diff --git a/test/py/tests/test_efi_capsule/conftest.py b/test/py/tests/test_efi_capsule/conftest.py
new file mode 100644
index 000000000000..4e7c36f04ba5
--- /dev/null
+++ b/test/py/tests/test_efi_capsule/conftest.py
@@ -0,0 +1,69 @@
+# SPDX-License-Identifier:      GPL-2.0+
+# Copyright (c) 2020, Linaro Limited
+# Author: AKASHI Takahiro <takahiro.akashi@linaro.org>
+
+import os
+import os.path
+import re
+from subprocess import call, check_call, check_output, CalledProcessError
+import pytest
+from defs import *
+
+#
+# Fixture for UEFI secure boot test
+#
+
+
+@pytest.fixture(scope='session')
+def efi_capsule_data(request, u_boot_config):
+    """Set up a file system to be used in UEFI capsule test.
+
+    Args:
+        request: Pytest request object.
+        u_boot_config: U-boot configuration.
+
+    Return:
+        A path to disk image to be used for testing
+    """
+    mnt_point = u_boot_config.persistent_data_dir + '/test_efi_capsule'
+    data_dir = mnt_point + CAPSULE_DATA_DIR
+    install_dir = mnt_point + CAPSULE_INSTALL_DIR
+    image_path = u_boot_config.persistent_data_dir + '/test_efi_capsule.img'
+
+    try:
+        # Create a target device
+        check_call('dd if=/dev/zero of=./spi.bin bs=1MiB count=16', shell=True)
+
+        check_call('rm -rf %s' % mnt_point, shell=True)
+        check_call('mkdir -p %s' % data_dir, shell=True)
+        check_call('mkdir -p %s' % install_dir, shell=True)
+
+        # Create capsule files
+        # two regions: one for u-boot.bin and the other for u-boot.env
+        check_call('cd %s; echo -n u-boot:Old > u-boot.bin.old; echo -n u-boot:New > u-boot.bin.new; echo -n u-boot-env:Old -> u-boot.env.old; echo -n u-boot-env:New > u-boot.env.new' % data_dir,
+                   shell=True)
+        check_call('sed -e \"s?BINFILE1?u-boot.bin.new?\" -e \"s?BINFILE2?u-boot.env.new?\" %s/test/py/tests/test_efi_capsule/uboot_bin_env.its > %s/uboot_bin_env.its' %
+                   (u_boot_config.source_dir, data_dir),
+                   shell=True)
+        check_call('cd %s; %s/tools/mkimage -f uboot_bin_env.its uboot_bin_env.itb' %
+                   (data_dir, u_boot_config.build_dir),
+                   shell=True)
+        check_call('cd %s; %s/tools/mkeficapsule --fit uboot_bin_env.itb --version 1 --index 1 Test01' %
+                   (data_dir, u_boot_config.build_dir),
+                   shell=True)
+
+        # Create a disk image with EFI system partition
+        check_call('virt-make-fs --partition=gpt --size=+1M --type=vfat %s %s' %
+                   (mnt_point, image_path), shell=True)
+        check_call('sgdisk %s -A 1:set:0 -t 1:C12A7328-F81F-11D2-BA4B-00A0C93EC93B' %
+                   image_path, shell=True)
+
+    except CalledProcessError as exception:
+        pytest.skip('Setup failed: %s' % exception.cmd)
+        return
+    else:
+        yield image_path
+    finally:
+        call('rm -rf %s' % mnt_point, shell=True)
+        call('rm -f %s' % image_path, shell=True)
+        call('rm -f ./spi.bin', shell=True)
diff --git a/test/py/tests/test_efi_capsule/defs.py b/test/py/tests/test_efi_capsule/defs.py
new file mode 100644
index 000000000000..2c5b0ee49beb
--- /dev/null
+++ b/test/py/tests/test_efi_capsule/defs.py
@@ -0,0 +1,12 @@
+# SPDX-License-Identifier:      GPL-2.0+
+
+# Size in MiB
+EFI_BOOTDEV_IMAGE_SIZE = 16
+EFI_BOOTDEV_PART_SIZE = 8
+
+# Owner guid
+GUID = '11111111-2222-3333-4444-123456789abc'
+
+# Directories
+CAPSULE_DATA_DIR = '/EFI/CapsuleTestData'
+CAPSULE_INSTALL_DIR = '/EFI/UpdateCapsule'
diff --git a/test/py/tests/test_efi_capsule/test_capsule_firmware.py b/test/py/tests/test_efi_capsule/test_capsule_firmware.py
new file mode 100644
index 000000000000..ab7c2a7d6bea
--- /dev/null
+++ b/test/py/tests/test_efi_capsule/test_capsule_firmware.py
@@ -0,0 +1,178 @@
+# SPDX-License-Identifier:      GPL-2.0+
+# Copyright (c) 2020, Linaro Limited
+# Author: AKASHI Takahiro <takahiro.akashi@linaro.org>
+#
+# U-Boot UEFI: Firmware Update Test
+
+"""
+This test verifies capsule-on-disk firmware update
+"""
+
+from subprocess import check_call, check_output, CalledProcessError
+import pytest
+from defs import *
+
+
+@pytest.mark.boardspec('sandbox')
+@pytest.mark.buildconfigspec('efi_capsule_firmware_fit')
+@pytest.mark.buildconfigspec('efi_capsule_on_disk')
+@pytest.mark.buildconfigspec('dfu')
+@pytest.mark.buildconfigspec('dfu_sf')
+@pytest.mark.buildconfigspec('cmd_efidebug')
+@pytest.mark.buildconfigspec('cmd_fat')
