diff --git a/examples/rails-postgresql-persistent.json b/examples/rails-postgresql-persistent.json
index a39f8464..74a5d26b 100644
--- a/examples/rails-postgresql-persistent.json
+++ b/examples/rails-postgresql-persistent.json
@@ -112,7 +112,7 @@
             "from": {
               "kind": "ImageStreamTag",
               "namespace": "${NAMESPACE}",
-              "name": "ruby:2.5"
+              "name": "ruby:${RUBY_VERSION}"
             },
             "env": [
               {
@@ -148,13 +148,14 @@
       }
     },
     {
-      "kind": "DeploymentConfig",
-      "apiVersion": "apps.openshift.io/v1",
+      "kind": "Deployment",
+      "apiVersion": "apps/v1",
       "metadata": {
         "name": "${NAME}",
         "annotations": {
           "description": "Defines how to deploy the application server",
-          "template.alpha.openshift.io/wait-for-ready": "true"
+          "template.alpha.openshift.io/wait-for-ready": "true",
+          "image.openshift.io/triggers": "[{\"from\":{\"kind\":\"ImageStreamTag\",\"name\":\"${NAME}:latest\"},\"fieldPath\": \"spec.template.spec.containers[0].image\"}]"
         }
       },
       "spec": {
@@ -172,24 +173,6 @@
             }
           }
         },
-        "triggers": [
-          {
-            "type": "ImageChange",
-            "imageChangeParams": {
-              "automatic": true,
-              "containerNames": [
-                "${NAME}"
-              ],
-              "from": {
-                "kind": "ImageStreamTag",
-                "name": "${NAME}:latest"
-              }
-            }
-          },
-          {
-            "type": "ConfigChange"
-          }
-        ],
         "replicas": 1,
         "selector": {
           "name": "${NAME}"
@@ -349,38 +332,20 @@
       }
     },
     {
-      "kind": "DeploymentConfig",
-      "apiVersion": "apps.openshift.io/v1",
+      "kind": "Deployment",
+      "apiVersion": "apps/v1",
       "metadata": {
         "name": "${DATABASE_SERVICE_NAME}",
         "annotations": {
           "description": "Defines how to deploy the database",
-          "template.alpha.openshift.io/wait-for-ready": "true"
+          "template.alpha.openshift.io/wait-for-ready": "true",
+          "image.openshift.io/triggers": "[{\"from\":{\"kind\":\"ImageStreamTag\",\"name\":\"postgresql:12-el8\"},\"fieldPath\": \"spec.template.spec.containers[0].image\"}]"
         }
       },
       "spec": {
         "strategy": {
           "type": "Recreate"
         },
-        "triggers": [
-          {
-            "type": "ImageChange",
-            "imageChangeParams": {
-              "automatic": true,
-              "containerNames": [
-                "postgresql"
-              ],
-              "from": {
-                "kind": "ImageStreamTag",
-                "namespace": "${NAMESPACE}",
-                "name": "postgresql:10"
-              }
-            }
-          },
-          {
-            "type": "ConfigChange"
-          }
-        ],
         "replicas": 1,
         "selector": {
           "name": "${DATABASE_SERVICE_NAME}"
@@ -489,6 +454,13 @@
       "description": "The OpenShift Namespace where the ImageStream resides.",
       "value": "openshift"
     },
+    {
+      "name": "RUBY_VERSION",
+      "displayName": "Ruby Version",
+      "description": "Version of Ruby image to be used (3.0-ubi8 by default).",
+      "required": true,
+      "value": "3.0-ubi8"
+    },
     {
       "name": "MEMORY_LIMIT",
       "displayName": "Memory Limit",
diff --git a/examples/rails-postgresql.json b/examples/rails-postgresql.json
index ff374dce..b4822609 100644
--- a/examples/rails-postgresql.json
+++ b/examples/rails-postgresql.json
@@ -112,7 +112,7 @@
             "from": {
               "kind": "ImageStreamTag",
               "namespace": "${NAMESPACE}",
-              "name": "ruby:2.5"
+              "name": "ruby:${RUBY_VERSION}"
