diff --git a/.gitignore b/.gitignore
index aedc5b9f9..115157ee4 100644
--- a/.gitignore
+++ b/.gitignore
@@ -28,6 +28,7 @@ pip-log.txt
 nosetests.xml
 cover/*
 .testrepository/
+.stestr/
 subunit.log
 .mistral.conf
 AUTHORS
diff --git a/.stestr.conf b/.stestr.conf
new file mode 100644
index 000000000..787b115c4
--- /dev/null
+++ b/.stestr.conf
@@ -0,0 +1,3 @@
+[DEFAULT]
+test_path=./mistral/tests/unit
+top_dir=./
diff --git a/.testr.conf b/.testr.conf
deleted file mode 100644
index ed0237d16..000000000
--- a/.testr.conf
+++ /dev/null
@@ -1,10 +0,0 @@
-[DEFAULT]
-test_command=OS_STDOUT_CAPTURE=${OS_STDOUT_CAPTURE:-1} \
-             OS_STDERR_CAPTURE=${OS_STDERR_CAPTURE:-1} \
-             OS_LOG_CAPTURE=${OS_LOG_CAPTURE:-1} \
-             OS_TEST_TIMEOUT=${OS_TEST_TIMEOUT:-160} \
-             ${PYTHON:-python} -m subunit.run discover -t ./ ./mistral/tests/unit $LISTOPT $IDOPTION
-
-test_id_option=--load-list $IDFILE
-test_list_option=--list
-test_run_concurrency=echo ${TEST_RUN_CONCURRENCY:-0}
diff --git a/lower-constraints.txt b/lower-constraints.txt
index 6e697554a..5f6425d66 100644
--- a/lower-constraints.txt
+++ b/lower-constraints.txt
@@ -153,7 +153,7 @@ sqlalchemy-migrate==0.11.0
 SQLAlchemy==1.2.5
 sqlparse==0.2.2
 statsd==3.2.1
-stestr==1.0.0
+stestr==2.0.0
 stevedore==1.20.0
 tempest==17.1.0
 Tempita==0.5.2
diff --git a/run_tests.sh b/run_tests.sh
index 1e7706a1c..0bf86127b 100755
--- a/run_tests.sh
+++ b/run_tests.sh
@@ -71,8 +71,8 @@ function process_options {
         (( i++ ))
         parallel=${!i}
         ;;
-      -*) testropts="$testropts ${!i}";;
-      *) testrargs="$testrargs ${!i}"
+      -*) stestropts="$stestropts ${!i}";;
+      *) stestrargs="$stestrargs ${!i}"
     esac
     (( i++ ))
   done
@@ -89,8 +89,8 @@ never_venv=0
 force=0
 no_site_packages=0
 installvenvopts=
-testrargs=
-testropts=
+stestrargs=
+stestropts=
 wrapper=""
 just_pep8=0
 no_pep8=0
@@ -178,43 +178,43 @@ function run_tests {
   ${wrapper} find . -type f -name "*.pyc" -delete
 
   if [ $debug -eq 1 ]; then
-    if [ "$testropts" = "" ] && [ "$testrargs" = "" ]; then
+    if [ "$stestropts" = "" ] && [ "$stestrargs" = "" ]; then
       # Default to running all tests if specific test is not
       # provided.
-      testrargs="discover ./mistral/tests/unit"
+      stestrargs="discover ./mistral/tests/unit"
     fi
-    ${wrapper} python -m testtools.run $testropts $testrargs
+    ${wrapper} python -m testtools.run $stestropts $stestrargs
 
-    # Short circuit because all of the testr and coverage stuff
+    # Short circuit because all of the stestr and coverage stuff
     # below does not make sense when running testtools.run for
     # debugging purposes.
     return $?
   fi
 
   if [ $coverage -eq 1 ]; then
-    TESTRTESTS="$TESTRTESTS --coverage"
+    STESTRTESTS="$STESTRTESTS --coverage"
   else
-    TESTRTESTS="$TESTRTESTS --slowest"
+    STESTRTESTS="$STESTRTESTS --slowest"
   fi
 
   # Just run the test suites in current environment
   set +e
-  testrargs=$(echo "$testrargs" | sed -e's/^\s*\(.*\)\s*$/\1/')
+  stestrargs=$(echo "$stestrargs" | sed -e's/^\s*\(.*\)\s*$/\1/')
   if [ $parallel = true ]
   then
     runoptions="--subunit"
   else
-    runoptions="--concurrency=1 --subunit"
+    runoptions="--concurrency 1 --subunit"
   fi
-  TESTRTESTS="$TESTRTESTS --testr-args='$runoptions $testropts $testrargs'"
-  OS_TEST_PATH=$(echo $testrargs|grep -o 'mistral\.tests[^[:space:]:]*\+'|tr . /)
+  STESTRTESTS="$STESTRTESTS $runoptions $stestropts $stestrargs"
+  OS_TEST_PATH=$(echo $stestrargs|grep -o 'mistral\.tests[^[:space:]:]*\+'|tr . /)
   if [ -d "$OS_TEST_PATH" ]; then
       wrapper="OS_TEST_PATH=$OS_TEST_PATH $wrapper"
   elif [ -d "$(dirname $OS_TEST_PATH)" ]; then
       wrapper="OS_TEST_PATH=$(dirname $OS_TEST_PATH) $wrapper"
   fi
-  echo "Running ${wrapper} $TESTRTESTS"
-  bash -c "${wrapper} $TESTRTESTS | ${wrapper} subunit2pyunit"
+  echo "Running ${wrapper} $STESTRTESTS"
+  bash -c "${wrapper} $STESTRTESTS | ${wrapper} subunit2pyunit"
   RESULT=$?
   set -e
 
