diff --git a/libssu/ssusettings.h b/libssu/ssusettings.h
index 648c5c7..55a5c4e 100644
--- a/libssu/ssusettings.h
+++ b/libssu/ssusettings.h
@@ -13,6 +13,8 @@
 class SsuSettings: public QSettings {
     Q_OBJECT
 
+    friend class SettingsTest;
+
   public:
     SsuSettings();
     SsuSettings(const QString &fileName, Format format, QObject *parent=0);
diff --git a/tests/tests.pro b/tests/tests.pro
index 47986fa..8767aac 100644
--- a/tests/tests.pro
+++ b/tests/tests.pro
@@ -1,6 +1,9 @@
 TEMPLATE        = subdirs
 CONFIG         += qt ordered coverage debug
-SUBDIRS         = ut_urlresolver ut_variables
+SUBDIRS         = \
+        ut_settings \
+        ut_urlresolver \
+        ut_variables \
 
 !include( tests.pri ) { error("Unable to find tests include") }
 
diff --git a/tests/tests.xml b/tests/tests.xml
index 3a61f90..edf7c4e 100644
--- a/tests/tests.xml
+++ b/tests/tests.xml
@@ -3,6 +3,11 @@
   <!-- Test suite, name mandatory - the same as test package name -->
   <suite name="sync-app-tests" domain="ssu">
     <!-- At least one set per suite, name and description mandatory -->
+    <set name="settings" description="Test to determine if configuration files processing works properly" feature="settings">
+      <case name="ut_settings" type="Functional" description="Settings processing test" timeout="1000" subfeature="">
+        <step expected_result="0">/opt/tests/ssu/ut_settings</step>
+      </case>
+    </set>
     <set name="urlresolver" description="Test to determine if URL resolving works properly" feature="urlresolver">
       <case name="ut_urlresolver" type="Functional" description="URL resolver tests" timeout="1000" subfeature="">
         <step expected_result="0">/opt/tests/ssu/ut_urlresolver</step>
diff --git a/tests/ut_settings/main.cpp b/tests/ut_settings/main.cpp
new file mode 100644
index 0000000..d462a48
--- /dev/null
+++ b/tests/ut_settings/main.cpp
@@ -0,0 +1,19 @@
+/**
+ * @file main.cpp
+ * @copyright 2012 Jolla Ltd.
+ * @author Martin Kampas <martin.kampas@tieto.com>
+ * @date 2012
+ */
+
+#include <QtTest/QtTest>
+
+#include "settingstest.h"
+
+int main(int argc, char **argv){
+  SettingsTest settingsTest;
+
+  if (QTest::qExec(&settingsTest, argc, argv))
+    return 1;
+
+  return 0;
+}
diff --git a/tests/ut_settings/settingstest.cpp b/tests/ut_settings/settingstest.cpp
new file mode 100644
index 0000000..b54d097
--- /dev/null
+++ b/tests/ut_settings/settingstest.cpp
@@ -0,0 +1,63 @@
+/**
+ * @file settingstest.cpp
+ * @copyright 2013 Jolla Ltd.
+ * @author Martin Kampas <martin.kampas@tieto.com>
+ * @date 2013
+ */
+
+#include "settingstest.h"
+
+#include <QtTest/QtTest>
+
+#include <ssusettings.h>
+
+void SettingsTest::initTestCase(){
+
+}
+
+void SettingsTest::cleanupTestCase(){
+
+}
+
+void SettingsTest::testMerge_data(){
+  // Key names state which file(s) a key is set in (master, foo or bar). Value
+  // is always in form "<file>-value" based on which file it is taken from.
+
+  const QScopedPointer<QTemporaryFile> masterFile(
+    QTemporaryFile::createLocalFile(":/testdata/merge/settings.ini"));
+  QSettings master(masterFile->fileName(), QSettings::IniFormat);
+
+  const QStringList settingsFiles = QStringList()
+    << ":/testdata/merge/settings.d/bar.ini"
+    << ":/testdata/merge/settings.d/foo.ini";
+
+  SsuSettings::merge(&master, settingsFiles);
+
+  QSettings expected(":/testdata/merge/merged.ini", QSettings::IniFormat);
+
+  const QSet<QString> masterKeys = master.allKeys().toSet();
+  const QSet<QString> expectedKeys = expected.allKeys().toSet();
+
+  QTest::addColumn<bool>("keyIsMerged");
+  QTest::addColumn<bool>("keyShouldBeMerged");
+  QTest::addColumn<QString>("actualValue");
+  QTest::addColumn<QString>("expectedValue");
+
+  foreach (const QString &key, masterKeys + expectedKeys){
+    QTest::newRow(qPrintable(key))
+      << masterKeys.contains(key)
+      << expectedKeys.contains(key)
+      << master.value(key).toString()
+      << expected.value(key).toString();
+  }
+}
+
+void SettingsTest::testMerge(){
