diff --git a/tests/net/6lo/Makefile b/tests/net/6lo/Makefile
new file mode 100644
index 00000000000..fa7f724b6bb
--- /dev/null
+++ b/tests/net/6lo/Makefile
@@ -0,0 +1,6 @@
+BOARD ?= qemu_x86
+MDEF_FILE = prj.mdef
+KERNEL_TYPE ?= nano
+CONF_FILE = prj_$(ARCH).conf
+
+include $(ZEPHYR_BASE)/Makefile.inc
diff --git a/tests/net/6lo/prj.mdef b/tests/net/6lo/prj.mdef
new file mode 100644
index 00000000000..79a413f1797
--- /dev/null
+++ b/tests/net/6lo/prj.mdef
@@ -0,0 +1,5 @@
+% Application       : Network test
+
+% TASK NAME         PRIO ENTRY           STACK GROUPS
+% ===================================================
+  TASK MAIN            7 mainloop        2048 [EXE]
diff --git a/tests/net/6lo/prj_x86.conf b/tests/net/6lo/prj_x86.conf
new file mode 100644
index 00000000000..72b321b729e
--- /dev/null
+++ b/tests/net/6lo/prj_x86.conf
@@ -0,0 +1,20 @@
+CONFIG_NETWORKING=y
+CONFIG_NET_YAIP=y
+CONFIG_NET_L2_DUMMY=y
+CONFIG_NET_IPV6=y
+CONFIG_NET_IPV6_ND=n
+CONFIG_NET_IPV6_DAD=n
+CONFIG_NET_6LO=y
+CONFIG_NET_BUF=y
+CONFIG_TEST_RANDOM_GENERATOR=y
+CONFIG_MAIN_STACK_SIZE=5048
+CONFIG_NET_NBUF_RX_COUNT=8
+CONFIG_NET_NBUF_TX_COUNT=8
+CONFIG_NET_NBUF_DATA_COUNT=10
+CONFIG_NET_LOG=y
+CONFIG_SYS_LOG_SHOW_COLOR=y
+CONFIG_NETWORK_IP_STACK_DEBUG_IF=y
+CONFIG_NETWORK_IP_STACK_DEBUG_CORE=y
+CONFIG_NETWORK_IP_STACK_6LO_DEBUG=n
+CONFIG_NETWORK_IP_STACK_DEBUG_NET_BUF=n
+CONFIG_NET_BUF_DEBUG=n
diff --git a/tests/net/6lo/src/Makefile b/tests/net/6lo/src/Makefile
new file mode 100644
index 00000000000..13c935c82ff
--- /dev/null
+++ b/tests/net/6lo/src/Makefile
@@ -0,0 +1,3 @@
+obj-y = main.o
+ccflags-y += -I${ZEPHYR_BASE}/net/yaip
+ccflags-y += -I${ZEPHYR_BASE}/tests/include
diff --git a/tests/net/6lo/src/main.c b/tests/net/6lo/src/main.c
new file mode 100644
index 00000000000..f12b70f8796
--- /dev/null
+++ b/tests/net/6lo/src/main.c
@@ -0,0 +1,456 @@
+/* main.c - Application main entry point */
+
+/*
+ * 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.
+ */
+
+#include <zephyr.h>
+#include <sections.h>
+
+#include <stdint.h>
+#include <stddef.h>
+#include <string.h>
+#include <stdio.h>
+#include <errno.h>
+#include <device.h>
+#include <init.h>
+#include <misc/printk.h>
+#include <net/net_core.h>
+#include <net/nbuf.h>
+#include <net/net_ip.h>
+
+#include <tc_util.h>
+
+#include "6lo.h"
+
+#define NET_DEBUG 1
+#include "net_private.h"
+
+#define DEBUG 0
+
+#define SIZE_OF_SMALL_DATA 40
+#define SIZE_OF_LARGE_DATA 120
+
+/**
+  * IPv6 Source and Destination address
+  * Example addresses are based on SAC (Source Adddress Compression),
+  * SAM (Source Address Mode), DAC (Destination Address Compression),
+  * DAM (Destination Address Mode) and also if the destination address
+  * is Multicast address.