@@ -232,9 +232,7 @@ function run_tests {
 }
 
 function copy_subunit_log {
-  LOGNAME=$(cat .testrepository/next-stream)
-  LOGNAME=$(($LOGNAME - 1))
-  LOGNAME=".testrepository/${LOGNAME}"
+  LOGNAME=".stestr/$(($(cat .stestr/next-stream) - 1))"
   cp $LOGNAME subunit.log
 }
 
@@ -245,7 +243,7 @@ function run_pep8 {
 }
 
 
-TESTRTESTS="python setup.py testr"
+STESTRTESTS="stestr run"
 
 if [ $never_venv -eq 0 ]
 then
@@ -298,9 +296,9 @@ run_tests
 
 # NOTE(sirp): we only want to run pep8 when we're running the full-test suite,
 # not when we're running tests individually. To handle this, we need to
-# distinguish between options (testropts), which begin with a '-', and
-# arguments (testrargs).
-if [ -z "$testrargs" ]; then
+# distinguish between options (stestropts), which begin with a '-', and
+# arguments (stestrargs).
+if [ -z "$stestrargs" ]; then
   if [ $no_pep8 -eq 0 ]; then
     run_pep8
   fi
diff --git a/test-requirements.txt b/test-requirements.txt
index e5bdc9f03..ad3a1f811 100644
--- a/test-requirements.txt
+++ b/test-requirements.txt
@@ -27,7 +27,7 @@ sphinxcontrib-pecanwsme>=0.8.0 # Apache-2.0
 openstackdocstheme>=1.18.1 # Apache-2.0
 tooz>=1.58.0 # Apache-2.0
 tempest>=17.1.0 # Apache-2.0
-testrepository>=0.0.18 # Apache-2.0/BSD
+stestr>=2.0.0 # Apache-2.0
 testtools>=2.2.0 # MIT
 unittest2>=1.1.0 # BSD
 WSME>=0.8.0 # MIT
diff --git a/tools/cover.sh b/tools/cover.sh
index b6882a7eb..56acd422d 100755
--- a/tools/cover.sh
+++ b/tools/cover.sh
@@ -25,7 +25,7 @@ uncommitted=$(git status --porcelain | grep -v "^??")
 git checkout HEAD^
 
 baseline_report=$(mktemp -t mistral_coverageXXXXXXX)
-find . -type f -name "*.pyc" -delete && python setup.py testr --coverage --testr-args="$*"
+find . -type f -name "*.pyc" -delete && stestr --coverage "$*"
 coverage report -m > $baseline_report
 baseline_missing=$(awk 'END { print $3 }' $baseline_report)
 previous_sha=$(git rev-parse HEAD);
@@ -39,7 +39,7 @@ coverage erase;
 
 # Generate and save coverage report
 current_report=$(mktemp -t mistral_coverageXXXXXXX)
-find . -type f -name "*.pyc" -delete && python setup.py testr --coverage --testr-args="$*"
+find . -type f -name "*.pyc" -delete && stestr --coverage "$*"
 coverage report -m > $current_report
 current_missing=$(awk 'END { print $3 }' $current_report)
 
diff --git a/tox.ini b/tox.ini
index fcdc326ba..d4bd2ecd3 100644
--- a/tox.ini
+++ b/tox.ini
@@ -19,7 +19,7 @@ deps =
 commands =
   rm -f .testrepository/times.dbm
   find . -type f -name "*.pyc" -delete
-  python setup.py testr --slowest --testr-args='{posargs}'
+  stestr run --slowest {posargs}
 whitelist_externals =
   rm
   find
@@ -41,11 +41,13 @@ commands =
   flake8 {posargs} . {toxinidir}/tools/get_action_list.py {toxinidir}/tools/sync_db.py
 
 [testenv:cover]
-# Also do not run test_coverage_ext tests while gathering coverage as those
-# tests conflict with coverage.
-setenv = VIRTUAL_ENV={envdir}
+setenv =
+    PYTHON=coverage run --source $project --parallel-mode
 commands =
-  {toxinidir}/tools/cover.sh {posargs}
+    stestr run '{posargs}'
+    coverage combine
+    coverage html -d cover
+    coverage xml -o cover/coverage.xml
 
 [testenv:genconfig]
 commands =