diff --git a/tests/conductor/test_heat_commands.py b/tests/conductor/test_heat_commands.py
new file mode 100644
index 0000000..7a59898
--- /dev/null
+++ b/tests/conductor/test_heat_commands.py
@@ -0,0 +1,171 @@
+# Copyright (c) 2013 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.
+
+import json
+import unittest
+
+import mock
+import mockfs
+import heatclient.exc
+
+from conductor.commands.cloud_formation import HeatExecutor
+
+
+class TestHeatExecutor(unittest.TestCase):
+
+    def setUp(self):
+        self.mfs = mockfs.replace_builtins()
+        template = {
+            "$name": {
+                "$key": "$value"
+            }
+        }
+        self.mfs.add_entries({
+            './data/templates/cf/test.template': json.dumps(template)})
+
+    def tearDown(self):
+        mockfs.restore_builtins()
+
+    def _init(self, config_mock, ksclient_mock):
+        config_mock.heat.auth_url = 'http://invalid.url'
+
+        auth_data = ksclient_mock().tokens.authenticate()
+        auth_data.id = '123456'
+        auth_data.serviceCatalog = [{
+            'name': 'heat',
+            'endpoints': [{'publicURL': 'http://invalid.heat.url'}]
+        }]
+
+
+
+    @mock.patch('heatclient.v1.client.Client')
+    @mock.patch('keystoneclient.v2_0.client.Client')
+    @mock.patch('conductor.config.CONF')
+    def test_create_stack(self, config_mock, ksclient_mock, heat_mock):
+        self._init(config_mock, ksclient_mock)
+        executor = HeatExecutor('stack', 'token', 'tenant_id')
+        callback = mock.MagicMock()
+
+        executor.execute(
+            template='test',
+            command='CreateOrUpdate',
+            mappings={
+                'name': 'testName',
+                'key': 'testKey',
+                'value': 'testValue'},
+            arguments={
+                'arg1': 'arg1Value',
+                'arg2': 'arg2Value'},
+            callback=callback)
+
+
+        heat_mock().stacks.get().stack_status = 'CREATE_COMPLETE'
+        heat_mock().stacks.template = mock.MagicMock(
+            side_effect=heatclient.exc.HTTPNotFound)
+
+        self.assertTrue(executor.has_pending_commands())
+        result = executor.execute_pending()
+        self.assertTrue(result)
+        heat_mock().stacks.create.assert_called_with(
+            stack_name='stack',
+            parameters={
+                'arg1': 'arg1Value',
+                'arg2': 'arg2Value'},
+            template={
+                "testName": {
+                    "testKey": "testValue"
+                }
+            })
+        callback.assert_called_with(True)
+
+    @mock.patch('heatclient.v1.client.Client')
+    @mock.patch('keystoneclient.v2_0.client.Client')
+    @mock.patch('conductor.config.CONF')
+    def test_update_stack(self, config_mock, ksclient_mock, heat_mock):
+        self._init(config_mock, ksclient_mock)
+        executor = HeatExecutor('stack', 'token', 'tenant_id')
+        callback = mock.MagicMock()
+
+        executor.execute(
+            template='test',
+            command='CreateOrUpdate',
+            mappings={
+                'name': 'testName',
+                'key': 'testKey',
+                'value': 'testValue'},
+            arguments={
+                'arg1': 'arg1Value',
+                'arg2': 'arg2Value'},
+            callback=callback)
+
+        get_mock = heat_mock().stacks.get()
+        get_mock.stack_name = 'stack'
+        get_mock.id = 'stack'
+        get_mock.parameters = {}
+        get_mock.stack_status = ''
+        get_mock._status_index = 0
+
+        def side_effect(*args, **kwargs):
+            if get_mock._status_index < 2:
+                get_mock.stack_status = 'IN_PROGRESS'
+            else:
+                get_mock.stack_status = 'UPDATE_COMPLETE'
+            get_mock._status_index += 1
+            return get_mock
+
+
+        heat_mock().stacks.get = mock.MagicMock(side_effect=side_effect)
+
+        heat_mock().stacks.template = mock.MagicMock(
+            return_value={'instance': {}})
+
+        self.assertTrue(executor.has_pending_commands())
+        result = executor.execute_pending()
+        self.assertTrue(result)
+        heat_mock().stacks.update.assert_called_with(
+            stack_id='stack',
+            parameters={
+                'arg1': 'arg1Value',
+                'arg2': 'arg2Value'},
+            template={
+                'instance': {},
+                "testName": {
+                    "testKey": "testValue"
+                }
+            })
+        callback.assert_called_with(True)
+
+    @mock.patch('heatclient.v1.client.Client')
+    @mock.patch('keystoneclient.v2_0.client.Client')
+    @mock.patch('conductor.config.CONF')
+    def test_delete_stack(self, config_mock, ksclient_mock, heat_mock):
+        self._init(config_mock, ksclient_mock)
+        executor = HeatExecutor('stack', 'token', 'tenant_id')
+        callback = mock.MagicMock()
+
+        executor.execute(
+            template='test',
+            command='Delete',
+            callback=callback)
+
+
+        heat_mock().stacks.get = mock.MagicMock(
+            side_effect=heatclient.exc.HTTPNotFound)
+
+        self.assertTrue(executor.has_pending_commands())
+        result = executor.execute_pending()
+        self.assertTrue(result)
+        heat_mock().stacks.delete.assert_called_with(stack_id='stack')
+        callback.assert_called_with(True)