diff --git a/.ci/azure/linux.yml b/.ci/azure/linux.yml
index dd5f5e038a4..832861f3d0d 100644
--- a/.ci/azure/linux.yml
+++ b/.ci/azure/linux.yml
@@ -366,8 +366,8 @@ jobs:
   - script: $(RUN_PREFIX) $(INSTALL_TEST_DIR)/ov_proxy_plugin_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-OVProxyTests.xml
     displayName: 'OV Proxy Plugin Tests'
 
-  - script: $(RUN_PREFIX) $(INSTALL_TEST_DIR)/ov_hetero_unit_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-OVHeteroUnitTests.xml
-    displayName: 'OV Hetero Unit Tests'
+  - script: $(RUN_PREFIX) $(INSTALL_TEST_DIR)/ov_hetero_func_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-OVHeteroFuncTests.xml
+    displayName: 'OV Hetero Func Tests'
 
   - script: $(RUN_PREFIX) $(INSTALL_TEST_DIR)/ov_conditional_compilation_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-ConditionalCompilation.xml
     displayName: 'Conditional Compilation Tests'
diff --git a/.ci/azure/linux_debian.yml b/.ci/azure/linux_debian.yml
index bffadaa2fb6..614d4b3caca 100644
--- a/.ci/azure/linux_debian.yml
+++ b/.ci/azure/linux_debian.yml
@@ -282,6 +282,12 @@ jobs:
       LD_LIBRARY_PATH: $(INSTALL_TEST_DIR)
     displayName: 'OV Proxy Tests'
 
+  - script: |
+      $(INSTALL_TEST_DIR)/ov_hetero_func_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-OVHeteroFuncTests.xml
+    env:
+      LD_LIBRARY_PATH: $(INSTALL_TEST_DIR)
+    displayName: 'OV Hetero Func Tests'
+
   - script: $(INSTALL_TEST_DIR)/ov_onnx_frontend_tests --gtest_print_time=1 --gtest_filter=-*IE_GPU* --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-ONNXFrontend.xml
     env:
       LD_LIBRARY_PATH: $(INSTALL_TEST_DIR)
diff --git a/.ci/azure/mac.yml b/.ci/azure/mac.yml
index 37965683bd5..efdc5594c5d 100644
--- a/.ci/azure/mac.yml
+++ b/.ci/azure/mac.yml
@@ -188,8 +188,8 @@ jobs:
     displayName: 'OV Proxy Plugin Tests'
     enabled: 'false'
 
-  - script: . $(SETUPVARS) && $(INSTALL_TEST_DIR)/ov_hetero_unit_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-OVHeteroUnitTests.xml
-    displayName: 'OV Hetero Unit Tests'
+  - script: . $(SETUPVARS) && $(INSTALL_TEST_DIR)/ov_hetero_func_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-OVHeteroFuncTests.xml
+    displayName: 'OV Hetero Func Tests'
     enabled: 'false'
 
   - script: . $(SETUPVARS) && $(INSTALL_TEST_DIR)/ov_ir_frontend_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)/TEST-IRFrontend.xml
diff --git a/.ci/azure/windows.yml b/.ci/azure/windows.yml
index 49a47a42e82..11477b66251 100644
--- a/.ci/azure/windows.yml
+++ b/.ci/azure/windows.yml
@@ -266,8 +266,8 @@ jobs:
   - script: call $(SETUPVARS) && $(INSTALL_TEST_DIR)\ov_proxy_plugin_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)\TEST-OVProxyTests.xml
     displayName: 'OV Proxy Plugin Tests'
 
-  - script: call $(SETUPVARS) && $(INSTALL_TEST_DIR)\ov_hetero_unit_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)\TEST-OVHeteroUnitTests.xml
-    displayName: 'OV Hetero Unit Tests'
+  - script: call $(SETUPVARS) && $(INSTALL_TEST_DIR)\ov_hetero_func_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)\TEST-OVHeteroFuncTests.xml
+    displayName: 'OV Hetero Func Tests'
 
