diff --git a/functional/test_resource_chain.py b/functional/test_resource_chain.py
new file mode 100644
index 0000000..468810c
--- /dev/null
+++ b/functional/test_resource_chain.py
@@ -0,0 +1,148 @@
+#
+#    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 heat_integrationtests.functional import functional_base
+
+
+TEMPLATE_SIMPLE = '''
+heat_template_version: 2016-04-08
+parameters:
+  string-length:
+    type: number
+resources:
+  my-chain:
+    type: OS::Heat::ResourceChain
+    properties:
+      resources: ['OS::Heat::RandomString', 'OS::Heat::RandomString']
+      resource_properties:
+        length: { get_param: string-length }
+outputs:
+  resource-ids:
+    value: { get_attr: [my-chain, refs] }
+  resource-0-value:
+    value: { get_attr: [my-chain, resource.0, value] }
+  all-resource-attrs:
+    value: { get_attr: [my-chain, attributes, value] }
+'''
+
+TEMPLATE_PARAM_DRIVEN = '''
+heat_template_version: 2016-04-08
+parameters:
+  chain-types:
+    type: comma_delimited_list
+resources:
+  my-chain:
+    type: OS::Heat::ResourceChain
+    properties:
+      resources: { get_param: chain-types }
+'''
+
+
+class ResourceChainTests(functional_base.FunctionalTestsBase):
+
+    def test_create(self):
+        # Test
+        params = {'string-length': 8}
+        stack_id = self.stack_create(template=TEMPLATE_SIMPLE,
+                                     parameters=params)
+
+        # Verify
+        stack = self.client.stacks.get(stack_id)
+        self.assertTrue(stack is not None)
+
+        # Top-level resource for chain
+        expected = {'my-chain': 'OS::Heat::ResourceChain'}
+        found = self.list_resources(stack_id)
+        self.assertEqual(expected, found)
+
+        # Nested stack exists and has two resources
+        nested_id = self.group_nested_identifier(stack_id, 'my-chain')
+        expected = {'0': 'OS::Heat::RandomString',
+                    '1': 'OS::Heat::RandomString'}
+        found = self.list_resources(nested_id)
+        self.assertEqual(expected, found)
+
+        # Outputs
+        resource_ids = self._stack_output(stack, 'resource-ids')
+        self.assertTrue(resource_ids is not None)
+        self.assertEqual(2, len(resource_ids))
+
+        resource_value = self._stack_output(stack, 'resource-0-value')
+        self.assertTrue(resource_value is not None)
+        self.assertEqual(8, len(resource_value))  # from parameter
+
+        resource_attrs = self._stack_output(stack, 'all-resource-attrs')
+        self.assertTrue(resource_attrs is not None)
+        self.assertTrue(isinstance(resource_attrs, dict))
+        self.assertEqual(2, len(resource_attrs))
+        self.assertEqual(8, len(resource_attrs['0']))
+        self.assertEqual(8, len(resource_attrs['1']))
+
+    def test_update(self):
+        # Setup
+        params = {'string-length': 8}
+        stack_id = self.stack_create(template=TEMPLATE_SIMPLE,
+                                     parameters=params)
+
+        update_tmpl = '''
+        heat_template_version: 2016-04-08
+        parameters:
+          string-length:
+            type: number
+        resources:
+          my-chain:
+            type: OS::Heat::ResourceChain
+            properties:
+              resources: ['OS::Heat::None']
+        '''
+
+        # Test
+        self.update_stack(stack_id, template=update_tmpl, parameters=params)
+
+        # Verify
+        # Nested stack only has the None resource
+        nested_id = self.group_nested_identifier(stack_id, 'my-chain')
+        expected = {'0': 'OS::Heat::None'}
+        found = self.list_resources(nested_id)
+        self.assertEqual(expected, found)
+
+    def test_resources_param_driven(self):
+        # Setup
+        params = {'chain-types':
+                  'OS::Heat::None,OS::Heat::RandomString,OS::Heat::None'}
+
+        # Test
+        stack_id = self.stack_create(template=TEMPLATE_PARAM_DRIVEN,
+                                     parameters=params)
+
+        # Verify
+        nested_id = self.group_nested_identifier(stack_id, 'my-chain')
+        expected = {'0': 'OS::Heat::None',
+                    '1': 'OS::Heat::RandomString',
+                    '2': 'OS::Heat::None'}
+        found = self.list_resources(nested_id)
+        self.assertEqual(expected, found)
+
+    def test_resources_env_defined(self):
+        # Setup
+        env = {'parameters': {'chain-types': 'OS::Heat::None'}}
+
+        # Test
+        stack_id = self.stack_create(template=TEMPLATE_PARAM_DRIVEN,
+                                     environment=env)
+
+        # Verify
+        nested_id = self.group_nested_identifier(stack_id, 'my-chain')
+        expected = {'0': 'OS::Heat::None'}
+        found = self.list_resources(nested_id)
+        self.assertEqual(expected, found)