diff --git a/tests/bluetooth/ctrl_sw_privacy_unit/CMakeLists.txt b/tests/bluetooth/ctrl_sw_privacy_unit/CMakeLists.txt
new file mode 100644
index 00000000000..4e305286555
--- /dev/null
+++ b/tests/bluetooth/ctrl_sw_privacy_unit/CMakeLists.txt
@@ -0,0 +1,19 @@
+# SPDX-License-Identifier: Apache-2.0
+
+cmake_minimum_required(VERSION 3.13.1)
+include_directories("./src")
+
+include($ENV{ZEPHYR_BASE}/cmake/app/boilerplate.cmake NO_POLICY_SCOPE)
+project(bluetooth_ctrl_sw_privacy)
+
+zephyr_library_include_directories(
+	$ENV{ZEPHYR_BASE}/subsys/bluetooth
+	$ENV{ZEPHYR_BASE}/subsys/bluetooth/controller
+	$ENV{ZEPHYR_BASE}/subsys/bluetooth/controller/include
+	$ENV{ZEPHYR_BASE}/subsys/bluetooth/controller/ll_sw/nordic
+	$ENV{ZEPHYR_BASE}/subsys/bluetooth/controller/ll_sw/nordic/lll
+)
+
+FILE(GLOB app_sources src/*.c)
+
+target_sources(app PRIVATE ${app_sources})
diff --git a/tests/bluetooth/ctrl_sw_privacy_unit/prj.conf b/tests/bluetooth/ctrl_sw_privacy_unit/prj.conf
new file mode 100644
index 00000000000..73a3541372e
--- /dev/null
+++ b/tests/bluetooth/ctrl_sw_privacy_unit/prj.conf
@@ -0,0 +1,6 @@
+CONFIG_NET_BUF=y
+CONFIG_ZTEST=y
+CONFIG_ZTEST_ASSERT_VERBOSE=3
+CONFIG_ZTEST_STACKSIZE=4096
+CONFIG_ZTEST_MOCKING=y
+CONFIG_ZTEST_PARAMETER_COUNT=32
diff --git a/tests/bluetooth/ctrl_sw_privacy_unit/src/main.c b/tests/bluetooth/ctrl_sw_privacy_unit/src/main.c
new file mode 100644
index 00000000000..70696d92bb3
--- /dev/null
+++ b/tests/bluetooth/ctrl_sw_privacy_unit/src/main.c
@@ -0,0 +1,116 @@
+/*
+ * Copyright (c) 2020 Demant
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+#include <string.h>
+#include <zephyr/types.h>
+#include <ztest.h>
+
+#include <stdio.h>
+#include <stdlib.h>
+
+#define CONFIG_BT_CTLR_RL_SIZE 8
+#define CONFIG_BT_CTLR_RPA_CACHE_SIZE 4
+#define CONFIG_BT_CTLR_PRIVACY 1
+#define CONFIG_BT_CTLR_SW_DEFERRED_PRIVACY 1
+#define CONFIG_BT_LOG_LEVEL 1
+
+#include "ll_sw/ull_filter.c"
+
+/*
+ * Unit test of SW deferred privacy data structure and related methods
+ * Tests the prpa_cache_add, prpa_cache_clear and prpa_cache_find functions
+ */
+
+#define BT_ADDR_INIT(P0, P1, P2, P3, P4, P5)                                   \
+	(&(bt_addr_t){ { P0, P1, P2, P3, P4, P5 } })
+
+void helper_privacy_clear(void)
+{
+	zassert_equal(newest_prpa, 0, "");
+	for (u8_t i = 0; i < CONFIG_BT_CTLR_RPA_CACHE_SIZE; i++) {
+		zassert_equal(prpa_cache[i].taken, 0U, "");
+	}
+}
+
+void helper_privacy_add(int skew)
+{
