diff --git a/Sanity/basic-functionality/PURPOSE b/Sanity/basic-functionality/PURPOSE
new file mode 100644
index 0000000..2d6ab08
--- /dev/null
+++ b/Sanity/basic-functionality/PURPOSE
@@ -0,0 +1,3 @@
+PURPOSE of /CoreOS/postgresql/Sanity/basic-functionality
+Description: Test basic functionality e.g. create databases/tables/roles, insert,update, etc.
+Author: Jakub Prokes <jprokes@redhat.com>
diff --git a/Sanity/basic-functionality/main.fmf b/Sanity/basic-functionality/main.fmf
new file mode 100644
index 0000000..994aa22
--- /dev/null
+++ b/Sanity/basic-functionality/main.fmf
@@ -0,0 +1,18 @@
+summary: Test basic functionality e.g. create databases/tables/roles, insert,update,
+    etc.
+description: ''
+contact:
+- Vaclav Danek <vdanek@redhat.com>
+component:
+- postgresql
+test: ./runtest.sh
+path: /Sanity/basic-functionality
+framework: beakerlib
+require:
+- library(postgresql/basic)
+recommend:
+- postgresql
+- postgresql-server
+duration: 30m
+enabled: true
+extra-task: /CoreOS/postgresql/Sanity/basic-functionality
diff --git a/Sanity/basic-functionality/runtest.sh b/Sanity/basic-functionality/runtest.sh
new file mode 100755
index 0000000..66129f0
--- /dev/null
+++ b/Sanity/basic-functionality/runtest.sh
@@ -0,0 +1,102 @@
+#!/bin/bash
+# vim: dict=/usr/share/beakerlib/dictionary.vim cpt=.,w,b,u,t,i,k
+# ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+#
+#   runtest.sh of /CoreOS/postgresql/Sanity/basic-functionality
+#   Description: Test basic functionality e.g. create databases/tables/roles, insert,update, etc.
+#   Author: Jakub Prokes <jprokes@redhat.com>
+#
+# ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+#
+#   Copyright (c) 2013 Red Hat, Inc. All rights reserved.
+#
+#   This copyrighted material is made available to anyone wishing
+#   to use, modify, copy, or redistribute it subject to the terms
+#   and conditions of the GNU General Public License version 2.
+#
+#   This program is distributed in the hope that it will be
+#   useful, but WITHOUT ANY WARRANTY; without even the implied
+#   warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR
+#   PURPOSE. See the GNU General Public License for more details.
+#
+#   You should have received a copy of the GNU General Public
+#   License along with this program; if not, write to the Free
+#   Software Foundation, Inc., 51 Franklin Street, Fifth Floor,
+#   Boston, MA 02110-1301, USA.
+#
+# ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+# Include Beaker environment
+. /usr/share/beakerlib/beakerlib.sh || exit 1
+
+PACKAGE="postgresql-server"
+
+function onError() {
+    [[ $? -eq 127 ]] && rlFail "Command not found, probably typo in test.";
+    }
+
+trap "onError;" ERR
+
+function varDump() {
+    rlLogDebug "\$${1}='${!1}'";
+}
+
+rlJournalStart
+    rlPhaseStartSetup "General"
+        rlRun "rlImport postgresql/basic"
+        PACKAGES="$PACKAGES ${postgresqlPackagePrefix}${PACKAGE}"
+        for PACKAGE in $PACKAGES; do
+            rlAssertRpm $PACKAGE
+        done
+    rlPhaseEnd
+
+    rlPhaseStartSetup "Database setup"
+        varDump postgresqlDataDir;
+        [[ -d $postgresqlDataDir ]] && rlFileBackup $postgresqlDataDir;
+        postgresqlCleanup;
+        postgresqlInitDB;
+        rlRun "postgresqlChangeAuth trust" 0 "Allow 'trust' authentication"
