diff --git a/tests/kernel/threads_scheduling/schedule_api/Makefile b/tests/kernel/threads_scheduling/schedule_api/Makefile
new file mode 100644
index 00000000000..4de50f93d4d
--- /dev/null
+++ b/tests/kernel/threads_scheduling/schedule_api/Makefile
@@ -0,0 +1,4 @@
+BOARD ?= qemu_x86
+CONF_FILE = prj.conf
+
+include ${ZEPHYR_BASE}/Makefile.inc
diff --git a/tests/kernel/threads_scheduling/schedule_api/prj.conf b/tests/kernel/threads_scheduling/schedule_api/prj.conf
new file mode 100644
index 00000000000..9467c292689
--- /dev/null
+++ b/tests/kernel/threads_scheduling/schedule_api/prj.conf
@@ -0,0 +1 @@
+CONFIG_ZTEST=y
diff --git a/tests/kernel/threads_scheduling/schedule_api/src/Makefile b/tests/kernel/threads_scheduling/schedule_api/src/Makefile
new file mode 100644
index 00000000000..e5c8615302a
--- /dev/null
+++ b/tests/kernel/threads_scheduling/schedule_api/src/Makefile
@@ -0,0 +1,3 @@
+include $(ZEPHYR_BASE)/tests/Makefile.test
+
+obj-y = main.o test_sched_priority.o test_sched_timeslice_and_lock.o
diff --git a/tests/kernel/threads_scheduling/schedule_api/src/main.c b/tests/kernel/threads_scheduling/schedule_api/src/main.c
new file mode 100644
index 00000000000..f42770cd277
--- /dev/null
+++ b/tests/kernel/threads_scheduling/schedule_api/src/main.c
@@ -0,0 +1,43 @@
+/*
+ * Copyright (c) 2016 Intel Corporation
+ *
+ * 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.
+ */
+
+/**
+ * @addtogroup t_kernel_threads
+ * @{
+ * @defgroup t_threads_scheduling test_threads_scheduling
+ * @brief TestPurpose: verify threads scheduling based on priority, time
+ * slice and lock/unlock
+ * @}
+ */
+
+#include "test_sched.h"
+
+/*test case main entry*/
+void test_main(void *p1, void *p2, void *p3)
+{
+	ztest_test_suite(test_threads_scheduling,
+		ztest_unit_test(test_priority_cooperative),
+		ztest_unit_test(test_priority_preemptible),
+		ztest_unit_test(test_yield_cooperative),
+		ztest_unit_test(test_sleep_cooperative),
+		ztest_unit_test(test_sleep_wakeup_preemptible),
+		ztest_unit_test(test_time_slicing_preemptible),
+		ztest_unit_test(test_time_slicing_disable_preemptible),
+		ztest_unit_test(test_lock_preemptible),
+		ztest_unit_test(test_unlock_preemptible)
+		);
+	ztest_run_test_suite(test_threads_scheduling);
+}
diff --git a/tests/kernel/threads_scheduling/schedule_api/src/test_sched.h b/tests/kernel/threads_scheduling/schedule_api/src/test_sched.h
new file mode 100644
index 00000000000..f9f7480f196
--- /dev/null
+++ b/tests/kernel/threads_scheduling/schedule_api/src/test_sched.h
@@ -0,0 +1,41 @@
+/*
+ * Copyright (c) 2016 Intel Corporation
+ *
+ * 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.
+ */
+
+#ifndef __TEST_SCHED_H__
+#define __TEST_SCHED_H__
+
+#include <zephyr.h>
+#include <ztest.h>
+
+#define STACK_SIZE 256
+
+struct thread_data {
+	k_tid_t tid;
+	int priority;
+	int executed;
+};
+
+void test_priority_cooperative(void);
+void test_priority_preemptible(void);
+void test_yield_cooperative(void);
+void test_sleep_cooperative(void);
+void test_sleep_wakeup_preemptible(void);
+void test_time_slicing_preemptible(void);
+void test_time_slicing_disable_preemptible(void);
+void test_lock_preemptible(void);
+void test_unlock_preemptible(void);
+
+#endif /* __TEST_SCHED_H__ */
diff --git a/tests/kernel/threads_scheduling/schedule_api/src/test_sched_priority.c b/tests/kernel/threads_scheduling/schedule_api/src/test_sched_priority.c
new file mode 100644
index 00000000000..0388c7f1c6a
--- /dev/null
+++ b/tests/kernel/threads_scheduling/schedule_api/src/test_sched_priority.c
@@ -0,0 +1,90 @@
+/*
+ * Copyright (c) 2016 Intel Corporation
+ *
+ * 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.