+  */
+
+#define src_sac1_sam00 \
+		{ { { 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00 } } }
+
+#define src_sam00 \
+		{ { { 0x20, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00 } } }
+
+#define src_sam01 \
+		{ { { 0xfe, 0x80, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0xaa } } }
+
+#define src_sam10 \
+		{ { { 0xfe, 0x80, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0xff, 0xfe, 0x00, 0x00, 0xbb } } }
+
+#define dst_m1_dam00 \
+		{ { { 0xff, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x11, 0x22, 0x33, 0x44, 0x55, 0x66 } } }
+
+#define dst_m1_dam01 \
+		{ { { 0xff, 0x11, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0x11, 0x22, 0x33, 0x44, 0x55 } } }
+
+#define dst_m1_dam10 \
+		{ { { 0xff, 0x11, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0x00, 0x00, 0x11, 0x22, 0x33 } } }
+
+#define dst_m1_dam11 \
+		{ { { 0xff, 0x02, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x11 } } }
+
+#define dst_dam00 \
+		{ { { 0x20, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00 } } }
+
+#define dst_dam01 \
+		{ { { 0xfe, 0x80, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0xaa } } }
+
+#define dst_dam10 \
+		{ { { 0xfe, 0x80, 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, \
+		      0x00, 0x00, 0x00, 0xff, 0xfe, 0x00, 0x00, 0xbb } } }
+
+
+/* UDP Ports */
+/* 4 bit compressible udp ports */
+#define udp_src_port_4bit 0xb1f0
+#define udp_dst_port_4bit 0xb2f0
+
+/* 8 bit compressible udp ports */
+#define udp_src_port_8bit   0x11f1
+#define udp_dst_port_8bit_y 0x22f0
+
+#define udp_src_port_8bit_y 0x11f0
+#define udp_dst_port_8bit   0x22f1
+
+/* uncompressible ports */
+#define udp_src_port_16bit 0x11ff
+#define udp_dst_port_16bit 0x22ff
+
+static const char user_data[] =
+		"0123456789012345678901234567890123456789"
+		"0123456789012345678901234567890123456789"
+		"0123456789012345678901234567890123456789";
+
+struct net_6lo_data {
+	struct net_ipv6_hdr ipv6;
+	struct net_udp_hdr udp;
+	bool small;
+} __packed;
+
+
+int net_6lo_dev_init(struct device *dev)
+{
+	struct net_6lo_context *net_6lo_context = dev->driver_data;
+
+	net_6lo_context = net_6lo_context;
+
+	return 0;
+}
+
+static void net_6lo_iface_init(struct net_if *iface)
+{
+	uint8_t mac[8] = { 0x00, 0x00, 0x00, 0x00, 0x00, 0x00, 0xaa, 0xbb};
+
+	net_if_set_link_addr(iface, mac, 8);
+}
+
+static int tester_send(struct net_if *iface, struct net_buf *buf)
+{
+	net_nbuf_unref(buf);
+	return NET_OK;
+}
+
+static struct net_if_api net_6lo_if_api = {
+	.init = net_6lo_iface_init,
+	.send = tester_send,
+};
+
+NET_DEVICE_INIT(net_6lo_test, "net_6lo_test",
+		net_6lo_dev_init, NULL, NULL,
+		CONFIG_KERNEL_INIT_PRIORITY_DEFAULT,
+		&net_6lo_if_api, DUMMY_L2, 127);
+
+static bool compare_data(struct net_buf *buf, struct net_6lo_data *data)
+{
+	struct net_buf *frag;
+	uint8_t bytes, pos, compare, offset = 0;
+	int remaining = data->small ? SIZE_OF_SMALL_DATA : SIZE_OF_LARGE_DATA;
+
+	if (net_buf_frags_len(buf->frags) != (NET_IPV6UDPH_LEN + remaining)) {
+		printk("mismatch lengths, expected %d received %d\n",
+			NET_IPV6UDPH_LEN + remaining,
+			net_buf_frags_len(buf->frags));
+		return false;
+	}
+
+	frag = buf->frags;
+
+	if (memcmp(frag->data, (uint8_t *)data, NET_IPV6UDPH_LEN)) {
+		printk("mismatch headers\n");
+		return false;
+	}
+
+	pos = 0;
+	offset = NET_IPV6UDPH_LEN;
