diff --git a/lms/djangoapps/courseware/tests/test_lti_integration.py b/lms/djangoapps/courseware/tests/test_lti_integration.py
index c9a8a5450712..bdaf1a13549b 100644
--- a/lms/djangoapps/courseware/tests/test_lti_integration.py
+++ b/lms/djangoapps/courseware/tests/test_lti_integration.py
@@ -1,14 +1,19 @@
 """LTI integration tests"""
 
 
+import importlib
 import json
+import re
 from collections import OrderedDict
 
 from unittest import mock
+from unittest.mock import patch
 import urllib
 import oauthlib
 from django.conf import settings
+from django.test import override_settings
 from django.urls import reverse
+from xblock import plugin
 
 from common.djangoapps.xblock_django.constants import ATTR_KEY_ANONYMOUS_USER_ID
 from lms.djangoapps.courseware.tests.helpers import BaseTestXmodule
@@ -16,9 +21,11 @@
 from openedx.core.lib.url_utils import quote_slashes
 from xmodule.modulestore.tests.django_utils import SharedModuleStoreTestCase  # lint-amnesty, pylint: disable=wrong-import-order
 from xmodule.modulestore.tests.factories import CourseFactory, BlockFactory  # lint-amnesty, pylint: disable=wrong-import-order
+from xmodule.tests.helpers import mock_render_template
+from xmodule import lti_block
 
 
-class TestLTI(BaseTestXmodule):
+class _TestLTIBase(BaseTestXmodule):
     """
     Integration test for lti xmodule.
 
@@ -26,8 +33,15 @@ class TestLTI(BaseTestXmodule):
     As part of that, checks oauth signature generation by mocking signing function
     of `oauthlib` library.
     """
+    __test__ = False
     CATEGORY = "lti"
 
+    @classmethod
+    def setUpClass(cls):
+        super().setUpClass()
+        plugin.PLUGIN_CACHE = {}
+        importlib.reload(lti_block)
+
     def setUp(self):
         """
         Mock oauth1 signing of requests library for testing.
@@ -115,21 +129,37 @@ def mocked_sign(self, *args, **kwargs):
         patcher.start()
         self.addCleanup(patcher.stop)
 
-    def test_lti_constructor(self):
+    @patch('xblock.utils.resources.ResourceLoader.render_django_template', side_effect=mock_render_template)
+    def test_lti_constructor(self, mock_render_django_template):
         generated_content = self.block.student_view(None).content
-        expected_content = self.runtime.render_template('lti.html', self.expected_context)
+
+        if settings.USE_EXTRACTED_LTI_BLOCK:
+            # Remove i18n service from the extracted LTI Block's rendered `student_view` content
+            generated_content = re.sub(r"\{.*?}", "{}", generated_content)
+            expected_content = self.runtime.render_template('templates/lti.html', self.expected_context)
+            mock_render_django_template.assert_called_once()
+        else:
+            expected_content = self.runtime.render_template('lti.html', self.expected_context)
         assert generated_content == expected_content
 
-    def test_lti_preview_handler(self):
+    @patch('xblock.utils.resources.ResourceLoader.render_django_template', side_effect=mock_render_template)
+    def test_lti_preview_handler(self, mock_render_django_template):
         generated_content = self.block.preview_handler(None, None).body
-        expected_content = self.runtime.render_template('lti_form.html', self.expected_context)
+
+        if settings.USE_EXTRACTED_LTI_BLOCK:
+            expected_content = self.runtime.render_template('templates/lti_form.html', self.expected_context)
+            mock_render_django_template.assert_called_once()
+        else:
+            expected_content = self.runtime.render_template('lti_form.html', self.expected_context)
         assert generated_content.decode('utf-8') == expected_content
 
