diff --git a/tempest/api/orchestration/stacks/test_instance_cfn_init.py b/tempest/api/orchestration/stacks/test_instance_cfn_init.py
new file mode 100644
index 0000000..2349830
--- /dev/null
+++ b/tempest/api/orchestration/stacks/test_instance_cfn_init.py
@@ -0,0 +1,152 @@
+# vim: tabstop=4 shiftwidth=4 softtabstop=4
+
+#    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 json
+import logging
+
+from tempest.api.orchestration import base
+from tempest.common.utils.data_utils import rand_name
+from tempest.test import attr
+
+
+LOG = logging.getLogger(__name__)
+
+
+class InstanceCfnInitTestJSON(base.BaseOrchestrationTest):
+    _interface = 'json'
+
+    template = """
+HeatTemplateFormatVersion: '2012-12-12'
+Description: |
+  Template which uses a wait condition to confirm that a minimal
+  cfn-init and cfn-signal has worked
+Parameters:
+  KeyName:
+    Type: String
+  InstanceType:
+    Type: String
+  ImageId:
+    Type: String
+Resources:
+  CfnUser:
+    Type: AWS::IAM::User
+  SmokeKeys:
+    Type: AWS::IAM::AccessKey
+    Properties:
+      UserName: {Ref: CfnUser}
+  SmokeServer:
+    Type: AWS::EC2::Instance
+    Metadata:
+      AWS::CloudFormation::Init:
+        config:
+          files:
+            /tmp/smoke-status:
+              content: smoke test complete
+            /etc/cfn/cfn-credentials:
+              content:
+                Fn::Join:
+                - ''
+                - - AWSAccessKeyId=
+                  - {Ref: SmokeKeys}
+                  - '
+
+                    '
+                  - AWSSecretKey=
+                  - Fn::GetAtt: [SmokeKeys, SecretAccessKey]
+                  - '
+
+                    '
+              mode: '000400'
+              owner: root
+              group: root
+    Properties:
+      ImageId: {Ref: ImageId}
+      InstanceType: {Ref: InstanceType}
+      KeyName: {Ref: KeyName}
+      UserData:
+        Fn::Base64:
+          Fn::Join:
+          - ''
+          - - |-
+                #!/bin/bash -v
+                /opt/aws/bin/cfn-init
+            - |-
+                || error_exit ''Failed to run cfn-init''
+                /opt/aws/bin/cfn-signal -e 0 --data "`cat /tmp/smoke-status`" '
+            - {Ref: WaitHandle}
+            - '''
+
+              '
+  WaitHandle:
+    Type: AWS::CloudFormation::WaitConditionHandle
+  WaitCondition:
+    Type: AWS::CloudFormation::WaitCondition
+    DependsOn: SmokeServer
+    Properties:
+      Handle: {Ref: WaitHandle}
+      Timeout: '600'
+Outputs:
+  WaitConditionStatus:
+    Description: Contents of /tmp/smoke-status on SmokeServer
+    Value:
+      Fn::GetAtt: [WaitCondition, Data]
+"""
+
+    @classmethod
+    def setUpClass(cls):
+        super(InstanceCfnInitTestJSON, cls).setUpClass()
+        if not cls.orchestration_cfg.image_ref:
+            raise cls.skipException("No image available to test")
+        cls.client = cls.orchestration_client
+
+    def setUp(self):
+        super(InstanceCfnInitTestJSON, self).setUp()
+        stack_name = rand_name('heat')
+        keypair_name = (self.orchestration_cfg.keypair_name or
+                        self._create_keypair()['name'])
+
+        # create the stack
+        self.stack_identifier = self.create_stack(
+            stack_name,
+            self.template,
+            parameters={
+                'KeyName': keypair_name,
+                'InstanceType': self.orchestration_cfg.instance_type,
+                'ImageId': self.orchestration_cfg.image_ref
+            })
+
+    @attr(type='gate')
+    def test_stack_wait_condition_data(self):
+
+        sid = self.stack_identifier
+
+        # wait for create to complete.
+        self.client.wait_for_stack_status(sid, 'CREATE_COMPLETE')
+
+        # fetch the stack
+        resp, body = self.client.get_stack(sid)
+        self.assertEqual('CREATE_COMPLETE', body['stack_status'])
+
+        # fetch the stack
+        resp, body = self.client.get_stack(sid)
+        self.assertEqual('CREATE_COMPLETE', body['stack_status'])
+
+        # This is an assert of great significance, as it means the following
+        # has happened:
+        # - cfn-init read the provided metadata and wrote out a file
+        # - a user was created and credentials written to the instance
+        # - a cfn-signal was built which was signed with provided credentials
+        # - the wait condition was fulfilled and the stack has changed state
+        wait_status = json.loads(body['outputs'][0]['output_value'])
+        self.assertEqual('smoke test complete', wait_status['00000'])