diff --git a/heat/tests/test_fault_middleware.py b/heat/tests/test_fault_middleware.py
new file mode 100644
index 000000000..b114b1a5c
--- /dev/null
+++ b/heat/tests/test_fault_middleware.py
@@ -0,0 +1,65 @@
+# vim: tabstop=4 shiftwidth=4 softtabstop=4
+
+#    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.
+
+from heat.common import exception as heat_exc
+from heat.openstack.common.rpc import common as rpc_common
+from heat.tests.common import HeatTestCase
+from oslo.config import cfg
+
+import heat.api.middleware.fault as fault
+
+
+class FaultMiddlewareTest(HeatTestCase):
+
+    def test_openstack_exception_with_kwargs(self):
+        wrapper = fault.FaultWrapper(None)
+        msg = wrapper._error(heat_exc.StackNotFound(stack_name='a'))
+        expected = {'code': 404,
+                    'error': {'message': 'The Stack (a) could not be found.',
+                              'traceback': 'None\n',
+                              'type': 'StackNotFound'},
+                    'explanation': 'The resource could not be found.',
+                    'title': 'Not Found'}
+        self.assertEqual(msg, expected)
+
+    def test_openstack_exception_without_kwargs(self):
+        wrapper = fault.FaultWrapper(None)
+        msg = wrapper._error(heat_exc.NoServiceEndpoint())
+        expected = {'code': 500,
+                    'error': {'message': 'Response from Keystone does '
+                                         'not contain a Heat endpoint.',
+                              'traceback': 'None\n',
+                              'type': 'NoServiceEndpoint'},
+                    'explanation': 'The server has either erred or is '
+                                   'incapable of performing the requested '
+                                   'operation.',
+                    'title': 'Internal Server Error'}
+        self.assertEqual(msg, expected)
+
+    def test_remote_exception(self):
+        error = heat_exc.StackNotFound(stack_name='a')
+        exc_info = (type(error), error, None)
+        serialized = rpc_common.serialize_remote_exception(exc_info)
+        remote_error = rpc_common.deserialize_remote_exception(cfg.CONF,
+                                                               serialized)
+        wrapper = fault.FaultWrapper(None)
+        msg = wrapper._error(remote_error)
+        expected_message, expected_traceback = str(remote_error).split('\n', 1)
+        expected = {'code': 404,
+                    'error': {'message': expected_message,
+                              'traceback': expected_traceback,
+                              'type': 'StackNotFound'},
+                    'explanation': 'The resource could not be found.',
+                    'title': 'Not Found'}
+        self.assertEqual(msg, expected)