diff --git a/test/README.md b/test/README.md
new file mode 100644
index 0000000..6f2871b
--- /dev/null
+++ b/test/README.md
@@ -0,0 +1,70 @@
+## Tox/pytest testing
+
+The directory `unit` contains tests that do not require DrNED to be installed
+and do not start NSO; they require NSO and in particular its Python API to be
+installed though (FIXME: this dependency is planned to be removed).
+
+The tests are not actual unit tests, they try to test the code end-to-end, but
+with as few external dependencies as possible.  In particular, they use `mock`
+and `pyfakefs` modules to mock NSO libraries or system calls.  As a result, no
+NSO instance is started or needs to be running, no device or device simulator
+is required, and the filesystem is not changed.
+
+### Using tox
+
+You can run tests using [tox](https://pypi.org/project/tox/); for that you need
+to have `tox` itself, and an NSO installation pointed to by `NCS_DIR`.  Also,
+the project must have been compiled (namely, the generated Python namespace
+module needs to exist).
+
+```
+$ tox
+... (some output)
+  py27: commands succeeded
+  py36: commands succeeded
+  congratulations :)
+$ 
+```
+
+### Using pytest alone
+
+You can use `pytest` directly and select only a subset of tests.  All
+requirements are in `requirements.txt`, so you can do
+
+```
+$ pip install -r requirements.txt
+```
+
+- this should install everything that is needed.  Apart from that, your
+PYTHONPATH should point to NSO Python API and to the code itself, e.g.
+
+```
+$ export PYTHONPATH=$NCS_DIR/ncs/src/ncs/pyapi:../../python
+$ pytest
+...
+$ pytest -v -k test_filter
+...
+$
+```
+
+## Lux testing
+
+The directory `lux` contains one test case that tries to verify that basic
+integration with NSO and DrNED works.  The prerequisites are:
+
+ * DrNED must be installed and the environment variable `DRNED` points to the
+   installation directory
+ * `PYTHONPATH` must point to NSO Python API
+ * several additional Python packages need to be installed, see
+   `requirements.txt`
+
+When this is set correctly, run
+
+```
+$ lux basic.lux
+...
+successful        : 1
+summary           : SUCCESS
+...
+$
+```
diff --git a/test/lux/basic.lux b/test/lux/basic.lux
new file mode 100644
index 0000000..dafb1b8
--- /dev/null
+++ b/test/lux/basic.lux
@@ -0,0 +1,136 @@
+[doc Testing DrNED-XMNR integration with NCS and DrNED]
+[config timeout=2000]
+
+[macro shell-check]
+    !echo ==$?==
+    ?==0==
+[endmacro]
+
+[shell os]
+    !rm -rf ncs-run
+    [progress prepare ncs-run and packages]
+    !ncs-project create ncs-run
+    [invoke shell-check]
+    !cd ncs-run/packages
+    [invoke shell-check]
+    !ln -s ../../../../ drned-xmnr
+    !file drned-xmnr
+    ?drned-xmnr: symbolic link to .*
+    !file drned-xmnr/python
+    ?drned-xmnr/python: directory
+    !echo `dirname $$PWD`
+    !ncs-make-package --netconf-ned ../../yang ned
+    [invoke shell-check]
+    !make -C drned-xmnr/src all
+    [invoke shell-check]
+    !make -C ned/src all
+    [invoke shell-check]
+    [progress create and start the netsim]
+    !cd ..
+    !ncs-netsim delete-network
+    !ncs-netsim create-network packages/ned 1 ned
+    [invoke shell-check]
+    !ncs-netsim start
+    [invoke shell-check]
+    [progress start ncs]
+    [timeout 10]
+    !ncs --stop; ncs
+    [invoke shell-check]
+    [timeout]
+
+[shell ncs-cli]
+    -[Ee][Rr][Rr][Oo][Rr]
+    !ncs_cli -u admin -C
+    ???admin@ncs#
+    !config
+    [progress set up the NCS device]
+    # clean up, if there is anything left from previous runs
+    !no devices device dhcp
+    # set up python-vm logging to see any problems
+    !python-vm logging level level-debug
+    !commit
+    ???Commit complete.
+    !devices device dhcp
+    ???admin@ncs(config-device-dhcp)#
+    """!
