diff --git a/functional/test_lbaasv2.py b/functional/test_lbaasv2.py
new file mode 100644
index 0000000..983c48a
--- /dev/null
+++ b/functional/test_lbaasv2.py
@@ -0,0 +1,144 @@
+#    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 oslo_log import log as logging
+
+from heat_integrationtests.functional import functional_base
+
+LOG = logging.getLogger(__name__)
+
+
+class LoadBalancerv2Test(functional_base.FunctionalTestsBase):
+
+    create_template = '''
+heat_template_version: 2016-04-08
+resources:
+  loadbalancer:
+    type: OS::Neutron::LBaaS::LoadBalancer
+    properties:
+      description: aLoadBalancer
+      vip_subnet: private-subnet
+  listener:
+    type: OS::Neutron::LBaaS::Listener
+    properties:
+      description: aListener
+      loadbalancer: { get_resource: loadbalancer }
+      protocol: HTTP
+      protocol_port: 80
+      connection_limit: 5555
+  pool:
+    type: OS::Neutron::LBaaS::Pool
+    properties:
+      description: aPool
+      lb_algorithm: ROUND_ROBIN
+      protocol: HTTP
+      listener: { get_resource: listener }
+  poolmember:
+    type: OS::Neutron::LBaaS::PoolMember
+    properties:
+      address: 1.1.1.1
+      pool: { get_resource: pool }
+      protocol_port: 1111
+      subnet: private-subnet
+      weight: 255
+  # pm2
+  healthmonitor:
+    type: OS::Neutron::LBaaS::HealthMonitor
+    properties:
+      delay: 3
+      type: HTTP
+      timeout: 3
+      max_retries: 3
+      pool: { get_resource: pool }
+outputs:
+  loadbalancer:
+    value: { get_attr: [ loadbalancer, show ] }
+  pool:
+    value: { get_attr: [ pool, show ] }
+  poolmember:
+    value: { get_attr: [ poolmember, show ] }
+  listener:
+    value: { get_attr: [ listener, show ] }
+  healthmonitor:
+    value: { get_attr: [ healthmonitor, show ] }
+'''
+
+    add_member = '''
+  poolmember2:
+    type: OS::Neutron::LBaaS::PoolMember
+    properties:
+      address: 2.2.2.2
+      pool: { get_resource: pool }
+      protocol_port: 2222
+      subnet: private-subnet
+      weight: 222
+'''
+
+    def setUp(self):
+        super(LoadBalancerv2Test, self).setUp()
+        if not self.is_network_extension_supported('lbaasv2'):
+            self.skipTest('LBaasv2 extension not available, skipping')
+
+    def test_create_update_loadbalancer(self):
+        stack_identifier = self.stack_create(template=self.create_template)
+        stack = self.client.stacks.get(stack_identifier)
+        output = self._stack_output(stack, 'loadbalancer')
+        self.assertEqual('ONLINE', output['operating_status'])
+
+        template = self.create_template.replace('ROUND_ROBIN', 'SOURCE_IP')
+        template = template.replace('3', '6')
+        template = template.replace('255', '256')
+        template = template.replace('5555', '7777')
+        template = template.replace('aLoadBalancer', 'updatedLoadBalancer')
+        template = template.replace('aPool', 'updatedPool')
+        template = template.replace('aListener', 'updatedListener')
+        self.update_stack(stack_identifier, template=template)
+        stack = self.client.stacks.get(stack_identifier)
+
+        output = self._stack_output(stack, 'loadbalancer')
+        self.assertEqual('ONLINE', output['operating_status'])
+        self.assertEqual('updatedLoadBalancer', output['description'])
+        output = self._stack_output(stack, 'pool')
+        self.assertEqual('SOURCE_IP', output['lb_algorithm'])
+        self.assertEqual('updatedPool', output['description'])
+        output = self._stack_output(stack, 'poolmember')
+        self.assertEqual(256, output['weight'])
+        output = self._stack_output(stack, 'healthmonitor')
+        self.assertEqual(6, output['delay'])
+        self.assertEqual(6, output['timeout'])
+        self.assertEqual(6, output['max_retries'])
+        output = self._stack_output(stack, 'listener')
+        self.assertEqual(7777, output['connection_limit'])
+        self.assertEqual('updatedListener', output['description'])
+
+    def test_add_delete_poolmember(self):
+        stack_identifier = self.stack_create(template=self.create_template)
+        stack = self.client.stacks.get(stack_identifier)
+        output = self._stack_output(stack, 'loadbalancer')
+        self.assertEqual('ONLINE', output['operating_status'])
+        output = self._stack_output(stack, 'pool')
+        self.assertEqual(1, len(output['members']))
+        # add pool member
+        template = self.create_template.replace('# pm2', self.add_member)
+        self.update_stack(stack_identifier, template=template)
+        stack = self.client.stacks.get(stack_identifier)
+        output = self._stack_output(stack, 'loadbalancer')
+        self.assertEqual('ONLINE', output['operating_status'])
+        output = self._stack_output(stack, 'pool')
+        self.assertEqual(2, len(output['members']))
+        # delete pool member
+        self.update_stack(stack_identifier, template=self.create_template)
+        stack = self.client.stacks.get(stack_identifier)
+        output = self._stack_output(stack, 'loadbalancer')
+        self.assertEqual('ONLINE', output['operating_status'])
+        output = self._stack_output(stack, 'pool')
+        self.assertEqual(1, len(output['members']))