diff --git a/configure.ac b/configure.ac
index 6b057ba46..b1dc2fc06 100644
--- a/configure.ac
+++ b/configure.ac
@@ -126,6 +126,17 @@ AC_ARG_ENABLE([build_toolbox],
 
 AM_CONDITIONAL([ENABLE_BUILD_TOOLBOX], [test x$build_toolbox = xtrue])
 
+# enable installation of matlab tests
+AC_ARG_ENABLE([install_matlab_tests],
+     [  --enable-install-matlab-tests    Enable installation of tests for the Matlab toolbox],
+     [case "${enableval}" in
+       yes) install_matlab_tests=true ;;
+       no)  install_matlab_tests=false ;;
+       *) AC_MSG_ERROR([bad value ${enableval} for --enable-install-matlab-tests]) ;;
+     esac],[install_matlab_tests=true])
+
+AM_CONDITIONAL([ENABLE_INSTALL_MATLAB_TESTS], [test x$install_matlab_tests = xtrue])
+
 # Matlab toolbox: optional flag to change location of toolbox, defaults to install prefix
 AC_ARG_WITH([toolbox],
             [AS_HELP_STRING([--with-toolbox],
diff --git a/wrap/Makefile.am b/wrap/Makefile.am
index 895830537..c32a9cc5f 100644
--- a/wrap/Makefile.am
+++ b/wrap/Makefile.am
@@ -57,9 +57,17 @@ all:
 	./wrap ${interfacePath} ${moduleName} ${toolboxpath} ${nameSpace} ${mexFlags}
 	
 # install the headers and matlab toolbox
+if ENABLE_INSTALL_MATLAB_TESTS
 install-exec-hook: all
 	install -d ${toolbox}/gtsam && \
-	cp -rf ../toolbox/* ${toolbox}/gtsam
+	cp -rf ../toolbox/* ${toolbox}/gtsam && \
+	mkdir -p ${toolbox}/gtsam/tests && \
+	cp -rf ../../tests/matlab/*.m ${toolbox}/gtsam/tests
+else
+install-exec-hook: all
+	install -d ${toolbox}/gtsam && \
+	cp -rf ../toolbox/* ${toolbox}/gtsam/tests
+endif
 
 # clean local toolbox dir
 clean: