diff --git a/CLOBBER b/CLOBBER
index 321838d35b0..860990bc94f 100644
--- a/CLOBBER
+++ b/CLOBBER
@@ -22,4 +22,4 @@
 # changes to stick? As of bug 928195, this shouldn't be necessary! Please
 # don't change CLOBBER for WebIDL changes any more.
 
-Bug 1165422 - Updated the Android SDK versions
+Bug 1012403 - Update SettingsService tests (requires clobber due to package manifest change)
diff --git a/browser/installer/package-manifest.in b/browser/installer/package-manifest.in
index e2eb0b8118c..e40b7e04b7f 100644
--- a/browser/installer/package-manifest.in
+++ b/browser/installer/package-manifest.in
@@ -535,6 +535,8 @@
 @RESPATH@/components/messageWakeupService.manifest
 @RESPATH@/components/SettingsManager.js
 @RESPATH@/components/SettingsManager.manifest
+@BINPATH@/components/SettingsService.js
+@BINPATH@/components/SettingsService.manifest
 @RESPATH@/components/Webapps.js
 @RESPATH@/components/Webapps.manifest
 @RESPATH@/components/AppsService.js
diff --git a/dom/settings/moz.build b/dom/settings/moz.build
index 10a6055ba12..325e8fca678 100644
--- a/dom/settings/moz.build
+++ b/dom/settings/moz.build
@@ -9,7 +9,7 @@ EXTRA_COMPONENTS += [
     'SettingsManager.manifest',
 ]
 
-if CONFIG['MOZ_B2G']:
+if CONFIG['MOZ_B2G'] or CONFIG['ENABLE_TESTS']:
     EXTRA_COMPONENTS += [
         'SettingsService.js',
         'SettingsService.manifest',
diff --git a/dom/settings/tests/mochitest.ini b/dom/settings/tests/mochitest.ini
index 6d1ab67f309..87e3c3be926 100644
--- a/dom/settings/tests/mochitest.ini
+++ b/dom/settings/tests/mochitest.ini
@@ -1,5 +1,4 @@
 [DEFAULT]
-skip-if = (toolkit == 'gonk' && debug) #debug-only failure, bug 932878
 support-files =
   file_loadserver.js
   file_bug1110872.js
diff --git a/dom/settings/tests/test_settings_service.js b/dom/settings/tests/test_settings_service.js
index 42f340acad1..33e026c137e 100644
--- a/dom/settings/tests/test_settings_service.js
+++ b/dom/settings/tests/test_settings_service.js
@@ -18,99 +18,104 @@ XPCOMUtils.defineLazyServiceGetter(this, "SettingsService",
                                    "nsISettingsService");
 
 let tests = [
-  /* Callback tests */
-  function() {
-    let callbackCount = 10;
+      /* Callback tests */
+      function() {
+        let callbackCount = 10;
 
-    let callback = {
-      handle: function(name, result) {
-        switch (callbackCount) {
-        case 10:
-        case 9:
-          is(result, true, "result is true");
-          break;
-        case 8:
-        case 7:
-          is(result, false, "result is false");
-          break;
-        case 6:
-        case 5:
-          is(result, 9, "result is 9");
-          break;
-        case 4:
-        case 3:
-          is(result, 9.4, "result is 9.4");
-          break;
-        case 2:
-          is(result, false, "result is false");
-          break;
-        case 1:
-          is(result, null, "result is null");
-          break;
-        default:
-          ok(false, "Unexpected call: " + callbackCount);
-        }
+        let callback = {
+          handle: function(name, result) {
+            switch (callbackCount) {
+              case 10:
+              case 9:
+                is(result, true, "result is true");
+                break;
+              case 8:
+              case 7:
+                is(result, false, "result is false");
+                break;
+              case 6:
+              case 5:
+                is(result, 9, "result is 9");
+                break;
+              case 4:
+              case 3:
+                is(result, 9.4, "result is 9.4");
+                break;
+              case 2:
+                is(result, false, "result is false");
+                break;
+              case 1:
+                is(result, null, "result is null");
+                break;
+              default:
+                ok(false, "Unexpected call: " + callbackCount);
+            }
 
