diff --git a/functional/test_template_validate.py b/functional/test_template_validate.py
new file mode 100644
index 0000000..bd5aaca
--- /dev/null
+++ b/functional/test_template_validate.py
@@ -0,0 +1,149 @@
+#    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 six
+
+from heatclient import exc
+
+from heat_integrationtests.functional import functional_base
+
+
+class StackTemplateValidateTest(functional_base.FunctionalTestsBase):
+
+    random_template = '''
+heat_template_version: 2014-10-16
+description: the stack description
+parameters:
+  aparam:
+    type: number
+    default: 10
+    description: the param description
+resources:
+  myres:
+    type: OS::Heat::RandomString
+    properties:
+      length: {get_param: aparam}
+'''
+
+    random_template_groups = '''
+heat_template_version: 2014-10-16
+description: the stack description
+parameters:
+  aparam:
+    type: number
+    default: 10
+    description: the param description
+  bparam:
+    type: string
+    default: foo
+  cparam:
+    type: string
+    default: secret
+    hidden: true
+parameter_groups:
+- label: str_params
+  description: The string params
+  parameters:
+  - bparam
+  - cparam
+resources:
+  myres:
+    type: OS::Heat::RandomString
+    properties:
+      length: {get_param: aparam}
+'''
+
+    def test_template_validate_basic(self):
+        ret = self.client.stacks.validate(template=self.random_template)
+        expected = {'Description': 'the stack description',
+                    'Parameters': {
+                        'aparam': {'Default': 10,
+                                   'Description': 'the param description',
+                                   'Label': 'aparam',
+                                   'NoEcho': 'false',
+                                   'Type': 'Number'}}}
+        self.assertEqual(expected, ret)
+
+    def test_template_validate_override_default(self):
+        env = {'parameters': {'aparam': 5}}
+        ret = self.client.stacks.validate(template=self.random_template,
+                                          environment=env)
+        expected = {'Description': 'the stack description',
+                    'Parameters': {
+                        'aparam': {'Default': 10,
+                                   'Value': 5,
+                                   'Description': 'the param description',
+                                   'Label': 'aparam',
+                                   'NoEcho': 'false',
+                                   'Type': 'Number'}}}
+        self.assertEqual(expected, ret)
+
+    def test_template_validate_override_none(self):
+        env = {'resource_registry': {
+               'OS::Heat::RandomString': 'OS::Heat::None'}}
+        ret = self.client.stacks.validate(template=self.random_template,
+                                          environment=env)
+        expected = {'Description': 'the stack description',
+                    'Parameters': {
+                        'aparam': {'Default': 10,
+                                   'Description': 'the param description',
+                                   'Label': 'aparam',
+                                   'NoEcho': 'false',
+                                   'Type': 'Number'}}}
+        self.assertEqual(expected, ret)
+
+    def test_template_validate_basic_required_param(self):
+        tmpl = self.random_template.replace('default: 10', '')
+        ret = self.client.stacks.validate(template=tmpl)
+        expected = {'Description': 'the stack description',
+                    'Parameters': {
+                        'aparam': {'Description': 'the param description',
+                                   'Label': 'aparam',
+                                   'NoEcho': 'false',
+                                   'Type': 'Number'}}}
+        self.assertEqual(expected, ret)
+
+    def test_template_validate_fail_version(self):
+        fail_template = self.random_template.replace('2014-10-16', 'invalid')
+        ex = self.assertRaises(exc.HTTPBadRequest,
+                               self.client.stacks.validate,
+                               template=fail_template)
+        self.assertIn('The template version is invalid', six.text_type(ex))
+
+    def test_template_validate_parameter_groups(self):
+        ret = self.client.stacks.validate(template=self.random_template_groups)
+        expected = {'Description': 'the stack description',
+                    'ParameterGroups':
+                    [{'description': 'The string params',
+                      'label': 'str_params',
+                      'parameters': ['bparam', 'cparam']}],
+                    'Parameters':
+                    {'aparam':
+                     {'Default': 10,
+                      'Description': 'the param description',
+                      'Label': 'aparam',
+                      'NoEcho': 'false',
+                      'Type': 'Number'},
+                     'bparam':
+                     {'Default': 'foo',
+                      'Description': '',
+                      'Label': 'bparam',
+                      'NoEcho': 'false',
+                      'Type': 'String'},
+                     'cparam':
+                     {'Default': 'secret',
+                      'Description': '',
+                      'Label': 'cparam',
+                      'NoEcho': 'true',
+                      'Type': 'String'}}}
+        self.assertEqual(expected, ret)