diff --git a/ChangeLog.md b/ChangeLog.md
--- a/ChangeLog.md
+++ b/ChangeLog.md
@@ -1,3 +1,7 @@
+## 1.4.18
+
+* Disable `yesod test` when using Stack [#1198](https://github.com/yesodweb/yesod/issues/1198)
+
 ## 1.4.17
 
 * Fully remove the `yesod init` command
diff --git a/Keter.hs b/Keter.hs
--- a/Keter.hs
+++ b/Keter.hs
@@ -6,11 +6,12 @@
 import Data.Yaml
 import qualified Data.HashMap.Strict as Map
 import qualified Data.Text as T
+import System.Environment (getEnvironment)
 import System.Exit
 import System.Process
 import Control.Monad
 import System.Directory hiding (findFiles)
-import Data.Maybe (mapMaybe)
+import Data.Maybe (mapMaybe,isJust,maybeToList)
 import Data.Monoid
 import System.FilePath ((</>))
 import qualified Codec.Archive.Tar as Tar
@@ -48,6 +49,8 @@
                             _ -> return value
             Just _ -> error $ ketercfg ++ " is not an object"
 
+    env' <- getEnvironment
+    cwd' <- getCurrentDirectory
     files <- getDirectoryContents "."
     project <-
         case mapMaybe (T.stripSuffix ".cabal" . T.pack) files of
@@ -74,15 +77,27 @@
         collapse' (x:xs) = x : collapse' xs
         collapse' [] = []
 
-    unless noBuild $ if elem "stack.yaml" files
-        then do run "stack" ["clean"]
-                createDirectoryIfMissing True "./dist/bin"
-                run "stack"
-                    ((words "--local-bin-path ./dist/bin build --copy-bins")
-                     <> buildArgs)
-        else do run cabal ["clean"]
-                run cabal ["configure"]
-                run cabal ("build" : buildArgs)
+    unless noBuild $ do
+        stackQueryRunSuccess <- do
+            (ec,_,_) <- readProcessWithExitCode "stack" ["query"] ""
+            return (ec == ExitSuccess)
+
+        let inStackExec = isJust $ lookup "STACK_EXE" env'
+            mStackYaml = lookup "STACK_YAML" env'
+            useStack = inStackExec || isJust mStackYaml || stackQueryRunSuccess
+
+        if useStack
+            then do let stackYaml = maybeToList $ fmap ("--stack-yaml="<>) mStackYaml
+                        localBinPath = cwd' </> "dist/bin"
+                    run "stack" $ stackYaml <> ["clean"]
+                    createDirectoryIfMissing True localBinPath
+                    run "stack"
+                        (stackYaml
+                         <> ["--local-bin-path",localBinPath,"build","--copy-bins"]
+                         <> buildArgs)
+            else do run cabal ["clean"]
+                    run cabal ["configure"]
+                    run cabal ("build" : buildArgs)
 
     _ <- try' $ removeDirectoryRecursive "static/tmp"
 
diff --git a/main.hs b/main.hs
--- a/main.hs
+++ b/main.hs
@@ -6,7 +6,7 @@
 import           Data.Version           (showVersion)
 import           Options.Applicative
 import           System.Environment     (getEnvironment)
-import           System.Exit            (ExitCode (ExitSuccess), exitWith)
+import           System.Exit            (ExitCode (ExitSuccess), exitWith, exitFailure)
 import           System.FilePath        (splitSearchPath)
 import           System.Process         (rawSystem)
 
@@ -15,6 +15,7 @@
 import           Keter                  (keter)
 import           Options                (injectDefaults)
 import qualified Paths_yesod_bin
+import           System.IO              (hPutStrLn, stderr)
 
 import           HsFile                 (mkHsFile)
 #ifndef WINDOWS
@@ -130,10 +131,18 @@
                              }
                        devel develOpts develExtraArgs
   where
-    cabalTest cabal = do touch'
-                         _ <- cabal ["configure", "--enable-tests", "-flibrary-only"]
-                         _ <- cabal ["build"]
-                         cabal ["test"]
+    cabalTest cabal = do
+        env <- getEnvironment
+        case lookup "STACK_EXE" env of
+            Nothing -> do
+                touch'
+                _ <- cabal ["configure", "--enable-tests", "-flibrary-only"]
+                _ <- cabal ["build"]
+                cabal ["test"]
+            Just _ -> do
+                hPutStrLn stderr "'yesod test' is no longer needed with Stack"
+                hPutStrLn stderr "Instead, please just run 'stack test'"
+                exitFailure
 
 handleGhcPackagePath :: IO ([String], Maybe [(String, String)])
 handleGhcPackagePath = do
diff --git a/yesod-bin.cabal b/yesod-bin.cabal
--- a/yesod-bin.cabal
+++ b/yesod-bin.cabal
@@ -1,5 +1,5 @@
 name:            yesod-bin
-version:         1.4.17.1
+version:         1.4.18
 license:         MIT
 license-file:    LICENSE
 author:          Michael Snoyman <michael@snoyman.com>