diff --git a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/subsystems/shells/RSEShellSubsystemTestSuite.java b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/subsystems/shells/RSEShellSubsystemTestSuite.java
index 8f706ee1363..9c30e273d84 100644
--- a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/subsystems/shells/RSEShellSubsystemTestSuite.java
+++ b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/subsystems/shells/RSEShellSubsystemTestSuite.java
@@ -47,6 +47,7 @@ public class RSEShellSubsystemTestSuite extends DelegatingTestSuiteHolder {
 		TestSuite suite = new TestSuite("RSEShellSubsystemTestSuite"); //$NON-NLS-1$
 		// add the single test suites to the overall one here.
 		suite.addTestSuite(ShellServiceTest.class);
+		suite.addTestSuite(ShellSubSystemTest.class);
 		return suite;
 	}
 
diff --git a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/subsystems/shells/ShellSubSystemTest.java b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/subsystems/shells/ShellSubSystemTest.java
new file mode 100644
index 00000000000..7965b0d2cdc
--- /dev/null
+++ b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/subsystems/shells/ShellSubSystemTest.java
@@ -0,0 +1,174 @@
+/*******************************************************************************
+ * Copyright (c) 2006, 2008 Wind River Systems, Inc. and others.
+ * All rights reserved. This program and the accompanying materials
+ * are made available under the terms of the Eclipse Public License v1.0
+ * which accompanies this distribution, and is available at
+ * http://www.eclipse.org/legal/epl-v10.html
+ *
+ * Contributors:
+ * Anna Dushistova  (MontaVista) - adapted from FileServiceTest
+ * Anna Dushistova  (MontaVista) - [249102][testing] Improve ShellService Unittests
+ *******************************************************************************/
+package org.eclipse.rse.tests.subsystems.shells;
+
+import java.lang.reflect.Method;
+
+import junit.framework.Test;
+import junit.framework.TestSuite;
+
+import org.eclipse.core.runtime.IProgressMonitor;
+import org.eclipse.core.runtime.NullProgressMonitor;
+import org.eclipse.rse.core.RSECorePlugin;
+import org.eclipse.rse.core.model.IHost;
+import org.eclipse.rse.core.subsystems.ISubSystem;
+import org.eclipse.rse.services.shells.IShellService;
+import org.eclipse.rse.subsystems.shells.core.subsystems.IRemoteCommandShell;
+import org.eclipse.rse.subsystems.shells.core.subsystems.IRemoteOutput;
+import org.eclipse.rse.subsystems.shells.core.subsystems.servicesubsystem.IShellServiceSubSystem;
+import org.eclipse.rse.subsystems.shells.core.subsystems.servicesubsystem.ShellServiceSubSystem;
+import org.eclipse.rse.tests.core.connection.RSEBaseConnectionTestCase;
+
+public class ShellSubSystemTest extends RSEBaseConnectionTestCase {
+
+	private String fPropertiesFileName;
+	// For testing the test: verify methods on Local
+	public static String fDefaultPropertiesFile = "localConnection.properties";
+
+	private IShellServiceSubSystem shellSubSystem;
+	private IProgressMonitor mon = new NullProgressMonitor();
+
+	/**
+	 * Constructor with specific test name.
+	 * 
+	 * @param name
+	 *            test to execute
+	 */
+	public ShellSubSystemTest(String name) {
+		this(name, fDefaultPropertiesFile);
+	}
+
+	/**
+	 * Constructor with connection type and specific test name.