   - script: call $(SETUPVARS) && $(INSTALL_TEST_DIR)\ov_conditional_compilation_tests --gtest_print_time=1 --gtest_output=xml:$(INSTALL_TEST_DIR)\TEST-ConditionalCompilation.xml
     displayName: 'Conditional Compilation Tests'
diff --git a/.github/workflows/coverage.yml b/.github/workflows/coverage.yml
index 22af2892bef..e71cd5f4546 100644
--- a/.github/workflows/coverage.yml
+++ b/.github/workflows/coverage.yml
@@ -20,24 +20,24 @@ jobs:
         with:
           python-version: '3.10.10'
           architecture: 'x64'
-          
-        
+
+
       - name: Setup ccache
         uses: hendrikmuhs/ccache-action@v1.2
         with:
           max-size: 50G
-      
+
       - name: Clone OpenVINO
         uses: actions/checkout@v3
         with:
           submodules: recursive
-      
+
       - name: Install dependencies
         run: |
           sudo apt --assume-yes update
           sudo -E ${{ github.workspace }}/install_build_dependencies.sh
           sudo apt --assume-yes install lcov
-          
+
           python3 -m pip install --upgrade pip
           python3 -m pip install -r ${{ github.workspace }}/src/bindings/python/wheel/requirements-dev.txt
           python3 -m pip install -r ${{ github.workspace }}/src/bindings/python/requirements.txt
@@ -56,7 +56,7 @@ jobs:
           python3 -m pip install -r ${{ github.workspace }}/tools/mo/requirements_onnx.txt
           python3 -m pip install -r ${{ github.workspace }}/tools/mo/requirements_tf2.txt
           python3 -m pip install -r ${{ github.workspace }}/tools/mo/requirements_dev.txt
-          
+
       - name: Get number of CPU cores
         uses: SimenB/github-actions-cpu-cores@v1
         id: cpu-cores
@@ -85,31 +85,34 @@ jobs:
             -DENABLE_SYSTEM_SNAPPY=ON
           build-type: Release
           parallel: ${{ steps.cpu-cores.outputs.count }}
-      
+
       - name: Install wheel packages
         run: cmake -DCOMPONENT=python_wheels -DCMAKE_INSTALL_PREFIX=${{ github.workspace }}/install_pkg -P '${{ github.workspace }}/build/cmake_install.cmake'
-      
+
       - name: Install python wheels
         run: python3 -m pip install openvino-dev --find-links=${{ github.workspace }}/install_pkg/tools
-      
+
       - name: List binaries
         run: ls -la ${{ github.workspace }}/bin/intel64/Release
-      
+
       - name: Install OpenVINO
         run: cmake -DCMAKE_INSTALL_PREFIX=${{ github.workspace }}/install_pkg -P '${{ github.workspace }}/build/cmake_install.cmake'
-      
+
       - name: Run OV core unit tests
         run: ${{ github.workspace }}/bin/intel64/Release/ov_core_unit_tests
 
       - name: Run OV Proxy plugin tests
         run: ${{ github.workspace }}/bin/intel64/Release/ov_proxy_plugin_tests
 
+      - name: Run OV Hetero Func tests
+        run: ${{ github.workspace }}/bin/intel64/Release/ov_hetero_func_tests
+
       - name: Run IR frontend tests
         run: ${{ github.workspace }}/bin/intel64/Release/ov_ir_frontend_tests # --gtest_print_time=1 --gtest_output=xml:${{ github.workspace }}/testdata/TEST-IRFrontend.xml
-      
+
       - name: Run ONNX frontend tests
         run: ${{ github.workspace }}/bin/intel64/Release/ov_onnx_frontend_tests --gtest_filter=-*IE_GPU*
-      
+
       #- name: Run Paddle frontend unit tests
       #  run: ${{ github.workspace }}/bin/intel64/Release/paddle_tests --gtest_filter=-*IE_GPU*
 
@@ -131,7 +134,7 @@ jobs:
             -DCMAKE_CXX_LINKER_LAUNCHER=ccache
           parallel: ${{ steps.cpu-cores.outputs.count }}
 