 
-class TestLTIBlockListing(SharedModuleStoreTestCase):
+class _TestLTIBlockListingBase(SharedModuleStoreTestCase):
     """
     a test for the rest endpoint that lists LTI blocks in a course
     """
+
+    __test__ = False
     # arbitrary constant
     COURSE_SLUG = "100"
     COURSE_NAME = "test_course"
@@ -214,3 +244,23 @@ def test_lti_rest_non_get(self):
             request.method = method
             response = get_course_lti_endpoints(request, str(self.course.id))
             assert 405 == response.status_code
+
+
+@override_settings(USE_EXTRACTED_LTI_BLOCK=True)
+class TestLTIExtracted(_TestLTIBase):
+    __test__ = True
+
+
+@override_settings(USE_EXTRACTED_LTI_BLOCK=False)
+class TestLTIBuiltIn(_TestLTIBase):
+    __test__ = True
+
+
+@override_settings(USE_EXTRACTED_LTI_BLOCK=True)
+class TestLTIBlockListingExtracted(_TestLTIBlockListingBase):
+    __test__ = True
+
+
+@override_settings(USE_EXTRACTED_LTI_BLOCK=False)
+class TestLTIBlockListingBuiltIn(_TestLTIBlockListingBase):
+    __test__ = True
diff --git a/xmodule/lti_block.py b/xmodule/lti_block.py
index 2dfd258639fe..944b860f58b5 100644
--- a/xmodule/lti_block.py
+++ b/xmodule/lti_block.py
@@ -992,8 +992,17 @@ def is_past_due(self):
         return close_date is not None and datetime.datetime.now(ZoneInfo("UTC")) > close_date
 
 
-LTIBlock = (
-    _ExtractedLTIBlock if settings.USE_EXTRACTED_LTI_BLOCK
-    else _BuiltInLTIBlock
-)
+LTIBlock = None
+
+
+def reset_class():
+    """Reset class as per django settings flag"""
+    global LTIBlock
+    LTIBlock = (
+        _ExtractedLTIBlock if settings.USE_EXTRACTED_LTI_BLOCK
+        else _BuiltInLTIBlock
+    )
+    return LTIBlock
+
+reset_class()
 LTIBlock.__name__ = "LTIBlock"
diff --git a/xmodule/tests/test_lti20_unit.py b/xmodule/tests/test_lti20_unit.py
index 3d1ddb0c56b2..1734b938c453 100644
--- a/xmodule/tests/test_lti20_unit.py
+++ b/xmodule/tests/test_lti20_unit.py
@@ -3,25 +3,39 @@
 
 import datetime
 import textwrap
-import unittest
+from django.conf import settings
+from django.test import TestCase, override_settings
 from unittest.mock import Mock
 from zoneinfo import ZoneInfo
 
 from xblock.field_data import DictFieldData
 
-from xmodule.lti_2_util import LTIError
-from xmodule.lti_block import LTIBlock
+from xmodule import lti_block
 from xmodule.tests.helpers import StubUserService
 
 from . import get_test_system
 
 
-class LTI20RESTResultServiceTest(unittest.TestCase):
+from xmodule.lti_2_util import LTIError as BuiltInLTIError
+from xblocks_contrib.lti.lti_2_util import LTIError as ExtractedLTIError
+
+
+class _LTI20RESTResultServiceTestBase(TestCase):
     """Logic tests for LTI block. LTI2.0 REST ResultService"""
 
+    __test__ = False
     USER_STANDIN = Mock()
     USER_STANDIN.id = 999
 
+    @classmethod
+    def setUpClass(cls):
+        super().setUpClass()
+        cls.lti_class = lti_block.reset_class()
+        if settings.USE_EXTRACTED_LTI_BLOCK:
+            cls.LTIError = ExtractedLTIError
+        else:
+            cls.LTIError = BuiltInLTIError
+
     def setUp(self):
         super().setUp()
         self.runtime = get_test_system(user=self.USER_STANDIN)
@@ -29,7 +43,7 @@ def setUp(self):
         self.runtime.publish = Mock()
         self.runtime._services['rebind_user'] = Mock()  # pylint: disable=protected-access
 