             },
             "env": [
               {
@@ -148,13 +148,14 @@
       }
     },
     {
-      "kind": "DeploymentConfig",
-      "apiVersion": "apps.openshift.io/v1",
+      "kind": "Deployment",
+      "apiVersion": "apps/v1",
       "metadata": {
         "name": "${NAME}",
         "annotations": {
           "description": "Defines how to deploy the application server",
-          "template.alpha.openshift.io/wait-for-ready": "true"
+          "template.alpha.openshift.io/wait-for-ready": "true",
+          "image.openshift.io/triggers": "[{\"from\":{\"kind\":\"ImageStreamTag\",\"name\":\"${NAME}:latest\"},\"fieldPath\": \"spec.template.spec.containers[0].image\"}]"
         }
       },
       "spec": {
@@ -172,24 +173,6 @@
             }
           }
         },
-        "triggers": [
-          {
-            "type": "ImageChange",
-            "imageChangeParams": {
-              "automatic": true,
-              "containerNames": [
-                "${NAME}"
-              ],
-              "from": {
-                "kind": "ImageStreamTag",
-                "name": "${NAME}:latest"
-              }
-            }
-          },
-          {
-            "type": "ConfigChange"
-          }
-        ],
         "replicas": 1,
         "selector": {
           "name": "${NAME}"
@@ -332,38 +315,20 @@
       }
     },
     {
-      "kind": "DeploymentConfig",
-      "apiVersion": "apps.openshift.io/v1",
+      "kind": "Deployment",
+      "apiVersion": "apps/v1",
       "metadata": {
         "name": "${DATABASE_SERVICE_NAME}",
         "annotations": {
           "description": "Defines how to deploy the database",
-          "template.alpha.openshift.io/wait-for-ready": "true"
+          "template.alpha.openshift.io/wait-for-ready": "true",
+          "image.openshift.io/triggers": "[{\"from\":{\"kind\":\"ImageStreamTag\",\"name\":\"postgresql:12-el8\"},\"fieldPath\": \"spec.template.spec.containers[0].image\"}]"
         }
       },
       "spec": {
         "strategy": {
           "type": "Recreate"
         },
-        "triggers": [
-          {
-            "type": "ImageChange",
-            "imageChangeParams": {
-              "automatic": true,
-              "containerNames": [
-                "postgresql"
-              ],
-              "from": {
-                "kind": "ImageStreamTag",
-                "namespace": "${NAMESPACE}",
-                "name": "postgresql:10"
-              }
-            }
-          },
-          {
-            "type": "ConfigChange"
-          }
-        ],
         "replicas": 1,
         "selector": {
           "name": "${DATABASE_SERVICE_NAME}"
@@ -470,6 +435,13 @@
       "description": "The OpenShift Namespace where the ImageStream resides.",
       "value": "openshift"
     },
+    {
+      "name": "RUBY_VERSION",
+      "displayName": "Ruby Version",
+      "description": "Version of Ruby image to be used (3.0-ubi8 by default).",
+      "required": true,
+      "value": "3.0-ubi8"
+    },
     {
       "name": "MEMORY_LIMIT",
       "displayName": "Memory Limit",
diff --git a/examples/rails.json b/examples/rails.json
new file mode 100644
index 00000000..a29a4399
--- /dev/null
+++ b/examples/rails.json
@@ -0,0 +1,279 @@
+{
+  "kind": "Template",
+  "apiVersion": "template.openshift.io/v1",
+  "metadata": {
+    "name": "rails-example",
+    "annotations": {
+      "openshift.io/display-name": "Rails",
+      "description": "An example Rails application with no database. For more information about using this template, including OpenShift considerations, see https://github.com/sclorg/rails-ex/blob/master/README.md.",
+      "tags": "quickstart,ruby,rails",
+      "iconClass": "icon-ruby",
+      "openshift.io/long-description": "This template defines resources needed to develop a Rails application, including a build configuration, application deployment configuration, and database deployment configuration.",
