diff --git a/functional/test_cancel_update.py b/functional/test_cancel_update.py
new file mode 100644
index 0000000..c40aeb0
--- /dev/null
+++ b/functional/test_cancel_update.py
@@ -0,0 +1,63 @@
+#    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
+
+
+class CancelUpdateTest(functional_base.FunctionalTestsBase):
+
+    template = '''
+heat_template_version: '2013-05-23'
+parameters:
+ InstanceType:
+   type: string
+ ImageId:
+   type: string
+ network:
+   type: string
+resources:
+ port:
+   type: OS::Neutron::Port
+   properties:
+     network: {get_param: network}
+ Server:
+   type: OS::Nova::Server
+   properties:
+     flavor_update_policy: REPLACE
+     image: {get_param: ImageId}
+     flavor: {get_param: InstanceType}
+     networks:
+       - port: {get_resource: port}
+'''
+
+    def setUp(self):
+        super(CancelUpdateTest, self).setUp()
+        if not self.conf.image_ref:
+            raise self.skipException("No image configured to test.")
+        if not self.conf.instance_type:
+            raise self.skipException("No flavor configured to test.")
+        if not self.conf.minimal_instance_type:
+            raise self.skipException("No minimal flavor configured to test.")
+
+    def test_cancel_update_server_with_port(self):
+        parameters = {'InstanceType': self.conf.minimal_instance_type,
+                      'ImageId': self.conf.image_ref,
+                      'network': self.conf.fixed_network_name}
+
+        stack_identifier = self.stack_create(template=self.template,
+                                             parameters=parameters)
+        parameters['InstanceType'] = 'm1.large'
+        self.update_stack(stack_identifier, self.template,
+                          parameters=parameters,
+                          expected_status='UPDATE_IN_PROGRESS')
+
+        self.cancel_update_stack(stack_identifier)