diff --git a/nova/tests/functional/test_images.py b/nova/tests/functional/test_images.py
new file mode 100644
index 000000000000..d48383136178
--- /dev/null
+++ b/nova/tests/functional/test_images.py
@@ -0,0 +1,60 @@
+#    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 nova.tests.functional.api import client
+from nova.tests.functional import test_servers
+
+
+class ImagesTest(test_servers.ServersTestBase):
+
+    def test_create_images_negative_invalid_state(self):
+        # Create server
+        server = self._build_minimal_create_server_request()
+        created_server = self.api.post_server({"server": server})
+        server_id = created_server['id']
+        found_server = self._wait_for_state_change(created_server, 'BUILD')
+        self.assertEqual('ACTIVE', found_server['status'])
+
+        # Create image
+        name = 'Snapshot 1'
+        self.api.post_server_action(
+            server_id, {'createImage': {'name': name}})
+        self.assertEqual('ACTIVE', found_server['status'])
+        # Confirm that the image was created
+        images = self.api.get_images(detail=False)
+        image_map = {image['name']: image for image in images}
+        found_image = image_map.get(name)
+        self.assertTrue(found_image)
+
+        # Change server status from ACTIVE to SHELVED for negative test
+        self.flags(shelved_offload_time = -1)
+        self.api.post_server_action(server_id, {'shelve': {}})
+        found_server = self._wait_for_state_change(found_server, 'ACTIVE')
+        self.assertEqual('SHELVED', found_server['status'])
+
+        # Create image in SHELVED (not ACTIVE, etc.)
+        name = 'Snapshot 2'
+        ex = self.assertRaises(client.OpenStackApiException,
+                               self.api.post_server_action,
+                               server_id,
+                               {'createImage': {'name': name}})
+        self.assertEqual(409, ex.response.status_code)
+        self.assertEqual('SHELVED', found_server['status'])
+
+        # Confirm that the image was not created
+        images = self.api.get_images(detail=False)
+        image_map = {image['name']: image for image in images}
+        found_image = image_map.get(name)
+        self.assertFalse(found_image)
+
+        # Cleanup
+        self._delete_server(server_id)