karma.conf.js

var path = require('path');
var webpackConfig = require('./webpack.config');
var entry = path.resolve(webpackConfig.context, webpackConfig.entry); //accessing [0] because there are mutli entry points for webpack hot loader
var preprocessors = {}; 
preprocessors[entry] = ['webpack'];
preprocessors['**/*.html'] = ['ng-html2js'];

module.exports = function(config) {
  config.set({

    // base path that will be used to resolve all patterns (eg. files, exclude)
    basePath: '',

    // frameworks to use
    // available frameworks: https://npmjs.org/browse/keyword/karma-adapter
    frameworks: ['mocha', 'chai'],

    // list of files / patterns to load in the browser
    files: [entry],
    webpack: webpackConfig,

    // list of files to exclude
    exclude: [],

    // test results reporter to use
    // possible values: 'dots', 'progress'
    // available reporters: https://npmjs.org/browse/keyword/karma-reporter
    reporters: ['progress'],

    preprocessors: preprocessors,

    // web server port
    port: 9876,

    // enable / disable colors in the output (reporters and logs)
    colors: true,

    // level of logging
    // possible values: config.LOG_DISABLE || config.LOG_ERROR || config.LOG_WARN || config.LOG_INFO || config.LOG_DEBUG
    logLevel: config.LOG_INFO,


    // enable / disable watching file and executing tests whenever any file changes
    autoWatch: true,

    ngHtml2JsPreprocessor: { 
        stripPrefix: 'app/components/', 
        moduleName: 'my.templates' 
    },

    reporters: ['mocha'],

    // start these browsers
    // available browser launchers: https://npmjs.org/browse/keyword/karma-launcher
    browsers: ['Chrome'],

    // Continuous Integration mode
    // if true, Karma captures browsers, runs the tests and exits
    singleRun: false,

    plugins: [
        require('karma-webpack'),
        'karma-chai',
        'karma-mocha',
        'karma-chrome-launcher',
        'karma-ng-html2js-preprocessor',
        'karma-mocha-reporter'
    ]
  });
}