+      "openshift.io/provider-display-name": "Red Hat, Inc.",
+      "openshift.io/documentation-url": "https://github.com/sclorg/rails-ex",
+      "openshift.io/support-url": "https://access.redhat.com",
+      "template.openshift.io/bindable": "false"
+    }
+  },
+  "message": "The following service(s) have been created in your project: ${NAME}.\n\nFor more information about using this template, including OpenShift considerations, see https://github.com/sclorg/dancer-ex/blob/master/README.md.",
+  "labels": {
+      "template": "rails-example",
+      "app": "rails-example"
+  },
+  "objects": [
+    {
+      "kind": "Service",
+      "apiVersion": "v1",
+      "metadata": {
+        "name": "${NAME}",
+        "annotations": {
+          "description": "Exposes and load balances the application pods"
+        }
+      },
+      "spec": {
+        "ports": [
+          {
+            "name": "web",
+            "port": 8080,
+            "targetPort": 8080
+          }
+        ],
+        "selector": {
+          "name": "${NAME}"
+        }
+      }
+    },
+    {
+      "kind": "Route",
+      "apiVersion": "route.openshift.io/v1",
+      "metadata": {
+        "name": "${NAME}"
+      },
+      "spec": {
+        "host": "${APPLICATION_DOMAIN}",
+        "to": {
+          "kind": "Service",
+          "name": "${NAME}"
+        }
+      }
+    },
+    {
+      "kind": "ImageStream",
+      "apiVersion": "image.openshift.io/v1",
+      "metadata": {
+        "name": "${NAME}",
+        "annotations": {
+          "description": "Keeps track of changes in the application image"
+        }
+      }
+    },
+    {
+      "kind": "BuildConfig",
+      "apiVersion": "build.openshift.io/v1",
+      "metadata": {
+        "name": "${NAME}",
+        "annotations": {
+          "description": "Defines how to build the application",
+          "template.alpha.openshift.io/wait-for-ready": "true"
+        }
+      },
+      "spec": {
+        "source": {
+          "type": "Git",
+          "git": {
+            "uri": "${SOURCE_REPOSITORY_URL}",
+            "ref": "${SOURCE_REPOSITORY_REF}"
+          },
+          "contextDir": "${CONTEXT_DIR}"
+        },
+        "strategy": {
+          "type": "Source",
+          "sourceStrategy": {
+            "from": {
+              "kind": "ImageStreamTag",
+              "namespace": "${NAMESPACE}",
+              "name": "ruby:${RUBY_VERSION}"
+            },
+            "env": [
+              {
+                "name": "RUBYGEM_MIRROR",
+                "value": "${RUBYGEM_MIRROR}"
+              }
+            ]
+          }
+        },
+        "output": {
+          "to": {
+            "kind": "ImageStreamTag",
+            "name": "${NAME}:latest"
+          }
+        },
+        "triggers": [
+          {
+            "type": "ImageChange"
+          },
+          {
+            "type": "ConfigChange"
+          },
+          {
+            "type": "GitHub",
+            "github": {
+              "secret": "${GITHUB_WEBHOOK_SECRET}"
+            }
+          }
+        ]
+      }
+    },
+    {
+      "kind": "Deployment",
+      "apiVersion": "apps/v1",
+      "metadata": {
+        "name": "${NAME}",
+        "annotations": {
+          "description": "Defines how to deploy the application server",
+          "template.alpha.openshift.io/wait-for-ready": "true",
+          "image.openshift.io/triggers": "[{\"from\":{\"kind\":\"ImageStreamTag\",\"name\":\"${NAME}:latest\"},\"fieldPath\": \"spec.template.spec.containers[0].image\"}]"
+        }
+      },
+      "spec": {
+        "strategy": {
+          "type": "RollingUpdate"
+        },
+        "replicas": 1,
+        "selector": {
+          "matchLabels": {
+            "name": "${NAME}"
+          }
+        },
+        "template": {
