diff --git a/test/TestInventory.py b/test/TestInventory.py
new file mode 100644
index 0000000000..b0e3c62ccf
--- /dev/null
+++ b/test/TestInventory.py
@@ -0,0 +1,143 @@
+import os
+import unittest
+
+from ansible.inventory import Inventory
+
+class TestInventory(unittest.TestCase):
+
+    def setUp(self):
+        self.cwd = os.getcwd()
+        self.test_dir = os.path.join(self.cwd, 'test')
+
+        self.inventory_file = os.path.join(self.test_dir, 'simple_hosts')
+        self.inventory_script = os.path.join(self.test_dir, 'inventory_api.py')
+
+        os.chmod(self.inventory_script, 0755)
+
+    def tearDown(self):
+        os.chmod(self.inventory_script, 0644)
+
+    ### Simple inventory format tests
+
+    def simple_inventory(self):
+        return Inventory( self.inventory_file )
+
+    def script_inventory(self):
+        return Inventory( self.inventory_script )
+
+    def test_simple(self):
+        inventory = self.simple_inventory()
+        hosts = inventory.list_hosts()
+
+        expected_hosts=['jupiter', 'saturn', 'zeus', 'hera', 'poseidon', 'thor', 'odin', 'loki']
+        assert hosts == expected_hosts
+
+    def test_simple_all(self):
+        inventory = self.simple_inventory()
+        hosts = inventory.list_hosts('all')
+
+        expected_hosts=['jupiter', 'saturn', 'zeus', 'hera', 'poseidon', 'thor', 'odin', 'loki']
+        assert hosts == expected_hosts
+
+    def test_simple_norse(self):
+        inventory = self.simple_inventory()
+        hosts = inventory.list_hosts("norse")
+
+        expected_hosts=['thor', 'odin', 'loki']
+        assert hosts == expected_hosts
+
+    def test_simple_combined(self):
+        inventory = self.simple_inventory()
+        hosts = inventory.list_hosts("norse:greek")
+
+        expected_hosts=['zeus', 'hera', 'poseidon', 'thor', 'odin', 'loki']
+        assert hosts == expected_hosts
+
+    def test_simple_restrict(self):
+        inventory = self.simple_inventory()
+
+        restricted_hosts = ['hera', 'poseidon', 'thor']
+        expected_hosts=['zeus', 'hera', 'poseidon', 'thor', 'odin', 'loki']
+
+        inventory.restrict_to(restricted_hosts)
+        hosts = inventory.list_hosts("norse:greek")
+
+        assert hosts == restricted_hosts
+
+        inventory.lift_restriction()
+        hosts = inventory.list_hosts("norse:greek")
+
+        assert hosts == expected_hosts
+
+    def test_simple_vars(self):
+        inventory = self.simple_inventory()
+        vars = inventory.get_variables('thor')
+
+        assert vars == {}
+
+    def test_simple_extra_vars(self):
+        inventory = self.simple_inventory()
+        vars = inventory.get_variables('thor', 'a=5')
+
+        assert vars == {}
+
+    ### Inventory API tests
+
+    def test_script(self):
+        inventory = self.script_inventory()
+        hosts = inventory.list_hosts()
+
+        expected_hosts=['jupiter', 'saturn', 'zeus', 'hera', 'poseidon', 'thor', 'odin', 'loki']
+
+        print "Expected: %s"%(expected_hosts)
+        print "Got     : %s"%(hosts)
+        assert sorted(hosts) == sorted(expected_hosts)
+
+    def test_script_all(self):
+        inventory = self.script_inventory()
+        hosts = inventory.list_hosts('all')
+
+        expected_hosts=['jupiter', 'saturn', 'zeus', 'hera', 'poseidon', 'thor', 'odin', 'loki']
+        assert sorted(hosts) == sorted(expected_hosts)
+
+    def test_script_norse(self):
+        inventory = self.script_inventory()
+        hosts = inventory.list_hosts("norse")
+
+        expected_hosts=['thor', 'odin', 'loki']
+        assert sorted(hosts) == sorted(expected_hosts)
+
+    def test_script_combined(self):
+        inventory = self.script_inventory()
+        hosts = inventory.list_hosts("norse:greek")
+
+        expected_hosts=['zeus', 'hera', 'poseidon', 'thor', 'odin', 'loki']
+        assert sorted(hosts) == sorted(expected_hosts)
+
+    def test_script_restrict(self):
+        inventory = self.script_inventory()
+
+        restricted_hosts = ['hera', 'poseidon', 'thor']
+        expected_hosts=['zeus', 'hera', 'poseidon', 'thor', 'odin', 'loki']
+
+        inventory.restrict_to(restricted_hosts)
+        hosts = inventory.list_hosts("norse:greek")
+
+        assert sorted(hosts) == sorted(restricted_hosts)
+
+        inventory.lift_restriction()
+        hosts = inventory.list_hosts("norse:greek")
+
+        assert sorted(hosts) == sorted(expected_hosts)
+
+    def test_script_vars(self):
+        inventory = self.script_inventory()
+        vars = inventory.get_variables('thor')
+
+        assert vars == {"hammer":True}
+
+    def test_script_extra_vars(self):
+        inventory = self.script_inventory()
+        vars = inventory.get_variables('thor', 'simple=yes')
+
+        assert vars == {"hammer":True, "simple": "yes"}
\ No newline at end of file
diff --git a/test/inventory_api.py b/test/inventory_api.py
new file mode 100644
index 0000000000..bcde15bd3c
--- /dev/null
+++ b/test/inventory_api.py
@@ -0,0 +1,39 @@
+#!/usr/bin/env python
+
+import json
+import sys
+
+from optparse import OptionParser
+
+parser = OptionParser()
+parser.add_option('-l', '--list', default=False, dest="list_hosts", action="store_true")
+parser.add_option('-H', '--host', default=None, dest="host")
+parser.add_option('-e', '--extra-vars', default=None, dest="extra")
+
+options, args = parser.parse_args()
+
+systems = {
+    "ungouped": [ "jupiter", "saturn" ],
+    "greek": [ "zeus", "hera", "poseidon" ],
+    "norse": [ "thor", "odin", "loki" ]
+}
+
+variables = {
+    "thor": {
+        "hammer": True
+        }
+}
+
+if options.list_hosts == True:
+    print json.dumps(systems)
+    sys.exit(0)
+
+if options.host is not None:
+    if options.extra:
+        k,v = options.extra.split("=")
+        variables[options.host][k] = v
+    print json.dumps(variables[options.host])
+    sys.exit(0)
+
+parser.print_help()
+sys.exit(1)
\ No newline at end of file
diff --git a/test/simple_hosts b/test/simple_hosts
new file mode 100644
index 0000000000..14312af92d
--- /dev/null
+++ b/test/simple_hosts
@@ -0,0 +1,12 @@
+jupiter
+saturn
+
+[greek]
+zeus
+hera
+poseidon
+
+[norse]
+thor
+odin
+loki