-        --callbackCount;
-        if (callbackCount === 0) {
-          next();
-        }
+            --callbackCount;
+            if (callbackCount === 0) {
+              next();
+            }
+          },
+
+          handleError: function(name) {
+            ok(false, "error: " + name);
+          }
+        };
+
+        let lock = SettingsService.createLock();
+        let lock1 = SettingsService.createLock();
+
+        lock.set("asdf", true, callback, null);
+        lock1.get("asdf", callback);
+        lock.get("asdf", callback);
+        lock.set("asdf", false, callback, null);
+        lock.get("asdf", callback);
+        lock.set("int", 9, callback, null);
+        lock.get("int", callback);
+        lock.set("doub", 9.4, callback, null);
+        lock.get("doub", callback);
+        lock1.get("asdfxxx", callback);
       },
 
-      handleError: function(name) {
-        ok(false, "error: " + name);
+      /* Observer tests */
+      function() {
+        const MOZSETTINGS_CHANGED   = "mozsettings-changed";
+        const TEST_OBSERVER_KEY     = "test.observer.key";
+        const TEST_OBSERVER_VALUE   = true;
+        const TEST_OBSERVER_MESSAGE = "test.observer.message";
+
+        var obs = {
+          observe: function (subject, topic, data) {
+
+            if (topic !== MOZSETTINGS_CHANGED) {
+              ok(false, "Event is not mozsettings-changed.");
+              return;
+            }
+            // Data is now stored in subject
+            if ("wrappedJSObject" in subject) {
+              ok(true, "JS object wrapped into subject");
+              subject = subject.wrappedJSObject;
+            }
+            function checkProp(name, type, value) {
+              ok(name in subject, "subject." + name + " is present");
+              is(typeof subject[name], type, "subject." + name + " is " + type);
+              is(subject[name], value, "subject." + name + " is " + value);
+            }
+
+            checkProp("key", "string", TEST_OBSERVER_KEY);
+            checkProp("value", "boolean", TEST_OBSERVER_VALUE);
+            checkProp("isInternalChange", "boolean", true);
+
+            Services.obs.removeObserver(this, MOZSETTINGS_CHANGED);
+            next();
+          }
+        };
+
+        Services.obs.addObserver(obs, MOZSETTINGS_CHANGED, false);
+
+        let lock = SettingsService.createLock();
+        lock.set(TEST_OBSERVER_KEY, TEST_OBSERVER_VALUE, null);
       }
-    };
-
-    let lock = SettingsService.createLock();
-    let lock1 = SettingsService.createLock();
-
-    lock.set("asdf", true, callback, null);
-    lock1.get("asdf", callback);
-    lock.get("asdf", callback);
-    lock.set("asdf", false, callback, null);
-    lock.get("asdf", callback);
-    lock.set("int", 9, callback, null);
-    lock.get("int", callback);
-    lock.set("doub", 9.4, callback, null);
-    lock.get("doub", callback);
-    lock1.get("asdfxxx", callback);
-  },
-
-  /* Observer tests */
-  function() {
-    const MOZSETTINGS_CHANGED   = "mozsettings-changed";
-    const TEST_OBSERVER_KEY     = "test.observer.key";
-    const TEST_OBSERVER_VALUE   = true;
-    const TEST_OBSERVER_MESSAGE = "test.observer.message";
-
-    function observer(subject, topic, data) {
-
-      if (topic !== MOZSETTINGS_CHANGED) {
-        ok(false, "Event is not mozsettings-changed.");
-        return;
-      }
-
-      data = JSON.parse(data);
-      function checkProp(name, type, value) {
-        ok(name in data, "data." + name + " is present");
-        is(typeof data[name], type, "data." + name + " is " + type);
-        is(data[name], value, "data." + name + " is " + value);
-      }
-
-      checkProp("key", "string", TEST_OBSERVER_KEY);
-      checkProp("value", "boolean", TEST_OBSERVER_VALUE);
-      checkProp("isInternalChange", "boolean", true);
-
-        Services.obs.removeObserver(this, MOZSETTINGS_CHANGED);
-        next();
-      }
-
-    Services.obs.addObserver(observer, MOZSETTINGS_CHANGED, false);
-
-    let lock = SettingsService.createLock();
-    lock.set(TEST_OBSERVER_KEY, TEST_OBSERVER_VALUE, null);
-  }
 ];
 
 function next() {