diff --git a/vmware_nsx_tempest/tests/nsxv3/api/test_provider_sec_group.py b/vmware_nsx_tempest/tests/nsxv3/api/test_provider_sec_group.py
new file mode 100644
index 0000000000..14d90178f6
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+++ b/vmware_nsx_tempest/tests/nsxv3/api/test_provider_sec_group.py
@@ -0,0 +1,326 @@
+# Copyright 2016 VMware Inc
+# All Rights Reserved
+#
+#    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 time
+
+from tempest.api.network import base
+from tempest import config
+from tempest.lib.common.utils import data_utils
+from tempest.lib.common.utils import test_utils
+from tempest.lib import exceptions
+
+from tempest import test
+from vmware_nsx_tempest._i18n import _LI
+from vmware_nsx_tempest.common import constants
+from vmware_nsx_tempest.services import nsxv3_client
+
+CONF = config.CONF
+
+LOG = constants.log.getLogger(__name__)
+
+
+class ProviderSecurityGroupTest(base.BaseAdminNetworkTest):
+    """Test Provider Security Group
+
+    1. Only Admin can create provider security group.
+    2. Tenants can not create provider security-group.
+    3. Check Provider sec group at beckend in firewall section
+    4. Check the priority of provider sec groups at beckend
+    5. Check non-admin tenant can't create provider security group
+    6. Check multiple rules under provider sec group
+    """
+
+    @classmethod
+    def skip_checks(cls):
+        super(ProviderSecurityGroupTest, cls).skip_checks()
+        if not test.is_extension_enabled('provider-security-group', 'network'):
+            msg = "Extension provider-security-group is not enabled."
+            raise cls.skipException(msg)
+
+    @classmethod
+    def setup_clients(cls):
+        super(ProviderSecurityGroupTest, cls).setup_clients()
+        cls.cmgr_pri = cls.get_client_manager('primary')
+        cls.cmgr_alt = cls.get_client_manager('alt')
+        cls.cmgr_adm = cls.get_client_manager('admin')
+
+    @classmethod
+    def resource_setup(cls):
+        super(ProviderSecurityGroupTest, cls).resource_setup()
+        cls.nsx = nsxv3_client.NSXV3Client(CONF.nsxv3.nsx_manager,
+                                           CONF.nsxv3.nsx_user,
+                                           CONF.nsxv3.nsx_password)
+        cls.network = cls.create_network()
+
+    def delete_security_group(self, sg_client, sg_id):
+        sg_client.delete_security_group(sg_id)
+
+    def create_security_provider_group(self, cmgr=None,
+                                       tenant_id=None, provider=False):
+        cmgr = cmgr or self.cmgr_adm
+        sg_client = cmgr.security_groups_client
+        sg_dict = dict(name=data_utils.rand_name('provider-sec-group'))
+        if tenant_id:
+            sg_dict['tenant_id'] = tenant_id
+        if provider:
+            sg_dict['provider'] = True
+        sg = sg_client.create_security_group(**sg_dict)
+        sg = sg.get('security_group', sg)
+        self.addCleanup(test_utils.call_and_ignore_notfound_exc,
+                        self.delete_security_group,
+                        sg_client, sg.get('id'))
+        return sg
+
+    def update_security_provider_group(self, security_group_id,
+                                       new_policy_id, cmgr=None):
+        cmgr = cmgr or self.cmgr_adm
+        sg_client = cmgr.security_groups_client
+        sg = sg_client.update_security_group(security_group_id,
+                                             policy=new_policy_id)
+        return sg.get('security_group', sg)
+
+    def create_security_group_rule(self, security_group_id,
+                                   cmgr=None, tenant_id=None,
+                                   protocol=None):
+        cmgr = cmgr or self.cmgr_adm
+        sgr_client = cmgr.security_group_rules_client
+        sgr_dict = dict(security_group_id=security_group_id,
+                        direction='ingress', protocol=protocol)
+        if tenant_id:
+            sgr_dict['tenant_id'] = tenant_id
+        sgr = sgr_client.create_security_group_rule(**sgr_dict)
+        return sgr.get('security_group_rule', sgr)
+
+    def show_security_provider_group(self, security_group_id, cmgr=None):
+        cmgr = cmgr or self.cmgr_adm
+        sg_client = cmgr.security_groups_client
+        sg = sg_client.show_security_group(security_group_id)
+        return sg.get('security_group', sg)
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('4fc39f02-4fb1-4e5c-bf64-b98dd7f514f7')
+    def test_provider_security_group_at_beckend(self):
+        sg = self.create_security_provider_group(self.cmgr_adm, provider=True)
+        sg_id = sg.get('id')
+        sg_name = sg.get('name')
+        sg_rule = self.create_security_group_rule(sg_id, cmgr=self.cmgr_adm,
+                                                  protocol='icmp')
+        sg_rule.get('id')
+        self.assertNotEqual([], self.nsx.get_firewall_section(sg_name, sg_id))
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('2c8d013d-4c0b-4d2b-b77c-779351a789ce')
+    def test_provider_security_group_crud(self):
+        sg_desc = "crud provider-security-group"
+        sg_client = self.cmgr_adm.security_groups_client
+        sg = self.create_security_provider_group(self.cmgr_adm, provider=True)
