diff --git a/bifrost/inventory.py b/bifrost/inventory.py
index 326f8d6e5..b3436f2f6 100755
--- a/bifrost/inventory.py
+++ b/bifrost/inventory.py
@@ -336,8 +336,8 @@ def _process_shade(groups, hostvars):
         # return the network information to the inventory.
         nics = cloud.list_nics_for_machine(machine['uuid'])
         new_nics = []
-        new_nic = {}
         for nic in nics:
+            new_nic = {}
             if 'address' in nic:
                 new_nic['mac'] = nic['address']
             new_nics.append(new_nic)
diff --git a/bifrost/tests/unit/test_inventory.py b/bifrost/tests/unit/test_inventory.py
index a895afab9..9c6503a7c 100644
--- a/bifrost/tests/unit/test_inventory.py
+++ b/bifrost/tests/unit/test_inventory.py
@@ -19,6 +19,8 @@ test_inventory
 Tests for `inventory` module.
 """
 
+import mock
+
 from bifrost import inventory
 
 from bifrost.tests import base
@@ -40,3 +42,116 @@ class TestBifrostInventoryUnit(base.TestCase):
         self.assertIsNone(inventory._val_or_none(array, 1))
         self.assertEqual('yes', inventory._val_or_none(array, 2))
         self.assertIsNone(inventory._val_or_none(array, 4))
+
+    def test__process_shade(self):
+        inventory.shade = mock_shade = mock.Mock()
+        inventory.SHADE_LOADED = True
+        (groups, hostvars) = inventory._prepare_inventory()
+        mock_cloud = mock_shade.operator_cloud.return_value
+        mock_cloud.list_machines.return_value = [
+            {
+                'driver_info': {
+                    'ipmi_address': '1.2.3.4',
+                },
+                'links': [],
+                'name': 'node1',
+                'ports': [],
+                'properties': {
+                    'cpus': 42,
+                },
+                'uuid': 'f3fbf7c6-b4e9-4dd2-8ca0-c74a50f8be45',
+            },
+        ]
+        mock_cloud.list_nics_for_machine.return_value = [
+            {
+                'address': '00:11:22:33:44:55',
+                'uuid': 'e2be93b5-a8f6-46a2-bec7-571b8ecf2938',
+            },
+        ]
+        (groups, hostvars) = inventory._process_shade(groups, hostvars)
+        mock_shade.operator_cloud.assert_called_once_with(
+            auth_type='None', auth={'endpoint': 'http://localhost:6385/'})
+        mock_cloud.list_machines.assert_called_once_with()
+        mock_cloud.list_nics_for_machine.assert_called_once_with(
+            'f3fbf7c6-b4e9-4dd2-8ca0-c74a50f8be45')
+        self.assertIn('baremetal', groups)
+        self.assertIn('hosts', groups['baremetal'])
+        self.assertEqual(groups['baremetal'], {'hosts': ['node1']})
+        self.assertIn('node1', hostvars)
+        expected_machine = {
+            'addressing_mode': 'dhcp',
+            'driver_info': {
+                'ipmi_address': '1.2.3.4',
+            },
+            'name': 'node1',
+            'nics': [
+                {
+                    'mac': '00:11:22:33:44:55',
+                },
+            ],
+            'properties': {
+                'cpus': 42,
+            },
+            'uuid': 'f3fbf7c6-b4e9-4dd2-8ca0-c74a50f8be45',
+        }
+        self.assertEqual(hostvars['node1'], expected_machine)
+
+    def test__process_shade_multiple_nics(self):
+        inventory.shade = mock_shade = mock.Mock()
+        inventory.SHADE_LOADED = True
+        (groups, hostvars) = inventory._prepare_inventory()
+        mock_cloud = mock_shade.operator_cloud.return_value
+        mock_cloud.list_machines.return_value = [
+            {
+                'driver_info': {
+                    'ipmi_address': '1.2.3.4',
+                },
+                'links': [],
+                'name': 'node1',
+                'ports': [],
+                'properties': {
+                    'cpus': 42,
+                },
+                'uuid': 'f3fbf7c6-b4e9-4dd2-8ca0-c74a50f8be45',
+            },
+        ]
+        mock_cloud.list_nics_for_machine.return_value = [
+            {
+                'address': '00:11:22:33:44:55',
+                'uuid': 'e2be93b5-a8f6-46a2-bec7-571b8ecf2938',
+            },
+            {
+                'address': '00:11:22:33:44:56',
+                'uuid': '59e8cd37-4f71-4ca1-a264-93c2ca7de0f7',
+            },
+        ]
+        (groups, hostvars) = inventory._process_shade(groups, hostvars)
+        mock_shade.operator_cloud.assert_called_once_with(
+            auth_type='None', auth={'endpoint': 'http://localhost:6385/'})
+        mock_cloud.list_machines.assert_called_once_with()
+        mock_cloud.list_nics_for_machine.assert_called_once_with(
+            'f3fbf7c6-b4e9-4dd2-8ca0-c74a50f8be45')
+        self.assertIn('baremetal', groups)
+        self.assertIn('hosts', groups['baremetal'])
+        self.assertEqual(groups['baremetal'], {'hosts': ['node1']})
+        self.assertIn('node1', hostvars)
+        expected_machine = {
+            'addressing_mode': 'dhcp',
+            'driver_info': {
+                'ipmi_address': '1.2.3.4',
+            },
+            'name': 'node1',
+            'nics': [
+                {
+                    'mac': '00:11:22:33:44:55',
+                },
+                {
+                    'mac': '00:11:22:33:44:56',
+                },
+            ],
+            'properties': {
+                'cpus': 42,
+            },
+            'uuid': 'f3fbf7c6-b4e9-4dd2-8ca0-c74a50f8be45',
+        }
+        self.assertEqual(hostvars['node1'], expected_machine)
diff --git a/test-requirements.txt b/test-requirements.txt
index c96b2ac4f..3fb3201b7 100644
--- a/test-requirements.txt
+++ b/test-requirements.txt
@@ -14,3 +14,4 @@ testrepository>=0.0.18 # Apache-2.0/BSD
 testscenarios>=0.4 # Apache-2.0/BSD
 testtools>=1.4.0 # MIT
 PyYAML>=3.10.0 # MIT
+mock>=2.0 # BSD