diff --git a/tests/lua/test_gse.lua b/tests/lua/test_gse.lua
new file mode 100644
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--- /dev/null
+++ b/tests/lua/test_gse.lua
@@ -0,0 +1,248 @@
+-- Copyright 2015 Mirantis, Inc.
+--
+-- 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.
+
+EXPORT_ASSERT_TO_GLOBALS=true
+require('luaunit')
+package.path = package.path .. ";../heka/files/lua/common/?.lua;lua/mocks/?.lua"
+
+-- mock the inject_message() function from the Heka sandbox library
+local last_injected_msg
+function inject_message(msg)
+    last_injected_msg = msg
+end
+
+local cjson = require('cjson')
+local consts = require('gse_constants')
+
+local gse = require('gse')
+local gse_policy = require('gse_policy')
+
+highest_policy = {
+    gse_policy.new({
+        status='down',
+        trigger={
+            logical_operator='or',
+            rules={{
+                ['function']='count',
+                arguments={'down'},
+                relational_operator='>',
+                threshold=0
+            }}
+        }
+    }),
+    gse_policy.new({
+        status='critical',
+        trigger={
+            logical_operator='or',
+            rules={{
+                ['function']='count',
+                arguments={'critical'},
+                relational_operator='>',
+                threshold=0
+            }}
+        }
+    }),
+    gse_policy.new({
+        status='warning',
+        trigger={
+            logical_operator='or',
+            rules={{
+                ['function']='count',
+                arguments={'warning'},
+                relational_operator='>',
+                threshold=0
+            }}
+        }
+    }),
+    gse_policy.new({status='okay'})
+}
+
+-- define clusters
+gse.add_cluster("heat", {'heat-api', 'controller'}, {'nova', 'glance', 'neutron', 'keystone', 'rabbitmq'}, 'member', highest_policy)
+gse.add_cluster("nova", {'nova-api', 'nova-ec2-api', 'nova-scheduler'}, {'glance', 'neutron', 'keystone', 'rabbitmq'}, 'member', highest_policy)
+gse.add_cluster("neutron", {'neutron-api'}, {'keystone', 'rabbitmq'}, 'member', highest_policy)
+gse.add_cluster("keystone", {'keystone-admin-api', 'keystone-public-api'}, {}, 'member', highest_policy)
+gse.add_cluster("glance", {'glance-api', 'glance-registry-api'}, {'keystone'}, 'member', highest_policy)
+gse.add_cluster("rabbitmq", {'rabbitmq-cluster', 'controller'}, {}, 'hostname', highest_policy)
+
+-- provision facts
+gse.set_member_status("neutron", "neutron-api", consts.DOWN, {{message="All neutron endpoints are down"}}, 'node-1')
+gse.set_member_status('keystone', 'keystone-admin-api', consts.OKAY, {}, 'node-1')
+gse.set_member_status('glance', "glance-api", consts.WARN, {{message="glance-api endpoint is down on node-1"}}, 'node-1')
+gse.set_member_status('glance', "glance-registry-api", consts.DOWN, {{message='glance-registry endpoints are down'}}, 'node-1')
+gse.set_member_status("rabbitmq", 'rabbitmq-cluster', consts.WARN, {{message="1 RabbitMQ node out of 3 is down"}}, 'node-2')
+gse.set_member_status("rabbitmq", 'rabbitmq-cluster', consts.OKAY, {}, 'node-1')
+gse.set_member_status("rabbitmq", 'rabbitmq-cluster', consts.OKAY, {}, 'node-3')
+gse.set_member_status('heat', "heat-api", consts.WARN, {{message='5xx errors detected'}}, 'node-1')
+gse.set_member_status('nova', "nova-api", consts.OKAY, {}, 'node-1')
+gse.set_member_status('nova', "nova-ec2_api", consts.OKAY, {}, 'node-1')
+gse.set_member_status('nova', "nova-scheduler", consts.OKAY, {}, 'node-1')
+gse.set_member_status('rabbitmq', "controller", consts.WARN, {{message='no space left'}}, 'node-1')
+gse.set_member_status('heat', "controller", consts.WARN, {{message='no space left'}}, 'node-1')
+
+for _, v in ipairs({'rabbitmq', 'keystone', 'glance', 'neutron', 'nova', 'heat'}) do
+    gse.resolve_status(v)
+end
+
+TestGse = {}
+
+    function TestGse:test_ordered_clusters()
+        local ordered_clusters = gse.get_ordered_clusters()
+        assertEquals(#ordered_clusters, 6)
+        assertEquals(ordered_clusters[1], 'rabbitmq')
+        assertEquals(ordered_clusters[2], 'keystone')
+        assertEquals(ordered_clusters[3], 'glance')
+        assertEquals(ordered_clusters[4], 'neutron')
+        assertEquals(ordered_clusters[5], 'nova')
+        assertEquals(ordered_clusters[6], 'heat')
+    end
+
+    function TestGse:test_01_rabbitmq_is_warning()
+        local status, alarms = gse.resolve_status('rabbitmq')
+        assertEquals(status, consts.WARN)
+        assertEquals(#alarms, 2)
+        assertEquals(alarms[1].hostname, 'node-1')
+        assertEquals(alarms[1].tags.dependency_name, 'controller')
+        assertEquals(alarms[1].tags.dependency_level, 'direct')
+        assertEquals(alarms[2].hostname, 'node-2')
+        assertEquals(alarms[2].tags.dependency_name, 'rabbitmq-cluster')
+        assertEquals(alarms[2].tags.dependency_level, 'direct')
+    end
+
+    function TestGse:test_02_keystone_is_okay()
+        local status, alarms = gse.resolve_status('keystone')
+        assertEquals(status, consts.OKAY)
+        assertEquals(#alarms, 0)
+    end
+
+    function TestGse:test_03_glance_is_down()