+          "metadata": {
+            "name": "${NAME}",
+            "labels": {
+              "name": "${NAME}"
+            }
+          },
+          "spec": {
+            "containers": [
+              {
+                "name": "rails-example",
+                "image": " ",
+                "ports": [
+                  {
+                    "containerPort": 8080
+                  }
+                ],
+                "readinessProbe": {
+                  "timeoutSeconds": 3,
+                  "initialDelaySeconds": 3,
+                  "httpGet": {
+                    "path": "/",
+                    "port": 8080
+                  }
+                },
+                "livenessProbe": {
+                    "timeoutSeconds": 3,
+                    "initialDelaySeconds": 30,
+                    "httpGet": {
+                        "path": "/",
+                        "port": 8080
+                    }
+                },
+                "env": [
+                  {
+                    "name": "RAILS_ENV",
+                    "value": "${RAILS_ENV}"
+                  }
+                ],
+                "resources": {
+                  "limits": {
+                  "memory": "${MEMORY_LIMIT}"
+                  }
+                }
+              }
+            ]
+          }
+        }
+      }
+    }
+  ],
+  "parameters": [
+    {
+      "name": "NAME",
+      "displayName": "Name",
+      "description": "The name assigned to all of the frontend objects defined in this template.",
+      "required": true,
+      "value": "rails-example"
+    },
+    {
+      "name": "NAMESPACE",
+      "displayName": "Namespace",
+      "description": "The OpenShift Namespace where the ImageStream resides.",
+      "required": true,
+      "value": "openshift"
+    },
+    {
+      "name": "RUBY_VERSION",
+      "displayName": "Ruby Version",
+      "description": "Version of Ruby image to be used (3.0-ubi8 by default).",
+      "required": true,
+      "value": "3.0-ubi8"
+    },
+    {
+      "name": "MEMORY_LIMIT",
+      "displayName": "Memory Limit",
+      "description": "Maximum amount of memory the container can use.",
+      "required": true,
+      "value": "512Mi"
+    },
+    {
+      "name": "SOURCE_REPOSITORY_URL",
+      "displayName": "Git Repository URL",
+      "required": true,
+      "description": "The URL of the repository with your application source code.",
+      "value": "https://github.com/sclorg/rails-ex.git"
+    },
+    {
+      "name": "SOURCE_REPOSITORY_REF",
+      "displayName": "Git Reference",
+      "description": "Set this to a branch name, tag or other ref of your repository if you are not using the default branch."
+    },
+    {
+      "name": "CONTEXT_DIR",
+      "displayName": "Context Directory",
+      "description": "Set this to the relative path to your project if it is not in the root of your repository."
+    },
+    {
+      "name": "APPLICATION_DOMAIN",
+      "displayName": "Application Hostname",
+      "description": "The exposed hostname that will route to the Rails service, if left blank a value will be defaulted.",
+      "value": ""
+    },
+    {
+      "name": "GITHUB_WEBHOOK_SECRET",
+      "displayName": "GitHub Webhook Secret",
+      "description": "Github trigger secret.  A difficult to guess string encoded as part of the webhook URL.  Not encrypted.",
+      "generate": "expression",
+      "from": "[a-zA-Z0-9]{40}"
+    },
+    {
+      "name": "SECRET_KEY_BASE",
+      "displayName": "Secret Key",
+      "description": "Your secret key for verifying the integrity of signed cookies.",
+      "generate": "expression",
+      "from": "[a-z0-9]{127}"
+    },
+    {
+      "name": "RAILS_ENV",
+      "displayName": "Rails Environment",
+      "required": true,
+      "description": "Environment under which the sample application will run. Could be set to production, development or test.",
