diff --git a/src/messaging/tests/BUILD.gn b/src/messaging/tests/BUILD.gn
index 1cb910b415b1e9..e206a45119d532 100644
--- a/src/messaging/tests/BUILD.gn
+++ b/src/messaging/tests/BUILD.gn
@@ -52,6 +52,7 @@ chip_test_suite("tests") {
       "TestAbortExchangesForFabric.cpp",
       "TestExchangeHolder.cpp",
       "TestExchangeMgr.cpp",
+      "TestMessagingLayer.cpp",
       "TestReliableMessageProtocol.cpp",
     ]
   }
diff --git a/src/messaging/tests/MessagingContext.h b/src/messaging/tests/MessagingContext.h
index d60f057463806d..a7b3e06c681ca3 100644
--- a/src/messaging/tests/MessagingContext.h
+++ b/src/messaging/tests/MessagingContext.h
@@ -27,6 +27,7 @@
 #include <transport/SessionManager.h>
 #include <transport/TransportMgr.h>
 #include <transport/tests/LoopbackTransportManager.h>
+#include <transport/tests/UDPTransportManager.h>
 
 #include <nlunit-test.h>
 
@@ -231,6 +232,47 @@ class LoopbackMessagingContext : public LoopbackTransportManager, public Messagi
     using LoopbackTransportManager::GetSystemLayer;
 };
 