+@pytest.mark.buildconfigspec('cmd_memory')
+@pytest.mark.buildconfigspec('cmd_nvedit_efi')
+@pytest.mark.buildconfigspec('cmd_sf')
+@pytest.mark.slow
+class TestEfiCapsuleFirmwareFit(object):
+    def test_efi_capsule_fw1(
+            self, u_boot_config, u_boot_console, efi_capsule_data):
+        """
+        Test Case 1 - Update U-Boot and U-Boot environment on SPI Flash
+                      but with OsIndications unset
+                      No update should happen
+                      0x100000-0x150000: U-Boot binary (but dummy)
+                      0x150000-0x200000: U-Boot environment (but dummy)
+        """
+        disk_img = efi_capsule_data
+        with u_boot_console.log.section('Test Case 1-a, before reboot'):
+            output = u_boot_console.run_command_list([
+                'host bind 0 %s' % disk_img,
+                'efidebug boot add 1 TEST host 0:1 /helloworld.efi ""',
+                'efidebug boot order 1',
+                'env set -e OsIndications',
+                'env set dfu_alt_info "sf 0:0=u-boot-bin raw 0x100000 0x50000;u-boot-env raw 0x150000 0x200000"',
+                'env save'])
+
+            # initialize contents
+            output = u_boot_console.run_command_list([
+                'sf probe 0:0',
+                'fatload host 0:1 4000000 %s/u-boot.bin.old' % CAPSULE_DATA_DIR,
+                'sf write 4000000 100000 10',
+                'sf read 5000000 100000 10',
+                'md.b 5000000 10'])
+            assert 'Old' in ''.join(output)
+            output = u_boot_console.run_command_list([
+                'sf probe 0:0',
+                'fatload host 0:1 4000000 %s/u-boot.env.old' % CAPSULE_DATA_DIR,
+                'sf write 4000000 150000 10',
+                'sf read 5000000 150000 10',
+                'md.b 5000000 10'])
+            assert 'Old' in ''.join(output)
+
+            # place a capsule file
+            output = u_boot_console.run_command_list([
+                'fatload host 0:1 4000000 %s/Test01' % CAPSULE_DATA_DIR,
+                'fatwrite host 0:1 4000000 %s/Test01 $filesize' % CAPSULE_INSTALL_DIR,
+                'fatls host 0:1 %s' % CAPSULE_INSTALL_DIR])
+            assert 'Test01' in ''.join(output)
+
+        # reboot
+        u_boot_console.restart_uboot()
+
+        capsule_early = u_boot_config.buildconfig.get(
+            'config_efi_capsule_on_disk_early')
+        with u_boot_console.log.section('Test Case 1-b, after reboot'):
+            if not capsule_early:
+                # make sure that dfu_alt_info exists even persistent variables
+                # are not available.
+                output = u_boot_console.run_command_list([
+                    'env set dfu_alt_info "sf 0:0=u-boot-bin raw 0x100000 0x50000;u-boot-env raw 0x150000 0x200000"',
+                    'host bind 0 %s' % disk_img,
+                    'fatls host 0:1 %s' % CAPSULE_INSTALL_DIR])
+                assert 'Test01' in ''.join(output)
+
+                # need to run uefi command to initiate capsule handling
+                output = u_boot_console.run_command(
+                    'env print -e -all Capsule0000')
+
+            output = u_boot_console.run_command_list([
+                'host bind 0 %s' % disk_img,
+                'fatls host 0:1 %s' % CAPSULE_INSTALL_DIR])
+            assert 'Test01' in ''.join(output)
+
+            output = u_boot_console.run_command_list([
+                'sf probe 0:0',
+                'sf read 4000000 100000 10',
+                'md.b 4000000 10'])
+            assert 'u-boot:Old' in ''.join(output)
+
+            output = u_boot_console.run_command_list([
+                'sf read 4000000 150000 10',
+                'md.b 4000000 10'])
+            assert 'u-boot-env:Old' in ''.join(output)
+
+    def test_efi_capsule_fw2(
+            self, u_boot_config, u_boot_console, efi_capsule_data):
+        """
+        Test Case 2 - Update U-Boot and U-Boot environment on SPI Flash
+                      0x100000-0x150000: U-Boot binary (but dummy)
+                      0x150000-0x200000: U-Boot environment (but dummy)
+        """
+        disk_img = efi_capsule_data
+        with u_boot_console.log.section('Test Case 2-a, before reboot'):
+            output = u_boot_console.run_command_list([
+                'host bind 0 %s' % disk_img,
+                'efidebug boot add 1 TEST host 0:1 /helloworld.efi ""',
+                'efidebug boot order 1',
