diff --git a/test/test.mk b/test/test.mk
index 52a54fb555d8b0f8651c16a20665fc9cef472bb5..c2a3aec596829b6259f997022c77166d1e8e543b 100644
--- a/test/test.mk
+++ b/test/test.mk
@@ -26,6 +26,7 @@ LIBVPX_TEST_SRCS-$(CONFIG_VP8_ENCODER) += keyframe_test.cc
 LIBVPX_TEST_SRCS-$(CONFIG_VP9_ENCODER) += borders_test.cc
 LIBVPX_TEST_SRCS-$(CONFIG_VP8_ENCODER) += resize_test.cc
 LIBVPX_TEST_SRCS-$(CONFIG_VP9_ENCODER) += cpu_speed_test.cc
+LIBVPX_TEST_SRCS-$(CONFIG_VP9_ENCODER) += vp9_lossless_test.cc
 
 LIBVPX_TEST_SRCS-$(CONFIG_DECODERS)    += ../md5_utils.h ../md5_utils.c
 LIBVPX_TEST_SRCS-yes                   += decode_test_driver.cc
diff --git a/test/vp9_lossless_test.cc b/test/vp9_lossless_test.cc
new file mode 100644
index 0000000000000000000000000000000000000000..441cc44da5b3b20e624588c089220bcc34307ed3
--- /dev/null
+++ b/test/vp9_lossless_test.cc
@@ -0,0 +1,75 @@
+/*
+  Copyright (c) 2012 The WebM project authors. All Rights Reserved.
+
+  Use of this source code is governed by a BSD-style license
+  that can be found in the LICENSE file in the root of the source
+  tree. An additional intellectual property rights grant can be found
+  in the file PATENTS.  All contributing project authors may
+  be found in the AUTHORS file in the root of the source tree.
+*/
+
+#include "third_party/googletest/src/include/gtest/gtest.h"
+#include "test/codec_factory.h"
+#include "test/encode_test_driver.h"
+#include "test/i420_video_source.h"
+#include "test/util.h"
+
+namespace {
+
+const int kMaxPsnr = 100;
+
+class LossLessTest : public ::libvpx_test::EncoderTest,
+    public ::libvpx_test::CodecTestWithParam<libvpx_test::TestMode> {
+ protected:
+  LossLessTest() : EncoderTest(GET_PARAM(0)),
+                   psnr_(kMaxPsnr),
+                   nframes_(0),
+                   encoding_mode_(GET_PARAM(1)) {
+  }
+
+  virtual ~LossLessTest() {}
+
+  virtual void SetUp() {
+    InitializeConfig();
+    SetMode(encoding_mode_);
+  }
+
+  virtual void BeginPassHook(unsigned int /*pass*/) {
+    psnr_ = 0.0;
+    nframes_ = 0;
+  }
+
+  virtual void PSNRPktHook(const vpx_codec_cx_pkt_t *pkt) {
+    if (pkt->data.psnr.psnr[0] < psnr_)
+      psnr_= pkt->data.psnr.psnr[0];
+  }
+
+  double GetMinPsnr() const {
+      return psnr_;
+  }
+
+ private:
+  double psnr_;
+  unsigned int nframes_;
+  libvpx_test::TestMode encoding_mode_;
+};
+
+TEST_P(LossLessTest, TestLossLessEncoding) {
+  const vpx_rational timebase = { 33333333, 1000000000 };
+  cfg_.g_timebase = timebase;
+  cfg_.rc_target_bitrate = 2000;
+  cfg_.g_lag_in_frames = 25;
+  cfg_.rc_min_quantizer = 0;
+  cfg_.rc_max_quantizer = 0;
+
+  init_flags_ = VPX_CODEC_USE_PSNR;
+
+  // intentionally changed the dimension for better testing coverage
+  libvpx_test::I420VideoSource video("hantro_collage_w352h288.yuv", 356, 284,
+                                     timebase.den, timebase.num, 0, 30);
+
+  const double psnr_lossless = GetMinPsnr();
+  EXPECT_GE(psnr_lossless, kMaxPsnr);
+}
+VP9_INSTANTIATE_TEST_CASE(LossLessTest, ALL_TEST_MODES);
+}  // namespace