+
+	while (remaining > 0 && frag) {
+
+		bytes = frag->len - offset;
+		compare = remaining > bytes ? bytes : remaining;
+
+		if (memcmp(frag->data + offset, user_data + pos, compare)) {
+			printk("data mismatch\n");
+			return false;
+		}
+
+		pos += compare;
+		remaining -= compare;
+		frag = frag->frags;
+		offset = 0;
+	}
+
+	return true;
+}
+
+static struct net_buf *create_buf(struct net_6lo_data *data)
+{
+	struct net_buf *buf, *frag;
+	uint8_t bytes, pos;
+	uint16_t len;
+	int remaining;
+
+	buf = net_nbuf_get_reserve_tx(0);
+	if (!buf) {
+		return NULL;
+	}
+
+	net_nbuf_set_iface(buf, net_if_get_default());
+	net_nbuf_set_ip_hdr_len(buf, NET_IPV6H_LEN);
+
+	frag = net_nbuf_get_reserve_data(0);
+	if (!frag) {
+		net_nbuf_unref(buf);
+		return NULL;
+	}
+
+	memcpy(frag->data, (uint8_t *) data, NET_IPV6UDPH_LEN);
+	net_buf_add(frag, NET_IPV6UDPH_LEN);
+
+	pos = 0;
+	remaining = data->small ? SIZE_OF_SMALL_DATA : SIZE_OF_LARGE_DATA;
+
+	len = NET_UDPH_LEN + remaining;
+	/* length is not set in net_6lo_data data pointer, calculate and set
+	 * in ipv6, udp and in data pointer too (it's required in comparison) */
+	frag->data[4] = len >> 8;
+	frag->data[5] = (uint8_t) len;
+	frag->data[44] = len >> 8;
+	frag->data[4] = (uint8_t) len;
+
+	data->ipv6.len[0] = len >> 8;
+	data->ipv6.len[1] = (uint8_t) len;
+	data->udp.len = len;
+
+	while (remaining > 0) {
+		uint8_t copy;
+
+		bytes = net_buf_tailroom(frag);
+		copy = remaining > bytes ? bytes : remaining;
+		memcpy(net_buf_add(frag, copy), &user_data[pos], copy);
+
+		pos += bytes;
+		remaining -= bytes;
+
+		if (net_buf_tailroom(frag) - (bytes - copy)) {
+			net_nbuf_unref(buf);
+			return NULL;
+		}
+
+		net_buf_frag_add(buf, frag);
+
+		if (remaining > 0) {
+			frag = net_nbuf_get_reserve_data(0);
+		}
+	}
+
+	return buf;
+}
+
+static struct net_6lo_data test_data_1 = {
+	.ipv6.vtc = 0x60,
+	.ipv6.tcflow = 0x00,
+	.ipv6.flow = 0x00,
+	.ipv6.len = { 0x00, 0x00 },
+	.ipv6.nexthdr = IPPROTO_UDP,
+	.ipv6.hop_limit = 0xff,
+	.ipv6.src = src_sam00,
+	.ipv6.dst = dst_dam00,
+	.udp.src_port = udp_src_port_4bit,
+	.udp.dst_port = udp_dst_port_4bit,
+	.udp.len = 0x00,
+	.udp.chksum = 0x00,
+	.small = true
+};
+
+static struct net_6lo_data test_data_2 = {
+	.ipv6.vtc = 0x60,
+	.ipv6.tcflow = 0x20,
+	.ipv6.flow = 0x3412,
+	.ipv6.len = { 0x00, 0x00 },
+	.ipv6.nexthdr = IPPROTO_UDP,
+	.ipv6.hop_limit = 0xff,
+	.ipv6.src = src_sam01,
+	.ipv6.dst = dst_dam01,
+	.udp.src_port = udp_src_port_8bit_y,
+	.udp.dst_port = udp_dst_port_8bit,
+	.udp.len = 0x00,
+	.udp.chksum = 0x00,
+	.small = false
+};
+
+static struct net_6lo_data test_data_3 = {
+	.ipv6.vtc = 0x60,
+	.ipv6.tcflow = 0x21,
+	.ipv6.flow = 0x3412,
+	.ipv6.len = { 0x00, 0x00 },
+	.ipv6.nexthdr = IPPROTO_UDP,
+	.ipv6.hop_limit = 0xff,
+	.ipv6.src = src_sam10,
+	.ipv6.dst = dst_dam10,
+	.udp.src_port = udp_src_port_8bit,
+	.udp.dst_port = udp_dst_port_8bit_y,
+	.udp.len = 0x00,
+	.udp.chksum = 0x00,
+	.small = true
+};
+
+static struct net_6lo_data test_data_4 = {
+	.ipv6.vtc = 0x61,
+	.ipv6.tcflow = 0x20,
+	.ipv6.flow = 0x00,
+	.ipv6.len = { 0x00, 0x00 },
+	.ipv6.nexthdr = IPPROTO_UDP,
+	.ipv6.hop_limit = 0xff,
+	.ipv6.src = src_sac1_sam00,
+	.ipv6.dst = dst_m1_dam00,
+	.udp.src_port = udp_src_port_16bit,
+	.udp.dst_port = udp_dst_port_16bit,
+	.udp.len = 0x00,
+	.udp.chksum = 0x00,
