diff --git a/testsuite/expect/Makefile.am b/testsuite/expect/Makefile.am
index 35e83b0b75b21cc96336ef3f3d3c4010b8fa4662..bc175ef35690eb2cfcfaf57452ce2b660f74eda6 100644
--- a/testsuite/expect/Makefile.am
+++ b/testsuite/expect/Makefile.am
@@ -207,6 +207,7 @@ EXTRA_DIST = \
 	test7.14.prog2.c		\
 	test7.15			\
 	test7.15.prog.c			\
+	test7.16			\
 	test8.1				\
 	test8.2				\
 	test8.3				\
diff --git a/testsuite/expect/Makefile.in b/testsuite/expect/Makefile.in
index 99057dd468aa1affd7cb4412f0a56b8e0c94ad71..bf8d846f5e6a7bc452c26ad10441c4ae39166da6 100644
--- a/testsuite/expect/Makefile.in
+++ b/testsuite/expect/Makefile.in
@@ -520,6 +520,7 @@ EXTRA_DIST = \
 	test7.14.prog2.c		\
 	test7.15			\
 	test7.15.prog.c			\
+	test7.16			\
 	test8.1				\
 	test8.2				\
 	test8.3				\
diff --git a/testsuite/expect/README b/testsuite/expect/README
index a787ceec249dd6539c027aad72dc20e9cd767076..95d50108baa99f08ef56eaf433e8ca7753e4b508 100644
--- a/testsuite/expect/README
+++ b/testsuite/expect/README
@@ -321,6 +321,8 @@ test7.13   Verify the correct setting of a job's ExitCode
 test7.14   Verify the ability to modify the Derived Exit Code/String fields
            of a job record in the database
 test7.15   Verify signal mask of tasks have no ignored signals.
+test7.16   Verify that auth/munge credential is properly validated.
+
 
 test8.#    Test of Blue Gene specific functionality.
 =================================================
diff --git a/testsuite/expect/test7.16 b/testsuite/expect/test7.16
new file mode 100755
index 0000000000000000000000000000000000000000..6bb85a8adf4f47b1881276ec20c84e8cc0175698
--- /dev/null
+++ b/testsuite/expect/test7.16
@@ -0,0 +1,101 @@
+#!/usr/bin/expect
+############################################################################
+# Purpose: Test of SLURM functionality
+#          Verify that auth/munge credential is properly validated.
+#
+# Output:  "TEST: #.#" followed by "SUCCESS" if test was successful, OR
+#          "FAILURE: ..." otherwise with an explanation of the failure, OR
+#          anything else indicates a failure mode that must be investigated.
+############################################################################
+# Copyright (C) 2012 SchedMD LLC.
+# Written by Morris Jette <jette@schedmd.com>
+#
+# This file is part of SLURM, a resource management program.
+# For details, see <http://www.schedmd.com/slurmdocs/>.
+# Please also read the included file: DISCLAIMER.
+#
+# SLURM is free software; you can redistribute it and/or modify it under
+# the terms of the GNU General Public License as published by the Free
+# Software Foundation; either version 2 of the License, or (at your option)
+# any later version.
+#
+# SLURM is distributed in the hope that it will be useful, but WITHOUT ANY
+# WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS
+# FOR A PARTICULAR PURPOSE.  See the GNU General Public License for more
+# details.
+#
+# You should have received a copy of the GNU General Public License along
+# with SLURM; if not, write to the Free Software Foundation, Inc.,
+# 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301  USA.
+############################################################################
+source ./globals
+
+set test_id     "7.16"
+set exit_code   0
+
+print_header $test_id
+
+
+#
+# Check if we have auth/munge configured
+#
+log_user 0
+set auth_munge 0
+spawn $scontrol show config
+expect {
+	-re "AuthType *= auth/munge" {
+		set auth_munge 1
+		exp_continue
+	}
+	timeout {
+		send_user "\nFAILURE: scontrol not responding\n"
+		set exit_code 1
+	}
+	eof {
+		wait
+	}
+}
+log_user 1
+if {$auth_munge == 0} {
+	send_user "\nWARNING: not running auth/munge, test is not applicable\n"
+	exit $exit_code
+}
+
+#
+# Try to get allocation with bad credential
+#
+set env(SLURM_MUNGE_AUTH_FAIL_TEST) 1
+set job_id 0
+set salloc_pid [spawn $salloc -N1 $bin_bash]
+expect {
+	-re "Granted job allocation ($number)" {
+		set job_id $expect_out(1,string)
+		send "exit\r"
+		exp_continue
+	}
+	-re "error" {
+		send_user "\nError is expected, no worries.\n"
+		exp_continue
+	}
+	timeout {
+		send_user "\nFAILURE: salloc not responding\n"
+		if {$job_id != 0} {
+			cancel_job $job_id
+		}
+		slow_kill [expr 0 - $salloc_pid]
+		exit 1
+	}
+	eof {
+		wait
+	}
+}
+if {$job_id != 0} {
+	send_user "\FAILURE: allocation grated with bad Munge credential\n"
+	exit $exit_code
+}
+
+if { $exit_code == 0 } {
+	send_user "\nSUCCESS\n"
+}
+exit $exit_code
+