-      
+
       - name: Print info
         run: |
           ls -laR
diff --git a/.github/workflows/linux.yml b/.github/workflows/linux.yml
index 9c3f6f41d9f..702e923774e 100644
--- a/.github/workflows/linux.yml
+++ b/.github/workflows/linux.yml
@@ -75,9 +75,9 @@ jobs:
       - name: Install build dependencies
         run: |
           sudo -E ${{ env.OPENVINO_REPO }}/install_build_dependencies.sh
-          sudo -E apt update 
+          sudo -E apt update
           sudo -E apt --assume-yes install openjdk-11-jdk libbz2-dev clang unzip libpugixml-dev libtbb-dev intel-opencl-icd ocl-icd-opencl-dev opencl-headers
-          
+
           wget https://github.com/ninja-build/ninja/releases/download/v1.10.2/ninja-linux.zip
           unzip ninja-linux.zip
           sudo cp -v ninja /usr/local/bin/
@@ -94,16 +94,16 @@ jobs:
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/bindings/python/wheel/requirements-dev.txt
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/bindings/python/requirements.txt
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/bindings/python/requirements_test.txt
-          
+
           # For running Python API tests
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/bindings/python/src/compatibility/openvino/requirements-dev.txt
-          
+
           # For running ONNX frontend unit tests
           python3 -m pip install --force-reinstall -r ${{ env.OPENVINO_REPO }}/src/frontends/onnx/tests/requirements.txt
-          
+
           # For running TensorFlow frontend unit tests
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/frontends/tensorflow/tests/requirements.txt
-          
+
           # For running Paddle frontend unit tests
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/frontends/paddle/tests/requirements.txt
 
@@ -294,7 +294,7 @@ jobs:
 
       - name: Install dependencies
         run: |
-          sudo -E apt update 
+          sudo -E apt update
           sudo -E apt --assume-yes install openjdk-11-jdk libbz2-dev clang unzip libpugixml-dev libtbb-dev intel-opencl-icd ocl-icd-opencl-dev opencl-headers
 
       - name: Download OpenVINO package
@@ -450,6 +450,11 @@ jobs:
           source ${{ env.INSTALL_DIR }}/setupvars.sh
           ${{ env.INSTALL_TEST_DIR }}/ov_proxy_plugin_tests --gtest_print_time=1 --gtest_output=xml:${{ env.INSTALL_TEST_DIR }}/TEST-OVProxyTests.xml
 
+      - name: Hetero Func Tests
+        run: |
+          source ${{ env.INSTALL_DIR }}/setupvars.sh
+          ${{ env.INSTALL_TEST_DIR }}/ov_hetero_func_tests --gtest_print_time=1 --gtest_output=xml:${{ env.INSTALL_TEST_DIR }}/TEST-OVHeteroFuncTests.xml
+
       - name: Upload Test Results
         uses: actions/upload-artifact@v3
         if: ${{ always() }}
@@ -494,7 +499,7 @@ jobs:
 
       - name: Install dependencies
         run: |
-          sudo -E apt update 
+          sudo -E apt update
           sudo -E apt --assume-yes install openjdk-11-jdk libbz2-dev clang unzip libpugixml-dev libtbb-dev intel-opencl-icd ocl-icd-opencl-dev opencl-headers
 
       - uses: actions/setup-python@v4
@@ -705,7 +710,7 @@ jobs:
 
       - name: Install dependencies
         run: |
-          sudo -E apt update 
+          sudo -E apt update
           sudo -E apt --assume-yes install openjdk-11-jdk libbz2-dev clang unzip libpugixml-dev libtbb-dev intel-opencl-icd ocl-icd-opencl-dev opencl-headers
 
       - name: Download OpenVINO package
diff --git a/.github/workflows/windows.yml b/.github/workflows/windows.yml
index 5fb10bddf8b..6b0a0038b8e 100644
--- a/.github/workflows/windows.yml
+++ b/.github/workflows/windows.yml
@@ -85,16 +85,16 @@ jobs:
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/bindings/python/wheel/requirements-dev.txt
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/bindings/python/requirements.txt
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/bindings/python/requirements_test.txt
-          
+
           # For running Python API tests
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/bindings/python/src/compatibility/openvino/requirements-dev.txt
-          
+
           # For running ONNX frontend unit tests
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/frontends/onnx/tests/requirements.txt
-          
+
           # For running TensorFlow frontend unit tests
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/frontends/tensorflow/tests/requirements.txt
-          
+
           # For running Paddle frontend unit tests
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/src/frontends/paddle/tests/requirements.txt
 
