diff --git a/apps/openstacknetworking/src/test/java/org/onosproject/openstacknetworking/impl/OpenstackRouterManagerTest.java b/apps/openstacknetworking/src/test/java/org/onosproject/openstacknetworking/impl/OpenstackRouterManagerTest.java
new file mode 100644
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+++ b/apps/openstacknetworking/src/test/java/org/onosproject/openstacknetworking/impl/OpenstackRouterManagerTest.java
@@ -0,0 +1,283 @@
+/*
+ * Copyright 2017-present Open Networking Laboratory
+ *
+ * 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.
+ */
+package org.onosproject.openstacknetworking.impl;
+
+import com.google.common.collect.Lists;
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Test;
+import org.onlab.junit.TestTools;
+import org.onlab.junit.TestUtils;
+import org.onosproject.core.ApplicationId;
+import org.onosproject.core.CoreServiceAdapter;
+import org.onosproject.core.DefaultApplicationId;
+import org.onosproject.event.Event;
+import org.onosproject.openstacknetworking.api.OpenstackRouterEvent;
+import org.onosproject.openstacknetworking.api.OpenstackRouterListener;
+import org.onosproject.store.service.TestStorageService;
+import org.openstack4j.model.network.Router;
+import org.openstack4j.openstack.networking.domain.NeutronRouter;
+
+import java.util.List;
+
+import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.assertTrue;
+import static org.onosproject.openstacknetworking.api.OpenstackRouterEvent.Type.*;
+
+/**
+ * Unit tests for OpenStack router manager.
+ */
+public class OpenstackRouterManagerTest {
+
+    private static final ApplicationId TEST_APP_ID = new DefaultApplicationId(1, "test");
+
+    private static final String UNKNOWN_ID = "unknown_id";
+    private static final String ROUTER_ID = "router_1";
+    private static final String ROUTER_NAME = "router_1";
+    private static final Router ROUTER = NeutronRouter.builder()
+            .id(ROUTER_ID)
+            .name(ROUTER_NAME)
+            .build();
+
+    private final TestOpenstackRouterListener testListener = new TestOpenstackRouterListener();
+
+    private OpenstackRouterManager target;
+    private DistributedOpenstackRouterStore osRouterStore;
+
+    @Before
+    public void setUp() throws Exception {
+        osRouterStore = new DistributedOpenstackRouterStore();
+        TestUtils.setField(osRouterStore, "coreService", new TestCoreService());
+        TestUtils.setField(osRouterStore, "storageService", new TestStorageService());
+        osRouterStore.activate();
+
+        target = new OpenstackRouterManager();
+        target.coreService = new TestCoreService();
+        target.osRouterStore = osRouterStore;
+        target.addListener(testListener);
+        target.activate();
+    }
+
+    @After
+    public void tearDown() {
+        target.removeListener(testListener);
+        osRouterStore.deactivate();
+        target.deactivate();
+        osRouterStore = null;
+        target = null;
+    }
+
+    /**
+     * Tests if getting all routers returns correct set of values.
+     */
+    @Test
+    public void testGetRouters() {
+        createBasicRouters();
+        assertEquals("Number of router did not match", 1, target.routers().size());
+    }
+
+    /**
+     * Tests if getting a router with ID returns correct value.
+     */
+    @Test
+    public void testGetRouterById() {
+        createBasicRouters();
+        assertTrue("Router did not exist", target.router(ROUTER_ID) != null);
+        assertTrue("Router did not exist", target.router(UNKNOWN_ID) == null);
+    }
+
+    /**
+     * Tests creating and removing a router, and checks if proper event is triggered.
+     */
+    @Test
+    public void testCreateAndRemoveRouter() {
+        target.createRouter(ROUTER);
+        assertEquals("Number of router did not match", 1, target.routers().size());
+        assertTrue("Router was not created", target.router(ROUTER_ID) != null);
+
+        target.removeRouter(ROUTER.getId());
+        assertEquals("Number of router did not match", 0, target.routers().size());
+        assertTrue("Router was not removed", target.router(ROUTER_ID) == null);
+
+        validateEvents(OPENSTACK_ROUTER_CREATED, OPENSTACK_ROUTER_REMOVED);
+    }
+
+    /**
+     * Tests creating and updating a router, and checks if proper event is triggered.
+     */
+    @Test
+    public void testCreateAndUpdateRouter() {
+        target.createRouter(ROUTER);
+        assertEquals("Number of router did not match", 1, target.routers().size());
+        assertEquals("Router did not match", ROUTER_NAME, target.router(ROUTER_ID).getName());
+
+        final Router updated = NeutronRouter.builder()
+                .id(ROUTER_ID)
+                .name("updated-name")
+                .build();
+
+        target.updateRouter(updated);
+        assertEquals("Number of router did not match", 1, target.routers().size());
+        assertEquals("Router did not match", "updated-name", target.router(ROUTER_ID).getName());
+
+        validateEvents(OPENSTACK_ROUTER_CREATED, OPENSTACK_ROUTER_UPDATED);
+    }
+
+    /**
+     * Tests adding and removing external gateway to a router, and checks if
+     * proper events are triggered.