+ */
+
+/**
+ * @addtogroup t_threads_scheduling
+ * @{
+ * @defgroup t_threads_priority test_threads_priority
+ * @brief TestPurpose: verify threads scheduling priority
+ * @}
+ */
+
+#include "test_sched.h"
+
+static char __noinit __stack tstack[STACK_SIZE];
+static int last_prio;
+
+static void thread_entry(void *p1, void *p2, void *p3)
+{
+	last_prio = k_thread_priority_get(k_current_get());
+}
+
+/*test cases*/
+void test_priority_cooperative(void)
+{
+	int old_prio = k_thread_priority_get(k_current_get());
+
+	/* set current thread to a negative priority */
+	last_prio = -1;
+	k_thread_priority_set(k_current_get(), last_prio);
+
+	/* spawn thread with higher priority */
+	int spawn_prio = last_prio - 1;
+
+	k_tid_t tid = k_thread_spawn(tstack, STACK_SIZE,
+				     thread_entry, NULL, NULL, NULL,
+				     spawn_prio, 0, 0);
+	/* checkpoint: current thread shouldn't preempted by higher thread */
+	assert_true(last_prio == k_thread_priority_get(k_current_get()), NULL);
+	k_sleep(100);
+	/* checkpoint: spawned thread get executed */
+	assert_true(last_prio == spawn_prio, NULL);
+	k_thread_abort(tid);
+
+	/* restore environment */
+	k_thread_priority_set(k_current_get(), old_prio);
+}
+
+void test_priority_preemptible(void)
+{
+	int old_prio = k_thread_priority_get(k_current_get());
+
+	/* set current thread to a non-negative priority */
+	last_prio = 2;
+	k_thread_priority_set(k_current_get(), last_prio);
+
+	int spawn_prio = last_prio - 1;
+
+	k_tid_t tid = k_thread_spawn(tstack, STACK_SIZE,
+				     thread_entry, NULL, NULL, NULL,
+				     spawn_prio, 0, 0);
+	/* checkpoint: thread is preempted by higher thread */
+	assert_true(last_prio == spawn_prio, NULL);
+
+	k_sleep(100);
+	k_thread_abort(tid);
+
+	spawn_prio = last_prio + 1;
+	tid = k_thread_spawn(tstack, STACK_SIZE,
+			     thread_entry, NULL, NULL, NULL,
+			     spawn_prio, 0, 0);
+	/* checkpoint: thread is not preempted by lower thread */
+	assert_false(last_prio == spawn_prio, NULL);
+	k_thread_abort(tid);
+
+	/* restore environment */
+	k_thread_priority_set(k_current_get(), old_prio);
+}
diff --git a/tests/kernel/threads_scheduling/schedule_api/src/test_sched_timeslice_and_lock.c b/tests/kernel/threads_scheduling/schedule_api/src/test_sched_timeslice_and_lock.c
new file mode 100644
index 00000000000..ec1f8e20c81
--- /dev/null
+++ b/tests/kernel/threads_scheduling/schedule_api/src/test_sched_timeslice_and_lock.c
@@ -0,0 +1,235 @@
+/*
+ * Copyright (c) 2016 Intel Corporation
+ *
+ * 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.
+ */
+
+/**
+ * @addtogroup t_threads_scheduling
+ * @{
+ * @defgroup t_sched_timeslice_and_lock test_sched_timeslice_and_lock
+ * @brief TestPurpose: verify sched time slice and lock/unlock
+ * @}
+ */
+
+#include "test_sched.h"
+#define THREADS_NUM     3
+static char __noinit __stack tstack[THREADS_NUM][STACK_SIZE];
+
+static struct thread_data tdata[THREADS_NUM];
+static int old_prio, init_prio;
+
+static void thread_entry(void *p1, void *p2, void *p3)
+{
+	int sleep_ms = (int)p2;
+
+	if (sleep_ms > 0) {
+		k_sleep(sleep_ms);
+	}
+
+	int tnum = (int)p1;
+
+	tdata[tnum].executed = 1;
+}
+
+static void setup_threads(void)
+{
+	old_prio = k_thread_priority_get(k_current_get());
+	for (int i = 0; i < THREADS_NUM; i++) {
+		if (i == 0) {
+			/* spawn thread with higher priority */
+			tdata[i].priority = init_prio - 1;
+		} else if (i == 1) {
+			/* spawn thread with same priority */
+			tdata[i].priority = init_prio;
+		} else {
+			/* spawn thread with lower priority */
+			tdata[i].priority = init_prio + 1;
+		}
+		tdata[i].executed = 0;
+	}
+	k_thread_priority_set(k_current_get(), init_prio);
+}
+
+static void spawn_threads(int sleep_sec)
+{
+	for (int i = 0; i < THREADS_NUM; i++) {
+		tdata[i].tid = k_thread_spawn(tstack[i], STACK_SIZE,
+					      thread_entry, (void *)i, (void *)sleep_sec, NULL,
+					      tdata[i].priority, 0, 0);
+	}
+}
+
+static void teardown_threads(void)
+{
+	for (int i = 0; i < THREADS_NUM; i++) {
+		k_thread_abort(tdata[i].tid);
+	}
+	k_thread_priority_set(k_current_get(), old_prio);
+}
+
+/*test cases*/
+void test_yield_cooperative(void)
+{
+
+	/* set current thread to a cooperative priority */
+	init_prio = -1;
+	setup_threads();
