diff --git a/DEVGUIDE.md b/DEVGUIDE.md
index b3ed65611c4..cf3a9419481 100644
--- a/DEVGUIDE.md
+++ b/DEVGUIDE.md
@@ -228,7 +228,8 @@ dotnet test tests/FSharp.Compiler.Service.Tests/FSharp.Compiler.Service.Tests.fs
 
 ### Updating ILVerify baselines
 
-These control IL for the core modules of the compiler. The baselines are located in the `eng` folder and look like:
+These are IL baseline tests for the core assemblies of the compiler (FSharp.Core and FSharp.Compiler.Service). The baselines are located in the `tests/ILVerify` folder and look like:
+
 ```
 ilverify_FSharp.Compiler.Service_Debug_net9.0.bsl
 ilverify_FSharp.Compiler.Service_Debug_netstandard2.0.bsl
@@ -240,7 +241,10 @@ ilverify_FSharp.Core_Release_netstandard2.0.bsl
 ilverify_FSharp.Core_Release_netstandard2.1.bsl
 ```
 
-If you want to update them, run the [ilverify.ps1]([url](https://github.com/dotnet/fsharp/blob/main/eng/ilverify.ps1)) script in PowerShell. The script will create `.actual` files. If the differences make sense, replace the original baselines with the actual files. 
+If you want to update them, either
+
+1. Run the [ilverify.ps1]([url](https://github.com/dotnet/fsharp/blob/main/tests/ILVerify/ilverify.ps1)) script in PowerShell. The script will create `.actual` files. If the differences make sense, replace the original baselines with the actual files.
+2. Set the `TEST_UPDATE_BSL` to `1` (please refer to "Updating baselines in tests" section in this file) **and** run `ilverify.ps1` - this will automatically replace baselines. After that, please carefully review the change and push it to your branch if it makes sense.
 
 ## Automated Source Code Formatting
 
diff --git a/azure-pipelines-PR.yml b/azure-pipelines-PR.yml
index 7d11a931c24..7201277ecce 100644
--- a/azure-pipelines-PR.yml
+++ b/azure-pipelines-PR.yml
@@ -825,6 +825,6 @@ stages:
               installationPath: $(Agent.ToolsDirectory)/dotnet
           - script: dotnet tool restore
             displayName: Restore dotnet tools
-          - pwsh: .\eng\ilverify.ps1
+          - pwsh: .\tests\ILVerify\ilverify.ps1
             displayName: Run ILVerify
             workingDirectory: $(Build.SourcesDirectory)
diff --git a/eng/ilverify.ps1 b/tests/ILVerify/ilverify.ps1
similarity index 80%
rename from eng/ilverify.ps1
rename to tests/ILVerify/ilverify.ps1
index 3fd8f9eda64..760724c27c6 100644
--- a/eng/ilverify.ps1
+++ b/tests/ILVerify/ilverify.ps1
@@ -4,11 +4,12 @@
 
 Write-Host "Checking whether running on Windows: $IsWindows"
 
-[string] $repo_path = (Get-Item -Path $PSScriptRoot).Parent
+[string] $repo_path = (Get-Item -Path $PSScriptRoot).Parent.Parent
 
 Write-Host "Repository path: $repo_path"
 
 [string] $script = if ($IsWindows) { Join-Path $repo_path "build.cmd" } else { Join-Path $repo_path "build.sh" }
+[string] $additional_arguments = if ($IsWindows) { "-noVisualStudio" } else { "" }
 
 # Set configurations to build
 [string[]] $configurations = @("Debug", "Release")
@@ -29,7 +30,7 @@ $projects = @{
 # Run build script for each configuration (NOTE: We don't build Proto)
 foreach ($configuration in $configurations) {
     Write-Host "Building $configuration configuration..."
-    & $script -c $configuration
+    & $script -c $configuration $additional_arguments
     if ($LASTEXITCODE -ne 0 -And $LASTEXITCODE -ne '') {
         Write-Host "Build failed for $configuration configuration (last exit code: $LASTEXITCODE)."
         exit 1
@@ -111,14 +112,20 @@ foreach ($project in $projects.Keys) {
                 }
             }
 
-            $baseline_file = Join-Path $repo_path "eng" "ilverify_${project}_${configuration}_${tfm}.bsl"
+            $baseline_file = Join-Path $repo_path "tests/ILVerify" "ilverify_${project}_${configuration}_${tfm}.bsl"
 
             $baseline_actual_file = [System.IO.Path]::ChangeExtension($baseline_file, 'bsl.actual')
 
             if (-not (Test-Path $baseline_file)) {
                 Write-Host "Baseline file not found: $baseline_file"
-                $ilverify_output | Set-Content $baseline_actual_file
-                $failed = $true
+                if ($env:TEST_UPDATE_BSL -eq "1") {
+                    Write-Host "Creating initial baseline file: $baseline_file"
+                    $ilverify_output | Set-Content $baseline_file
+                } else {
+                    Write-Host "Creating .actual baseline file: $baseline_actual_file"
+                    $ilverify_output | Set-Content $baseline_actual_file
+                    $failed = $true
+                }
                 continue
             }
 