+      "value": "production"
+    },
+    {
+      "name": "RUBYGEM_MIRROR",
+      "displayName": "Custom RubyGems Mirror URL",
+      "description": "The custom RubyGems mirror URL",
+      "value": ""
+    }
+  ]
+}
diff --git a/test/run-openshift-remote-cluster b/test/run-openshift-remote-cluster
index 5c7e1387..06933010 100755
--- a/test/run-openshift-remote-cluster
+++ b/test/run-openshift-remote-cluster
@@ -13,9 +13,13 @@ THISDIR=$(dirname ${BASH_SOURCE[0]})
 source "${THISDIR}/test-lib-ruby.sh"
 source "${THISDIR}/test-lib-remote-openshift.sh"
 
+
 TEST_LIST="\
 test_ruby_integration
 test_ruby_imagestream
+test_ruby_s2i_rails_app
+test_ruby_s2i_templates
+test_ruby_s2i_local_templates
 test_latest_imagestreams
 "
 
@@ -29,6 +33,8 @@ ct_os_check_login || exit $OC_ERR
 
 ct_os_tag_image_for_cvp "ruby"
 
+ct_pull_or_import_postgresql || exit $OC_ERR
+
 set -u
 
 # For testing on OpenShift 4 we use internal registry
diff --git a/test/test-lib-ruby.sh b/test/test-lib-ruby.sh
index 4ade627b..d7c4c0f7 100644
--- a/test/test-lib-ruby.sh
+++ b/test/test-lib-ruby.sh
@@ -11,6 +11,24 @@ THISDIR=$(dirname ${BASH_SOURCE[0]})
 source "${THISDIR}/test-lib.sh"
 source "${THISDIR}/test-lib-openshift.sh"
 
+function ct_pull_or_import_postgresql() {
+  postgresql_image="quay.io/sclorg/postgresql-12-c8s"
+  image_short="postgresql:12"
+  image_tag="${image_short}"
+  # Variable CVP is set by CVP pipeline
+  if [ "${CVP:-0}" -eq "0" ]; then
+    # In case of container or OpenShift 4 tests
+    # Pull image before going through tests
+    # Exit in case of failure, because postgresql container is mandatory
+    ct_pull_image "${postgresql_image}" "true"
+  else
+    # Import postgresql-10-centos7 image before running tests on CVP
+    oc import-image "${image_short}:latest" --from="${postgresql_image}:latest" --insecure=true --confirm
+    # Tag postgresql image to "postgresql:10" which is expected by test suite
+    oc tag "${image_short}:latest" "${image_tag}"
+  fi
+}
+
 function test_ruby_integration() {
   ct_os_test_s2i_app "${IMAGE_NAME}" \
                      "https://github.com/sclorg/s2i-ruby-container.git" \
@@ -27,6 +45,35 @@ function test_ruby_imagestream() {
                               ".*"
 }
 
+function test_ruby_s2i_rails_app() {
+  ct_os_test_s2i_app "${IMAGE_NAME}" \
+                    "https://github.com/phracek/rails-ex#master" \
+                    . \
+                    'Welcome to your Rails application'
+}
+
+
+function test_ruby_s2i_templates() {
+  # TODO: this was not working because the referenced example dir was added as part of this commit
+  ct_os_test_template_app "${IMAGE_NAME}" \
+                        "https://raw.githubusercontent.com/sclorg/rails-ex/master/openshift/templates/rails.json" \
+                        "ruby" \
+                        "Welcome to your Rails application" \
+                        8080 http 200 \
+                        "-p SOURCE_REPOSITORY_REF=master -p SOURCE_REPOSITORY_URL=https://github.com/sclorg/rails-ex -p RUBY_VERSION=${VERSION} -p NAME=ruby-testing" \
+                        "quay.io/sclorg/postgresql-12-c8s|postgresql:12-el8"
+}
+
+function test_ruby_s2i_local_templates() {
+  # TODO: this was not working because the referenced example dir was added as part of this commit
+  ct_os_test_template_app "${IMAGE_NAME}" \
+                        "${THISDIR}/examples/rails.json" \
+                        "ruby" \
+                        "Welcome to your Rails application" \
+                        8080 http 200 \
+                        "-p SOURCE_REPOSITORY_REF=master -p SOURCE_REPOSITORY_URL=https://github.com/sclorg/rails-ex -p RUBY_VERSION=${VERSION} -p NAME=ruby-testing" \
+                        "quay.io/sclorg/postgresql-12-c8s|postgresql:12-el8"
+}
 
 function test_latest_imagestreams() {
   local result=1