diff --git a/vsphere/resource_vsphere_license_test.go b/vsphere/resource_vsphere_license_test.go
new file mode 100644
index 000000000..b881576e6
--- /dev/null
+++ b/vsphere/resource_vsphere_license_test.go
@@ -0,0 +1,252 @@
+package vsphere
+
+import (
+	"errors"
+	"fmt"
+	"os"
+	"testing"
+
+	"golang.org/x/net/context"
+
+	"github.com/hashicorp/terraform/helper/resource"
+	"github.com/hashicorp/terraform/terraform"
+	"github.com/vmware/govmomi"
+	"github.com/vmware/govmomi/license"
+)
+
+var (
+	testAccLabels = map[string]string{
+		"VpxClientLicenseLabel": "Hello World",
+		"TestTitle":             "FooBar",
+	}
+
+	labelStub = []interface{}{
+		map[string]interface{}{
+			"key":   "Hello",
+			"value": "World",
+		},
+		map[string]interface{}{
+			"key":   "Working",
+			"value": "This",
+		},
+		map[string]interface{}{
+			"key":   "Testing",
+			"value": "Labels",
+		},
+	}
+)
+
+func TestAccVSphereLicenseBasic(t *testing.T) {
+
+	resource.Test(t, resource.TestCase{
+		PreCheck: func() {
+			testAccPreCheck(t)
+			testAccPreLicenseBasicCheck(t)
+		},
+		Providers:    testAccProviders,
+		CheckDestroy: testAccVsphereLicenseDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccVsphereLicenseBasicCreate(),
+				Check: resource.ComposeTestCheckFunc(
+					testAccVsphereLicenseExists("vsphere_license.foo"),
+				),
+			},
+		},
+	})
+
+}
+
+func TestAccVsphereLicenseInvalid(t *testing.T) {
+
+	resource.Test(t, resource.TestCase{
+		PreCheck: func() {
+			testAccPreCheck(t)
+		},
+		Providers: testAccProviders,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccVsphereLicenseInvalidCreate(),
+				Check: resource.ComposeTestCheckFunc(
+					testAccVsphereLicenseNotExists("vsphere_license.foo"),
+				),
+			},
+		},
+	})
+
+}
+
+func TestAccVsphereLicenseWithLabels(t *testing.T) {
+
+	resource.Test(t, resource.TestCase{
+		PreCheck: func() {
+			testAccPreCheck(t)
+			testAccPreLicenseBasicCheck(t)
+		},
+		Providers: testAccProviders,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccVsphereLicenseWithLabelCreate(testAccLabels),
+				Check: resource.ComposeTestCheckFunc(
+					testAccVsphereLicenseWithLabelExists("vsphere_license.foo"),
+				),
+			},
+		},
+	})
+
+}
+
+func testAccVsphereLicenseInvalidCreate() string {
+
+	// quite sure this key cannot be valid
+	return `resource "vsphere_license" "foo" {
+  					license_key = "00000-00000-00000-00000-12345"
+			}`
+}
+
+func testAccVsphereLicenseWithLabelCreate(labels map[string]string) string {
+
+	// precheck already checks if this is present or not
+	key := os.Getenv("VSPHERE_LICENSE")
+
+	labelString := labelToStrings(labels)
+
+	return fmt.Sprintf(`resource "vsphere_license" "foo2" {
+					license_key = "%s"
+
+					%s
+		}`, key, labelString)
+}
+
+func labelToStrings(labels map[string]string) string {
+	val := ""
+	for key, value := range labels {
+		val += fmt.Sprintf(`
+		label {
+			key = "%s"
+			value = "%s"
+		}
+		`, key, value)
+
+	}
+	return val
+}
+
+func testAccVsphereLicenseBasicCreate() string {
+
+	// precheck already checks if this is present or not
+	key := os.Getenv("VSPHERE_LICENSE")
+
+	return fmt.Sprintf(`resource "vsphere_license" "foo" {
+  		license_key = "%s"
+		}
+	`, key)
+
+}
+
+func testAccVsphereLicenseDestroy(s *terraform.State) error {
+
+	client := testAccProvider.Meta().(*govmomi.Client)
+
+	manager := license.NewManager(client.Client)
+
+	message := ""
+	for _, rs := range s.RootModule().Resources {
+		if rs.Type != "vsphere_license" {
+			continue
+		}
+
+		key := rs.Primary.ID
+		if isKeyPresent(key, manager) {
+			message += fmt.Sprintf("%s still present on the server", key)
+		}
+
+	}
+	if message != "" {
+		return errors.New(message)
+	}
+
+	return nil
+}
+
+func testAccVsphereLicenseExists(name string) resource.TestCheckFunc {
+	return func(s *terraform.State) error {
+		rs, ok := s.RootModule().Resources[name]
+
+		if !ok {
+			return fmt.Errorf("%s resource not found", name)
+		}
+
+		client := testAccProvider.Meta().(*govmomi.Client)
+		manager := license.NewManager(client.Client)
+
+		if !isKeyPresent(rs.Primary.ID, manager) {
+			return fmt.Errorf("%s key not found on the remote", rs.Primary.ID)
+		}
+
+		return nil
+	}
+}
+
+func testAccVsphereLicenseNotExists(name string) resource.TestCheckFunc {
+	return func(s *terraform.State) error {
+		_, ok := s.RootModule().Resources[name]
+
+		if ok {
+			return fmt.Errorf("%s resource should not exist", name)
+		}
+
+		return nil
+	}
+}
+
+func testAccPreLicenseBasicCheck(t *testing.T) {
+	if key := os.Getenv("VSPHERE_LICENSE"); key == "" {
+		t.Fatal("VSPHERE_LICENSE must be set for acceptance test")
+	}
+}
+
+func testAccVsphereLicenseWithLabelExists(name string) resource.TestCheckFunc {
+
+	return func(s *terraform.State) error {
+		rs, ok := s.RootModule().Resources[name]
+
+		if !ok {
+			return fmt.Errorf("%s resource not found", name)
+		}
+
+		client := testAccProvider.Meta().(*govmomi.Client)
+		manager := license.NewManager(client.Client)
+
+		if !isKeyPresent(rs.Primary.ID, manager) {
+			return fmt.Errorf("%s key not found on the remote", rs.Primary.ID)
+		}
+
+		info, err := manager.Decode(context.TODO(), rs.Primary.ID)
+
+		if err != nil {
+			return err
+		}
+
+		if len(info.Labels) == 0 {
+			return fmt.Errorf("The labels were not set for the key %s", info.LicenseKey)
+		}
+
+		return nil
+	}
+
+}
+
+func TestLabelToMaps(t *testing.T) {
+
+	mapdata, err := labelsToMap(labelStub)
+
+	if err != nil {
+		t.Fatal("Error ", err)
+	}
+
+	if value, ok := mapdata["Hello"]; !ok || value != "World" {
+		t.Fatal("the map data is invalid")
+	}
+
+}