-        self.xblock = LTIBlock(self.runtime, DictFieldData({}), Mock())
+        self.xblock = self.lti_class(self.runtime, DictFieldData({}), Mock())
         self.lti_id = self.xblock.lti_id
         self.xblock.due = None
         self.xblock.graceperiod = None
@@ -56,7 +70,7 @@ def test_lti20_rest_bad_contenttype(self):
         """
         Input with bad content type
         """
-        with self.assertRaisesRegex(LTIError, "Content-Type must be"):
+        with self.assertRaisesRegex(self.LTIError, "Content-Type must be"):
             request = Mock(headers={'Content-Type': 'Non-existent'})
             self.xblock.verify_lti_2_0_result_rest_headers(request)
 
@@ -65,8 +79,8 @@ def test_lti20_rest_failed_oauth_body_verify(self):
         Input with bad oauth body hash verification
         """
         err_msg = "OAuth body verification failed"
-        self.xblock.verify_oauth_body_sign = Mock(side_effect=LTIError(err_msg))
-        with self.assertRaisesRegex(LTIError, err_msg):
+        self.xblock.verify_oauth_body_sign = Mock(side_effect=self.LTIError(err_msg))
+        with self.assertRaisesRegex(self.LTIError, err_msg):
             request = Mock(headers={'Content-Type': 'application/vnd.ims.lis.v2.result+json'})
             self.xblock.verify_lti_2_0_result_rest_headers(request)
 
@@ -99,7 +113,7 @@ def test_lti20_rest_bad_dispatch(self):
         fit the form user/<anon_id>
         """
         for einput in self.BAD_DISPATCH_INPUTS:
-            with self.assertRaisesRegex(LTIError, "No valid user id found in endpoint URL"):
+            with self.assertRaisesRegex(self.LTIError, "No valid user id found in endpoint URL"):
                 self.xblock.parse_lti_2_0_handler_suffix(einput)
 
     GOOD_DISPATCH_INPUTS = [
@@ -160,7 +174,7 @@ def test_lti20_bad_json(self):
         """
         for error_inputs, error_message in self.BAD_JSON_INPUTS:
             for einput in error_inputs:
-                with self.assertRaisesRegex(LTIError, error_message):
+                with self.assertRaisesRegex(self.LTIError, error_message):
                     self.xblock.parse_lti_2_0_result_json(einput)
 
     GOOD_JSON_INPUTS = [
@@ -341,7 +355,7 @@ def test_lti20_request_handler_bad_headers(self):
         Test that we get a 401 when header verification fails
         """
         self.setup_system_xblock_mocks_for_lti20_request_test()
-        self.xblock.verify_lti_2_0_result_rest_headers = Mock(side_effect=LTIError())
+        self.xblock.verify_lti_2_0_result_rest_headers = Mock(side_effect=self.LTIError())
         mock_request = self.get_signed_lti20_mock_request(self.GOOD_JSON_PUT)
         response = self.xblock.lti_2_0_result_rest_handler(mock_request, "user/abcd")
         assert response.status_code == 401
@@ -360,7 +374,7 @@ def test_lti20_request_handler_bad_json(self):
         Test that we get a 404 when json verification fails
         """
         self.setup_system_xblock_mocks_for_lti20_request_test()
-        self.xblock.parse_lti_2_0_result_json = Mock(side_effect=LTIError())
+        self.xblock.parse_lti_2_0_result_json = Mock(side_effect=self.LTIError())
         mock_request = self.get_signed_lti20_mock_request(self.GOOD_JSON_PUT)
         response = self.xblock.lti_2_0_result_rest_handler(mock_request, "user/abcd")
         assert response.status_code == 404
@@ -385,3 +399,13 @@ def test_lti20_request_handler_grade_past_due(self):
         mock_request = self.get_signed_lti20_mock_request(self.GOOD_JSON_PUT)
         response = self.xblock.lti_2_0_result_rest_handler(mock_request, "user/abcd")
         assert response.status_code == 404
+
+
+@override_settings(USE_EXTRACTED_LTI_BLOCK=True)
+class TestLTI20RESTResultServiceWithExtracted(_LTI20RESTResultServiceTestBase):
+    __test__ = True
+
+
+@override_settings(USE_EXTRACTED_LTI_BLOCK=False)
+class TestLTI20RESTResultServiceWithBuiltIn(_LTI20RESTResultServiceTestBase):
+    __test__ = True
diff --git a/xmodule/tests/test_lti_unit.py b/xmodule/tests/test_lti_unit.py
index be314cab7221..316ff58f4384 100644
--- a/xmodule/tests/test_lti_unit.py
+++ b/xmodule/tests/test_lti_unit.py
@@ -21,17 +21,30 @@
 