+  QFETCH(bool, keyIsMerged);
+  QFETCH(bool, keyShouldBeMerged);
+  QFETCH(QString, actualValue);
+  QFETCH(QString, expectedValue);
+
+  QCOMPARE(keyIsMerged, keyShouldBeMerged);
+  QCOMPARE(actualValue, expectedValue);
+}
diff --git a/tests/ut_settings/settingstest.h b/tests/ut_settings/settingstest.h
new file mode 100644
index 0000000..dca974d
--- /dev/null
+++ b/tests/ut_settings/settingstest.h
@@ -0,0 +1,25 @@
+/**
+ * @file settingstest.h
+ * @copyright 2013 Jolla Ltd.
+ * @author Martin Kampas <martin.kampas@tieto.com>
+ * @date 2013
+ */
+
+#ifndef _SETTINGSTEST_H
+#define _SETTINGSTEST_H
+
+#include <QObject>
+
+class SettingsTest: public QObject {
+    Q_OBJECT
+
+  private slots:
+    void initTestCase();
+    void cleanupTestCase();
+    void testMerge_data();
+    void testMerge();
+
+  private:
+};
+
+#endif
diff --git a/tests/ut_settings/testdata.qrc b/tests/ut_settings/testdata.qrc
new file mode 100644
index 0000000..d32916e
--- /dev/null
+++ b/tests/ut_settings/testdata.qrc
@@ -0,0 +1,9 @@
+<!DOCTYPE RCC>
+<RCC version="1.0">
+  <qresource>
+    <file>testdata/merge/settings.d/bar.ini</file>
+    <file>testdata/merge/settings.d/foo.ini</file>
+    <file>testdata/merge/merged.ini</file>
+    <file>testdata/merge/settings.ini</file>
+  </qresource>
+</RCC>
diff --git a/tests/ut_settings/testdata/merge/merged.ini b/tests/ut_settings/testdata/merge/merged.ini
new file mode 100644
index 0000000..898f540
--- /dev/null
+++ b/tests/ut_settings/testdata/merge/merged.ini
@@ -0,0 +1,14 @@
+# Global values do not get overridden
+global-master-only = master-value
+global-master-foo = master-value
+global-master-bar = master-value
+global-master-foo-bar = master-value
+
+[groupA]
+master-only = master-value
+foo-only = foo-value
+bar-only = bar-value
+master-foo = foo-value
+master-bar = bar-value
+master-foo-bar = foo-value
+foo-bar = foo-value
diff --git a/tests/ut_settings/testdata/merge/settings.d/bar.ini b/tests/ut_settings/testdata/merge/settings.d/bar.ini
new file mode 100644
index 0000000..4fa3d14
--- /dev/null
+++ b/tests/ut_settings/testdata/merge/settings.d/bar.ini
@@ -0,0 +1,10 @@
+global-bar-only = bar-value
+global-master-bar = bar-value
+global-master-foo-bar = bar-value
+global-foo-bar = bar-value
+
+[groupA]
+bar-only = bar-value
+master-bar = bar-value
+master-foo-bar = bar-value
+foo-bar = bar-value
diff --git a/tests/ut_settings/testdata/merge/settings.d/foo.ini b/tests/ut_settings/testdata/merge/settings.d/foo.ini
new file mode 100644
index 0000000..8dc85ce
--- /dev/null
+++ b/tests/ut_settings/testdata/merge/settings.d/foo.ini
@@ -0,0 +1,10 @@
+global-foo-only = foo-value
+global-master-foo = foo-value
+global-master-foo-bar = foo-value
+global-foo-bar = foo-value
+
+[groupA]
+foo-only = foo-value
+master-foo = foo-value
+master-foo-bar = foo-value
+foo-bar = foo-value
diff --git a/tests/ut_settings/testdata/merge/settings.ini b/tests/ut_settings/testdata/merge/settings.ini
new file mode 100644
index 0000000..9b1b4fa
--- /dev/null
+++ b/tests/ut_settings/testdata/merge/settings.ini
@@ -0,0 +1,10 @@
+global-master-only = master-value
+global-master-foo = master-value
+global-master-bar = master-value
+global-master-foo-bar = master-value
+
+[groupA]
+master-only = master-value
+master-foo = master-value
+master-bar = master-value
+master-foo-bar = master-value
diff --git a/tests/ut_settings/ut_settings.pro b/tests/ut_settings/ut_settings.pro
new file mode 100644
index 0000000..20e4f2f
--- /dev/null
+++ b/tests/ut_settings/ut_settings.pro
@@ -0,0 +1,22 @@
+HEADERS = \
+        settingstest.h \
+
+SOURCES = \
+        main.cpp \
+        settingstest.cpp \
+
+RESOURCES = testdata.qrc
+TEMPLATE = app
+TARGET = ut_settings
+LIBS += -lssu
+CONFIG -= app_bundle
+CONFIG += console qtestlib
+QT -= gui
+QT += network testlib
+
+!include( ../tests.pri ) { error("Unable to find tests include") }
+
+unix:target.path = $${PREFIX}/$$TESTS_PATH
+INSTALLS += target
+
+!include( ../../buildpath.pri ) { error("Unable to find build path specification") }