diff --git a/tests/kernel/mem_heap/k_heap_api/CMakeLists.txt b/tests/kernel/mem_heap/k_heap_api/CMakeLists.txt
new file mode 100644
index 00000000000..5ae19e54163
--- /dev/null
+++ b/tests/kernel/mem_heap/k_heap_api/CMakeLists.txt
@@ -0,0 +1,8 @@
+# SPDX-License-Identifier: Apache-2.0
+
+cmake_minimum_required(VERSION 3.13.1)
+find_package(Zephyr REQUIRED HINTS $ENV{ZEPHYR_BASE})
+project(k_heap_api)
+
+FILE(GLOB app_sources src/*.c)
+target_sources(app PRIVATE ${app_sources})
diff --git a/tests/kernel/mem_heap/k_heap_api/prj.conf b/tests/kernel/mem_heap/k_heap_api/prj.conf
new file mode 100644
index 00000000000..9467c292689
--- /dev/null
+++ b/tests/kernel/mem_heap/k_heap_api/prj.conf
@@ -0,0 +1 @@
+CONFIG_ZTEST=y
diff --git a/tests/kernel/mem_heap/k_heap_api/src/main.c b/tests/kernel/mem_heap/k_heap_api/src/main.c
new file mode 100644
index 00000000000..3cfeba0c744
--- /dev/null
+++ b/tests/kernel/mem_heap/k_heap_api/src/main.c
@@ -0,0 +1,29 @@
+/*
+ *  Copyright (c) 2020 Intel Corporation.
+ *
+ *  SPDX-License-Identifier: Apache-2.0
+ */
+
+#include <ztest.h>
+extern void test_k_heap_alloc(void);
+extern void test_k_heap_alloc_fail(void);
+extern void test_k_heap_free(void);
+
+/**
+ * @brief k heap api tests
+ *
+ * @defgroup k_heap api Tests
+ *
+ * @ingroup all_tests
+ * @{
+ * @}
+ */
+/*test case main entry*/
+void test_main(void)
+{
+	ztest_test_suite(k_heap_api,
+			 ztest_unit_test(test_k_heap_alloc),
+			 ztest_unit_test(test_k_heap_alloc_fail),
+			 ztest_unit_test(test_k_heap_free));
+	ztest_run_test_suite(k_heap_api);
+}
diff --git a/tests/kernel/mem_heap/k_heap_api/src/test_kheap.h b/tests/kernel/mem_heap/k_heap_api/src/test_kheap.h
new file mode 100644
index 00000000000..899ebe21459
--- /dev/null
+++ b/tests/kernel/mem_heap/k_heap_api/src/test_kheap.h
@@ -0,0 +1,8 @@
+/*
+ * Copyright (c) 2019 Intel Corporation.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+#define TIMEOUT 2000
+#define HEAP_SIZE 2048
diff --git a/tests/kernel/mem_heap/k_heap_api/src/test_kheap_api.c b/tests/kernel/mem_heap/k_heap_api/src/test_kheap_api.c
new file mode 100644
index 00000000000..95e337917ed
--- /dev/null
+++ b/tests/kernel/mem_heap/k_heap_api/src/test_kheap_api.c
@@ -0,0 +1,93 @@
+/*
+ * Copyright (c) 2020 Intel Corporation.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+#include <ztest.h>
+#include "test_kheap.h"
+
+K_HEAP_DEFINE(k_heap_test, HEAP_SIZE);
+
+#define ALLOC_SIZE_1 1024
+#define ALLOC_SIZE_2 1536
+#define ALLOC_SIZE_3 2049
+
+/*test cases*/
+
+/**
+ * @brief Test to demonstrate k_heap_alloc() and k_heap_free() API usage
+ *
+ * @ingroup kernel_kheap_api_tests
+ *
+ * @details The test allocates 1024 bytes from 2048 byte heap,
+ * and checks if allocation is successful or not
+ *
+ * @see k_heap_malloc(), k_heap_Free()
+ */
+void test_k_heap_alloc(void)
+{
+
+	k_timeout_t timeout = Z_TIMEOUT_US(TIMEOUT);
+	char *p = (char *)k_heap_alloc(&k_heap_test, ALLOC_SIZE_1, timeout);
+
+	zassert_not_null(p, "k_heap_alloc operation failed");
+
+	for (int i = 0; i < ALLOC_SIZE_1; i++) {
+		p[i] = '0';
+	}
+	k_heap_free(&k_heap_test, p);
+}
+
+
+/**
+ * @brief Test to demonstrate k_heap_alloc() and k_heap_free() API usage
+ *
+ * @ingroup kernel_kheap_api_tests
+ *
+ * @details The test allocates 2049 bytes, which is greater than the heap
+ * size(2048 bytes), and checks for NULL return from k_heap_alloc
+ *
+ * @see k_heap_malloc(), k_heap_Free()
+ */
+void test_k_heap_alloc_fail(void)
+{
+
+	k_timeout_t timeout = Z_TIMEOUT_US(TIMEOUT);
+	char *p = (char *)k_heap_alloc(&k_heap_test, ALLOC_SIZE_3, timeout);
+
+	zassert_is_null(p, NULL);
+
+	k_heap_free(&k_heap_test, p);
+}
+
+
+/**
+ * @brief Test to demonstrate k_heap_free() API functionality.
+ *
+ * @ingroup kernel_kheap_api_tests
+ *
+ * @details The test validates k_heap_free()
+ * API, by using below steps
+ * 1. allocate the memory from the heap,
+ * 2. free the allocated memory
+ * 3. allocate  memory more than the first allocation.
+ * the allocation in the 3rd step should succeed if k_heap_free()
+ * works as expected
+ *
+ * @see k_heap_alloc, k_heap_free()
+ */
+void test_k_heap_free(void)
+{
+	k_timeout_t timeout = Z_TIMEOUT_US(TIMEOUT);
+	char *p = (char *)k_heap_alloc(&k_heap_test, ALLOC_SIZE_1, timeout);
+
+	zassert_not_null(p, "k_heap_alloc operation failed");
+	k_heap_free(&k_heap_test, p);
+	p = (char *)k_heap_alloc(&k_heap_test, ALLOC_SIZE_2, timeout);
+	zassert_not_null(p, "k_heap_alloc operation failed");
+	for (int i = 0; i < ALLOC_SIZE_2; i++) {
+		p[i] = '0';
+	}
+	k_heap_free(&k_heap_test, p);
+}
diff --git a/tests/kernel/mem_heap/k_heap_api/testcase.yaml b/tests/kernel/mem_heap/k_heap_api/testcase.yaml
new file mode 100644
index 00000000000..bcb7a71b77e
--- /dev/null
+++ b/tests/kernel/mem_heap/k_heap_api/testcase.yaml
@@ -0,0 +1,3 @@
+tests:
+  kernel.k_heap_api:
+    tags: k_heap_api kernel