diff --git a/compiler/plugin/maven/src/test/java/org/onosproject/yang/compiler/plugin/maven/IdentityTranslatorTest.java b/compiler/plugin/maven/src/test/java/org/onosproject/yang/compiler/plugin/maven/IdentityTranslatorTest.java
index bb02522..2835a64 100644
--- a/compiler/plugin/maven/src/test/java/org/onosproject/yang/compiler/plugin/maven/IdentityTranslatorTest.java
+++ b/compiler/plugin/maven/src/test/java/org/onosproject/yang/compiler/plugin/maven/IdentityTranslatorTest.java
@@ -18,6 +18,10 @@
 
 import org.apache.maven.plugin.MojoExecutionException;
 import org.junit.Test;
+import org.onosproject.yang.compiler.datamodel.YangIdentity;
+import org.onosproject.yang.compiler.datamodel.YangModule;
+import org.onosproject.yang.compiler.datamodel.YangNode;
+import org.onosproject.yang.compiler.linker.impl.YangLinkerManager;
 import org.onosproject.yang.compiler.utils.io.YangPluginConfig;
 import org.onosproject.yang.compiler.utils.io.impl.YangFileScanner;
 import org.onosproject.yang.compiler.utils.io.impl.YangIoUtils;
@@ -26,12 +30,20 @@
 import java.io.File;
 import java.io.IOException;
 
+import static org.hamcrest.MatcherAssert.assertThat;
+import static org.hamcrest.core.Is.is;
+import static org.onosproject.yang.compiler.datamodel.YangNodeType.MODULE_NODE;
+import static org.onosproject.yang.compiler.linker.impl.YangLinkerUtils.updateFilePriority;
+import static org.onosproject.yang.compiler.utils.io.YangPluginConfig.compileCode;
+import static org.onosproject.yang.compiler.utils.io.impl.YangIoUtils.deleteDirectory;
+
 /**
  * Translator test case for identity.
  */
 public class IdentityTranslatorTest {
 
     private final YangUtilManager utilManager = new YangUtilManager();
+    private final YangLinkerManager yangLinkerManager = new YangLinkerManager();
     private static final String DIR = "target/identity/";
     private static final String COMP = System.getProperty("user.dir") + File
             .separator + DIR;
@@ -44,7 +56,7 @@
     @Test
     public void processTranslator() throws IOException,
             ParserException, MojoExecutionException {
-        YangIoUtils.deleteDirectory(DIR);
+        deleteDirectory(DIR);
         String searchDir = "src/test/resources/identityTranslator";
         utilManager.createYangFileInfoSet(YangFileScanner.getYangFiles(searchDir));
         utilManager.parseYangFileInfoSet();
@@ -54,7 +66,63 @@
         YangPluginConfig yangPluginConfig = new YangPluginConfig();
         yangPluginConfig.setCodeGenDir(DIR);
         utilManager.translateToJava(yangPluginConfig);
-        YangPluginConfig.compileCode(COMP);
-        YangIoUtils.deleteDirectory(DIR);
+        compileCode(COMP);
+        deleteDirectory(DIR);
+    }
+
+    /**
+     * Checks translation should not result in any exception.
+     *
+     * @throws MojoExecutionException
+     */
+    @Test
+    public void processMultipleLevelIdentity() throws IOException,
+            ParserException, MojoExecutionException {
+        deleteDirectory(DIR);
+        String searchDir = "src/test/resources/multipleIdentity";
+        utilManager.createYangFileInfoSet(YangFileScanner.getYangFiles(searchDir));
+        utilManager.parseYangFileInfoSet();
+        utilManager.createYangNodeSet();
+
+        YangNode selfNode = null;
+
+        // Create YANG node set
+        yangLinkerManager.createYangNodeSet(utilManager.getYangNodeSet());
+
+        // Add references to import list.
+        yangLinkerManager.addRefToYangFilesImportList(utilManager.getYangNodeSet());
+
+        updateFilePriority(utilManager.getYangNodeSet());
+
+        // Carry out inter-file linking.
+        yangLinkerManager.processInterFileLinking(utilManager.getYangNodeSet());
+
+        for (YangNode rootNode : utilManager.getYangNodeSet()) {
+            if (rootNode.getName().equals("test")) {
+                selfNode = rootNode;
+            }
+        }
+
+        // Check whether the data model tree returned is of type module.
+        assertThat(selfNode instanceof YangModule, is(true));
+
+        // Check whether the node type is set properly to module.
+        assertThat(selfNode.getNodeType(), is(MODULE_NODE));
+
+        // Check whether the module name is set correctly.
+        YangModule yangNode = (YangModule) selfNode;
+        assertThat(yangNode.getName(), is("test"));
+
+        YangIdentity id = ((YangIdentity) yangNode.getChild());
+        assertThat(id.getName(), is("identity3"));
+
+        assertThat(id.getExtendList().get(0).getName(), is("identity2"));
+        assertThat(id.getExtendList().get(1).getName(), is("identity1"));
+
+        YangPluginConfig yangPluginConfig = new YangPluginConfig();
+        yangPluginConfig.setCodeGenDir(DIR);
+        utilManager.translateToJava(yangPluginConfig);
+        compileCode(COMP);
+        deleteDirectory(DIR);
     }
 }
diff --git a/compiler/plugin/maven/src/test/resources/multipleIdentity/test.yang b/compiler/plugin/maven/src/test/resources/multipleIdentity/test.yang
new file mode 100644
index 0000000..05b4875
--- /dev/null
+++ b/compiler/plugin/maven/src/test/resources/multipleIdentity/test.yang
@@ -0,0 +1,21 @@
+module test {
+    namespace "identitytest";
+    prefix test ;
+
+    identity identity3;
+
+    identity identity2 {
+       base "identity3";
+    }
+
+    identity identity1 {
+       base "identity2";
+    }
+    container node {
+        leaf node-id{
+           type identityref {
+              base "identity1";
+           }
+        }
+    }
+}
\ No newline at end of file