diff --git a/pkg/observatory b/pkg/observatory
deleted file mode 120000
index a4c002cbd83..00000000000
--- a/pkg/observatory
+++ /dev/null
@@ -1 +0,0 @@
-../runtime/bin/vmservice/client
\ No newline at end of file
diff --git a/pkg/pkgbuild.status b/pkg/pkgbuild.status
index 7d463348a00..a2d170e1292 100644
--- a/pkg/pkgbuild.status
+++ b/pkg/pkgbuild.status
@@ -8,8 +8,6 @@ samples/pop_pop_win: Pass, Slow
 samples/searchable_list: Pass, Slow
 pkg/docgen: Pass, Slow
 
-pkg/observatory: Skip # Issue 20306
-
 [ $use_repository_packages ]
 pkg/analyzer: PubGetError
 pkg/browser: PubGetError
diff --git a/tools/testing/dart/test_suite.dart b/tools/testing/dart/test_suite.dart
index 57fbd57c6a4..8aeff40bbdc 100644
--- a/tools/testing/dart/test_suite.dart
+++ b/tools/testing/dart/test_suite.dart
@@ -400,6 +400,7 @@ abstract class TestSuite {
      *      pkg/PACKAGE_NAME
      *      pkg/third_party/PACKAGE_NAME
      *      third_party/pkg/PACKAGE_NAME
+     *      runtime/bin/vmservice/PACKAGE_NAME
      */
 
     // Directories containing "-" are not valid pub packages and we therefore
@@ -412,6 +413,8 @@ abstract class TestSuite {
       listDir(dartDir.append('pkg'), isValid),
       listDir(dartDir.append('pkg').append('third_party'), isValid),
       listDir(dartDir.append('third_party').append('pkg'), isValid),
+      listDir(dartDir.append('runtime').append('bin').append('vmservice'),
+              isValid),
     ];
     return Future.wait(futures).then((results) {
       var packageDirectories = {};