+                'env set -e -nv -bs -rt OsIndications =0x0000000000000004',
+                'env set dfu_alt_info "sf 0:0=u-boot-bin raw 0x100000 0x50000;u-boot-env raw 0x150000 0x200000"',
+                'env save'])
+
+            # initialize contents
+            output = u_boot_console.run_command_list([
+                'sf probe 0:0',
+                'fatload host 0:1 4000000 %s/u-boot.bin.old' % CAPSULE_DATA_DIR,
+                'sf write 4000000 100000 10',
+                'sf read 5000000 100000 10',
+                'md.b 5000000 10'])
+            assert 'Old' in ''.join(output)
+            output = u_boot_console.run_command_list([
+                'sf probe 0:0',
+                'fatload host 0:1 4000000 %s/u-boot.env.old' % CAPSULE_DATA_DIR,
+                'sf write 4000000 150000 10',
+                'sf read 5000000 150000 10',
+                'md.b 5000000 10'])
+            assert 'Old' in ''.join(output)
+
+            # place a capsule file
+            output = u_boot_console.run_command_list([
+                'fatload host 0:1 4000000 %s/Test01' % CAPSULE_DATA_DIR,
+                'fatwrite host 0:1 4000000 %s/Test01 $filesize' % CAPSULE_INSTALL_DIR,
+                'fatls host 0:1 %s' % CAPSULE_INSTALL_DIR])
+            assert 'Test01' in ''.join(output)
+
+        # reboot
+        u_boot_console.restart_uboot()
+
+        capsule_early = u_boot_config.buildconfig.get(
+            'config_efi_capsule_on_disk_early')
+        with u_boot_console.log.section('Test Case 2-b, after reboot'):
+            if not capsule_early:
+                # make sure that dfu_alt_info exists even persistent variables
+                # are not available.
+                output = u_boot_console.run_command_list([
+                    'env set dfu_alt_info "sf 0:0=u-boot-bin raw 0x100000 0x50000;u-boot-env raw 0x150000 0x200000"',
+                    'host bind 0 %s' % disk_img,
+                    'fatls host 0:1 %s' % CAPSULE_INSTALL_DIR])
+                assert 'Test01' in ''.join(output)
+
+                # need to run uefi command to initiate capsule handling
+                output = u_boot_console.run_command(
+                    'env print -e -all Capsule0000')
+
+            output = u_boot_console.run_command_list([
+                'host bind 0 %s' % disk_img,
+                'fatls host 0:1 %s' % CAPSULE_INSTALL_DIR])
+            assert 'Test01' not in ''.join(output)
+
+            output = u_boot_console.run_command_list([
+                'sf probe 0:0',
+                'sf read 4000000 100000 10',
+                'md.b 4000000 10'])
+            assert 'u-boot:New' in ''.join(output)
+
+            output = u_boot_console.run_command_list([
+                'sf read 4000000 150000 10',
+                'md.b 4000000 10'])
+            assert 'u-boot-env:New' in ''.join(output)
diff --git a/test/py/tests/test_efi_capsule/uboot_bin_env.its b/test/py/tests/test_efi_capsule/uboot_bin_env.its
new file mode 100644
index 000000000000..31e2f8049f9a
--- /dev/null
+++ b/test/py/tests/test_efi_capsule/uboot_bin_env.its
@@ -0,0 +1,36 @@
+/*
+ * Automatic software update for U-Boot
+ * Make sure the flashing addresses ('load' prop) is correct for your board!
+ */
+
+/dts-v1/;
+
+/ {
+	description = "Automatic U-Boot environment update";
+	#address-cells = <2>;
+
+	images {
+		u-boot-bin@100000 {
+			description = "U-Boot binary on SPI Flash";
+			data = /incbin/("BINFILE1");
+			compression = "none";
+			type = "firmware";
+			arch = "sandbox";
+			load = <0>;
+			hash-1 {
+				algo = "sha1";
+			};
+		};
+		u-boot-env@150000 {
+			description = "U-Boot environment on SPI Flash";
+			data = /incbin/("BINFILE2");
+			compression = "none";
+			type = "firmware";
+			arch = "sandbox";
+			load = <0>;
+			hash-1 {
+				algo = "sha1";
+			};
+		};
+	};
+};
diff --git a/tools/mkeficapsule.c b/tools/mkeficapsule.c
index db95426457cc..45e27d74a5e9 100644
--- a/tools/mkeficapsule.c
+++ b/tools/mkeficapsule.c
@@ -101,7 +101,8 @@ static int create_fwbin(char *path, char *bin, efi_guid_t *guid,
 	}
 	header.capsule_guid = efi_guid_fm_capsule;
 	header.header_size = sizeof(header);
-	header.flags = CAPSULE_FLAGS_PERSIST_ACROSS_RESET; /* TODO */
+	/* TODO: The current implementation ignores flags */
+	header.flags = CAPSULE_FLAGS_PERSIST_ACROSS_RESET;
 	header.capsule_image_size = sizeof(header)
 					+ sizeof(capsule) + sizeof(u64)
 					+ sizeof(image)