+        local status, alarms = gse.resolve_status('glance')
+        assertEquals(status, consts.DOWN)
+        assertEquals(#alarms, 2)
+        assert(alarms[1].hostname == nil)
+        assertEquals(alarms[1].tags.dependency_name, 'glance-api')
+        assertEquals(alarms[1].tags.dependency_level, 'direct')
+        assert(alarms[2].hostname == nil)
+        assertEquals(alarms[2].tags.dependency_name, 'glance-registry-api')
+        assertEquals(alarms[2].tags.dependency_level, 'direct')
+    end
+
+    function TestGse:test_04_neutron_is_down()
+        local status, alarms = gse.resolve_status('neutron')
+        assertEquals(status, consts.DOWN)
+        assertEquals(#alarms, 3)
+        assertEquals(alarms[1].tags.dependency_name, 'neutron-api')
+        assertEquals(alarms[1].tags.dependency_level, 'direct')
+        assert(alarms[1].hostname == nil)
+        assertEquals(alarms[2].tags.dependency_name, 'rabbitmq')
+        assertEquals(alarms[2].tags.dependency_level, 'hint')
+        assertEquals(alarms[2].hostname, 'node-1')
+        assertEquals(alarms[3].tags.dependency_name, 'rabbitmq')
+        assertEquals(alarms[3].tags.dependency_level, 'hint')
+        assertEquals(alarms[3].hostname, 'node-2')
+    end
+
+    function TestGse:test_05_nova_is_okay()
+        local status, alarms = gse.resolve_status('nova')
+        assertEquals(status, consts.OKAY)
+        assertEquals(#alarms, 0)
+    end
+
+    function TestGse:test_06_heat_is_warning_with_hints()
+        local status, alarms = gse.resolve_status('heat')
+        assertEquals(status, consts.WARN)
+        assertEquals(#alarms, 6)
+        assertEquals(alarms[1].tags.dependency_name, 'controller')
+        assertEquals(alarms[1].tags.dependency_level, 'direct')
+        assert(alarms[1].hostname == nil)
+        assertEquals(alarms[2].tags.dependency_name, 'heat-api')
+        assertEquals(alarms[2].tags.dependency_level, 'direct')
+        assert(alarms[2].hostname == nil)
+        assertEquals(alarms[3].tags.dependency_name, 'glance')
+        assertEquals(alarms[3].tags.dependency_level, 'hint')
+        assert(alarms[3].hostname == nil)
+        assertEquals(alarms[4].tags.dependency_name, 'glance')
+        assertEquals(alarms[4].tags.dependency_level, 'hint')
+        assert(alarms[4].hostname == nil)
+        assertEquals(alarms[5].tags.dependency_name, 'neutron')
+        assertEquals(alarms[5].tags.dependency_level, 'hint')
+        assert(alarms[5].hostname == nil)
+        assertEquals(alarms[6].tags.dependency_name, 'rabbitmq')
+        assertEquals(alarms[6].tags.dependency_level, 'hint')
+        assertEquals(alarms[6].hostname, 'node-2')
+    end
+
+    function TestGse:test_inject_cluster_metric_for_nova()
+        gse.inject_cluster_metric(
+            'gse_service_cluster_metric',
+            'nova',
+            'service_cluster_status',
+            10,
+            'gse_service_cluster_plugin'
+        )
+        local metric = last_injected_msg
+        assertEquals(metric.Type, 'gse_service_cluster_metric')
+        assertEquals(metric.Fields.cluster_name, 'nova')
+        assertEquals(metric.Fields.name, 'service_cluster_status')
+        assertEquals(metric.Fields.value, consts.OKAY)
+        assertEquals(metric.Fields.interval, 10)
+        assertEquals(metric.Payload, '{"alarms":[]}')
+    end
+
+    function TestGse:test_inject_cluster_metric_for_glance()
+        gse.inject_cluster_metric(
+            'gse_service_cluster_metric',
+            'glance',
+            'service_cluster_status',
+            10,
+            'gse_service_cluster_plugin'
+        )
+        local metric = last_injected_msg
+        assertEquals(metric.Type, 'gse_service_cluster_metric')
+        assertEquals(metric.Fields.cluster_name, 'glance')
+        assertEquals(metric.Fields.name, 'service_cluster_status')
+        assertEquals(metric.Fields.value, consts.DOWN)
+        assertEquals(metric.Fields.interval, 10)
+        assert(metric.Payload:match("glance%-registry endpoints are down"))
+        assert(metric.Payload:match("glance%-api endpoint is down on node%-1"))
+    end
+
+    function TestGse:test_inject_cluster_metric_for_heat()
+        gse.inject_cluster_metric(
+            'gse_service_cluster_metric',
+            'heat',
+            'service_cluster_status',
+            10,
+            'gse_service_cluster_plugin'
+        )
+        local metric = last_injected_msg
+        assertEquals(metric.Type, 'gse_service_cluster_metric')
+        assertEquals(metric.Fields.cluster_name, 'heat')
+        assertEquals(metric.Fields.name, 'service_cluster_status')
+        assertEquals(metric.Fields.value, consts.WARN)
+        assertEquals(metric.Fields.interval, 10)
+        assert(metric.Payload:match("5xx errors detected"))
+        assert(metric.Payload:match("1 RabbitMQ node out of 3 is down"))
+    end
+
+    function TestGse:test_reverse_index()
+        local clusters = gse.find_cluster_memberships('controller')
+        assertEquals(#clusters, 2)
+        assertEquals(clusters[1], 'heat')
+        assertEquals(clusters[2], 'rabbitmq')
+    end
+
+lu = LuaUnit
+lu:setVerbosity( 1 )
+os.exit( lu:run() )