diff --git a/tests/test_rails_postgresql.py b/tests/test_rails_postgresql.py
new file mode 100644
index 00000000..528d3194
--- /dev/null
+++ b/tests/test_rails_postgresql.py
@@ -0,0 +1,74 @@
+import os
+
+import pytest
+from pathlib import Path
+
+from container_ci_suite.openshift import OpenShiftAPI
+
+test_dir = Path(os.path.abspath(os.path.dirname(__file__)))
+
+VERSION=os.getenv("SINGLE_VERSION")
+if not VERSION:
+    VERSION="3.1-ubi8"
+
+class TestRailsAppWithPostgreSQLExTemplate:
+
+    def setup_method(self):
+        self.oc_api = OpenShiftAPI(pod_name_prefix="rails-example")
+        json_raw_file = self.oc_api.get_raw_url_for_json(
+            container="s2i-ruby-container", dir="imagestreams", filename="ruby-rhel.json"
+        )
+        self.oc_api.import_is(path=json_raw_file, name="ruby")
+        json_raw_file = self.oc_api.get_raw_url_for_json(
+            container="postgresql-container", dir="imagestreams", filename="postgresql-rhel.json"
+        )
+        self.oc_api.import_is(path=json_raw_file, name="postgresql")
+
+    def teardown_method(self):
+        self.oc_api.delete_project()
+
+    def test_template_inside_cluster(self):
+        if VERSION.startswith("3.3"):
+            branch_to_test = "3.3"
+        else:
+            branch_to_test = "master"
+        expected_output = "Welcome to your Rails application"
+        template_json = self.oc_api.get_raw_url_for_json(
+            container="rails-ex", branch=branch_to_test, dir="openshift/templates", filename="rails-postgresql-persistent.json"
+        )
+        assert self.oc_api.deploy_template(
+            template=template_json, name_in_template="rails-example", expected_output=expected_output,
+            openshift_args=[
+                f"SOURCE_REPOSITORY_REF={branch_to_test}",
+                f"RUBY_VERSION={VERSION}",
+                "NAME=rails-example",
+                "POSTGRESQL_VERSION=12-el8"
+            ]
+        )
+        assert self.oc_api.template_deployed(name_in_template="rails-example")
+        assert self.oc_api.check_response_inside_cluster(
+            name_in_template="rails-example", expected_output=expected_output
+        )
+
+    def test_template_by_request(self):
+        if VERSION.startswith("3.3"):
+            branch_to_test = "3.3"
+        else:
+            branch_to_test = "master"
+        expected_output = "Welcome to your Rails application"
+        template_json = self.oc_api.get_raw_url_for_json(
+            container="rails-ex", branch=branch_to_test, dir="openshift/templates", filename="rails-postgresql-persistent.json"
+        )
+        assert self.oc_api.deploy_template(
+            template=template_json, name_in_template="rails-example", expected_output=expected_output,
+            openshift_args=[
+                f"SOURCE_REPOSITORY_REF={branch_to_test}",
+                f"RUBY_VERSION={VERSION}",
+                "NAME=rails-example",
+                "POSTGRESQL_VERSION=12-el8"
+            ]
+        )
+        assert self.oc_api.template_deployed(name_in_template="rails-example")
+        assert self.oc_api.check_response_outside_cluster(
+            name_in_template="rails-example", expected_output=expected_output
+        )