diff --git a/functional/test_create_update_neutron_port.py b/functional/test_create_update_neutron_port.py
new file mode 100644
index 0000000..3d82bc4
--- /dev/null
+++ b/functional/test_create_update_neutron_port.py
@@ -0,0 +1,108 @@
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+from testtools import testcase
+
+from heat_integrationtests.common import test
+
+
+test_template = '''
+heat_template_version: 2015-04-30
+description: Test template to create port wit ip_address.
+parameters:
+  mac:
+    type: string
+    default: 00-00-00-00-BB-BB
+resources:
+  net:
+    type: OS::Neutron::Net
+  subnet:
+    type: OS::Neutron::Subnet
+    properties:
+      network: { get_resource: net }
+      cidr: 11.11.11.0/24
+  port:
+    type: OS::Neutron::Port
+    properties:
+      network: {get_resource: net}
+      mac_address: {get_param: mac}
+      fixed_ips:
+        - subnet: {get_resource: subnet}
+          ip_address: 11.11.11.11
+outputs:
+  port_ip:
+    value: {get_attr: [port, fixed_ips, 0, ip_address]}
+'''
+
+
+class UpdatePortTest(test.HeatIntegrationTest):
+
+    def setUp(self):
+        super(UpdatePortTest, self).setUp()
+        self.client = self.orchestration_client
+
+    def get_port_id_and_ip(self, stack_identifier):
+        resources = self.client.resources.list(stack_identifier)
+        port_id = [res.physical_resource_id for res in resources
+                   if res.resource_name == 'port']
+        stack = self.client.stacks.get(stack_identifier)
+        port_ip = self._stack_output(stack, 'port_ip')
+        return port_id[0], port_ip
+
+    def test_stack_update_replace_no_ip(self):
+        templ_no_ip = test_template.replace('ip_address: 11.11.11.11', '')
+        # create with default 'mac' parameter
+        stack_identifier = self.stack_create(template=templ_no_ip)
+        _id, _ip = self.get_port_id_and_ip(stack_identifier)
+
+        # Update with another 'mac' parameter
+        parameters = {'mac': '00-00-00-00-AA-AA'}
+        self.update_stack(stack_identifier, templ_no_ip,
+                          parameters=parameters)
+
+        new_id, new_ip = self.get_port_id_and_ip(stack_identifier)
+        # port id and ip should be different
+        self.assertNotEqual(_ip, new_ip)
+        self.assertNotEqual(_id, new_id)
+
+    @testcase.skip('Skipped until bug #1455100 is fixed.')
+    def test_stack_update_replace_with_ip(self):
+        # create with default 'mac' parameter
+        stack_identifier = self.stack_create(template=test_template)
+
+        _id, _ip = self.get_port_id_and_ip(stack_identifier)
+
+        # Update with another 'mac' parameter
+        parameters = {'mac': '00-00-00-00-AA-AA'}
+
+        # port should be replaced with same ip
+        self.update_stack(stack_identifier, test_template,
+                          parameters=parameters)
+
+        new_id, new_ip = self.get_port_id_and_ip(stack_identifier)
+        # port id should be different, ip should be the same
+        self.assertEqual(_ip, new_ip)
+        self.assertNotEqual(_id, new_id)
+
+    def test_stack_update_in_place_remove_ip(self):
+        # create with default 'mac' parameter and defined ip_address
+        stack_identifier = self.stack_create(template=test_template)
+        _id, _ip = self.get_port_id_and_ip(stack_identifier)
+
+        # remove ip_address property and update stack
+        templ_no_ip = test_template.replace('ip_address: 11.11.11.11', '')
+        self.update_stack(stack_identifier, templ_no_ip)
+
+        new_id, new_ip = self.get_port_id_and_ip(stack_identifier)
+        # port should be updated with the same id, but different ip
+        self.assertNotEqual(_ip, new_ip)
+        self.assertEqual(_id, new_id)