+// UDPMessagingContext enriches MessagingContext with an UDP transport
+class UDPMessagingContext : public UDPTransportManager, public MessagingContext
+{
+public:
+    virtual ~UDPMessagingContext() {}
+
+    /// Initialize the underlying layers.
+    virtual CHIP_ERROR Init()
+    {
+        ReturnErrorOnFailure(chip::Platform::MemoryInit());
+        ReturnErrorOnFailure(UDPTransportManager::Init());
+        ReturnErrorOnFailure(MessagingContext::Init(&GetTransportMgr(), &GetIOContext()));
+        return CHIP_NO_ERROR;
+    }
+
+    // Shutdown all layers, finalize operations
+    virtual void Shutdown()
+    {
+        MessagingContext::Shutdown();
+        UDPTransportManager::Shutdown();
+        chip::Platform::MemoryShutdown();
+    }
+
+    // Init/Shutdown Helpers that can be used directly as the nlTestSuite
+    // initialize/finalize function.
+    static int Initialize(void * context)
+    {
+        auto * ctx = static_cast<UDPMessagingContext *>(context);
+        return ctx->Init() == CHIP_NO_ERROR ? SUCCESS : FAILURE;
+    }
+
+    static int Finalize(void * context)
+    {
+        auto * ctx = static_cast<UDPMessagingContext *>(context);
+        ctx->Shutdown();
+        return SUCCESS;
+    }
+
+    using UDPTransportManager::GetSystemLayer;
+};
+
 // Class that can be used to capture decrypted message traffic in tests using
 // MessagingContext.
 class MessageCapturer : public SessionMessageDelegate
diff --git a/src/messaging/tests/TestMessagingLayer.cpp b/src/messaging/tests/TestMessagingLayer.cpp
new file mode 100644
index 00000000000000..7e0285d6f27170
--- /dev/null
+++ b/src/messaging/tests/TestMessagingLayer.cpp
@@ -0,0 +1,180 @@
+/*
+ *
+ *    Copyright (c) 2022 Project CHIP Authors
+ *    All rights reserved.
+ *
+ *    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 implied.
+ *    See the License for the specific language governing permissions and
+ *    limitations under the License.
+ */
+
+/**
+ *    @file
+ *      This file implements unit tests for the ExchangeManager implementation.
+ */
+
+#include <lib/core/CHIPCore.h>
+#include <lib/support/CHIPFaultInjection.h>
+#include <lib/support/CHIPMem.h>
+#include <lib/support/CodeUtils.h>
+#include <lib/support/UnitTestContext.h>
+#include <lib/support/UnitTestRegistration.h>
+#include <messaging/ExchangeContext.h>
+#include <messaging/ExchangeMgr.h>
+#include <messaging/Flags.h>
+#include <messaging/tests/MessagingContext.h>
+#include <protocols/Protocols.h>
+#include <protocols/echo/Echo.h>
+#include <transport/SessionManager.h>
+#include <transport/TransportMgr.h>
+
+#include <nlbyteorder.h>
+#include <nlunit-test.h>
+
+#include <errno.h>
+#include <utility>
+
+namespace {
+
+using namespace chip;
+using namespace chip::Inet;
+using namespace chip::Transport;
+using namespace chip::Messaging;
+using namespace chip::Protocols;
+using namespace chip::System::Clock::Literals;
+
+using TestContext = Test::UDPMessagingContext;
+
+// The message timeout value in milliseconds.
+constexpr System::Clock::Timeout kMessageTimeout = System::Clock::Milliseconds32(100);
+
+class MockAppDelegate : public UnsolicitedMessageHandler, public ExchangeDelegate
+{
+public:
+    CHIP_ERROR OnUnsolicitedMessageReceived(const PayloadHeader & payloadHeader, ExchangeDelegate *& newDelegate) override
+    {
+        newDelegate = this;
+        return CHIP_NO_ERROR;
+    }
+
+    CHIP_ERROR OnMessageReceived(ExchangeContext * ec, const PayloadHeader & payloadHeader,
+                                 System::PacketBufferHandle && buffer) override
+    {
+        IsOnMessageReceivedCalled = true;
+        return CHIP_NO_ERROR;
+    }
+
+    void OnResponseTimeout(ExchangeContext * ec) override { IsOnResponseTimeoutCalled = true; }
+
+    bool IsOnMessageReceivedCalled = false;
+    bool IsOnResponseTimeoutCalled = false;
+};
+
+/**
+ * Tests sending exchange message with Success:
+ *
+ *      DUT = sender, PEER = remote device
+ *
+ * 1) DUT sends message w/o MRP to PEER
+ *      - Confirm the message is sent successfully
+ *      - Observe DUT response timeout with no response
+ */
+void CheckExchangeOutgoingMessagesSuccess(nlTestSuite * inSuite, void * inContext)
+{
+    TestContext & ctx = *reinterpret_cast<TestContext *>(inContext);
+
+    // create solicited exchange
+    MockAppDelegate mockSolicitedAppDelegate;
+    ExchangeContext * ec = ctx.NewExchangeToAlice(&mockSolicitedAppDelegate);
+
+    NL_TEST_ASSERT(inSuite, ec != nullptr);
+    ec->SetResponseTimeout(kMessageTimeout);
+
+    CHIP_ERROR err = ec->SendMessage(Echo::MsgType::EchoRequest, System::PacketBufferHandle::New(System::PacketBuffer::kMaxSize),
+                                     SendFlags(SendMessageFlags::kExpectResponse).Set(SendMessageFlags::kNoAutoRequestAck));
+
+    // Wait for the initial message to fail (should take 330-413ms)
+    ctx.GetIOContext().DriveIOUntil(500_ms32, [&] { return mockSolicitedAppDelegate.IsOnMessageReceivedCalled; });
+
+    NL_TEST_ASSERT(inSuite, err == CHIP_NO_ERROR);
+    NL_TEST_ASSERT(inSuite, mockSolicitedAppDelegate.IsOnResponseTimeoutCalled);
+}
+
+/**
+ * Tests sending exchange message with Failure:
+ *
+ *      DUT = sender, PEER = remote device
+ *
+ * 1) DUT configured to drop the outgoing UDP packet
+ * 2) DUT sends message w/o MRP to PEER
+ *      - Confirm the message is sent with failure
+ *      - Confirm the DUT response timeout timer is cancelled
+ */
+void CheckExchangeOutgoingMessagesFail(nlTestSuite * inSuite, void * inContext)
+{
+    TestContext & ctx = *reinterpret_cast<TestContext *>(inContext);
+
+    // create solicited exchange
+    MockAppDelegate mockSolicitedAppDelegate;
+    ExchangeContext * ec = ctx.NewExchangeToAlice(&mockSolicitedAppDelegate);
+
+    NL_TEST_ASSERT(inSuite, ec != nullptr);
+    ec->SetResponseTimeout(kMessageTimeout);
+
+    chip::FaultInjection::GetManager().FailAtFault(chip::FaultInjection::kFault_DropOutgoingUDPMsg, 0, 1);
+
+    CHIP_ERROR err = ec->SendMessage(Echo::MsgType::EchoRequest, System::PacketBufferHandle::New(System::PacketBuffer::kMaxSize),
+                                     SendFlags(SendMessageFlags::kExpectResponse).Set(SendMessageFlags::kNoAutoRequestAck));
+
+    // Wait for the initial message to fail (should take 330-413ms)
+    ctx.GetIOContext().DriveIOUntil(500_ms32, [&] { return mockSolicitedAppDelegate.IsOnMessageReceivedCalled; });
+
+    NL_TEST_ASSERT(inSuite, err != CHIP_NO_ERROR);
+    NL_TEST_ASSERT(inSuite, !mockSolicitedAppDelegate.IsOnResponseTimeoutCalled);
+    ec->Close();
+}
+
+// Test Suite
+
+/**
+ *  Test Suite that lists all the test functions.
+ */
+// clang-format off
+const nlTest sTests[] =
+{
+    NL_TEST_DEF("Test MessagingLayer::ExchangeOutgoingMessagesSuccess", CheckExchangeOutgoingMessagesSuccess),
+    NL_TEST_DEF("Test MessagingLayer::ExchangeOutgoingMessagesFail", CheckExchangeOutgoingMessagesFail),
+
+    NL_TEST_SENTINEL()
+};
+// clang-format on
+
+// clang-format off
+nlTestSuite sSuite =
+{
+    "Test-CHIP-MessagingLayer",
+    &sTests[0],
+    TestContext::Initialize,
+    TestContext::Finalize
+};
+// clang-format on
+
+} // namespace
+
+/**
+ *  Main
+ */
+int TestMessagingLayer()
+{
+    return chip::ExecuteTestsWithContext<TestContext>(&sSuite);
+}
+
+CHIP_REGISTER_TEST_SUITE(TestMessagingLayer);
diff --git a/src/transport/raw/UDP.cpp b/src/transport/raw/UDP.cpp
index 57b1d3c615bffc..3113e9797bfc72 100644
--- a/src/transport/raw/UDP.cpp
+++ b/src/transport/raw/UDP.cpp
@@ -23,6 +23,7 @@
  */
 #include <transport/raw/UDP.h>
 
