diff --git a/murano_tempest_tests/tests/scenario/application_catalog/base.py b/murano_tempest_tests/tests/scenario/application_catalog/base.py
index 26f2d00..cb94625 100644
--- a/murano_tempest_tests/tests/scenario/application_catalog/base.py
+++ b/murano_tempest_tests/tests/scenario/application_catalog/base.py
@@ -212,6 +212,32 @@ class BaseApplicationCatalogScenarioTest(base.BaseTestCase):
         }
         return post_body
 
+    def vm_test(self, **kwargs):
+        instance = {
+            "flavor": "m1.small",
+            "image": self.cirros_image,
+            "assignFloatingIp": True,
+            "availabilityZone": "nova",
+            "?": {
+                "type": "io.murano.resources.LinuxMuranoInstance",
+                "id": utils.generate_uuid()
+            },
+            "name": utils.generate_name("testMurano")
+        }
+        if kwargs.get('securityGroups'):
+            instance['securityGroups'] = kwargs.get('securityGroups')
+        return {
+            "instance": instance,
+            "name": utils.generate_name("VM"),
+            "?": {
+                "_{id}".format(id=utils.generate_uuid()): {
+                    "name": "VM"
+                },
+                "type": "io.murano.apps.test.VM",
+                "id": utils.generate_uuid()
+            }
+        }
+
     def update_executor(self, flavor='m1.small'):
         post_body = {
             "instance": {
@@ -365,7 +391,7 @@ class BaseApplicationCatalogScenarioTest(base.BaseTestCase):
         instance_id = self.get_instance_id(name)
         attached_volumes = self.servers_client.\
             list_volume_attachments(instance_id)['volumeAttachments']
-        assert attached_volumes[0]['id'] == volume_id
+        self.assertEqual(attached_volumes[0]['id'], volume_id)
 
 
 class BaseApplicationCatalogScenarioIsolatedAdminTest(
diff --git a/murano_tempest_tests/tests/scenario/application_catalog/test_security_groups.py b/murano_tempest_tests/tests/scenario/application_catalog/test_security_groups.py
new file mode 100644
index 0000000..730b29e
--- /dev/null
+++ b/murano_tempest_tests/tests/scenario/application_catalog/test_security_groups.py
@@ -0,0 +1,82 @@
+#
+#    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.
+
+import os
+import testtools
+
+from tempest import config
+
+from murano_tempest_tests.tests.scenario.application_catalog import base
+from murano_tempest_tests import utils
+
+CONF = config.CONF
+
+
+class TestSecurityGroups(base.BaseApplicationCatalogScenarioTest):
+
+    @classmethod
+    def resource_setup(cls):
+        super(TestSecurityGroups, cls).resource_setup()
+        cls.linux = CONF.application_catalog.linux_image
+        application_name = utils.generate_name('VM')
+        cls.abs_archive_path, dir_with_archive, archive_name = \
+            utils.prepare_package(
+                application_name,
+                app='io.murano.apps.test.VM',
+                manifest_required=False)
+        if CONF.application_catalog.glare_backend:
+            cls.client = cls.artifacts_client
+        else:
+            cls.client = cls.application_catalog_client
+        cls.package = cls.client.upload_package(
+            application_name, archive_name, dir_with_archive,
+            {"categories": ["Web"], "tags": ["test"]})
+
+    @classmethod
+    def resource_cleanup(cls):
+        cls.client.delete_package(cls.package['id'])
+        os.remove(cls.abs_archive_path)
+        super(TestSecurityGroups, cls).resource_cleanup()
+
+    @testtools.testcase.attr('smoke')
+    @testtools.testcase.attr('scenario')
+    def test_deploy_app_with_murano_defined_security_group(self):
+        name = utils.generate_name('testMurano')
+        environment = self.application_catalog_client.create_environment(name)
+        session = self.application_catalog_client.create_session(
+            environment['id'])
+        self.application_catalog_client.create_service(
+            environment['id'], session['id'], self.vm_test())
+        self.deploy_environment(environment, session)
+        instance_id = self.get_instance_id('testMurano')
+        security_groups = self.servers_client.list_security_groups_by_server(
+            instance_id).get('security_groups')
+        self.assertEqual(len(security_groups), 1)
+        self.assertEqual(len(security_groups[0].get('rules')), 4)
+
+    @testtools.testcase.attr('smoke')
+    @testtools.testcase.attr('scenario')
+    def test_deploy_app_with_user_defined_security_group(self):
+        name = utils.generate_name('testMurano')
+        environment = self.application_catalog_client.create_environment(name)
+        session = self.application_catalog_client.create_session(
+            environment['id'])
+        self.application_catalog_client.create_service(
+            environment['id'], session['id'],
+            self.vm_test(securityGroups=['default']))
+        self.deploy_environment(environment, session)
+        instance_id = self.get_instance_id('testMurano')
+        security_groups = self.servers_client.list_security_groups_by_server(
+            instance_id).get('security_groups')
+        self.assertEqual(len(security_groups), 1)
+        self.assertEqual('default', security_groups[0].get('name'))