+    address 127.0.0.1
+    port 12022
+    device-type netconf
+    authgroup default
+    state admin-state unlocked
+    ssh fetch-host-keys
+    """
+    !commit
+    ???Commit complete.
+    !sync-from
+    !no config
+    !commit
+    ?Commit complete|No modifications to commit
+    [progress setup xmnr]
+    !drned-xmnr setup setup-xmnr overwrite true
+    ???success
+    [progress record states]
+    !drned-xmnr state record-state state-name empty
+    ???success
+    !config dhcp defaultLeaseTime 200s
+    !commit
+    ???Commit complete.
+    !drned-xmnr state record-state state-name time
+    ???success
+    !config dhcp SharedNetworks sharedNetwork test SubNets subNet 1.1.1.1 255.255.255.0
+    !commit
+    ???Commit complete.
+    !drned-xmnr state record-state state-name subnet
+    ???success
+    [progress walk states]
+    [timeout 10]
+    !drned-xmnr transitions walk-states states [ empty subnet time ]
+    """???
+    Prepare the device
+    Test transition to empty
+       load empty
+       commit
+           succeeded
+       compare config
+           succeeded
+       rollback
+       commit
+           succeeded
+       compare config
+           succeeded
+    Test transition to subnet
+       load subnet
+       commit
+           (no modifications)
+       compare config
+           succeeded
+       rollback
+       commit
+           (no modifications)
+       compare config
+           succeeded
+    Test transition to time
+       load time
+       commit
+           succeeded
+       compare config
+           succeeded
+       rollback
+       commit
+           succeeded
+       compare config
+           succeeded
+       commit
+           (no modifications)
+       compare config
+           succeeded
+    success Completed successfully
+    """
+
+[cleanup]
+    !cd ncs-run
+    ?SH-PROMPT:
+    !ncs --stop
+    ?SH-PROMPT:
+    !ncs-netsim stop
+    ?SH-PROMPT:
diff --git a/test/lux/requirements.txt b/test/lux/requirements.txt
new file mode 100644
index 0000000..d3fbdc5
--- /dev/null
+++ b/test/lux/requirements.txt
@@ -0,0 +1,5 @@
+pytest
+pexpect
+lxml
+requests
+paramiko
diff --git a/test/lux/yang/dhcpd.yang b/test/lux/yang/dhcpd.yang
new file mode 100644
index 0000000..f3ff4b0
--- /dev/null
+++ b/test/lux/yang/dhcpd.yang
@@ -0,0 +1,89 @@
+module dhcpd {
+
+  namespace "http://tail-f.com/ns/example/dhcpd";
+  prefix dhcpd;
+
+  import ietf-inet-types {
+    prefix inet;
+  }
+
+  import tailf-xsd-types {
+    prefix xs;
+  }
+
+  typedef loglevel {
+    type enumeration {
+        enum kern;
+        enum mail;
+        enum local7;
+    }
+  }
+
+  grouping subNet {
+    list subNet {
+      key "net mask";
+      leaf net {
+        type inet:ipv4-address;
+      }
+      leaf mask {
+        type inet:ipv4-address;
+      }
+      container range {
+        presence "";
+        leaf dynamicBootP {
+          type boolean;
+          default false;
+          description "Enable BOOTP for this instance.";
+        }
+        leaf lowAddr {
+          type inet:ipv4-address;
+          mandatory true;
+          description "Enable BOOTP for this instance.";
+        }
+        leaf hiAddr {
+          type inet:ipv4-address;
+          description "Enable BOOTP for this instance.";
+        }
+      }
+      leaf routers {
+        type string;
+      }
+      leaf maxLeaseTime {
+        type xs:duration;
+        default PT7200S;
+      }
+    }
+  }
+
+
+
+  container dhcp {
+    leaf defaultLeaseTime {
+      type xs:duration;
+      default PT600S;
+    }
+    leaf maxLeaseTime {
+      type xs:duration;
+      default PT7200S;
+    }
+    leaf logFacility {
+      type loglevel;
+      default local7;
+    }
+    container SubNets {
+      uses subNet;
+    }
+    container SharedNetworks {
+      list sharedNetwork {
+        key name;
+        max-elements 1024;
+        leaf name {
+          type string;
+        }
+        container SubNets {
+          uses subNet ;
+        }
+      }
+    }
+  }
+}