights} `(table<string, string>)`
@@ -181,13 +183,18 @@ Fields~
 {summary} neotest.Config.summary
 {output} neotest.Config.output
 {status} neotest.Config.status
-{projects} `(table<string, neotest.CoreConfig>)` Project specific settings, keys are project root directories (e.g "~/Dev/my_project")
+{projects} `(table<string, neotest.CoreConfig>)` Project specific settings, keys 
+are project root directories (e.g "~/Dev/my_project")
 
 Class~
 {neotest.Config.discovery}
 Fields~
 {enabled} `(boolean)`
-{concurrent} `(integer)` Number of workers to parse files concurrently. 0 automatically assigns number based on CPU. Set to 1 if experiencing lag.
+{concurrent} `(integer)` Number of workers to parse files concurrently. 0 
+automatically assigns number based on CPU. Set to 1 if experiencing lag.
+{filter_dir} `(nil)` | fun(name: string, rel_path: string, root: string): boolean 
+A function to filter directories when searching for test files. Receives the name, 
+path relative to project root and project root path
 
 Class~
 {neotest.Config.running}
diff --git a/lua/neotest/client/init.lua b/lua/neotest/client/init.lua
index 8f7dd8e1..34b0a868 100644
--- a/lua/neotest/client/init.lua
+++ b/lua/neotest/client/init.lua
@@ -244,7 +244,11 @@ function NeotestClient:_update_positions(path, args)
         end
       end
       logger.info("Searching", path, "for test files")
-      local files = lib.func_util.filter_list(adapter.is_test_file, lib.files.find(path))
+      local root_path = existing_root and existing_root:data().path or path
+      local files = lib.func_util.filter_list(
+        adapter.is_test_file,
+        lib.files.find(path, { filter_dir = config.projects[root_path].discovery.filter_dir })
+      )
       local positions = lib.files.parse_dir_from_files(path, files)
       logger.debug("Found", positions)
       self._state:update_positions(adapter_id, positions)
diff --git a/lua/neotest/config/init.lua b/lua/neotest/config/init.lua
index 7b60c96b..493a91df 100644
--- a/lua/neotest/config/init.lua
+++ b/lua/neotest/config/init.lua
@@ -42,11 +42,16 @@ define_highlights()
 ---@field summary neotest.Config.summary
 ---@field output neotest.Config.output
 ---@field status neotest.Config.status
----@field projects table<string, neotest.CoreConfig> Project specific settings, keys are project root directories (e.g "~/Dev/my_project")
+---@field projects table<string, neotest.CoreConfig> Project specific settings, keys
+--- are project root directories (e.g "~/Dev/my_project")
 
 ---@class neotest.Config.discovery
 ---@field enabled boolean
----@field concurrent integer Number of workers to parse files concurrently. 0 automatically assigns number based on CPU. Set to 1 if experiencing lag.
+---@field concurrent integer Number of workers to parse files concurrently. 0
+--- automatically assigns number based on CPU. Set to 1 if experiencing lag.
+---@field filter_dir nil | fun(name: string, rel_path: string, root: string): boolean
+--- A function to filter directories when searching for test files. Receives the name,
+--- path relative to project root and project root path
 
 ---@class neotest.Config.running
 ---@field concurrent boolean Run tests concurrently when an adapter provides multiple commands to run
@@ -104,6 +109,7 @@ local default_config = {
   discovery = {
     enabled = true,
     concurrent = 0,
+    filter_dir = nil,
   },
   running = {
     concurrent = true,
diff --git a/lua/neotest/lib/file/find.lua b/lua/neotest/lib/file/find.lua
index 1b01a174..77fe4d90 100644
--- a/lua/neotest/lib/file/find.lua
+++ b/lua/neotest/lib/file/find.lua
@@ -4,29 +4,35 @@ local M = {}
 --- Find all files under the given directory.
 --- Does not search hidden directories.
 ---@async
----@param dir_path string
+---@param root string
 ---@return string[] @Absolute paths of all files within directories to search
-function M.find(dir_path)
+function M.find(root, opts)
+  opts = opts or {}
+  local filter_dir = opts.filter_dir
   local sep = require("neotest.lib").files.sep
-  local dirs_to_scan = { dir_path }
+  local dirs_to_scan = {}
 
   local paths = {}
-  local dir, dir_handle
+  local dir, dir_handle = "", uv.fs_scandir(root)
   while dir_handle or #dirs_to_scan > 0 do
     if not dir_handle then
       dir = table.remove(dirs_to_scan, 1)
       dir_handle = uv.fs_scandir(dir)
     end
 
-    local next_path, path_type = uv.fs_scandir_next(dir_handle)
+    local name, path_type = uv.fs_scandir_next(dir_handle)
+    local rel_path = name and (dir == "" and name or (dir .. sep .. name))
 
-    if not next_path then
+    if not name then
       dir_handle = nil
-    elseif path_type == "directory" and next_path:sub(1, 1) ~= "." then
-      local i = #dirs_to_scan + 1
-      dirs_to_scan[i] = dir .. sep .. next_path
+    elseif
+      path_type == "directory"
+      and name:sub(1, 1) ~= "."
+      and (not filter_dir or filter_dir(name, rel_path, root))
+    then
+      dirs_to_scan[#dirs_to_scan + 1] = rel_path
     elseif path_type == "file" then
-      paths[#paths + 1] = dir .. sep .. next_path
+      paths[#paths + 1] = (root .. sep .. rel_path)
     end
   end
   return paths