diff --git a/packages/repo-tools/package.json b/packages/repo-tools/package.json
index 657bbb4404..9b51d35922 100644
--- a/packages/repo-tools/package.json
+++ b/packages/repo-tools/package.json
@@ -44,7 +44,10 @@
     "ts-node": "^10.0.0"
   },
   "devDependencies": {
-    "@types/is-glob": "^4.0.2"
+    "@backstage/cli": "workspace:^",
+    "@types/is-glob": "^4.0.2",
+    "@types/mock-fs": "^4.13.0",
+    "mock-fs": "^5.1.0"
   },
   "files": [
     "bin",
diff --git a/packages/repo-tools/src/commands/api-reports/api-extractor.ts b/packages/repo-tools/src/commands/api-reports/api-extractor.ts
index d1e8d86240..b2fab40ca5 100644
--- a/packages/repo-tools/src/commands/api-reports/api-extractor.ts
+++ b/packages/repo-tools/src/commands/api-reports/api-extractor.ts
@@ -65,7 +65,7 @@ import {
 } from '@microsoft/api-documenter/lib/markdown/CustomMarkdownEmitter';
 import { IMarkdownEmitterContext } from '@microsoft/api-documenter/lib/markdown/MarkdownEmitter';
 import { AstDeclaration } from '@microsoft/api-extractor/lib/analyzer/AstDeclaration';
-import { paths as cliPaths } from '../../lib/paths';
+import { paths as cliPaths, resolvePackagePath } from '../../lib/paths';
 
 import g from 'glob';
 import isGlob from 'is-glob';
@@ -226,25 +226,6 @@ ApiReportGenerator.generateReviewFileContent =
     });
   };
 
-export async function resolvePackagePath(
-  packagePath: string,
-): Promise<string | undefined> {
-  const fullPackageDir = cliPaths.resolveTargetRoot(packagePath);
-
-  const stat = await fs.stat(fullPackageDir);
-  if (!stat.isDirectory()) {
-    return undefined;
-  }
-
-  try {
-    const packageJsonPath = join(fullPackageDir, 'package.json');
-    await fs.access(packageJsonPath);
-  } catch (_) {
-    return undefined;
-  }
-  return relativePath(cliPaths.targetRoot, fullPackageDir);
-}
-
 export async function findPackageDirs(selectedPaths: string[]) {
   const packageDirs = new Array<string>();
   for (const packageRoot of selectedPaths) {
diff --git a/packages/repo-tools/src/lib/paths.test.ts b/packages/repo-tools/src/lib/paths.test.ts
new file mode 100644
index 0000000000..90d84aec3c
--- /dev/null
+++ b/packages/repo-tools/src/lib/paths.test.ts
@@ -0,0 +1,66 @@
+/*
+ * Copyright 2022 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import mockFs from 'mock-fs';
+import { resolve as resolvePath } from 'path';
+import { resolvePackagePath, paths } from './paths';
+
+describe('paths', () => {
+  jest.spyOn(paths, 'targetRoot', 'get').mockReturnValue('/root');
+  jest.spyOn(paths, 'resolveTargetRoot').mockImplementation((...path) => {
+    return resolvePath('/root', ...path);
+  });
+
+  beforeEach(() => {
+    mockFs({
+      [paths.targetRoot]: {
+        'package.json': JSON.stringify({ name: 'test' }),
+        packages: {
+          'package-a': {
+            'package.json': '{}',
+          },
+          'package-b': {
+            'package.json': '{}',
+          },
+          'package-c': {},
+          'README.md': 'Hello World',
+        },
+      },
+    });
+  });
+
+  afterEach(() => {
+    mockFs.restore();
+  });
+
+  describe('resolvePackagePath', () => {
+    it('should return undefined if the package does not exist or does not contain a package.json', async () => {
+      expect(await resolvePackagePath('packages/package-d')).toBeUndefined();
+      expect(await resolvePackagePath('packages/package-c')).toBeUndefined();
+    });
+    it('should return the path to the package if it exists and has a package.json', async () => {
+      expect(await resolvePackagePath('packages/package-a')).toBe(
+        'packages/package-a',
+      );
+      expect(await resolvePackagePath('packages/package-b')).toBe(
+        'packages/package-b',
+      );
+    });
+    it('should return undefined if the pat is not a directory', async () => {
+      expect(await resolvePackagePath('packages/README.md')).toBeUndefined();
+    });
+  });
+});
diff --git a/packages/repo-tools/src/lib/paths.ts b/packages/repo-tools/src/lib/paths.ts
index 2c658c27b3..f387e9be51 100644
--- a/packages/repo-tools/src/lib/paths.ts
+++ b/packages/repo-tools/src/lib/paths.ts
@@ -15,6 +15,29 @@
  */
 
 import { findPaths } from '@backstage/cli-common';
+import { relative as relativePath, join } from 'path';
+import fs from 'fs-extra';
 
 /* eslint-disable-next-line no-restricted-syntax */
 export const paths = findPaths(__dirname);
+
+export async function resolvePackagePath(
+  packagePath: string,
+): Promise<string | undefined> {
+  const fullPackageDir = paths.resolveTargetRoot(packagePath);
+
+  try {
+    const stat = await fs.stat(fullPackageDir);
+    if (!stat.isDirectory()) {
+      return undefined;
+    }
+
+    const packageJsonPath = join(fullPackageDir, 'package.json');
+
+    await fs.access(packageJsonPath);
+  } catch (e) {
+    console.log(`folder omitted: ${fullPackageDir}, cause: ${e}`);
+    return undefined;
+  }
+  return relativePath(paths.targetRoot, fullPackageDir);
+}
diff --git a/yarn.lock b/yarn.lock
index c9a9d1daea..e92df381ca 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -8467,6 +8467,7 @@ __metadata:
   version: 0.0.0-use.local
   resolution: "@backstage/repo-tools@workspace:packages/repo-tools"
   dependencies:
+    "@backstage/cli": "workspace:^"
     "@backstage/cli-common": "workspace:^"
     "@backstage/errors": "workspace:^"
     "@manypkg/get-packages": ^1.1.3
@@ -8475,10 +8476,12 @@ __metadata:
     "@microsoft/api-extractor-model": ^7.17.2
     "@microsoft/tsdoc": 0.14.1
     "@types/is-glob": ^4.0.2
+    "@types/mock-fs": ^4.13.0
     chalk: ^4.0.0
     commander: ^9.1.0
     fs-extra: 10.1.0
     is-glob: ^4.0.3
+    mock-fs: ^5.1.0
     ts-node: ^10.0.0
   bin:
     backstage-repo-tools: bin/backstage-repo-tools