+	bt_addr_t a1, a2, a3, a4, a5;
+	u8_t pos, ex_pos;
+
+	bt_addr_copy(&a1, BT_ADDR_INIT(0x12, 0x13, 0x14, 0x15, 0x16, 0x17));
+	bt_addr_copy(&a2, BT_ADDR_INIT(0x22, 0x23, 0x24, 0x25, 0x26, 0x27));
+	bt_addr_copy(&a3, BT_ADDR_INIT(0x32, 0x33, 0x34, 0x35, 0x36, 0x37));
+	bt_addr_copy(&a4, BT_ADDR_INIT(0x42, 0x43, 0x44, 0x45, 0x46, 0x47));
+	bt_addr_copy(&a5, BT_ADDR_INIT(0x52, 0x53, 0x54, 0x55, 0x56, 0x57));
+
+	prpa_cache_add(&a1);
+	pos = prpa_cache_find(&a1);
+	ex_pos = (1 + skew) % CONFIG_BT_CTLR_RPA_CACHE_SIZE;
+	zassert_equal(pos, ex_pos, "");
+
+	prpa_cache_add(&a2);
+	pos = prpa_cache_find(&a2);
+	ex_pos = (2 + skew) % CONFIG_BT_CTLR_RPA_CACHE_SIZE;
+	zassert_equal(pos, ex_pos, "");
+
+	prpa_cache_add(&a3);
+	pos = prpa_cache_find(&a3);
+	ex_pos = (3 + skew) % CONFIG_BT_CTLR_RPA_CACHE_SIZE;
+	zassert_equal(pos, ex_pos, "");
+
+	/* Adding this should cause wrap around */
+	prpa_cache_add(&a4);
+	pos = prpa_cache_find(&a4);
+	ex_pos = (4 + skew) % CONFIG_BT_CTLR_RPA_CACHE_SIZE;
+	zassert_equal(pos, ex_pos, "");
+
+	/* adding this should cause a1 to be dropped */
+	prpa_cache_add(&a5);
+	pos = prpa_cache_find(&a5);
+	ex_pos = (1 + skew) % CONFIG_BT_CTLR_RPA_CACHE_SIZE;
+	zassert_equal(pos, ex_pos, "");
+
+	/* check that a1 can no loger be found */
+	pos = prpa_cache_find(&a1);
+	zassert_equal(pos, FILTER_IDX_NONE, "");
+}
+
+void test_privacy_clear(void)
+{
+	prpa_cache_clear();
+
+	helper_privacy_clear();
+}
+
+void test_privacy_add(void)
+{
+	helper_privacy_add(0);
+}
+
+void test_privacy_add_stress(void)
+{
+	bt_addr_t ar;
+
+	for (u8_t skew = 0; skew < CONFIG_BT_CTLR_RPA_CACHE_SIZE; skew++) {
+		for (u8_t i = 0; i < skew; i++) {
+			bt_addr_copy(&ar,
+				     BT_ADDR_INIT(0xde, 0xad, 0xbe,
+						  0xef, 0xaa, 0xff));
+			prpa_cache_add(&ar);
+		}
+		helper_privacy_add(skew);
+		prpa_cache_clear();
+	}
+}
+
+void test_main(void)
+{
+	ztest_test_suite(test, ztest_unit_test(test_privacy_clear),
+			 ztest_unit_test(test_privacy_add),
+			 ztest_unit_test(test_privacy_clear),
+			 ztest_unit_test(test_privacy_add_stress));
+	ztest_run_test_suite(test);
+}
diff --git a/tests/bluetooth/ctrl_sw_privacy_unit/testcase.yaml b/tests/bluetooth/ctrl_sw_privacy_unit/testcase.yaml
new file mode 100644
index 00000000000..151d4a23e0d
--- /dev/null
+++ b/tests/bluetooth/ctrl_sw_privacy_unit/testcase.yaml
@@ -0,0 +1,5 @@
+common:
+  tags: bluetooth
+tests:
+  bluetooth.privacy.test:
+    platform_whitelist: native_posix