diff --git a/tests/base.py b/tests/base.py
index 1cafc46..6045bed 100755
--- a/tests/base.py
+++ b/tests/base.py
@@ -79,6 +79,16 @@
     return hashlib.sha1(str(random.random())).hexdigest()
 
 
+def iterate_timeout(max_seconds, purpose):
+    start = time.time()
+    count = 0
+    while (time.time() < start + max_seconds):
+        count += 1
+        yield count
+        time.sleep(0)
+    raise Exception("Timeout waiting for %s" % purpose)
+
+
 class ChangeReference(git.Reference):
     _common_path_default = "refs/changes"
     _points_to_commits_only = True
diff --git a/tests/test_daemon.py b/tests/test_daemon.py
new file mode 100644
index 0000000..689d4f7
--- /dev/null
+++ b/tests/test_daemon.py
@@ -0,0 +1,63 @@
+#!/usr/bin/env python
+
+# Copyright 2014 Hewlett-Packard Development Company, L.P.
+#
+# 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 daemon
+import logging
+import os
+import sys
+
+import extras
+import fixtures
+import testtools
+
+from tests.base import iterate_timeout
+
+# as of python-daemon 1.6 it doesn't bundle pidlockfile anymore
+# instead it depends on lockfile-0.9.1 which uses pidfile.
+pid_file_module = extras.try_imports(['daemon.pidlockfile', 'daemon.pidfile'])
+
+
+def daemon_test(pidfile, flagfile):
+    pid = pid_file_module.TimeoutPIDLockFile(pidfile, 10)
+    with daemon.DaemonContext(pidfile=pid):
+        for x in iterate_timeout(30, "flagfile to be removed"):
+            if not os.path.exists(flagfile):
+                break
+    sys.exit(0)
+
+
+class TestDaemon(testtools.TestCase):
+    log = logging.getLogger("zuul.test.daemon")
+
+    def setUp(self):
+        super(TestDaemon, self).setUp()
+        self.test_root = self.useFixture(fixtures.TempDir(
+            rootdir=os.environ.get("ZUUL_TEST_ROOT"))).path
+
+    def test_daemon(self):
+        pidfile = os.path.join(self.test_root, "daemon.pid")
+        flagfile = os.path.join(self.test_root, "daemon.flag")
+        open(flagfile, 'w').close()
+        if not os.fork():
+            self._cleanups = []
+            daemon_test(pidfile, flagfile)
+        for x in iterate_timeout(30, "daemon to start"):
+            if os.path.exists(pidfile):
+                break
+        os.unlink(flagfile)
+        for x in iterate_timeout(30, "daemon to stop"):
+            if not os.path.exists(pidfile):
+                break