diff --git a/functional/test_remote_stack.py b/functional/test_remote_stack.py
new file mode 100644
index 0000000..ee4bdc0
--- /dev/null
+++ b/functional/test_remote_stack.py
@@ -0,0 +1,158 @@
+#    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.
+
+import logging
+import six
+
+from heat_integrationtests.common import test
+from heatclient import exc
+
+LOG = logging.getLogger(__name__)
+
+
+class RemoteStackTest(test.HeatIntegrationTest):
+    template = '''
+heat_template_version: 2013-05-23
+resources:
+  my_stack:
+    type: OS::Heat::Stack
+    properties:
+      context:
+        region_name: RegionOne
+      template:
+        get_file: remote_stack.yaml
+outputs:
+  key:
+    value: {get_attr: [my_stack, outputs]}
+'''
+
+    remote_template = '''
+heat_template_version: 2013-05-23
+resources:
+  random1:
+    type: OS::Heat::RandomString
+outputs:
+  remote_key:
+    value: {get_attr: [random1, value]}
+'''
+
+    def setUp(self):
+        super(RemoteStackTest, self).setUp()
+        self.client = self.orchestration_client
+
+    def test_remote_stack_alone(self):
+        stack_id = self.stack_create(template=self.remote_template)
+        expected_resources = {'random1': 'OS::Heat::RandomString'}
+        self.assertEqual(expected_resources, self.list_resources(stack_id))
+        stack = self.client.stacks.get(stack_id)
+        output_value = self._stack_output(stack, 'remote_key')
+        self.assertEqual(32, len(output_value))
+
+    def test_stack_create(self):
+        files = {'remote_stack.yaml': self.remote_template}
+        stack_id = self.stack_create(files=files)
+
+        expected_resources = {'my_stack': 'OS::Heat::Stack'}
+        self.assertEqual(expected_resources, self.list_resources(stack_id))
+
+        stack = self.client.stacks.get(stack_id)
+        output = self._stack_output(stack, 'key')
+        parent_output_value = output['remote_key']
+        self.assertEqual(32, len(parent_output_value))
+
+        rsrc = self.client.resources.get(stack_id, 'my_stack')
+        remote_id = rsrc.physical_resource_id
+        rstack = self.client.stacks.get(remote_id)
+        self.assertEqual(remote_id, rstack.id)
+        remote_output_value = self._stack_output(rstack, 'remote_key')
+        self.assertEqual(32, len(remote_output_value))
+        self.assertEqual(parent_output_value, remote_output_value)
+
+        remote_resources = {'random1': 'OS::Heat::RandomString'}
+        self.assertEqual(remote_resources, self.list_resources(remote_id))
+
+    def test_stack_create_bad_region(self):
+        stack_name = 'stack_to_fail'
+        tmpl_bad_region = self.template.replace('RegionOne', 'DARKHOLE')
+        files = {'remote_stack.yaml': self.remote_template}
+        kwargs = {
+            'stack_name': stack_name,
+            'template': tmpl_bad_region,
+            'files': files
+        }
+        ex = self.assertRaises(exc.HTTPBadRequest, self.stack_create, **kwargs)
+
+        error_msg = ('ERROR: Cannot establish connection to Heat endpoint '
+                     'at region "DARKHOLE" due to "publicURL endpoint for '
+                     'orchestration service in DARKHOLE region not found"')
+        self.assertEqual(error_msg, six.text_type(ex))
+
+    def test_stack_resource_validation_fail(self):
+        stack_name = 'stack_to_fail'
+        tmpl_bad_format = self.remote_template.replace('resources', 'resource')
+        files = {'remote_stack.yaml': tmpl_bad_format}
+        kwargs = {'stack_name': stack_name, 'files': files}
+        ex = self.assertRaises(exc.HTTPBadRequest, self.stack_create, **kwargs)
+
+        error_msg = ('ERROR: Failed validating stack template using Heat '
+                     'endpoint at region "RegionOne" due to '
+                     '"ERROR: The template section is invalid: resource"')
+        self.assertEqual(error_msg, six.text_type(ex))
+
+    def test_stack_update(self):
+        files = {'remote_stack.yaml': self.remote_template}
+        stack_id = self.stack_create(files=files)
+
+        expected_resources = {'my_stack': 'OS::Heat::Stack'}
+        self.assertEqual(expected_resources, self.list_resources(stack_id))
+
+        rsrc = self.client.resources.get(stack_id, 'my_stack')
+        physical_resource_id = rsrc.physical_resource_id
+        rstack = self.client.stacks.get(physical_resource_id)
+        self.assertEqual(physical_resource_id, rstack.id)
+
+        remote_resources = {'random1': 'OS::Heat::RandomString'}
+        self.assertEqual(remote_resources,
+                         self.list_resources(rstack.id))
+        # do an update
+        update_template = self.remote_template.replace('random1', 'random2')
+        files = {'remote_stack.yaml': update_template}
+        self.update_stack(stack_id, self.template, files=files)
+
+        # check if the remote stack is still there with the same ID
+        self.assertEqual(expected_resources, self.list_resources(stack_id))
+        rsrc = self.client.resources.get(stack_id, 'my_stack')
+        physical_resource_id = rsrc.physical_resource_id
+        rstack = self.client.stacks.get(physical_resource_id)
+        self.assertEqual(physical_resource_id, rstack.id)
+
+        remote_resources = {'random2': 'OS::Heat::RandomString'}
+        self.assertEqual(remote_resources,
+                         self.list_resources(rstack.id))
+
+    def test_stack_suspend_resume(self):
+        files = {'remote_stack.yaml': self.remote_template}
+        stack_id = self.stack_create(files=files)
+        rsrc = self.client.resources.get(stack_id, 'my_stack')
+        remote_id = rsrc.physical_resource_id
+
+        # suspend stack
+        self.client.actions.suspend(stack_id)
+        self._wait_for_stack_status(stack_id, 'SUSPEND_COMPLETE')
+        rsrc = self.client.stacks.get(remote_id)
+        self.assertEqual('SUSPEND_COMPLETE', rsrc.stack_status)
+
+        # resume stack
+        self.client.actions.resume(stack_id)
+        self._wait_for_stack_status(stack_id, 'RESUME_COMPLETE')
+        rsrc = self.client.stacks.get(remote_id)
+        self.assertEqual('RESUME_COMPLETE', rsrc.stack_status)