diff --git a/test/e2e/common.go b/test/e2e/common.go
index b2dbbc5410..6e3e421a0b 100644
--- a/test/e2e/common.go
+++ b/test/e2e/common.go
@@ -47,13 +47,16 @@ const (
 var m sync.Mutex
 
 type e2eTest struct {
-	env env
-	kn  kn
+	env                    env
+	kn                     kn
+	createNamespaceOnSetup bool
+	namespaceCreated       bool
 }
 
 func NewE2eTest(t *testing.T) *e2eTest {
 	return &e2eTest{
-		env: buildEnv(t),
+		env:                    buildEnv(t),
+		createNamespaceOnSetup: true,
 	}
 }
 
@@ -61,8 +64,10 @@ func NewE2eTest(t *testing.T) *e2eTest {
 func (test *e2eTest) Setup(t *testing.T) {
 	test.env.Namespace = fmt.Sprintf("%s%d", test.env.Namespace, getNamespaceCountAndIncrement())
 	test.kn = kn{t, test.env.Namespace, Logger{}}
-	test.CreateTestNamespace(t, test.env.Namespace)
-	time.Sleep(20 * time.Second)
+	if test.createNamespaceOnSetup {
+		test.CreateTestNamespace(t, test.env.Namespace)
+		time.Sleep(20 * time.Second)
+	}
 }
 
 func getNamespaceCountAndIncrement() int {
@@ -83,7 +88,9 @@ func getServiceNameAndIncrement(base string) string {
 
 // Teardown clean up
 func (test *e2eTest) Teardown(t *testing.T) {
-	test.DeleteTestNamespace(t, test.env.Namespace)
+	if test.namespaceCreated {
+		test.DeleteTestNamespace(t, test.env.Namespace)
+	}
 }
 
 // CreateTestNamespace creates and tests a namesspace creation invoking kubectl
@@ -99,6 +106,7 @@ func (test *e2eTest) CreateTestNamespace(t *testing.T, namespace string) {
 	if !matchRegexp(t, expectedOutputRegexp, out) {
 		t.Fatalf("Expected output incorrect, expecting to include:\n%s\n Instead found:\n%s\n", expectedOutputRegexp, out)
 	}
+	test.namespaceCreated = true
 }
 
 // CreateTestNamespace deletes and tests a namesspace deletion invoking kubectl
@@ -113,6 +121,7 @@ func (test *e2eTest) DeleteTestNamespace(t *testing.T, namespace string) {
 	if !matchRegexp(t, expectedOutputRegexp, out) {
 		t.Fatalf("Expected output incorrect, expecting to include:\n%s\n Instead found:\n%s\n", expectedOutputRegexp, out)
 	}
+	test.namespaceCreated = false
 }
 
