diff --git a/packages/functional-tests/src/tests/button-behavior-test.ts b/packages/functional-tests/src/tests/button-behavior-test.ts
new file mode 100644
index 000000000..8e751dc82
--- /dev/null
+++ b/packages/functional-tests/src/tests/button-behavior-test.ts
@@ -0,0 +1,90 @@
+/*!
+ * Copyright (c) Microsoft Corporation. All rights reserved.
+ * Licensed under the MIT License.
+ */
+
+import * as MRE from '@microsoft/mixed-reality-extension-sdk';
+
+import { Test } from '../test';
+
+export default class ButtonBehaviorTest extends Test {
+	private defaultLabel = "Test the difference between click and hold";
+	public expectedResultDescription = "Button behavior";
+
+	private testButton: MRE.Actor;
+	private testBehavior: MRE.ButtonBehavior;
+	private buttonLabel: MRE.Actor;
+	private assets: MRE.AssetContainer;
+	private timer: NodeJS.Timeout;
+
+	public cleanup() {
+		this.assets.unload();
+	}
+
+	public async run(root: MRE.Actor): Promise<boolean> {
+		this.assets = new MRE.AssetContainer(this.app.context);
+
+		this.createEraseButton();
+
+		// Create scene light
+		MRE.Actor.Create(this.app.context, {
+			actor: {
+				name: "Light",
+				parentId: root.id,
+				light: {
+					type: 'point',
+					range: 5,
+					intensity: 2,
+					color: { r: 1, g: 0.5, b: 0.3 }
+				},
+				transform: {
+					local: {
+						position: { x: -2, y: 2, z: -2 }
+					}
+				}
+			}
+		});
+
+		await this.stoppedAsync();
+		return true;
+	}
+
+	private displayString(string: string) {
+		if(this.timer) {
+			clearTimeout(this.timer);
+		}
+		this.buttonLabel.text.contents = string;
+		this.timer = setTimeout(() => { this.buttonLabel.text.contents = this.defaultLabel; }, 1000);
+	}
+
+	private createEraseButton() {
+		// Create erase button for the surface
+		const buttonMesh = this.assets.createBoxMesh('eraseButton', .5, .5, .01);
+		this.testButton = MRE.Actor.Create(this.app.context, {
+			actor: {
+				name: 'testButton',
+				transform: { local: { position: { z: -.2, y: .7 } } },
+				appearance: { meshId: buttonMesh.id },
+				collider: { geometry: { shape: MRE.ColliderType.Auto } }
+			}
+		});
+
+		this.buttonLabel = MRE.Actor.Create(this.app.context, {
+			actor: {
+				name: 'testLabel',
+				parentId: this.testButton.id,
+				transform: { local: { position: { y: .3 } } },
+				text: {
+					contents: this.defaultLabel,
+					height: .1,
+					anchor: MRE.TextAnchorLocation.BottomCenter,
+					color: MRE.Color3.Teal()
+				}
+			}
+		})
+
+		const testButtonBehavior = this.testButton.setBehavior(MRE.ButtonBehavior);
+		testButtonBehavior.onClick((_, __) => this.displayString("Click Detected!"));
+		testButtonBehavior.onButton('holding', () => this.displayString("Hold Detected!"));
+	}
+}
diff --git a/packages/functional-tests/src/tests/index.ts b/packages/functional-tests/src/tests/index.ts
index 0ca8fa614..e0c25d856 100644
--- a/packages/functional-tests/src/tests/index.ts
+++ b/packages/functional-tests/src/tests/index.ts
@@ -19,6 +19,7 @@ import AssetEarlyAssignmentTest from './asset-early-assignment-test';
 import AssetMutabilityTest from './asset-mutability-test';
 import AssetPreloadTest from './asset-preload-test';
 import AssetUnloadTest from './asset-unload-test';
+import ButtonBehaviorTest from './button-behavior-test';
 import ButtonTargetingTest from './button-targeting-test';
 import ClockSyncTest from './clock-sync-test';
 import CollisionLayerTest from './collision-layer-test';
@@ -79,6 +80,7 @@ export const Factories = {
 	'asset-mutability': (...args) => new AssetMutabilityTest(...args),
 	'asset-preload': (...args) => new AssetPreloadTest(...args),
 	'asset-unload': (...args) => new AssetUnloadTest(...args),
+	'button-behavior': (...args) => new ButtonBehaviorTest(...args),
 	'button-targeting': (...args) => new ButtonTargetingTest(...args),
 	'clock-sync': (...args) => new ClockSyncTest(...args),
 	'collision-layer': (...args) => new CollisionLayerTest(...args),