diff --git a/tests/test_pam.c b/tests/test_pam.c
new file mode 100644
index 0000000..a257a01
--- /dev/null
+++ b/tests/test_pam.c
@@ -0,0 +1,222 @@
+/**
+ * @file test_pam.c
+ * @author Roman Janota <xjanot04@fit.vutbr.cz>
+ * @brief libnetconf2 SSH Keyboard Interactive auth using PAM test
+ *
+ * @copyright
+ * Copyright (c) 2023 CESNET, z.s.p.o.
+ *
+ * This source code is licensed under BSD 3-Clause License (the "License").
+ * You may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     https://opensource.org/licenses/BSD-3-Clause
+ */
+
+#define _GNU_SOURCE
+
+#include <errno.h>
+#include <pthread.h>
+#include <setjmp.h>
+#include <stdarg.h>
+#include <stdio.h>
+#include <stdlib.h>
+#include <string.h>
+
+#include <security/pam_appl.h>
+
+#include <cmocka.h>
+
+#include "tests/config.h"
+
+#define NC_ACCEPT_TIMEOUT 2000
+#define NC_PS_POLL_TIMEOUT 2000
+
+struct ly_ctx *ctx;
+
+struct test_state {
+    pthread_barrier_t barrier;
+};
+
+/* mock pam_start to just call pam_start_confdir instead */
+int __real_pam_start(const char *service_name, const char *user, const struct pam_conv *pam_conversation, pam_handle_t **pamh);
+int
+__wrap_pam_start(const char *service_name, const char *user, const struct pam_conv *pam_conversation, pam_handle_t **pamh)
+{
+    return pam_start_confdir(service_name, user, pam_conversation, BUILD_DIR "/tests", pamh);
+}
+
+static void *
+server_thread(void *arg)
+{
+    int ret;
+    NC_MSG_TYPE msgtype;
+    struct nc_session *session;
+    struct nc_pollsession *ps;
+    struct test_state *state = arg;
+
+    ps = nc_ps_new();
+    assert_non_null(ps);
+
+    /* accept a session and add it to the poll session structure */
+    pthread_barrier_wait(&state->barrier);
+    msgtype = nc_accept(NC_ACCEPT_TIMEOUT, ctx, &session);
+    assert_int_equal(msgtype, NC_MSG_HELLO);
+
+    ret = nc_ps_add_session(ps, session);
+    assert_int_equal(ret, 0);
+
+    do {
+        ret = nc_ps_poll(ps, NC_PS_POLL_TIMEOUT, NULL);
+        assert_int_equal(ret & NC_PSPOLL_RPC, NC_PSPOLL_RPC);
+    } while (!(ret & NC_PSPOLL_SESSION_TERM));
+
+    nc_ps_clear(ps, 1, NULL);
+    nc_ps_free(ps);
+    return NULL;
+}
+
+static char *
+auth_interactive(const char *UNUSED(auth_name), const char *UNUSED(instruction),
+        const char *prompt, int UNUSED(echo), void *UNUSED(priv))
+{
+    /* send the replies to keyboard-interactive authentication */
+    if (strstr(prompt, "backwards")) {
+        return strdup("tset");
+    } else if (strstr(prompt, "1+1")) {
+        return strdup("2");
+    } else {
+        return NULL;
+    }
+}
+
+static void *
+client_thread(void *arg)
+{
+    int ret;
+    struct nc_session *session = NULL;
+    struct test_state *state = arg;
+
+    /* skip all hostkey and known_hosts checks */
+    nc_client_ssh_set_knownhosts_mode(NC_SSH_KNOWNHOSTS_SKIP);
+
+    ret = nc_client_set_schema_searchpath(MODULES_DIR);
+    assert_int_equal(ret, 0);
+
+    ret = nc_client_ssh_set_username("test");
+    assert_int_equal(ret, 0);
+
+    /* set keyboard-interactive authentication callback */
+    nc_client_ssh_set_auth_interactive_clb(auth_interactive, NULL);
+
+    pthread_barrier_wait(&state->barrier);
+    session = nc_connect_ssh("127.0.0.1", 10005, NULL);
+    assert_non_null(session);
+
+    nc_session_free(session, NULL);
+    return NULL;
+}
+
+static void
+test_nc_pam(void **state)
+{
+    int ret, i;
+    pthread_t tids[2];
+
+    assert_non_null(state);
+
+    ret = pthread_create(&tids[0], NULL, client_thread, *state);
+    assert_int_equal(ret, 0);
+    ret = pthread_create(&tids[1], NULL, server_thread, *state);
+    assert_int_equal(ret, 0);
+
+    for (i = 0; i < 2; i++) {
+        pthread_join(tids[i], NULL);
+    }
+}
+
+static int
+setup_f(void **state)
+{
+    int ret;
+    struct lyd_node *tree = NULL;
+    struct test_state *test_state;
+
+    nc_verbosity(NC_VERB_VERBOSE);
+
+    /* init barrier */
+    test_state = malloc(sizeof *test_state);
+    assert_non_null(test_state);
+
+    ret = pthread_barrier_init(&test_state->barrier, NULL, 2);
+    assert_int_equal(ret, 0);
+
+    *state = test_state;
+
+    ret = ly_ctx_new(MODULES_DIR, 0, &ctx);
+    assert_int_equal(ret, 0);
+
+    ret = nc_server_init_ctx(&ctx);
+    assert_int_equal(ret, 0);
+
+    ret = nc_server_config_load_modules(&ctx);
+    assert_int_equal(ret, 0);
+
+    ret = nc_server_config_add_address_port(ctx, "endpt", NC_TI_LIBSSH, "127.0.0.1", 10005, &tree);
+    assert_int_equal(ret, 0);
+
+    ret = nc_server_config_add_ssh_hostkey(ctx, "endpt", "hostkey", TESTS_DIR "/data/key_ecdsa", NULL, &tree);
+    assert_int_equal(ret, 0);
+
+    ret = nc_server_config_add_ssh_user_interactive(ctx, "endpt", "test", &tree);
+    assert_int_equal(ret, 0);
+
+    ret = nc_server_ssh_set_pam_conf_filename("netconf.conf");
+    assert_int_equal(ret, 0);
+
+    /* configure the server based on the data */
+    ret = nc_server_config_setup_data(tree);
+    assert_int_equal(ret, 0);
+
+    ret = nc_server_init();
+    assert_int_equal(ret, 0);
+
+    /* initialize client */
+    ret = nc_client_init();
+    assert_int_equal(ret, 0);
+
+    lyd_free_all(tree);
+
+    return 0;
+}
+
+static int
+teardown_f(void **state)
+{
+    int ret = 0;
+    struct test_state *test_state;
+
+    assert_non_null(state);
+    test_state = *state;
+
+    ret = pthread_barrier_destroy(&test_state->barrier);
+    assert_int_equal(ret, 0);
+
+    free(*state);
+    nc_client_destroy();
+    nc_server_destroy();
+    ly_ctx_destroy(ctx);
+
+    return 0;
+}
+
+int
+main(void)
+{
+    const struct CMUnitTest tests[] = {
+        cmocka_unit_test_setup_teardown(test_nc_pam, setup_f, teardown_f)
+    };
+
+    setenv("CMOCKA_TEST_ABORT", "1", 1);
+    return cmocka_run_group_tests(tests, NULL, NULL);
+}