+     */
+    @Test
+    public void testAddAndRemoveExternalGateway() {
+        target.createRouter(ROUTER);
+        assertTrue("Router did not match", target.router(ROUTER_ID).getExternalGatewayInfo() == null);
+
+        Router updated = NeutronRouter.builder()
+                .id(ROUTER_ID)
+                .name(ROUTER_NAME)
+                .externalGateway("test-network-id")
+                .build();
+
+        target.updateRouter(updated);
+        assertEquals("Router did not match",
+                "test-network-id",
+                target.router(ROUTER_ID).getExternalGatewayInfo().getNetworkId());
+
+        target.updateRouter(ROUTER);
+        assertTrue("Router did not match", target.router(ROUTER_ID).getExternalGatewayInfo() == null);
+
+        validateEvents(OPENSTACK_ROUTER_CREATED, OPENSTACK_ROUTER_UPDATED,
+                OPENSTACK_ROUTER_GATEWAY_ADDED,
+                OPENSTACK_ROUTER_UPDATED,
+                OPENSTACK_ROUTER_GATEWAY_REMOVED);
+    }
+
+    /**
+     * Tests if creating a router with null value fails with an exception.
+     */
+    @Test(expected = NullPointerException.class)
+    public void testCreateRouterWithNull() {
+        target.createRouter(null);
+    }
+
+    /**
+     * Tests if creating a router with null ID fails with an exception.
+     */
+    @Test(expected = IllegalArgumentException.class)
+    public void testCreateRouterWithNullId() {
+        final Router testRouter = NeutronRouter.builder()
+                .id(null)
+                .name(ROUTER_NAME)
+                .build();
+        target.createRouter(testRouter);
+    }
+
+    /**
+     * Tests if updating a router with null name fails with an exception.
+     */
+    @Test(expected = IllegalArgumentException.class)
+    public void testCreateRouterWithNullName() {
+        final Router testRouter = NeutronRouter.builder()
+                .id(ROUTER_ID)
+                .name(null)
+                .build();
+        target.createRouter(testRouter);
+    }
+
+    /**
+     * Tests if creating a duplicate router fails with an exception.
+     */
+    @Test(expected = IllegalArgumentException.class)
+    public void testCreateDuplicateRouter() {
+        target.createRouter(ROUTER);
+        target.createRouter(ROUTER);
+    }
+
+    /**
+     * Tests if updating a router with null value fails with an exception.
+     */
+    @Test(expected = NullPointerException.class)
+    public void testUpdateRouterWithNull() {
+        target.updateRouter(null);
+    }
+
+    /**
+     * Tests if updating a router with null ID fails with an exception.
+     */
+    @Test(expected = IllegalArgumentException.class)
+    public void testUpdateRouterWithNullId() {
+        final Router testRouter = NeutronRouter.builder()
+                .id(null)
+                .name(ROUTER_NAME)
+                .build();
+        target.updateRouter(testRouter);
+    }
+
+    /**
+     * Tests if updating a router with null name fails with an exception.
+     */
+    @Test(expected = IllegalArgumentException.class)
+    public void testUpdateRouterWithNullName() {
+        final Router testRouter = NeutronRouter.builder()
+                .id(ROUTER_ID)
+                .name(null)
+                .build();
+        target.updateRouter(testRouter);
+    }
+
+    /**
+     * Tests if updating an unregistered router fails with an exception.
+     */
+    @Test(expected = IllegalArgumentException.class)
+    public void testUpdateUnregisteredRouter() {
+        target.updateRouter(ROUTER);
+    }
+
+    // TODO fix openstack4j floating IP data model and add unit tests
+
+    private void createBasicRouters() {
+        target.createRouter(ROUTER);
+    }
+
+    private static class TestCoreService extends CoreServiceAdapter {
+
+        @Override
+        public ApplicationId registerApplication(String name) {
+            return TEST_APP_ID;
+        }
+    }
+
+    private static class TestOpenstackRouterListener implements OpenstackRouterListener {
+        private List<OpenstackRouterEvent> events = Lists.newArrayList();
+
+        @Override
+        public void event(OpenstackRouterEvent event) {
+            events.add(event);
+        }
+    }
+
+    private void validateEvents(Enum... types) {
+        TestTools.assertAfter(100, () -> {
+            int i = 0;
+            assertEquals("Number of events did not match", types.length, testListener.events.size());
+            for (Event event : testListener.events) {
+                assertEquals("Incorrect event received", types[i], event.type());
+                i++;
+            }
+            testListener.events.clear();
+        });
+    }
+}