+	.small = false
+};
+
+static struct net_6lo_data test_data_5 = {
+	.ipv6.vtc = 0x61,
+	.ipv6.tcflow = 0x23,
+	.ipv6.flow = 0x4567,
+	.ipv6.len = { 0x00, 0x00 },
+	.ipv6.nexthdr = IPPROTO_UDP,
+	.ipv6.hop_limit = 0xff,
+	.ipv6.src = src_sam01,
+	.ipv6.dst = dst_m1_dam01,
+	.udp.src_port = udp_src_port_16bit,
+	.udp.dst_port = udp_dst_port_16bit,
+	.udp.len = 0x00,
+	.udp.chksum = 0x00,
+	.small = true
+};
+
+static struct net_6lo_data test_data_6 = {
+	.ipv6.vtc = 0x60,
+	.ipv6.tcflow = 0x0,
+	.ipv6.flow = 0x0,
+	.ipv6.len = { 0x00, 0x00 },
+	.ipv6.nexthdr = IPPROTO_UDP,
+	.ipv6.hop_limit = 0xff,
+	.ipv6.src = src_sam10,
+	.ipv6.dst = dst_m1_dam10,
+	.udp.src_port = udp_src_port_8bit,
+	.udp.dst_port = udp_dst_port_8bit,
+	.udp.len = 0x00,
+	.udp.chksum = 0x00,
+	.small = true
+};
+
+static int test_6lo(struct net_6lo_data *data)
+{
+	struct net_buf *buf;
+	int result = TC_FAIL;
+
+	buf = create_buf(data);
+	if (!buf) {
+		TC_PRINT("%s: failed to create buffer\n", __func__);
+		goto end;
+	}
+
+#if DEBUG > 0
+	printk("length before compression %d\n", net_buf_frags_len(buf->frags));
+	net_hexdump_frags("before-compression", buf);
+#endif
+
+	buf = net_6lo_compress(buf);
+	if (!buf) {
+		TC_PRINT("compression failed\n");
+		goto end;
+	}
+
+#if DEBUG > 0
+	printk("length after compression %d\n", net_buf_frags_len(buf->frags));
+	net_hexdump_frags("after-compression", buf);
+#endif
+
+	buf = net_6lo_uncompress(buf);
+	if (!buf) {
+		TC_PRINT("uncompression failed\n");
+		goto end;
+	}
+
+#if DEBUG > 0
+	printk("length after uncompression %d\n",
+	       net_buf_frags_len(buf->frags));
+	net_hexdump_frags("after-uncompression", buf);
+#endif
+
+	if (compare_data(buf, data)) {
+		result = TC_PASS;
+	}
+
+end:
+	net_nbuf_unref(buf);
+	return result;
+}
+
+/* tests names are based on traffic class, flow label, source address mode
+ * (sam), destination address mode (dam), based on udp source and destination
+ * ports compressible type.
+ */
+static const struct {
+	const char *name;
+	struct net_6lo_data *data;
+} tests[] = {
+	{ "test_6lo_sam00_dam00", &test_data_1},
+	{ "test_6lo_sam01_dam01", &test_data_2},
+	{ "test_6lo_sam10_dam10", &test_data_3},
+	{ "test_6lo_sac1_sam00_m1_dam00", &test_data_4},
+	{ "test_6lo_sam01_m1_dam01", &test_data_5},
+	{ "test_6lo_sam10_m1_dam10", &test_data_6},
+};
+
+static void main_fiber(void)
+{
+	int count, pass;
+
+	for (count = 0, pass = 0; count < ARRAY_SIZE(tests); count++) {
+		TC_START(tests[count].name);
+
+		if (test_6lo(tests[1].data)) {
+			TC_END(FAIL, "failed\n");
+		} else {
+			TC_END(PASS, "passed\n");
+			pass++;
+		}
+	}
+
+	TC_END_REPORT(((pass != ARRAY_SIZE(tests)) ? TC_FAIL : TC_PASS));
+}
+
+#if defined(CONFIG_NANOKERNEL)
+#define STACKSIZE 2000
+char __noinit __stack fiberStack[STACKSIZE];
+#endif
+
+void main(void)
+{
+#if defined(CONFIG_MICROKERNEL)
+	main_fiber();
+#else
+	task_fiber_start(&fiberStack[0], STACKSIZE,
+				(nano_fiber_entry_t)main_fiber, 0, 0, 7, 0);
+#endif
+}
diff --git a/tests/net/6lo/testcase.ini b/tests/net/6lo/testcase.ini
new file mode 100644
index 00000000000..f38f90e9f3e
--- /dev/null
+++ b/tests/net/6lo/testcase.ini
@@ -0,0 +1,11 @@
+[test_micro]
+tags = net-6lo
+arch_whitelist = x86
+kernel = micro
+build_only = true
+
+[test_nano]
+tags = net-6lo
+arch_whitelist = x86
+kernel = nano
+build_only = true