+        sg_id = sg.get('id')
+        show_sec_group = sg_client.show_security_group(sg_id)
+        self.assertEqual(True, show_sec_group['security_group']['provider'])
+        sg_show = sg_client.update_security_group(sg_id, description=sg_desc)
+        self.assertEqual(sg_desc, sg_show['security_group'].get('description'))
+        self.delete_security_group(sg_client, sg_id)
+        sg_list = sg_client.list_security_groups(id=sg_id)
+        sg_list = sg_list.get('security_groups', sg_list)
+        self.assertEqual(len(sg_list), 0)
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('2bc5452f-5673-4dbe-afb3-fb40bf0916a5')
+    def test_admin_can_create_provider_security_group_for_tenant(self):
+        tenant_id = self.cmgr_alt.networks_client.tenant_id
+        sg = self.create_security_provider_group(self.cmgr_adm,
+                                                 tenant_id=tenant_id,
+                                                 provider=True)
+        self.assertEqual(True, sg.get('provider'))
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('6ff79516-1e94-4463-9b8c-a524aa806040')
+    def test_tenant_provider_sec_group_with_no_rules(self):
+        sg = self.create_security_provider_group(self.cmgr_adm,
+                                                 provider=True)
+        self.assertEqual([], sg.get('security_group_rules'))
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('a92c8e1e-ce2c-40be-8449-d326690e078e')
+    def test_admin_can_create_security_group_rule(self):
+        sg_client = self.cmgr_adm.security_groups_client
+        sg = self.create_security_provider_group(self.cmgr_adm,
+                                                 provider=True)
+        sg_id = sg.get('id')
+        self.create_security_group_rule(sg_id, cmgr=self.cmgr_adm,
+                                        protocol='icmp')
+        show_sec_group = sg_client.show_security_group(sg_id)
+        self.assertEqual('ingress',
+                         show_sec_group['security_group']
+                         ['security_group_rules']
+                         [0]['direction'])
+        self.assertEqual('icmp',
+                         show_sec_group['security_group']
+                         ['security_group_rules']
+                         [0]['protocol'])
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('8e43bd57-e478-490c-8064-4211f2c3eb6c')
+    def test_provider_security_group_rule_at_beckend(self):
+        sg = self.create_security_provider_group(self.cmgr_adm, provider=True)
+        sg_id = sg.get('id')
+        sg_name = sg.get('name')
+        sg_rule = self.create_security_group_rule(sg_id, cmgr=self.cmgr_adm,
+                                                  protocol='icmp')
+        sg_rule.get('id')
+        time.sleep(5)
+        firewall_section = self.nsx.get_firewall_section(sg_name, sg_id)
+        output = self.nsx.get_firewall_section_rules(firewall_section)
+        self.assertEqual('DROP', output[0]['action'])
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('cf754eba-304f-441c-8402-0dba706fcf62')
+    def test_provider_security_group_at_port_level(self):
+        sg = self.create_security_provider_group(self.cmgr_adm,
+                                                 provider=True)
+        sg_id = sg.get('id')
+        net_client = self.cmgr_adm.networks_client
+        body = {'name': 'provider-network'}
+        network = net_client.create_network(**body)
+        body = {"network_id": network['network']['id'],
+                "allocation_pools": [{"start": "2.0.0.2",
+                                      "end": "2.0.0.254"}],
+                "ip_version": 4, "cidr": "2.0.0.0/24"}
+        subnet_client = self.cmgr_adm.subnets_client
+        subnet_client.create_subnet(**body)
+        body = {"network_id": network['network']['id'],
+                "admin_state_up": 'true'}
+        port_client = self.cmgr_adm.ports_client
+        port_id = port_client.create_port(**body)
+        ss = port_client.show_port(port_id['port']['id'])
+        self.assertEqual([sg_id], ss['port']['provider_security_groups'])
+        body = {"id": port_id}
+        port_client.delete_port(port_id['port']['id'])
+        net_client.delete_network(network['network']['id'])
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('2c44a134-f013-46b7-a2ec-14c7c38a4d8c')
+    def test_multiple_provider_security_group(self):
+        sg = self.create_security_provider_group(self.cmgr_adm, provider=True)
+        sg_id = sg.get('id')
+        sg.get('name')
+        sg_rule = self.create_security_group_rule(sg_id, cmgr=self.cmgr_adm,
+                                                  protocol='icmp')
+        sg_rule.get('id')
+        sg1 = self.create_security_provider_group(self.cmgr_adm, provider=True)
+        sg2 = self.create_security_provider_group(self.cmgr_adm, provider=True)
+        self.assertNotEqual(sg1.get('id'), sg2.get('id'))
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('275abe9f-4f01-46e5-bde0-0b6840290d3b')
+    def test_provider_sec_group_with_multiple_rules(self):
+        tenant_id = self.cmgr_adm.networks_client.tenant_id
