diff --git a/.github/workflows/nightly.yml b/.github/workflows/nightly.yml
deleted file mode 100644
index 61922a4daa..0000000000
--- a/.github/workflows/nightly.yml
+++ /dev/null
@@ -1,32 +0,0 @@
-name: Nightly-Regression Tests
-
-on:
-  workflow_dispatch: # run on request (no need for PR)
-  schedule:
-    - cron: "0 0 * * *"
-
-jobs:
-  Tox:
-    runs-on: [self-hosted, linux, x64, anomalib]
-    strategy:
-      max-parallel: 1
-    if: github.ref == 'refs/heads/main'
-    steps:
-      - name: CHECKOUT REPOSITORY
-        uses: actions/checkout@v4
-      - name: Install Tox
-        run: pip install tox
-      - name: Coverage
-        run: tox -e nightly
-      - name: Upload coverage result
-        uses: actions/upload-artifact@v4
-        with:
-          name: coverage
-          path: .tox/coverage.xml
-  md-dead-link-check:
-    runs-on: ubuntu-22.04
-    steps:
-      - uses: actions/checkout@v4
-      - uses: AlexanderDokuchaev/md-dead-link-check@v0.8
-        with:
-          config: pyproject.toml
diff --git a/pyproject.toml b/pyproject.toml
index 0e3e5316a3..38184d170d 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -205,8 +205,6 @@ src = ["src", "tests"]
 # Unlike Flake8, default to a complexity level of 10.
 max-complexity = 15
 
-[tool.ruff.per-file-ignores]
-"tests/nightly/tools/benchmarking/test_benchmarking.py" = ["E402"]
 
 [tool.ruff.pydocstyle]
 convention = "google"
diff --git a/tests/README.md b/tests/README.md
index 21a22e87bf..f01115c994 100644
--- a/tests/README.md
+++ b/tests/README.md
@@ -98,15 +98,12 @@ Here's a brief explanation of each:
   from being committed to the repository. They can include things like style
   checks, unit tests, and static analysis.
 
-- `pre-merge`: These tests are run before code is merged into a main or release
-  branch. They are typically more extensive than pre-commit tests and may
-  include integration tests, performance tests, and other checks that are too
-  time-consuming to run on every commit.
+- `unit`: These tests are run before code is merged into a main or release
+  branch. These are used to test individual components.
 
-- `nightly`: These are tests that are run on a regular schedule, typically once
-  per day ("nightly"). They can include long-running tests, extensive test
-  suites that cover edge cases, or tests that are too resource-intensive to run
-  on every commit or merge.
+- `integration`: These tests are also run before the code is merged into a main
+  or release branch. These test whether the components work together. These focus
+  mainly on training, exporting and inferring models via the API and the CLI.
 
 - `trivy-scan`: Trivy is a comprehensive, open-source vulnerability scanner for
   containers. A `trivy-scan` would check your project's dependencies for known
@@ -124,18 +121,12 @@ To run the pre-commit tests
 tox -e pre-commit
 ```
 
-To run the pre-merge tests
+To run the unit and integration tests
 
 ```bash
 tox -e pre-merge
 ```
 
-To run the nightly tests
-
-```bash
-tox -e nightly
-```
-
 To run the trivy-scan
 
 ```bash
diff --git a/tox.ini b/tox.ini
index a8136f0fe7..2bd2e78f24 100644
--- a/tox.ini
+++ b/tox.ini
@@ -4,7 +4,6 @@ skip_missing_interpreters = true
 envlist =
     pre-commit
     pre-merge-py{38,39,310}
-    nightly
     snyk-scan
 
 [testenv]
@@ -47,25 +46,6 @@ commands =
         --ignore=notebooks/400_openvino \
         --ignore=notebooks/500_use_cases/501_dobot
 
-[testenv:nightly]
-basepython = py310
-passenv = {[testenv]deps}
-    ANOMALIB_DATASET_PATH
-deps =
-    coverage
-    pytest
-    flaky
-
-commands =
-    ; 0. Install Anomalib first.
-    pip install .[full]
-
-    ; 1. Run Coverage for the nightly tests.
-    coverage erase
-    coverage run --include=anomalib/* -m pytest tests/legacy/nightly/
-    coverage report -m --fail-under=33
-    coverage xml -o {toxworkdir}/coverage.xml
-
 [testenv:trivy-scan]
 basepython = py310
 passenv = TRIVY_DOWNLOAD_URL