+	 * 
+	 * @param name
+	 *            test to execute
+	 * @param propertiesFileName
+	 *            file with connection properties to use
+	 */
+	public ShellSubSystemTest(String name, String propertiesFileName) {
+		super(name);
+		fPropertiesFileName = propertiesFileName;
+		if (propertiesFileName != null) {
+			int idx = propertiesFileName.indexOf("Connection.properties");
+			String targetName = propertiesFileName.substring(0, idx);
+			setTargetName(targetName);
+		}
+	}
+
+	public static Test suite() {
+		String baseName = ShellSubSystemTest.class.getName();
+		TestSuite suite = new TestSuite(baseName);
+
+		// // Add a test suite for each connection type
+		String[] connTypes = { "local", "ssh" };
+		// String[] connTypes = { "local" };
+		// String[] connTypes = { "ssh" };
+
+		for (int i = 0; i < connTypes.length; i++) {
+			String suiteName = connTypes[i];
+			String propFileName = connTypes[i] == null ? null : connTypes[i]
+					+ "Connection.properties";
+			TestSuite subSuite = new TestSuite(baseName + "." + suiteName);
+			Method[] m = ShellSubSystemTest.class.getMethods();
+			for (int j = 0; j < m.length; j++) {
+				String testName = m[j].getName();
+				if (testName.startsWith("test")) {
+					subSuite.addTest(new ShellSubSystemTest(testName,
+							propFileName));
+				}
+			}
+			suite.addTest(subSuite);
+		}
+		return suite;
+	}
+
+	protected IShellServiceSubSystem getShellServiceSubSystem() {
+		if (fPropertiesFileName == null) {
+			return null;
+		}
+		IHost host = getHost(fPropertiesFileName);
+		ISubSystem[] ss = RSECorePlugin.getTheSystemRegistry()
+				.getServiceSubSystems(host, IShellService.class);
+		for (int i = 0; i < ss.length; i++) {
+			if (ss[i] instanceof ShellServiceSubSystem) {
+				return (ShellServiceSubSystem) ss[i];
+			}
+		}
+		return null;
+	}
+
+	public void setUp() throws Exception {
+		super.setUp();
+		shellSubSystem = getShellServiceSubSystem();
+		shellSubSystem.checkIsConnected(getDefaultProgressMonitor());
+	}
+
+	public void tearDown() throws Exception {
+		super.tearDown();
+	}
+
+	public boolean isWindows() {
+		return shellSubSystem.getHost().getSystemType().isWindows();
+	}
+
+	public void testRunShell() throws Exception {
+		// the IRemoteCommandShell returned should have getOutputAt() and
+		// similar methods
+		if (shellSubSystem.canRunShell()) {
+			IRemoteCommandShell cmd = shellSubSystem.runShell(null, mon);
+			assertNotNull(cmd);
+			shellSubSystem.sendCommandToShell("echo test"+shellSubSystem.getParentRemoteCmdSubSystemConfiguration().getCommandSeparator()+" exit", cmd, mon);
+			while (cmd.isActive()) {
+				Thread.sleep(200);
+			}
+			assertNotNull(cmd.getOutputAt(0));
+			shellSubSystem.removeShell(cmd);
+		}
+
+	}
+
+	public void testRunCommand() throws Exception {
+		if (shellSubSystem.canRunCommand()) {
+			Object[] results = shellSubSystem
+					.runCommand("echo test\r\nexit", null, mon);
+
+			boolean matchFound = false;
+			Object cmdObject = results[0];
+			assertTrue(cmdObject instanceof IRemoteCommandShell);
+			
+				while (((IRemoteCommandShell)cmdObject).isActive()) {
+					Thread.sleep(200);
+				}
+				Object[] result = ((IRemoteCommandShell) cmdObject)
+						.listOutput();
+				for (int i = 0; i < result.length; i++) {
+					System.out.println(((IRemoteOutput) result[i]).getText());
+					matchFound = ((IRemoteOutput) result[i]).getText().equals(
+							"test");
+					if (matchFound)
+						break;
+				}
+			
+			assertTrue(matchFound);
+		}
+	}
+
+	public void testCancelShell() throws Exception {
+		if (shellSubSystem.canRunShell()) {
+			IRemoteCommandShell cmd = shellSubSystem.runShell(null, mon);
+			shellSubSystem.cancelShell(cmd, mon);
+			assertFalse(cmd.isActive());
+
+		}
+	}
+}