@@ -196,7 +196,7 @@ jobs:
             DestinationPath = "${{ env.BUILD_DIR }}/openvino_package.zip"
           }
           Compress-Archive @compress
-          
+
           $file=Get-ChildItem -Path "${{ env.INSTALL_DIR }}\tests"
           $compress = @{
             Path = $file
@@ -365,14 +365,14 @@ jobs:
       - name: Model Optimizer UT
         shell: cmd
         run: |
-          
+
           python3 -m pip install -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_mxnet.txt ^
           -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_caffe.txt ^
           -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_kaldi.txt ^
           -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_onnx.txt ^
           -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_tf2.txt ^
           -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_dev.txt
-          
+
           set PYTHONPATH=${{ env.OPENVINO_REPO }}\tools\mo;${{ env.LAYER_TESTS_INSTALL_DIR }};${{ env.INSTALL_TEST_DIR }};${{ env.INSTALL_DIR }}\python\python3.11;%PYTHONPATH%
 
           call "${{ env.INSTALL_DIR }}\\setupvars.bat" && python3 -m pytest -s ${{ env.INSTALL_TEST_DIR }}/mo/unit_tests --ignore=${{ env.INSTALL_TEST_DIR }}/mo/unit_tests/mo/front/mxnet --junitxml=${{ env.INSTALL_TEST_DIR }}/TEST-ModelOptimizer.xml
@@ -455,7 +455,7 @@ jobs:
           -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_onnx.txt ^
           -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_tf2.txt ^
           -r ${{ env.OPENVINO_REPO }}/tools/mo/requirements_dev.txt
-          
+
           set PYTHONPATH=${{ env.OPENVINO_REPO }}\tools\mo;${{ env.LAYER_TESTS_INSTALL_DIR }};%PYTHONPATH%
 
           call "${{ env.INSTALL_DIR }}\\setupvars.bat" && python3 -m pytest ${{ env.LAYER_TESTS_INSTALL_DIR }}/tensorflow_lite_tests/ --junitxml=${{ env.INSTALL_TEST_DIR }}/TEST-tfl_fe.xml
@@ -640,6 +640,11 @@ jobs:
         run: |
           call "${{ env.INSTALL_DIR }}\\setupvars.bat" && ${{ env.INSTALL_TEST_DIR }}/ov_proxy_plugin_tests --gtest_print_time=1 --gtest_output=xml:${{ env.INSTALL_TEST_DIR }}/TEST-OVProxyTests.xml
 
+      - name: Hetero Func Tests
+        shell: cmd
+        run: |
+          call "${{ env.INSTALL_DIR }}\\setupvars.bat" && ${{ env.INSTALL_TEST_DIR }}/ov_hetero_func_tests --gtest_print_time=1 --gtest_output=xml:${{ env.INSTALL_TEST_DIR }}/TEST-OVHeteroFuncTests.xml
+
       - name: Upload Test Results
         uses: actions/upload-artifact@v3
         if: ${{ always() }}
diff --git a/src/plugins/hetero/CMakeLists.txt b/src/plugins/hetero/CMakeLists.txt
index 0a51e39cf17..e2866661e8e 100644
--- a/src/plugins/hetero/CMakeLists.txt
+++ b/src/plugins/hetero/CMakeLists.txt
@@ -29,6 +29,6 @@ ie_add_api_validator_post_build_step(TARGET ${TARGET_NAME})
 
 set_target_properties(${TARGET_NAME} PROPERTIES INTERPROCEDURAL_OPTIMIZATION_RELEASE ${ENABLE_LTO})
 
-if(ENABLE_TESTS)
-    add_subdirectory(tests/unit)
+if(ENABLE_FUNCTIONAL_TESTS)
+    add_subdirectory(tests/functional)
 endif()
\ No newline at end of file
diff --git a/src/plugins/hetero/tests/unit/CMakeLists.txt b/src/plugins/hetero/tests/functional/CMakeLists.txt
similarity index 90%
rename from src/plugins/hetero/tests/unit/CMakeLists.txt
rename to src/plugins/hetero/tests/functional/CMakeLists.txt
index b65a9a29b20..eaa56e072b7 100644
--- a/src/plugins/hetero/tests/unit/CMakeLists.txt
+++ b/src/plugins/hetero/tests/functional/CMakeLists.txt
@@ -2,7 +2,7 @@
 # SPDX-License-Identifier: Apache-2.0
 #
 
