diff --git a/acceptance/tests/environment/dynamic_environments.rb b/acceptance/tests/environment/dynamic_environments.rb
new file mode 100644
index 000000000..4a2ad7443
--- /dev/null
+++ b/acceptance/tests/environment/dynamic_environments.rb
@@ -0,0 +1,130 @@
+test_name "Dynamic Environments"
+
+testdir = master.tmpdir('dynamic-environment')
+environmentsdir = "#{testdir}/environments"
+
+step "Prepare manifests and modules"
+def an_environment(envdir, env)
+  content = <<-ENVIRONMENT
+
+####################
+# #{env} environment
+file {
+  "#{envdir}/#{env}":;
+  "#{envdir}/#{env}/hiera":;
+  "#{envdir}/#{env}/manifests":;
+  "#{envdir}/#{env}/modules":;
+  "#{envdir}/#{env}/modules/amod":;
+  "#{envdir}/#{env}/modules/amod/manifests":;
+}
+
+file { "#{envdir}/#{env}/hiera/#{env}.yaml":
+  ensure => file,
+  content => 'foo: foo-#{env}',
+}
+file { "#{envdir}/#{env}/hiera/common.yaml":
+  ensure => file,
+  content => 'foo: foo-common',
+}
+file { "#{envdir}/#{env}/manifests/site.pp":
+  ensure => file,
+  content => '
+    notify { "#{env}-site.pp": }
+    notify { "hiera":
+      message => hiera(foo),
+    }
+    include amod
+  '
+}
+file { "#{envdir}/#{env}/modules/amod/manifests/init.pp":
+  ensure => file,
+  content => '
+    class amod {
+      notify { "#{env}-amod": }
+    }
+  '
+}
+  ENVIRONMENT
+end
+
+manifest = <<-MANIFEST
+File {
+  ensure => directory,
+  owner => #{master['user']},
+  group => #{master['group']},
+  mode => 0750,
+}
+
+file {
+  "#{testdir}":;
+  "#{environmentsdir}":;
+}
+
+file { "#{testdir}/hiera.yaml":
+  ensure => file,
+  content => '
+---
+:backends: yaml
+:yaml:
+  :datadir: "#{environmentsdir}/%{environment}/hiera"
+:hierarchy:
+  - %{environment}
+  - common
+  ',
+}
+
+#{an_environment(environmentsdir, 'production')}
+#{an_environment(environmentsdir, 'testing')}
+MANIFEST
+
+apply_manifest_on(master, manifest, :catch_failures => true)
+
+def test_on_agents(environment, default_env = false)
+  agents.each do |agent|
+    environment_switch = "--environment #{environment}" if !default_env
+    on(agent, puppet("agent -t --server #{master}", environment_switch), :acceptable_exit_codes => [2] ) do
+      assert_match(/#{environment}-site.pp/, stdout)
+      assert_match(/foo-#{environment}/, stdout)
+      assert_match(/#{environment}-amod/, stdout)
+    end
+  end
+end
+
+ssldir = on(master, puppet("master --configprint ssldir")).stdout.chomp
+
+common_opts = {
+    'modulepath' => "#{testdir}/environments/$environment/modules",
+    'hiera_config' => "#{testdir}/hiera.yaml",
+}
+
+master_opts = {
+  'master' => {
+    'manifest' => "#{testdir}/environments/$environment/manifests/site.pp",
+  }.merge(common_opts)
+}
+with_puppet_running_on master, master_opts, testdir do
+  step "Agent run with default environment"
+  test_on_agents('production', true)
+end
+
+master_opts = {
+  'master' => {
+    'manifest' => "#{testdir}/environments/$environment/manifests/site.pp",
+  }.merge(common_opts)
+}
+with_puppet_running_on master, master_opts, testdir do
+  step "Agent run with testing environment"
+  test_on_agents('testing')
+  step "And then agent run with another environment but the same master process"
+  test_on_agents('production')
+end
+
+master_opts = {
+  'master' => {
+    'manifestdir' => "#{testdir}/environments/$environment/manifests",
+  }.merge(common_opts)
+}
+with_puppet_running_on master, master_opts, testdir do
+  step "Agent run with testing environment and manifestdir set instead of manifest"
+  test_on_agents('testing')
+end