diff --git a/functionaltests/run_tests.sh b/functionaltests/run_tests.sh
index 49b31e08..d719cad2 100755
--- a/functionaltests/run_tests.sh
+++ b/functionaltests/run_tests.sh
@@ -15,7 +15,7 @@
 # How many seconds to wait for the API to be responding before giving up
 API_RESPONDING_TIMEOUT=20
 
-if ! timeout ${API_RESPONDING_TIMEOUT} sh -c "while ! curl -s http://127.0.0.1:8989/v2/ 2>/dev/null | grep -q 'Authentication required' ; do sleep 1; done"; then
+if ! timeout ${API_RESPONDING_TIMEOUT} sh -c "until curl --output /dev/null --silent --head --fail http://localhost:8989; do sleep 1; done"; then
     echo "Mistral API failed to respond within ${API_RESPONDING_TIMEOUT} seconds"
     exit 1
 fi
diff --git a/mistral/api/access_control.py b/mistral/api/access_control.py
index 6a990cbc..a0108594 100644
--- a/mistral/api/access_control.py
+++ b/mistral/api/access_control.py
@@ -25,7 +25,12 @@ _ENFORCER = None
 
 def setup(app):
     if cfg.CONF.pecan.auth_enable:
-        return auth_token.AuthProtocol(app, dict(cfg.CONF.keystone_authtoken))
+        conf = dict(cfg.CONF.keystone_authtoken)
+
+        # Change auth decisions of requests to the app itself.
+        conf.update({'delay_auth_decision': True})
+
+        return auth_token.AuthProtocol(app, conf)
     else:
         return app
 
diff --git a/mistral/api/app.py b/mistral/api/app.py
index bc88a3ca..181f0b6d 100644
--- a/mistral/api/app.py
+++ b/mistral/api/app.py
@@ -51,7 +51,7 @@ def setup_app(config=None):
 
     app = pecan.make_app(
         app_conf.pop('root'),
-        hooks=lambda: [ctx.ContextHook()],
+        hooks=lambda: [ctx.ContextHook(), ctx.AuthHook()],
         logging=getattr(config, 'logging', {}),
         **app_conf
     )
diff --git a/mistral/context.py b/mistral/context.py
index 57b6001b..455e0b34 100644
--- a/mistral/context.py
+++ b/mistral/context.py
@@ -1,4 +1,3 @@
-# -*- coding: utf-8 -*-
 #
 # Copyright 2013 - Mirantis, Inc.
 #
@@ -19,6 +18,7 @@ from keystoneclient.v3 import client as keystone_client
 from oslo_config import cfg
 import oslo_messaging as messaging
 from oslo_serialization import jsonutils
+import pecan
 from pecan import hooks
 
 from mistral import exceptions as exc
@@ -28,6 +28,7 @@ from mistral import utils
 CONF = cfg.CONF
 
 _CTX_THREAD_LOCAL_NAME = "MISTRAL_APP_CTX_THREAD_LOCAL"
+ALLOWED_WITHOUT_AUTH = ['/', '/v2/']
 
 
 class BaseContext(object):
@@ -157,7 +158,6 @@ class JsonPayloadSerializer(messaging.NoOpSerializer):
 
 
 class RpcContextSerializer(messaging.Serializer):
-
     def __init__(self, base=None):
         self._base = base or messaging.NoOpSerializer()
 
@@ -183,6 +183,33 @@ class RpcContextSerializer(messaging.Serializer):
         return ctx
 
 
+class AuthHook(hooks.PecanHook):
+    def before(self, state):
+        if state.request.path in ALLOWED_WITHOUT_AUTH:
+            return
+
+        if CONF.pecan.auth_enable:
+            # Note(nmakhotkin): Since we have deferred authentication,
+            # need to check for auth manually (check for corresponding
+            # headers according to keystonemiddleware docs.
+            identity_status = state.request.headers.get('X-Identity-Status')
+            service_identity_status = state.request.headers.get(
+                'X-Service-Identity-Status'
+            )
+
+            if (identity_status == 'Confirmed'
+                    or service_identity_status == 'Confirmed'):
+                return
+
+            if state.request.headers.get('X-Auth-Token'):
+                msg = ("Auth token is invalid: %s"
+                       % state.request.headers['X-Auth-Token'])
+            else:
+                msg = 'Authentication required'
+
+            pecan.abort(status_code=401, detail=msg)
+
+
 class ContextHook(hooks.PecanHook):
     def before(self, state):
         set_ctx(context_from_headers(state.request.headers))
diff --git a/mistral/tests/unit/api/v2/test_root.py b/mistral/tests/unit/api/v2/test_root.py
index a6875fc2..1ab683a4 100644
--- a/mistral/tests/unit/api/v2/test_root.py
+++ b/mistral/tests/unit/api/v2/test_root.py
@@ -16,6 +16,7 @@
 from oslo_serialization import jsonutils
 
 from mistral.tests.unit.api import base
+from mistral.tests.unit.api import test_auth
 
 
 class TestRootController(base.FunctionalTest):
@@ -32,3 +33,43 @@ class TestRootController(base.FunctionalTest):
             data[0]['link'],
             {'href': 'http://localhost/v2', 'target': 'v2'}
         )
+
+    def test_v2_root(self):
+        resp = self.app.get('/v2/', headers={'Accept': 'application/json'})
+
+        self.assertEqual(resp.status_int, 200)
+
+        data = jsonutils.loads(resp.body.decode())
+
+        self.assertEqual(
+            'http://localhost/v2',
+            data['uri']
+        )
+
+
+class TestRootControllerWithAuth(test_auth.TestKeystoneMiddleware):
+    def test_index(self):
+        resp = self.app.get('/', headers={'Accept': 'application/json'})
+
+        self.assertEqual(resp.status_int, 200)
+
+        data = jsonutils.loads(resp.body.decode())
+
+        self.assertEqual(data[0]['id'], 'v2.0')
+        self.assertEqual(data[0]['status'], 'CURRENT')
+        self.assertEqual(
+            data[0]['link'],
+            {'href': 'http://localhost/v2', 'target': 'v2'}
+        )
+
+    def test_v2_root(self):
+        resp = self.app.get('/v2/', headers={'Accept': 'application/json'})
+
+        self.assertEqual(resp.status_int, 200)
+
+        data = jsonutils.loads(resp.body.decode())
+
+        self.assertEqual(
+            'http://localhost/v2',
+            data['uri']
+        )