-set(TARGET_NAME ov_hetero_unit_tests)
+set(TARGET_NAME ov_hetero_func_tests)
 
 ov_add_test_target(
         NAME ${TARGET_NAME}
@@ -15,7 +15,7 @@ ov_add_test_target(
             openvino::runtime::dev
             gtest
             gtest_main
-            unit_test_utils
+            common_test_utils
         ADD_CLANG_FORMAT
         LABELS
             HETERO
diff --git a/src/plugins/hetero/tests/unit/compile_model_tests.cpp b/src/plugins/hetero/tests/functional/compile_model_tests.cpp
similarity index 100%
rename from src/plugins/hetero/tests/unit/compile_model_tests.cpp
rename to src/plugins/hetero/tests/functional/compile_model_tests.cpp
diff --git a/src/plugins/hetero/tests/unit/hetero_tests.cpp b/src/plugins/hetero/tests/functional/hetero_tests.cpp
similarity index 98%
rename from src/plugins/hetero/tests/unit/hetero_tests.cpp
rename to src/plugins/hetero/tests/functional/hetero_tests.cpp
index 491b8428c57..266fc242507 100644
--- a/src/plugins/hetero/tests/unit/hetero_tests.cpp
+++ b/src/plugins/hetero/tests/functional/hetero_tests.cpp
@@ -27,9 +27,9 @@
 namespace {
 
 std::string get_mock_engine_path() {
-    std::string mockEngineName("mock_engine");
+    std::string mock_engine_name("mock_engine");
     return ov::util::make_plugin_library_name(CommonTestUtils::getExecutableDirectory(),
-                                              mockEngineName + IE_BUILD_POSTFIX);
+                                              mock_engine_name + IE_BUILD_POSTFIX);
 }
 
 template <class T>
@@ -714,17 +714,15 @@ public:
 };
 
 void ov::hetero::tests::HeteroTests::reg_plugin(std::shared_ptr<ov::IPlugin>& plugin) {
-    std::string libraryPath = get_mock_engine_path();
+    std::string library_path = get_mock_engine_path();
     if (!m_so)
-        m_so = ov::util::load_shared_object(libraryPath.c_str());
+        m_so = ov::util::load_shared_object(library_path.c_str());
     if (auto mock_plugin = std::dynamic_pointer_cast<MockPluginBase>(plugin))
         mock_plugin->set_version(mock_plugin->get_const_version());
     std::function<void(ov::IPlugin*)> injectProxyEngine = make_std_function<void(ov::IPlugin*)>(m_so, "InjectPlugin");
 
     injectProxyEngine(plugin.get());
-    core.register_plugin(ov::util::make_plugin_library_name(CommonTestUtils::getExecutableDirectory(),
-                                                            std::string("mock_engine") + IE_BUILD_POSTFIX),
-                         plugin->get_device_name());
+    core.register_plugin(library_path, plugin->get_device_name());
     m_mock_plugins.emplace_back(plugin);
 }
 
diff --git a/src/plugins/hetero/tests/unit/hetero_tests.hpp b/src/plugins/hetero/tests/functional/hetero_tests.hpp
similarity index 100%
rename from src/plugins/hetero/tests/unit/hetero_tests.hpp
rename to src/plugins/hetero/tests/functional/hetero_tests.hpp
diff --git a/src/plugins/hetero/tests/unit/import_model_tests.cpp b/src/plugins/hetero/tests/functional/import_model_tests.cpp
similarity index 100%
rename from src/plugins/hetero/tests/unit/import_model_tests.cpp
rename to src/plugins/hetero/tests/functional/import_model_tests.cpp
diff --git a/src/plugins/hetero/tests/unit/properties_tests.cpp b/src/plugins/hetero/tests/functional/properties_tests.cpp
similarity index 100%
rename from src/plugins/hetero/tests/unit/properties_tests.cpp
rename to src/plugins/hetero/tests/functional/properties_tests.cpp
diff --git a/src/plugins/hetero/tests/unit/query_model_tests.cpp b/src/plugins/hetero/tests/functional/query_model_tests.cpp
similarity index 100%
rename from src/plugins/hetero/tests/unit/query_model_tests.cpp
rename to src/plugins/hetero/tests/functional/query_model_tests.cpp