diff --git a/apis/cloudstack/src/test/java/org/jclouds/cloudstack/features/TemplateClientLiveTest.java b/apis/cloudstack/src/test/java/org/jclouds/cloudstack/features/TemplateClientLiveTest.java
index b2f795a644..4fc59ff138 100644
--- a/apis/cloudstack/src/test/java/org/jclouds/cloudstack/features/TemplateClientLiveTest.java
+++ b/apis/cloudstack/src/test/java/org/jclouds/cloudstack/features/TemplateClientLiveTest.java
@@ -18,16 +18,21 @@
  */
 package org.jclouds.cloudstack.features;
 
-import static org.jclouds.cloudstack.options.ListTemplatesOptions.Builder.zoneId;
-import static org.testng.Assert.assertEquals;
-import static org.testng.Assert.assertTrue;
-
-import java.util.Set;
-
-import org.jclouds.cloudstack.domain.Template;
+import com.google.common.base.Predicate;
+import com.google.common.collect.Iterables;
+import org.jclouds.cloudstack.domain.*;
+import org.jclouds.cloudstack.options.CreateTemplateOptions;
+import org.jclouds.cloudstack.options.ListNetworksOptions;
+import org.jclouds.cloudstack.options.ListVolumesOptions;
+import org.testng.annotations.AfterGroups;
 import org.testng.annotations.Test;
 
-import com.google.common.collect.Iterables;
+import javax.annotation.Nullable;
+import java.util.Random;
+import java.util.Set;
+
+import static org.jclouds.cloudstack.options.ListTemplatesOptions.Builder.zoneId;
+import static org.testng.Assert.*;
 
 /**
  * Tests behavior of {@code TemplateClientLiveTest}
@@ -37,6 +42,9 @@ import com.google.common.collect.Iterables;
 @Test(groups = "live", singleThreaded = true, testName = "TemplateClientLiveTest")
 public class TemplateClientLiveTest extends BaseCloudStackClientLiveTest {
 
+   private VirtualMachine vm;
+   private Template template;
+
    public void testListTemplates() throws Exception {
       Set<Template> response = client.getTemplateClient().listTemplates();
       assert null != response;
@@ -65,4 +73,52 @@ public class TemplateClientLiveTest extends BaseCloudStackClientLiveTest {
       }
    }
 
+   public void testCreateTemplate() throws Exception {
+      Zone zone = Iterables.getFirst(client.getZoneClient().listZones(), null);
+      assertNotNull(zone);
+      Iterable<Network> networks = client.getNetworkClient().listNetworks(ListNetworksOptions.Builder.zoneId(zone.getId()).isDefault(true));
+      networks = Iterables.filter(networks, new Predicate<Network>() {
+         @Override
+         public boolean apply(@Nullable Network network) {
+            return network != null && network.getState().equals("Implemented");
+         }
+      });
+      assertEquals(Iterables.size(networks), 1);
+      Network network = Iterables.getOnlyElement(networks, null);
+      assertNotNull(network);
+
+      // Create a VM and stop it
+      Long templateId = (imageId != null && !"".equals(imageId)) ? new Long(imageId) : null;
+      vm = VirtualMachineClientLiveTest.createVirtualMachineInNetwork(network, templateId, client, jobComplete, virtualMachineRunning);
+      assert jobComplete.apply(client.getVirtualMachineClient().stopVirtualMachine(vm.getId())) : vm;
+
+      // Work out the VM's volume
+      Set<Volume> volumes = client.getVolumeClient().listVolumes(ListVolumesOptions.Builder.virtualMachineId(vm.getId()));
+      assertEquals(volumes.size(), 1);
+      Volume volume = Iterables.getOnlyElement(volumes);
+
+      // Create a template
+      String tmplName = "jclouds-" + Integer.toHexString(new Random().nextInt());
+      CreateTemplateOptions options = CreateTemplateOptions.Builder.volumeId(volume.getId());
+      AsyncCreateResponse response = client.getTemplateClient().createTemplate(TemplateMetadata.builder().name(tmplName).osTypeId(vm.getGuestOSId()).displayText("jclouds live testCreateTemplate").build(), options);
+      assert jobComplete.apply(response.getJobId()) : vm;
+      template = client.getTemplateClient().getTemplateInZone(response.getId(), vm.getZoneId());
+
+      // Assertions
+      assertNotNull(template);
+   }
+
+   @AfterGroups(groups = "live")
+   protected void tearDown() {
+      if (vm != null) {
+         assert jobComplete.apply(client.getVirtualMachineClient().stopVirtualMachine(vm.getId())) : vm;
+         assert jobComplete.apply(client.getVirtualMachineClient().destroyVirtualMachine(vm.getId())) : vm;
+         assert virtualMachineDestroyed.apply(vm);
+      }
+      if (template != null) {
+         client.getTemplateClient().deleteTemplate(template.getId());
+      }
+      super.tearDown();
+   }
+
 }