diff --git a/CHANGES/1015.misc b/CHANGES/1015.misc
new file mode 100644
index 0000000000..8ec99a6166
--- /dev/null
+++ b/CHANGES/1015.misc
@@ -0,0 +1 @@
+Make functional test URL and PASSWORD customizable
diff --git a/galaxy_ng/tests/functional/cli/test_namespace.py b/galaxy_ng/tests/functional/cli/test_namespace.py
new file mode 100644
index 0000000000..c758e55640
--- /dev/null
+++ b/galaxy_ng/tests/functional/cli/test_namespace.py
@@ -0,0 +1,51 @@
+import string
+import random
+
+from pulpcore.client.galaxy_ng.exceptions import ApiException
+from galaxy_ng.tests.functional.utils import TestCaseUsingBindings
+from galaxy_ng.tests.functional.utils import set_up_module as setUpModule  # noqa:F401
+
+
+class CreateNamespaceTestCase(TestCaseUsingBindings):
+    """Test whether a namespace can be created."""
+
+    def delete_namespace(self, namespace_name):
+        # delete namespace
+        # namespace_api does not support delete, so we can use the smash_client directly
+        response = self.smash_client.delete(
+            f"{self.galaxy_api_prefix}/v3/namespaces/{namespace_name}"
+        )
+        self.assertEqual(response.status_code, 204)
+
+    def test_create_and_delete_namespace(self):
+        # generate name formed by 10 random ascii lowercase letters
+        random_name = ''.join(random.choices(string.ascii_lowercase, k=10))
+        namespace_data = {"name": random_name, "groups": []}
+
+        # create namespace
+        namespace = self.namespace_api.create(namespace=namespace_data)
+        self.assertEqual(namespace.name, random_name)
+
+        # ensure namespace is available
+        namespaces = self.namespace_api.list(limit=100)
+        self.assertIn(namespace.name, [item.name for item in namespaces.data])
+
+        # delete namespace
+        self.delete_namespace(namespace.name)
+
+        # ensure namespace is NO MORE available
+        namespaces = self.namespace_api.list(limit=100)
+        self.assertNotIn(namespace.name, [item.name for item in namespaces.data])
+
+    def test_negative_create_namespace_with_invalid_name(self):
+        # generate name formed by 10 random ascii lowercase letters
+        random_name = ''.join(random.choices(string.ascii_lowercase, k=10))
+        random_name = f"ABC-{random_name}-$@"
+        namespace_data = {"name": random_name, "groups": []}
+
+        # expect the namespace is not created because of invalid name
+        with self.assertRaises(ApiException) as context:
+            self.namespace_api.create(namespace=namespace_data)
+
+        # Bad request
+        assert context.exception.status == 400
diff --git a/galaxy_ng/tests/functional/utils.py b/galaxy_ng/tests/functional/utils.py
index 7c80f166d8..ff9d319cd3 100644
--- a/galaxy_ng/tests/functional/utils.py
+++ b/galaxy_ng/tests/functional/utils.py
@@ -1,4 +1,5 @@
 """Utilities for tests for the galaxy plugin."""
+import os
 from functools import partial
 import requests
 from unittest import SkipTest
@@ -28,7 +29,6 @@
 from pulpcore.client.pulpcore import (
     ApiClient as CoreApiClient,
     ArtifactsApi,
-    Configuration,
     TasksApi,
 )
 from pulpcore.client.galaxy_ng import (
@@ -40,10 +40,7 @@
 )
 
 
-configuration = Configuration()
-configuration.username = "admin"
-configuration.password = "password"
-configuration.safe_chars_for_path_param = "/"
+configuration = config.get_config().get_bindings_config()
 
 
 def set_up_module():
@@ -173,6 +170,7 @@ def setUpClass(cls):
         cls.sync_config_api = ApiContentV3SyncConfigApi(cls.client)
         cls.sync_api = ApiContentV3SyncApi(cls.client)
         cls.get_ansible_cfg_before_test()
+        cls.galaxy_api_prefix = os.getenv("PULP_GALAXY_API_PATH_PREFIX", "/api/galaxy").rstrip("/")
 
     def tearDown(self):
         """Clean class-wide variable."""
@@ -183,7 +181,7 @@ def tearDown(self):
     @classmethod
     def get_token(cls):
         """Get a Galaxy NG token."""
-        return cls.smash_client.post("/api/galaxy/v3/auth/token/")["token"]
+        return cls.smash_client.post(f"{cls.galaxy_api_prefix}/v3/auth/token/")["token"]
 
     @classmethod
     def get_ansible_cfg_before_test(cls):
@@ -200,7 +198,8 @@ def update_ansible_cfg(self, base_path):
             "server_list = community_repo\n"
             "\n"
             "[galaxy_server.community_repo]\n"
-            f"url={ self.cfg.get_content_host_base_url()}/api/galaxy/content/{base_path}/\n"
+            f"url={self.cfg.get_content_host_base_url()}"
+            f"{self.galaxy_api_prefix}/content/{base_path}/\n"
             f"token={token}"
         )
         with open("ansible.cfg", "w") as f: