diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/publish/gitlabMergeRequest.test.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/publish/gitlabMergeRequest.test.ts
index 889b8b862c..7fe01921d1 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/publish/gitlabMergeRequest.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/publish/gitlabMergeRequest.test.ts
@@ -79,20 +79,6 @@ jest.mock('@gitbeaker/node', () => ({
   },
 }));
 
-jest.mock('globby', () =>
-  jest.fn(async (_: any) => {
-    return ['foo/bar5'];
-  }),
-);
-
-jest.mock('fs-extra', () => {
-  return {
-    readFile: jest.fn(async (_: any) => {
-      return Buffer.from('some content');
-    }),
-  };
-});
-
 describe('createGitLabMergeRequest', () => {
   let instance: TemplateAction<any>;
 
@@ -129,6 +115,7 @@ describe('createGitLabMergeRequest', () => {
         branchName: 'new-mr',
         description: 'This MR is really good',
         draft: true,
+        targetPath: 'Subdirectory',
       };
       mockFs({
         [workspacePath]: {
@@ -147,7 +134,7 @@ describe('createGitLabMergeRequest', () => {
       await instance.handler(ctx);
 
       expect(mockGitlabClient.MergeRequests.create).toHaveBeenCalledWith(
-        undefined,
+        'owner/repo',
         'new-mr',
         'main',
         'Create my new MR',
@@ -165,6 +152,7 @@ describe('createGitLabMergeRequest', () => {
         description: 'MR description',
         removeSourceBranch: true,
         draft: true,
+        targetPath: 'Subdirectory',
       };
       mockFs({
         [workspacePath]: {
@@ -184,7 +172,7 @@ describe('createGitLabMergeRequest', () => {
       await instance.handler(ctx);
 
       expect(mockGitlabClient.MergeRequests.create).toHaveBeenCalledWith(
-        undefined,
+        'owner/repo',
         'new-mr',
         'main',
         'Create my new MR',
@@ -200,6 +188,7 @@ describe('createGitLabMergeRequest', () => {
         description: 'other MR description',
         removeSourceBranch: false,
         draft: true,
+        targetPath: 'Subdirectory',
       };
       mockFs({
         [workspacePath]: {
@@ -219,7 +208,7 @@ describe('createGitLabMergeRequest', () => {
       await instance.handler(ctx);
 
       expect(mockGitlabClient.MergeRequests.create).toHaveBeenCalledWith(
-        undefined,
+        'owner/repo',
         'new-mr',
         'main',
         'Create my new MR',
@@ -230,165 +219,4 @@ describe('createGitLabMergeRequest', () => {
       );
     });
   });
-
-  describe('createGitLabMergeRequestWithoutGitlabAction', () => {
-    it('gitlabAction is create by default when not passed in options', async () => {
-      const input = {
-        repoUrl: 'gitlab.com?repo=repo&owner=owner',
-        title: 'Create my new MR',
-        branchName: 'new-mr',
-        description: 'This MR is really good',
-        draft: true,
-      };
-      mockFs({
-        [workspacePath]: {
-          source: { 'foo.txt': 'Hello there!' },
-          irrelevant: { 'bar.txt': 'Nothing to see here' },
-        },
-      });
-      const ctx = {
-        createTemporaryDirectory: jest.fn(),
-        output: jest.fn(),
-        logger: getRootLogger(),
-        logStream: new Writable(),
-        input,
-        workspacePath,
-      };
-      await instance.handler(ctx);
-
-      expect(mockGitlabClient.Commits.create).toHaveBeenCalledWith(
-        undefined,
-        'new-mr',
-        'Create my new MR',
-        [
-          {
-            action: 'create',
-            filePath: 'foo/bar5',
-            content: 'some content',
-          },
-        ],
-      );
-    });
-  });
-
-  describe('createGitLabMergeRequestWithGitlabAction', () => {
-    it('gitlabAction is create when create is passed in options', async () => {
-      const input = {
-        repoUrl: 'gitlab.com?repo=repo&owner=owner',
-        title: 'Create my new MR',
-        branchName: 'new-mr',
-        description: 'MR description',
-        gitlabAction: 'create',
-        draft: true,
-      };
-      mockFs({
-        [workspacePath]: {
-          source: { 'foo.txt': 'Hello there!' },
-          irrelevant: { 'bar.txt': 'Nothing to see here' },
-        },
-      });
-
-      const ctx = {
-        createTemporaryDirectory: jest.fn(),
-        output: jest.fn(),
-        logger: getRootLogger(),
-        logStream: new Writable(),
-        input,
-        workspacePath,
-      };
-      await instance.handler(ctx);
-
-      expect(mockGitlabClient.Commits.create).toHaveBeenCalledWith(
-        undefined,
-        'new-mr',
-        'Create my new MR',
-        [
-          {
-            action: 'create',
-            filePath: 'foo/bar5',
-            content: 'some content',
-          },
-        ],
-      );
-    });
-
-    it('gitlabAction is update when update is passed in options', async () => {
-      const input = {
-        repoUrl: 'gitlab.com?repo=repo&owner=owner',
-        title: 'Create my new MR',
-        branchName: 'new-mr',
-        description: 'MR description',
-        gitlabAction: 'update',
-        draft: true,
-      };
-      mockFs({
-        [workspacePath]: {
-          source: { 'foo.txt': 'Hello there!' },
-          irrelevant: { 'bar.txt': 'Nothing to see here' },
-        },
-      });
-
-      const ctx = {
-        createTemporaryDirectory: jest.fn(),
-        output: jest.fn(),
-        logger: getRootLogger(),
-        logStream: new Writable(),
-        input,
-        workspacePath,
-      };
-      await instance.handler(ctx);
-
-      expect(mockGitlabClient.Commits.create).toHaveBeenCalledWith(
-        undefined,
-        'new-mr',
-        'Create my new MR',
-        [
-          {
-            action: 'update',
-            filePath: 'foo/bar5',
-            content: 'some content',
-          },
-        ],
-      );
-    });
-
-    it('gitlabAction is delete when delete is passed in options', async () => {
-      const input = {
-        repoUrl: 'gitlab.com?repo=repo&owner=owner',
-        title: 'Create my new MR',
-        branchName: 'new-mr',
-        description: 'other MR description',
-        gitlabAction: 'delete',
-        draft: true,
-      };
-      mockFs({
-        [workspacePath]: {
-          source: { 'foo.txt': 'Hello there!' },
-          irrelevant: { 'bar.txt': 'Nothing to see here' },
-        },
-      });
-
-      const ctx = {
-        createTemporaryDirectory: jest.fn(),
-        output: jest.fn(),
-        logger: getRootLogger(),
-        logStream: new Writable(),
-        input,
-        workspacePath,
-      };
-      await instance.handler(ctx);
-
-      expect(mockGitlabClient.Commits.create).toHaveBeenCalledWith(
-        undefined,
-        'new-mr',
-        'Create my new MR',
-        [
-          {
-            action: 'delete',
-            filePath: 'foo/bar5',
-          },
-        ],
-      );
-    });
-  });
 });