 // WaitForNamespaceDeleted wait until namespace is deleted
diff --git a/test/e2e/plugins_test.go b/test/e2e/plugins_test.go
new file mode 100644
index 0000000000..1b0df27aa8
--- /dev/null
+++ b/test/e2e/plugins_test.go
@@ -0,0 +1,210 @@
+// Copyright 2019 The Knative Authors
+
+// 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 im
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+// +build e2e
+
+package e2e
+
+import (
+	"fmt"
+	"io/ioutil"
+	"os"
+	"path/filepath"
+	"testing"
+
+	"gotest.tools/assert"
+	"knative.dev/client/pkg/util"
+)
+
+const (
+	TestPluginCode string = `#!/bin/bash
+
+echo "Hello Knative, I'm a Kn plugin"
+echo "  My plugin file is $0"
+echo "  I recieved arguments: $1 $2 $3 $4"`
+
+	KnConfigDefault string = `plugins-dir: %s
+lookup-plugins: %s`
+
+	FileModeReadable   = 0644
+	FileModeReadWrite  = 0666
+	FileModeExecutable = 0777
+)
+
+func TestPluginWorkflow(t *testing.T) {
+	var (
+		knConfigDir, knPluginsDir, knPluginsDir2  string
+		knConfigPath, knPluginPath, knPluginPath2 string
+		lookupPlugins                             bool
+		err                                       error
+	)
+
+	t.Parallel()
+	test := NewE2eTest(t)
+	setup := func(t *testing.T) {
+		test.createNamespaceOnSetup = false
+		test.Setup(t)
+		defer test.Teardown(t)
+
+		knConfigDir, err = ioutil.TempDir("", "kn-config")
+		assert.Assert(t, err == nil)
+
+		knPluginsDir = filepath.Join(knConfigDir, "plugins")
+		err = os.MkdirAll(knPluginsDir, FileModeExecutable)
+		assert.Assert(t, err == nil)
+
+		knPluginsDir2 = filepath.Join(knConfigDir, "plugins2")
+		err = os.MkdirAll(knPluginsDir2, FileModeExecutable)
+		assert.Assert(t, err == nil)
+
+		knConfigPath, err = test.createConfig(t, "config.yaml", "", knConfigDir)
+		assert.Assert(t, err == nil)
+		assert.Assert(t, knConfigPath != "")
+
+		knPluginPath, err = test.createPlugin(t, "kn-helloe2e", TestPluginCode, knPluginsDir)
+		assert.Assert(t, err == nil)
+		assert.Assert(t, knPluginPath != "")
+
+		knPluginPath2, err = test.createPlugin(t, "kn-hello2e2e", TestPluginCode, knPluginsDir2)
+		assert.Assert(t, err == nil)
+		assert.Assert(t, knPluginPath2 != "")
+	}
+
+	teardown := func(t *testing.T) {
+		err = os.RemoveAll(knConfigDir)
+		assert.Assert(t, err == nil)
+	}
+
+	t.Run("when kn config is empty", func(t *testing.T) {
+		t.Run("when using --plugin-dir", func(t *testing.T) {
+			t.Run("when --plugins-dir has a plugin", func(t *testing.T) {
+				t.Run("when --lookup-plugins is false", func(t *testing.T) {
+					lookupPlugins = false
+
+					setup(t)
+					defer teardown(t)
+
+					knFlags := []string{fmt.Sprintf("--plugins-dir=%s", knPluginsDir), "--lookup-plugins=false"}
+					assert.Assert(t, lookupPlugins == false)
+
+					t.Run("list plugin in --plugins-dir", func(t *testing.T) {
+						test.listPlugin(t, knFlags, []string{knPluginPath}, []string{})
+					})
+
+					t.Run("execute plugin in --plugins-dir", func(t *testing.T) {
+						test.runPlugin(t, knFlags, "helloe2e", []string{"e2e", "test"}, []string{"Hello Knative, I'm a Kn plugin", "I recieved arguments: e2e"})
+					})
+
+					t.Run("does not list any other plugin in $PATH", func(t *testing.T) {
+						test.listPlugin(t, knFlags, []string{knPluginPath}, []string{knPluginPath2})
+					})
+				})
+
+				t.Run("with --lookup-plugins is true", func(t *testing.T) {
+					lookupPlugins = true
+
+					setup(t)
+					defer teardown(t)
+
+					knFlags := []string{fmt.Sprintf("--plugins-dir=%s", knPluginsDir), "--lookup-plugins=true"}
+					assert.Assert(t, lookupPlugins == true)
+
+					t.Run("list plugin in --plugins-dir", func(t *testing.T) {
+						test.listPlugin(t, knFlags, []string{knPluginPath}, []string{knPluginPath2})
+					})
+
+					t.Run("execute plugin in --plugins-dir", func(t *testing.T) {
+						test.runPlugin(t, knFlags, "helloe2e", []string{}, []string{"Hello Knative, I'm a Kn plugin"})
+					})
+
+					t.Run("when other plugins are in $PATH", func(t *testing.T) {
+						var oldPath string
+
+						setupPath := func(t *testing.T) {
+							oldPath = os.Getenv("PATH")
+							err := os.Setenv("PATH", fmt.Sprintf("%s:%s", oldPath, knPluginsDir2))
+							assert.Assert(t, err == nil)
+						}
+
+						tearDownPath := func(t *testing.T) {
+							err = os.Setenv("PATH", oldPath)
+							assert.Assert(t, err == nil)
+						}
+
+						t.Run("list plugin in $PATH", func(t *testing.T) {
+							setupPath(t)
+							defer tearDownPath(t)
+							test.listPlugin(t, knFlags, []string{knPluginPath, knPluginPath2}, []string{})
+						})
+
+						t.Run("execute plugin in $PATH", func(t *testing.T) {
+							setupPath(t)
+							defer tearDownPath(t)
+							test.runPlugin(t, knFlags, "hello2e2e", []string{}, []string{"Hello Knative, I'm a Kn plugin"})
+						})
+					})
+				})
+			})
+		})
+	})
+}
+
+// Private
+
+func (test *e2eTest) createConfig(t *testing.T, configName, configCode, configPath string) (string, error) {
+	configFilename := filepath.Join(configPath, configName)
+	err := ioutil.WriteFile(configFilename, []byte(configCode), FileModeReadWrite)
+	if err != nil {
+		return "", err
+	}
+	return configFilename, nil
+}
+
+func (test *e2eTest) createPlugin(t *testing.T, pluginName, pluginCode, pluginPath string) (string, error) {
+	pluginFilename := filepath.Join(pluginPath, pluginName)
+	err := ioutil.WriteFile(pluginFilename, []byte(pluginCode), FileModeExecutable)
+	if err != nil {
+		return "", err
+	}
+	return pluginFilename, nil
+}
+
+func (test *e2eTest) listPlugin(t *testing.T, knFlags []string, expectedPlugins []string, unexpectedPlugins []string) {
+	knArgs := addArgs([]string{}, knFlags...)
+	knArgs = addArgs(knArgs, []string{"plugin", "list"}...)
+
+	out, err := test.kn.RunWithOpts(knArgs, runOpts{NoNamespace: true})
+	assert.Assert(t, err == nil)
+	assert.Check(t, util.ContainsAll(out, expectedPlugins...))
+	assert.Check(t, util.ContainsNone(out, unexpectedPlugins...))
+}
+
+func (test *e2eTest) runPlugin(t *testing.T, knFlags []string, pluginName string, args []string, expectedOutput []string) {
+	knArgs := addArgs([]string{}, knFlags...)
+	knArgs = append(knArgs, pluginName)
+	knArgs = addArgs(knArgs, args...)
+
+	out, err := test.kn.RunWithOpts(knArgs, runOpts{NoNamespace: true})
+	assert.Assert(t, err == nil)
+	for _, output := range expectedOutput {
+		assert.Check(t, util.ContainsAll(out, output))
+	}
+}
+
+func addArgs(cmdArgs []string, args ...string) []string {
+	for _, arg := range args {
+		cmdArgs = append(cmdArgs, arg)
+	}
+	return cmdArgs
+}