 
 from common.djangoapps.xblock_django.constants import ATTR_KEY_ANONYMOUS_USER_ID
-from xmodule.lti_2_util import LTIError
-from xmodule.lti_block import LTIBlock
+from xmodule import lti_block
 from xmodule.tests.helpers import StubUserService
 
 from . import get_test_system
 
+from xmodule.lti_2_util import LTIError as BuiltInLTIError
+from xblocks_contrib.lti.lti_2_util import LTIError as ExtractedLTIError
+
 
 @override_settings(LMS_BASE="edx.org")
-class LTIBlockTest(TestCase):
+class _TestLTIBase(TestCase):
     """Logic tests for LTI block."""
 
+    __test__ = False
+
+    @classmethod
+    def setUpClass(cls):
+        super().setUpClass()
+        cls.lti_class = lti_block.reset_class()
+        if settings.USE_EXTRACTED_LTI_BLOCK:
+            cls.LTIError = ExtractedLTIError
+        else:
+            cls.LTIError = BuiltInLTIError
+
     def setUp(self):
         super().setUp()
         self.environ = {'wsgi.url_scheme': 'http', 'REQUEST_METHOD': 'POST'}
@@ -66,7 +79,7 @@ def setUp(self):
         self.runtime.publish = Mock()
         self.runtime._services['rebind_user'] = Mock()  # pylint: disable=protected-access
 
-        self.xblock = LTIBlock(
+        self.xblock = self.lti_class(
             self.runtime,
             DictFieldData({}),
             ScopeIds(None, None, None, BlockUsageLocator(self.course_id, 'lti', 'name'))
@@ -374,7 +387,7 @@ def test_bad_client_key_secret(self):
         runtime = Mock(modulestore=modulestore)
         self.xblock.runtime = runtime
         self.xblock.lti_id = 'lti_id'
-        with pytest.raises(LTIError):
+        with pytest.raises(self.LTIError):
             self.xblock.get_client_key_secret()
 
     @patch('xmodule.lti_block.signature.verify_hmac_sha1', Mock(return_value=True))
@@ -468,7 +481,7 @@ def test_failed_verify_oauth_body_sign(self):
         """
         Oauth signing verify fail.
         """
-        with pytest.raises(LTIError):
+        with pytest.raises(self.LTIError):
             req = self.get_signed_grade_mock_request()
             self.xblock.verify_oauth_body_sign(req)
 
@@ -523,7 +536,7 @@ def test_bad_custom_params(self):
         self.xblock.custom_parameters = bad_custom_params
         self.xblock.get_client_key_secret = Mock(return_value=('test_client_key', 'test_client_secret'))
         self.xblock.oauth_params = Mock()
-        with pytest.raises(LTIError):
+        with pytest.raises(self.LTIError):
             self.xblock.get_input_fields()
 
     def test_max_score(self):
@@ -541,3 +554,13 @@ def test_context_id(self):
         Tests that LTI parameter context_id is equal to course_id.
         """
         assert str(self.course_id) == self.xblock.context_id
+
+
+@override_settings(USE_EXTRACTED_LTI_BLOCK=True)
+class TestLTIExtracted(_TestLTIBase):
+    __test__ = True
+
+
+@override_settings(USE_EXTRACTED_LTI_BLOCK=False)
+class TestLTIBuiltIn(_TestLTIBase):
+    __test__ = True