Fine-tuning in physics and cosmology is often used as evidence that a theory is incomplete. For example, the parameters of the standard model of particle physics are “unnaturally” small, which has driven much of the search for physics beyond the standard model. Of particular interest is the fine-tuning of the universe for life, which suggests that our universe’s ability to create physical life forms is improbable and in need of explanation, perhaps by a multiverse. This claim has been challenged on (...) the grounds that the relevant probability measure cannot be justified because it cannot be normalized, and so small probabilities cannot be inferred. We show how fine-tuning can be formulated within the context of Bayesian theory testing in the physical sciences. The normalizability problem is seen to be a general problem for testing any theory with free parameters, and not a unique problem for fine-tuning. Physical theories in fact avoid such problems in one of two ways. Dimensional parameters are bounded by the Planck scale, avoiding troublesome infinities, and we are not compelled to assume that dimensionless parameters are distributed uniformly, which avoids non-normalizability. (shrink)