diff --git a/openstack_dashboard/test/integration_tests/helpers.py b/openstack_dashboard/test/integration_tests/helpers.py
index 64fdcdba1d..fb832bcdb4 100644
--- a/openstack_dashboard/test/integration_tests/helpers.py
+++ b/openstack_dashboard/test/integration_tests/helpers.py
@@ -14,6 +14,7 @@ import contextlib
 import datetime
 import os
 import socket
+import tempfile
 import time
 import traceback
 import uuid
@@ -51,6 +52,20 @@ def gen_random_resource_name(resource="", timestamp=True):
     return "_".join(fields)
 
 
+@contextlib.contextmanager
+def gen_temporary_file(name='', suffix='.qcow2', size=10485760):
+    """Generate temporary file with provided parameters.
+
+    :param name: file name except the extension /suffix
+    :param suffix: file extension/suffix
+    :param size: size of the file to create, bytes are generated randomly
+    :return: path to the generated file
+    """
+    with tempfile.NamedTemporaryFile(prefix=name, suffix=suffix) as tmp_file:
+        tmp_file.write(os.urandom(size))
+        yield tmp_file.name
+
+
 class BaseTestCase(testtools.TestCase):
 
     CONFIG = config.get_config()
diff --git a/openstack_dashboard/test/integration_tests/tests/test_images.py b/openstack_dashboard/test/integration_tests/tests/test_images.py
index 11735e8aa0..e181c791aa 100644
--- a/openstack_dashboard/test/integration_tests/tests/test_images.py
+++ b/openstack_dashboard/test/integration_tests/tests/test_images.py
@@ -22,6 +22,27 @@ class TestImagesBasic(helpers.TestCase):
     def images_page(self):
         return self.home_pg.go_to_compute_imagespage()
 
+    def image_create(self, local_file=None):
+        images_page = self.images_page
+        if local_file:
+            images_page.create_image(IMAGE_NAME,
+                                     image_source_type='file',
+                                     image_file=local_file)
+        else:
+            images_page.create_image(IMAGE_NAME)
+        self.assertTrue(images_page.find_message_and_dismiss(messages.SUCCESS))
+        self.assertFalse(images_page.find_message_and_dismiss(messages.ERROR))
+        self.assertTrue(images_page.is_image_present(IMAGE_NAME))
+        self.assertTrue(images_page.is_image_active(IMAGE_NAME))
+        return images_page
+
+    def image_delete(self):
+        images_page = self.images_page
+        images_page.delete_image(IMAGE_NAME)
+        self.assertTrue(images_page.find_message_and_dismiss(messages.SUCCESS))
+        self.assertFalse(images_page.find_message_and_dismiss(messages.ERROR))
+        self.assertFalse(images_page.is_image_present(IMAGE_NAME))
+
     def test_image_create_delete(self):
         """tests the image creation and deletion functionalities:
         * creates a new image from horizon.conf http_image
@@ -29,18 +50,20 @@ class TestImagesBasic(helpers.TestCase):
         * deletes the newly created image
         * verifies the image does not appear in the table after deletion
         """
-        images_page = self.images_page
+        self.image_create()
+        self.image_delete()
 
-        images_page.create_image(IMAGE_NAME)
-        self.assertTrue(images_page.find_message_and_dismiss(messages.SUCCESS))
-        self.assertFalse(images_page.find_message_and_dismiss(messages.ERROR))
-        self.assertTrue(images_page.is_image_present(IMAGE_NAME))
-        self.assertTrue(images_page.is_image_active(IMAGE_NAME))
-
-        images_page.delete_image(IMAGE_NAME)
-        self.assertTrue(images_page.find_message_and_dismiss(messages.SUCCESS))
-        self.assertFalse(images_page.find_message_and_dismiss(messages.ERROR))
-        self.assertFalse(images_page.is_image_present(IMAGE_NAME))
+    def test_image_create_delete_from_local_file(self):
+        """tests the image creation and deletion functionalities:
+        * downloads image from horizon.conf stated in http_image
+        * creates the image from the downloaded file
+        * verifies the image appears in the images table as active
+        * deletes the newly created image
+        * verifies the image does not appear in the table after deletion
+        """
+        with helpers.gen_temporary_file() as file_name:
+            self.image_create(local_file=file_name)
+            self.image_delete()
 
     def test_images_pagination(self):
         """This test checks images pagination