+        sg = self.create_security_provider_group(self.cmgr_adm,
+                                                 tenant_id=tenant_id)
+        sg_rule1 = self.create_security_group_rule(sg.get('id'),
+                                                   cmgr=self.cmgr_adm,
+                                                   tenant_id=tenant_id,
+                                                   protocol='icmp')
+        sg_rule1_id = sg_rule1.get('id')
+        sg_rule2 = self.create_security_group_rule(sg.get('id'),
+                                                   cmgr=self.cmgr_adm,
+                                                   tenant_id=tenant_id,
+                                                   protocol='tcp')
+        sg_rule2_id = sg_rule2.get('id')
+        self.assertNotEqual(sg_rule1_id, sg_rule2_id)
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('5d25370e-da6a-44a7-8565-7b1c2fc39fdc')
+    def test_clear_provider_sec_group_from_port(self):
+        tenant_id = self.cmgr_adm.networks_client.tenant_id
+        self.create_security_provider_group(self.cmgr_adm,
+                                            tenant_id=tenant_id,
+                                            provider=True)
+        net_client = self.cmgr_adm.networks_client
+        body = {'name': 'provider-network'}
+        network = net_client.create_network(**body)
+        body = {"network_id": network['network']['id'],
+                "allocation_pools": [{"start": "2.0.0.2",
+                                      "end": "2.0.0.254"}],
+                "ip_version": 4, "cidr": "2.0.0.0/24"}
+        subnet_client = self.cmgr_adm.subnets_client
+        subnet_client.create_subnet(**body)
+        body = {"network_id": network['network']['id'],
+                "provider_security_groups": []}
+        port_client = self.cmgr_adm.ports_client
+        port_id = port_client.create_port(**body)
+        ss = port_client.show_port(port_id['port']['id'])
+        self.assertEqual([], ss['port']['provider_security_groups'])
+        port_client.delete_port(port_id['port']['id'])
+        net_client.delete_network(network['network']['id'])
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('dfc6bb8e-ba7b-4ce5-b6ee-0d0830d7e152')
+    def test_check_security_group_precedence_at_beckend(self):
+        count = 0
+        tenant_id = self.cmgr_adm.networks_client.tenant_id
+        provider_sg = self.create_security_provider_group(self.cmgr_adm,
+                                                          tenant_id=tenant_id,
+                                                          provider=True)
+        provider_sg_name = provider_sg.get('name')
+        default_sg = self.create_security_provider_group(self.cmgr_adm,
+                                                         tenant_id=tenant_id,
+                                                         provider=False)
+        sg_name = default_sg.get('name')
+        firewall_section = self.nsx.get_firewall_sections()
+        for sec_name in firewall_section:
+            if (provider_sg_name in sec_name['display_name'] and
+                    sg_name not in sec_name['display_name']):
+                if count == 0:
+                    LOG.info(_LI("Provider group has high priority over"
+                                 "default sec group"))
+                    break
+            count += count
+        self.assertIn(provider_sg_name, sec_name['display_name'])
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('37d8fbfc-eb3f-40c8-a146-70f5df937a2e')
+    def test_tenant_cannot_delete_admin_provider_security_group(self):
+        tenant_id = self.cmgr_adm.networks_client.tenant_id
+        sg = self.create_security_provider_group(self.cmgr_adm,
+                                                 tenant_id=tenant_id,
+                                                 provider=True)
+        sg_id = sg.get('id')
+        sg_client = self.cmgr_alt.security_groups_client
+        try:
+            self.delete_security_group(sg_client, sg_id)
+        except Exception:
+            LOG.info(_LI("Non Admin tenant can't see admin"
+                         "provider security group"))
+            pass
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('1bbebba3-780c-4e95-a95a-e52f577a6c1d')
+    def test_tenant_cannot_create_provider_sec_group(self):
+        tenant_id = self.cmgr_alt.networks_client.tenant_id
+        self.assertRaises(exceptions.Forbidden,
+                          self.create_security_provider_group,
+                          self.cmgr_alt, tenant_id=tenant_id,
+                          provider=True)
+        LOG.info(_LI("Non-Admin Tenant cannot create provider sec group"))
+
+    @test.attr(type='nsxv3')
+    @test.idempotent_id('cef8d816-e5fa-45a5-a5a5-f1f2ed8fb49f')
+    def test_tenant_cannot_create_provider_sec_group_for_other_tenant(self):
+        tenant_cmgr = self.cmgr_alt
+        tenant_id = tenant_cmgr.networks_client.tenant_id
+        self.assertRaises(exceptions.BadRequest,
+                          self.create_security_provider_group, self.cmgr_pri,
+                          tenant_id=tenant_id,
+                          provider=True)