+
+	spawn_threads(0);
+	/* checkpoint: only higher priority thread get executed when yield */
+	k_yield();
+	assert_true(tdata[0].executed == 1, NULL);
+	assert_true(tdata[1].executed == 1, NULL);
+	for (int i = 2; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 0, NULL);
+	}
+	/* restore environment */
+	teardown_threads();
+}
+
+void test_sleep_cooperative(void)
+{
+	/* set current thread to a cooperative priority */
+	init_prio = -1;
+	setup_threads();
+
+	spawn_threads(0);
+	/* checkpoint: all ready threads get executed when k_sleep */
+	k_sleep(100);
+	for (int i = 0; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 1, NULL);
+	}
+
+	/* restore environment */
+	teardown_threads();
+}
+
+void test_busy_wait_cooperative(void)
+{
+	/* set current thread to a preemptible priority */
+	init_prio = -1;
+	setup_threads();
+
+	spawn_threads(0);
+	k_busy_wait(100000); /* 100 ms */
+	/* checkpoint: No other threads get executed */
+	for (int i = 0; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 0, NULL);
+	}
+	/* restore environment */
+	teardown_threads();
+}
+
+void test_sleep_wakeup_preemptible(void)
+{
+	/* set current thread to a preemptible priority */
+	init_prio = 0;
+	setup_threads();
+
+	spawn_threads(10 * 1000); /* 10 second */
+	/* checkpoint: lower threads not executed, high threads are in sleep */
+	for (int i = 0; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 0, NULL);
+	}
+	k_wakeup(tdata[0].tid);
+	assert_true(tdata[0].executed == 1, NULL);
+	/* restore environment */
+	teardown_threads();
+}
+
+void test_time_slicing_preemptible(void)
+{
+	/* set current thread to a preemptible priority */
+	init_prio = 0;
+	setup_threads();
+
+	k_sched_time_slice_set(200, 0); /* 200 ms */
+	spawn_threads(0);
+	/* checkpoint: higher priority threads get executed immediately */
+	assert_true(tdata[0].executed == 1, NULL);
+	k_busy_wait(500000); /* 500 ms */
+	/* checkpoint: equal priority threads get executed every time slice */
+	assert_true(tdata[1].executed == 1, NULL);
+	for (int i = 2; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 0, NULL);
+	}
+
+	/* restore environment */
+	k_sched_time_slice_set(0, 0); /* disable time slice */
+	teardown_threads();
+}
+
+void test_time_slicing_disable_preemptible(void)
+{
+	/* set current thread to a preemptible priority */
+	init_prio = 0;
+	setup_threads();
+
+	spawn_threads(0);
+	/* checkpoint: higher priority threads get executed immediately */
+	assert_true(tdata[0].executed == 1, NULL);
+	k_busy_wait(500000); /* 500 ms */
+	/* checkpoint: equal priority threads get executed every time slice */
+	assert_true(tdata[1].executed == 0, NULL);
+	for (int i = 2; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 0, NULL);
+	}
+	/* restore environment */
+	teardown_threads();
+}
+
+void test_lock_preemptible(void)
+{
+	/* set current thread to a preemptible priority */
+	init_prio = 0;
+	setup_threads();
+
+	k_sched_lock();
+	spawn_threads(0);
+	/* do critical thing */
+	k_busy_wait(100000);
+	/* checkpoint: all other threads not been executed */
+	for (int i = 0; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 0, NULL);
+	}
+	/* make current thread unready */
+	k_sleep(100);
+	/* checkpoint: all other threads get executed */
+	for (int i = 0; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 1, NULL);
+	}
+	/* restore environment */
+	teardown_threads();
+}
+
+void test_unlock_preemptible(void)
+{
+	/* set current thread to a preemptible priority */
+	init_prio = 0;
+	setup_threads();
+
+	k_sched_lock();
+	spawn_threads(0);
+	/* do critical thing */
+	k_busy_wait(100000);
+
+	k_sched_unlock();
+	/* checkpoint: higher threads get executed */
+	assert_true(tdata[0].executed == 1, NULL);
+	for (int i = 1; i < THREADS_NUM; i++) {
+		assert_true(tdata[i].executed == 0, NULL);
+	}
+	/* restore environment */
+	teardown_threads();
+}
diff --git a/tests/kernel/threads_scheduling/schedule_api/testcase.ini b/tests/kernel/threads_scheduling/schedule_api/testcase.ini
new file mode 100644
index 00000000000..effdb40b936
--- /dev/null
+++ b/tests/kernel/threads_scheduling/schedule_api/testcase.ini
@@ -0,0 +1,4 @@
+[test]
+tags = kernel
+# tickless is not supported on nios2
+arch_exclude = nios2