diff --git a/.istanbul.yml b/.istanbul.yml
index 33eb122..0ef547a 100644
--- a/.istanbul.yml
+++ b/.istanbul.yml
@@ -9,7 +9,7 @@ reporting:
     reports:
         - lcov
         - html
-    dir: ./cover/node
+    dir: ./cover/unit/node
     watermarks:
         statements: [50, 90]
         lines: [50, 90]
diff --git a/karma.conf.babel.js b/karma.conf.babel.js
index 9f2d5de..b1aab61 100644
--- a/karma.conf.babel.js
+++ b/karma.conf.babel.js
@@ -1,10 +1,14 @@
 import webpackConfig from './webpack.config.babel';
+import path from 'path';
 
 export default (config) => {
+  // test mode based on basePath parameter (eg. test/unit, test/functional)
+  const testDir = config.basePath ? path.basename(config.basePath) : 'unit';
+
   config.set({
 
     // base path that will be used to resolve all patterns (eg. files, exclude)
-    basePath: '',
+    basePath: 'test/' + testDir,
 
     // frameworks to use
     // available frameworks: https://npmjs.org/browse/keyword/karma-adapter
@@ -12,16 +16,18 @@ export default (config) => {
 
     // list of files / patterns to load in the browser
     files: [
-      'test/unit/**/*.js'
+      '**/*.js'
     ],
 
     // list of files to exclude
-    exclude: [],
+    exclude: [
+      'helpers/**/*.js'
+    ],
 
     // preprocess matching files before serving them to the browser
     // available preprocessors: https://npmjs.org/browse/keyword/karma-preprocessor
     preprocessors: {
-      'test/unit/**/*.js': ['webpack']
+      '**/*.js': ['webpack']
     },
 
     // test results reporter to use
@@ -64,7 +70,7 @@ export default (config) => {
     // Generate a coverage report in /cover/karma
     coverageReporter: {
       type: 'html', //produces a html document after code is run
-      dir: 'cover/browser/' //path to created html doc
+      dir: '../../cover/' + testDir + '/browser/' //path to created html doc
     },
 
