diff --git a/nova/tests/functional/test_boot_from_volume.py b/nova/tests/functional/test_boot_from_volume.py
new file mode 100644
index 000000000000..e5098a1dcc85
--- /dev/null
+++ b/nova/tests/functional/test_boot_from_volume.py
@@ -0,0 +1,152 @@
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+from nova import context
+from nova import objects
+from nova.tests import fixtures as nova_fixtures
+from nova.tests.functional import integrated_helpers
+from nova.tests.functional import test_servers
+
+
+class BootFromVolumeTest(integrated_helpers.InstanceHelperMixin,
+                         test_servers.ServersTestBase):
+    def _get_hypervisor_stats(self):
+        response = self.admin_api.api_get('/os-hypervisors/statistics')
+        return response.body['hypervisor_statistics']
+
+    def _verify_zero_local_gb_used(self, expected=0):
+        stats = self._get_hypervisor_stats()
+        self.assertEqual(expected, stats['local_gb_used'])
+
+    def _verify_instance_flavor_not_zero(self, instance_uuid):
+        # We are trying to avoid saving instance records with root_gb=0
+        ctxt = context.RequestContext('fake', self.api.project_id)
+        instance = objects.Instance.get_by_uuid(ctxt, instance_uuid)
+        self.assertNotEqual(0, instance.root_gb)
+        self.assertNotEqual(0, instance.flavor.root_gb)
+
+    def _verify_request_spec_flavor_not_zero(self, instance_uuid):
+        # We are trying to avoid saving request spec records with root_gb=0
+        ctxt = context.RequestContext('fake', self.api.project_id)
+        rspec = objects.RequestSpec.get_by_instance_uuid(ctxt, instance_uuid)
+        self.assertNotEqual(0, rspec.flavor.root_gb)
+
+    def setUp(self):
+        # These need to be set up before services are started, else they
+        # won't be reflected in the running service.
+        self.flags(allow_resize_to_same_host=True)
+        super(BootFromVolumeTest, self).setUp()
+        self.admin_api = self.api_fixture.admin_api
+        self.useFixture(nova_fixtures.CinderFixtureNewAttachFlow(self))
+
+    def test_boot_from_volume_larger_than_local_gb(self):
+        # Verify no local disk is being used currently
+        self._verify_zero_local_gb_used()
+
+        # Create flavors with disk larger than available host local disk
+        flavor_id = self._create_flavor(memory_mb=64, vcpu=1, disk=8192,
+                                        ephemeral=0)
+        flavor_id_alt = self._create_flavor(memory_mb=64, vcpu=1, disk=16384,
+                                            ephemeral=0)
+
+        # Boot a server with a flavor disk larger than the available local
+        # disk. It should succeed for boot from volume.
+        server = self._build_server(flavor_id)
+        server['imageRef'] = ''
+        volume_uuid = nova_fixtures.CinderFixtureNewAttachFlow.IMAGE_BACKED_VOL
+        bdm = {'boot_index': 0,
+               'uuid': volume_uuid,
+               'source_type': 'volume',
+               'destination_type': 'volume'}
+        server['block_device_mapping_v2'] = [bdm]
+        created_server = self.api.post_server({"server": server})
+        server_id = created_server['id']
+        self._wait_for_state_change(self.api, created_server, 'ACTIVE')
+
+        # Check that hypervisor local disk reporting is still 0
+        self._verify_zero_local_gb_used()
+        # Check that instance has not been saved with 0 root_gb
+        self._verify_instance_flavor_not_zero(server_id)
+        # Check that request spec has not been saved with 0 root_gb
+        self._verify_request_spec_flavor_not_zero(server_id)
+
+        # Do actions that could change local disk reporting and verify they
+        # don't change local disk reporting.
+
+        # Resize
+        post_data = {'resize': {'flavorRef': flavor_id_alt}}
+        self.api.post_server_action(server_id, post_data)
+        self._wait_for_state_change(self.api, created_server, 'VERIFY_RESIZE')
+
+        # Check that hypervisor local disk reporting is still 0
+        # FIXME(mriedem): Expect 0 once bug 1796737 is fixed.
+        self._verify_zero_local_gb_used(expected=16384)
+        # Check that instance has not been saved with 0 root_gb
+        self._verify_instance_flavor_not_zero(server_id)
+        # Check that request spec has not been saved with 0 root_gb
+        self._verify_request_spec_flavor_not_zero(server_id)
+
+        # Confirm the resize
+        post_data = {'confirmResize': None}
+        self.api.post_server_action(server_id, post_data)
+        self._wait_for_state_change(self.api, created_server, 'ACTIVE')
+
+        # Check that hypervisor local disk reporting is still 0
+        # FIXME(mriedem): Expect 0 once bug 1796737 is fixed.
+        self._verify_zero_local_gb_used(expected=8192)
+        # Check that instance has not been saved with 0 root_gb
+        self._verify_instance_flavor_not_zero(server_id)
+        # Check that request spec has not been saved with 0 root_gb
+        self._verify_request_spec_flavor_not_zero(server_id)
+
+        # Shelve
+        post_data = {'shelve': None}
+        self.api.post_server_action(server_id, post_data)
+        self._wait_for_state_change(self.api, created_server,
+                                    'SHELVED_OFFLOADED')
+
+        # Check that hypervisor local disk reporting is still 0
+        # FIXME(mriedem): Expect 0 once bug 1796737 is fixed.
+        self._verify_zero_local_gb_used(expected=8192)
+        # Check that instance has not been saved with 0 root_gb
+        self._verify_instance_flavor_not_zero(server_id)
+        # Check that request spec has not been saved with 0 root_gb
+        self._verify_request_spec_flavor_not_zero(server_id)
+
+        # Unshelve
+        post_data = {'unshelve': None}
+        self.api.post_server_action(server_id, post_data)
+        self._wait_for_state_change(self.api, created_server, 'ACTIVE')
+
+        # Check that hypervisor local disk reporting is still 0
+        # FIXME(mriedem): Expect 0 once bug 1796737 is fixed.
+        self._verify_zero_local_gb_used(expected=8192)
+        # Check that instance has not been saved with 0 root_gb
+        self._verify_instance_flavor_not_zero(server_id)
+        # Check that request spec has not been saved with 0 root_gb
+        self._verify_request_spec_flavor_not_zero(server_id)
+
+        # Rebuild
+        # The image_uuid is from CinderFixtureNewAttachFlow for the
+        # volume representing IMAGE_BACKED_VOL.
+        image_uuid = '155d900f-4e14-4e4c-a73d-069cbf4541e6'
+        post_data = {'rebuild': {'imageRef': image_uuid}}
+        self.api.post_server_action(server_id, post_data)
+        self._wait_for_state_change(self.api, created_server, 'ACTIVE')
+
+        # Check that hypervisor local disk reporting is still 0
+        # FIXME(mriedem): Expect 0 once bug 1796737 is fixed.
+        self._verify_zero_local_gb_used(expected=8192)
+        # Check that instance has not been saved with 0 root_gb
+        self._verify_instance_flavor_not_zero(server_id)
+        # Check that request spec has not been saved with 0 root_gb
+        self._verify_request_spec_flavor_not_zero(server_id)