+        #rlRun "sed -i -e 's/ident/trust/' ${postgresqlDataDir}/pg_hba.conf" 0 "Allow 'trust' authentication"
+        cat /var/lib/pgsql/data/pg_hba.conf
+        postgresqlStart;
+    rlPhaseEnd
+
+    rlPhaseStartTest "Create & Grant"
+        dbName="fOo";
+        userName="johndoe";
+        tableName="test_table";
+        rlLog "$FUNCNAME"
+        rlRun "postgresqlUDB $dbName $userName bar" 0 "Create DB $dbName and user $userName"
+        rlRun "postgresqlQuery \"\\\l\" | grep -q $dbName" 0 "Database $dbName exist";
+        rlRun "postgresqlQuery \"\\\du\" | grep -q \"$userName\"" 0 "User $userName exist";
+        rlRun "psql -h localhost -U johndoe -d \"$dbName\" -c \"CREATE TABLE $tableName (id bigserial primary key,fakedata varchar(20),toDelete boolean);\"" 0 "Create table $tableName";
+        rlRun "postgresqlQuery \"\\\d\" \"$dbName\" | cut -d '|' -f 2 | tr -d '[:blank:]' | grep -qE \"^${tableName}$\"" 0 "Table $tableName exist";
+    rlPhaseEnd
+
+    rlPhaseStartTest "Insert/Select/Updated/Delete"
+        iCount=1000;
+        for ((i=0; i<$iCount; i++)); do
+            psql -h localhost -U johndoe -d "$dbName" -c "INSERT INTO $tableName (fakedata,toDelete) VALUES ('tramtarada',false);" &>/dev/null;
+            [[ $(( $i % 100 )) -eq 0 ]] && rlLog "$i inserts done";
+        done;
+        rlAssertEquals "Number of lines corresponds number of inserts" $(psql -t -h localhost -U johndoe -d "$dbName" -c "SELECT count(*) FROM $tableName;")  $iCount;
+        rlRun "psql -h localhost -U johndoe -d \"$dbName\" -c \"UPDATE $tableName SET toDelete=true WHERE (id % 2) = 0;\"" 0 "UPDATE";
+        rlAssertEquals "Number of changed lines corresponds expectation" $(psql -t -h localhost -U johndoe -d "$dbName" -c "SELECT count(*) FROM $tableName WHERE toDelete=true;") $(( $iCount / 2));
+        rlRun "psql -h localhost -U johndoe -d \"$dbName\" -c \"DELETE FROM $tableName WHERE toDelete = true;\"" 0 "DELETE";
+        rlAssertEquals "New count of lines corresponds expectation" $(psql -t -h localhost -U johndoe -d "$dbName" -c "SELECT count(*) FROM $tableName;")  $(( $iCount / 2));
+    rlPhaseEnd
+
+    rlPhaseStartTest "Transaction"
+        rlRun -l "psql -e -h localhost -U johndoe -d \"$dbName\" -f ./transaction_test.sql";
+        rlAssertEquals "New count of lines corresponds expectation" $(psql -t -h localhost -U johndoe -d "$dbName" -c "SELECT count(*) FROM $tableName;")  $(( $iCount / 2));
+    rlPhaseEnd
+
+    rlPhaseStartCleanup
+        postgresqlCleanup;
+        rlFileRestore;
+        rlServiceRestore $postgresqlServiceName;
+    rlPhaseEnd
+rlJournalPrintText
+rlJournalEnd
+
+trap ERR;
diff --git a/Sanity/basic-functionality/transaction_test.sql b/Sanity/basic-functionality/transaction_test.sql
new file mode 100644
index 0000000..0febe47
--- /dev/null
+++ b/Sanity/basic-functionality/transaction_test.sql
@@ -0,0 +1,14 @@
+SELECT count(*) FROM test_table;
+
+BEGIN;
+UPDATE test_table SET fakedata='divisible by 3' WHERE (id % 3) = 0;
+UPDATE test_table SET fakedata='divisible by 5' WHERE (id % 5) = 0;
+UPDATE test_table SET fakedata='divisible by 7' WHERE (id % 7) = 0;
+COMMIT;
+
+SELECT * FROM test_table ORDER BY id LIMIT 10;
+
+BEGIN;
+UPDATE test_table SET toDelete =  true WHERE id < 100;
+DELETE FROM test_table WHERE toDelete = true;
+ROLLBACK;