     // The current coverage threshold values. These should never drop.
diff --git a/package.json b/package.json
index aa36ae3..f945a1c 100644
--- a/package.json
+++ b/package.json
@@ -8,6 +8,9 @@
     "test:node": "istanbul cover jasmine JASMINE_CONFIG_PATH=test/unit/jasmine.json",
     "test:browser": "karma start",
     "posttest:node": "istanbul check-coverage",
+    "functional-test": "npm run functional-test:node ; npm run functional-test:browser",
+    "functional-test:node": "istanbul cover --dir cover/functional/node jasmine JASMINE_CONFIG_PATH=test/functional/jasmine.json",
+    "functional-test:browser": "karma start --basePath test/functional/",
     "lint": "eslint ./",
     "prepublish": "nsp check; npm run build",
     "build": "babel src -d dist && webpack",
@@ -32,6 +35,7 @@
     "babel-cli": "^6.10.1",
     "babel-core": "^6.10.4",
     "babel-loader": "^6.2.4",
+    "babel-plugin-transform-inline-environment-variables": "^6.8.0",
     "babel-preset-es2015": "^6.9.0",
     "babel-register": "^6.9.0",
     "eslint": "^2.4.0",
@@ -39,6 +43,8 @@
     "fetch-mock": "^5.0.5",
     "istanbul": "^1.0.0-alpha.2",
     "jasmine": "^2.4.1",
+    "js-yaml": "^3.6.1",
+    "json-loader": "^0.5.4",
     "karma": "^1.1.1",
     "karma-chrome-launcher": "^1.0.1",
     "karma-coverage": "^1.1.0",
@@ -47,7 +53,8 @@
     "karma-threshold-reporter": "^0.1.15",
     "karma-webpack": "^1.7.0",
     "nsp": "^2.4.0",
-    "webpack": "^1.13.1"
+    "webpack": "^1.13.1",
+    "yaml-loader": "^0.4.0"
   },
   "files": [
     "dist"
diff --git a/test/functional/helpers/cloudsConfig.js b/test/functional/helpers/cloudsConfig.js
new file mode 100644
index 0000000..8e4274c
--- /dev/null
+++ b/test/functional/helpers/cloudsConfig.js
@@ -0,0 +1,8 @@
+/*eslint no-sync: "off"*/
+import yaml from 'js-yaml';
+import fs from 'fs';
+import cloudsYamlPath from './cloudsYamlPath';
+
+const clouds = yaml.safeLoad(fs.readFileSync(cloudsYamlPath, 'utf8'));
+
+export default clouds;
diff --git a/test/functional/helpers/cloudsYamlPath.js b/test/functional/helpers/cloudsYamlPath.js
new file mode 100644
index 0000000..64df69f
--- /dev/null
+++ b/test/functional/helpers/cloudsYamlPath.js
@@ -0,0 +1,23 @@
+/*eslint no-process-env: "off", no-sync: "off"*/
+import fs from 'fs';
+import path from 'path';
+
+const resolvePaths = [
+  './clouds.yaml',
+  process.env.HOME + '/.config/openstack/clouds.yaml',
+  '/etc/openstack/clouds.yaml'
+];
+
+function fileExists(path) {
+  try {
+    fs.statSync(path);
+    return true;
+  } catch(err) {
+    return false;
+  }
+}
+
+const cloudFiles = resolvePaths.filter(fileExists);
+
+export default cloudFiles.length > 0 ? path.resolve(cloudFiles[0]) : 'clouds.yaml';
+
diff --git a/test/functional/indexTest.js b/test/functional/indexTest.js
new file mode 100644
index 0000000..7f32936
--- /dev/null
+++ b/test/functional/indexTest.js
@@ -0,0 +1,23 @@
+import Test from "../../src/index";
+import config from "./helpers/cloudsConfig";
+
+describe("Simple functional test", () => {
+
+  it("should call keystone URL", (done) => {
+    const testKeystone = function(response) {
+      expect(response.status).toBe(200);
+      done();
+    };
+
+    const failTest = function(error) {
+      expect(error).toBeUndefined();
+      done();
+    };
+
+    const t = new Test();
+    t.getUrl(config.clouds.devstack.auth.auth_url + '/v2.0')
+      .then(testKeystone)
+      .catch(failTest);
+  });
+
+});
diff --git a/test/functional/jasmine.json b/test/functional/jasmine.json
new file mode 100644
index 0000000..3c46468
--- /dev/null
+++ b/test/functional/jasmine.json
@@ -0,0 +1,11 @@
+{
+  "spec_dir": "test/functional",
+  "spec_files": [
+    "**/*[tT]est.js"
+  ],
+  "helpers": [
+    "../../node_modules/babel-register/lib/node.js"
+  ],
+  "stopSpecOnExpectationFailure": false,
+  "random": false
+}
diff --git a/test/unit/indexTest.js b/test/unit/indexTest.js
index c13a23f..b1100ff 100644
--- a/test/unit/indexTest.js
+++ b/test/unit/indexTest.js
@@ -1,4 +1,4 @@
-import Test from "../../src/index.js";
+import Test from "../../src/index";
 
 const FetchMock = require('fetch-mock');
 
diff --git a/webpack.config.babel.js b/webpack.config.babel.js
index d33cd20..8c3be33 100644
--- a/webpack.config.babel.js
+++ b/webpack.config.babel.js
@@ -1,3 +1,6 @@
+import webpack from 'webpack';
+import cloudsYamlPath from './test/functional/helpers/cloudsYamlPath';
+
 export default {
   entry: ['./src/index.js'],
   output: {
@@ -11,8 +14,15 @@ export default {
       {
         test: /\.js$/,
         loader: 'babel',
-        exclude: /node_modules/
+        exclude: /node_modules/,
+        query: {
+          plugins: ['transform-inline-environment-variables']
+        }
       }
     ]
-  }
+  },
+  plugins: [
+    new webpack.NormalModuleReplacementPlugin(/helpers\/cloudsConfig/,
+      'json!yaml!' + cloudsYamlPath)
+  ]
 };