@@ -127,8 +134,14 @@ foreach ($project in $projects.Keys) {
 
             if ($baseline.Length -eq 0) {
                 Write-Host "Baseline file is empty: $baseline_file"
-                $ilverify_output | Set-Content $baseline_actual_file
-                $failed = $true
+                if ($env:TEST_UPDATE_BSL -eq "1") {
+                    Write-Host "Updating empty baseline file: $baseline_file"
+                    $ilverify_output | Set-Content $baseline_file
+                } else {
+                    Write-Host "Creating initial .actual baseline file: $baseline_actual_file"
+                    $ilverify_output | Set-Content $baseline_actual_file
+                    $failed = $true
+                }
                 continue
             }
 
@@ -142,10 +155,19 @@ foreach ($project in $projects.Keys) {
                 Write-Host "ILverify output does not match baseline, differences:"
 
                 $cmp | Format-Table | Out-String | Write-Host
-                $ilverify_output | Set-Content $baseline_actual_file
+
+                # Update baselines if TEST_UPDATE_BSL is set to 1
+                if ($env:TEST_UPDATE_BSL -eq "1") {
+                    Write-Host "Updating baseline file: $baseline_file"
+                    $ilverify_output | Set-Content $baseline_file
+                } else {
+                    $ilverify_output | Set-Content $baseline_actual_file
+                }
                 $failed = $true
                 continue
             }
+
+
         }
     }
 }
@@ -155,4 +177,4 @@ if ($failed) {
     exit 1
 }
 
-exit 0
+exit 0
\ No newline at end of file
diff --git a/eng/ilverify_FSharp.Compiler.Service_Debug_net9.0.bsl b/tests/ILVerify/ilverify_FSharp.Compiler.Service_Debug_net9.0.bsl
similarity index 100%
rename from eng/ilverify_FSharp.Compiler.Service_Debug_net9.0.bsl
rename to tests/ILVerify/ilverify_FSharp.Compiler.Service_Debug_net9.0.bsl
diff --git a/eng/ilverify_FSharp.Compiler.Service_Debug_netstandard2.0.bsl b/tests/ILVerify/ilverify_FSharp.Compiler.Service_Debug_netstandard2.0.bsl
similarity index 100%
rename from eng/ilverify_FSharp.Compiler.Service_Debug_netstandard2.0.bsl
rename to tests/ILVerify/ilverify_FSharp.Compiler.Service_Debug_netstandard2.0.bsl
diff --git a/eng/ilverify_FSharp.Compiler.Service_Release_net9.0.bsl b/tests/ILVerify/ilverify_FSharp.Compiler.Service_Release_net9.0.bsl
similarity index 100%
rename from eng/ilverify_FSharp.Compiler.Service_Release_net9.0.bsl
rename to tests/ILVerify/ilverify_FSharp.Compiler.Service_Release_net9.0.bsl
diff --git a/eng/ilverify_FSharp.Compiler.Service_Release_netstandard2.0.bsl b/tests/ILVerify/ilverify_FSharp.Compiler.Service_Release_netstandard2.0.bsl
similarity index 100%
rename from eng/ilverify_FSharp.Compiler.Service_Release_netstandard2.0.bsl
rename to tests/ILVerify/ilverify_FSharp.Compiler.Service_Release_netstandard2.0.bsl
diff --git a/eng/ilverify_FSharp.Core_Debug_netstandard2.0.bsl b/tests/ILVerify/ilverify_FSharp.Core_Debug_netstandard2.0.bsl
similarity index 100%
rename from eng/ilverify_FSharp.Core_Debug_netstandard2.0.bsl
rename to tests/ILVerify/ilverify_FSharp.Core_Debug_netstandard2.0.bsl
diff --git a/eng/ilverify_FSharp.Core_Debug_netstandard2.1.bsl b/tests/ILVerify/ilverify_FSharp.Core_Debug_netstandard2.1.bsl
similarity index 100%
rename from eng/ilverify_FSharp.Core_Debug_netstandard2.1.bsl
rename to tests/ILVerify/ilverify_FSharp.Core_Debug_netstandard2.1.bsl
diff --git a/eng/ilverify_FSharp.Core_Release_netstandard2.0.bsl b/tests/ILVerify/ilverify_FSharp.Core_Release_netstandard2.0.bsl
similarity index 100%
rename from eng/ilverify_FSharp.Core_Release_netstandard2.0.bsl
rename to tests/ILVerify/ilverify_FSharp.Core_Release_netstandard2.0.bsl
diff --git a/eng/ilverify_FSharp.Core_Release_netstandard2.1.bsl b/tests/ILVerify/ilverify_FSharp.Core_Release_netstandard2.1.bsl
similarity index 100%
rename from eng/ilverify_FSharp.Core_Release_netstandard2.1.bsl
rename to tests/ILVerify/ilverify_FSharp.Core_Release_netstandard2.1.bsl