+#include <lib/support/CHIPFaultInjection.h>
 #include <lib/support/CodeUtils.h>
 #include <lib/support/logging/CHIPLogging.h>
 #include <transport/raw/MessageHeader.h>
@@ -110,6 +111,9 @@ CHIP_ERROR UDP::SendMessage(const Transport::PeerAddress & address, System::Pack
     addrInfo.DestPort    = address.GetPort();
     addrInfo.Interface   = address.GetInterface();
 
+    // Drop the message and return. Free the buffer.
+    CHIP_FAULT_INJECT(FaultInjection::kFault_DropOutgoingUDPMsg, msgBuf = nullptr; return CHIP_ERROR_CONNECTION_ABORTED;);
+
     return mUDPEndPoint->SendMsg(&addrInfo, std::move(msgBuf));
 }
 
@@ -119,6 +123,8 @@ void UDP::OnUdpReceive(Inet::UDPEndPoint * endPoint, System::PacketBufferHandle
     UDP * udp               = reinterpret_cast<UDP *>(endPoint->mAppState);
     PeerAddress peerAddress = PeerAddress::UDP(pktInfo->SrcAddress, pktInfo->SrcPort, pktInfo->Interface);
 
+    CHIP_FAULT_INJECT(FaultInjection::kFault_DropIncomingUDPMsg, buffer = nullptr; return;);
+
     udp->HandleMessageReceived(peerAddress, std::move(buffer));
 
     if (err != CHIP_NO_ERROR)
diff --git a/src/transport/tests/UDPTransportManager.h b/src/transport/tests/UDPTransportManager.h
new file mode 100644
index 00000000000000..2a940d3264e834
--- /dev/null
+++ b/src/transport/tests/UDPTransportManager.h
@@ -0,0 +1,62 @@
+/*
+ *    Copyright (c) 2022 Project CHIP 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 implied.
+ *    See the License for the specific language governing permissions and
+ *    limitations under the License.
+ */
+#pragma once
+
+#include <lib/core/CHIPError.h>
+#include <lib/support/CodeUtils.h>
+#include <platform/CHIPDeviceLayer.h>
+#include <transport/TransportMgr.h>
+#include <transport/raw/UDP.h>
+#include <transport/raw/tests/NetworkTestHelpers.h>
+
+namespace chip {
+namespace Test {
+
+class UDPTransportManager
+{
+public:
+    /// Initialize the underlying layers.
+    CHIP_ERROR Init()
+    {
+        ReturnErrorOnFailure(mIOContext.Init());
+        ReturnErrorOnFailure(DeviceLayer::PlatformMgr().InitChipStack());
+        ReturnErrorOnFailure(mTransportManager.Init(Transport::UdpListenParameters(DeviceLayer::UDPEndPointManager())
+                                                        .SetAddressType(Inet::IPAddressType::kIPv6)
+                                                        .SetListenPort(CHIP_PORT + 1)));
+
+        return CHIP_NO_ERROR;
+    }
+
+    // Shutdown all layers, finalize operations
+    void Shutdown()
+    {
+        mTransportManager.Close();
+        DeviceLayer::PlatformMgr().Shutdown();
+        mIOContext.Shutdown();
+    }
+
+    System::Layer & GetSystemLayer() { return mIOContext.GetSystemLayer(); }
+    chip::Transport::UDP & GetUDP() { return mTransportManager.GetTransport().template GetImplAtIndex<0>(); }
+    TransportMgrBase & GetTransportMgr() { return mTransportManager; }
+    IOContext & GetIOContext() { return mIOContext; }
+
+private:
+    Test::IOContext mIOContext;
+    TransportMgr<chip::Transport::UDP> mTransportManager;
+};
+
+} // namespace Test
+} // namespace chip