diff --git a/build-aux/run-system-tests.scm b/build-aux/run-system-tests.scm
index e98de9cb7e..4ce9b83fed 100644
--- a/build-aux/run-system-tests.scm
+++ b/build-aux/run-system-tests.scm
@@ -18,6 +18,7 @@
 
 (define-module (run-system-tests)
   #:use-module (gnu tests base)
+  #:use-module (gnu tests install)
   #:use-module (guix store)
   #:use-module (guix monads)
   #:use-module (guix derivations)
@@ -45,7 +46,8 @@
          (lift1 reverse %store-monad))))
 
 (define %system-tests
-  (list %test-basic-os))
+  (list %test-basic-os
+        %test-installed-os))
 
 (define (run-system-tests . args)
   (with-store store
diff --git a/gnu/local.mk b/gnu/local.mk
index 55fea0e855..150d6af553 100644
--- a/gnu/local.mk
+++ b/gnu/local.mk
@@ -409,7 +409,8 @@ GNU_SYSTEM_MODULES =				\
   %D%/build/vm.scm				\
 						\
   %D%/tests.scm					\
-  %D%/tests/base.scm
+  %D%/tests/base.scm				\
+  %D%/tests/install.scm
 
 
 patchdir = $(guilemoduledir)/%D%/packages/patches
diff --git a/gnu/tests.scm b/gnu/tests.scm
index 7ca80ebf0e..348b5ad40f 100644
--- a/gnu/tests.scm
+++ b/gnu/tests.scm
@@ -22,7 +22,8 @@
   #:use-module (gnu services)
   #:use-module (gnu services shepherd)
   #:export (marionette-service-type
-            marionette-operating-system))
+            marionette-operating-system
+            define-os-with-source))
 
 ;;; Commentary:
 ;;;
@@ -127,4 +128,23 @@ in a virtual machine--i.e., controlled from the host system."
     (services (cons (service marionette-service-type imported-modules)
                     (operating-system-user-services os)))))
 
+(define-syntax define-os-with-source
+  (syntax-rules (use-modules operating-system)
+    "Define two variables: OS containing the given operating system, and
+SOURCE containing the source to define OS as an sexp.
+
+This is convenient when we need both the <operating-system> object so we can
+instantiate it, and the source to create it so we can store in in a file in
+the system under test."
+    ((_ (os source)
+        (use-modules modules ...)
+        (operating-system fields ...))
+     (begin
+       (define os
+         (operating-system fields ...))
+       (define source
+         '(begin
+            (use-modules modules ...)
+            (operating-system fields ...)))))))
+
 ;;; tests.scm ends here
diff --git a/gnu/tests/install.scm b/gnu/tests/install.scm
new file mode 100644
index 0000000000..0b3950a212
--- /dev/null
+++ b/gnu/tests/install.scm
@@ -0,0 +1,205 @@
+;;; GNU Guix --- Functional package management for GNU
+;;; Copyright © 2016 Ludovic Courtès <ludo@gnu.org>
+;;;
+;;; This file is part of GNU Guix.
+;;;
+;;; GNU Guix is free software; you can redistribute it and/or modify it
+;;; under the terms of the GNU General Public License as published by
+;;; the Free Software Foundation; either version 3 of the License, or (at
+;;; your option) any later version.
+;;;
+;;; GNU Guix is distributed in the hope that it will be useful, but
+;;; WITHOUT ANY WARRANTY; without even the implied warranty of
+;;; MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+;;; GNU General Public License for more details.
+;;;
+;;; You should have received a copy of the GNU General Public License
+;;; along with GNU Guix.  If not, see <http://www.gnu.org/licenses/>.
+
+(define-module (gnu tests install)
+  #:use-module (gnu)
+  #:use-module (gnu tests)
+  #:use-module (gnu tests base)
+  #:use-module (gnu system)
+  #:use-module (gnu system install)
+  #:use-module (gnu system vm)
+  #:use-module ((gnu build vm) #:select (qemu-command))
+  #:use-module (gnu packages qemu)
+  #:use-module (gnu packages package-management)
+  #:use-module (guix store)
+  #:use-module (guix monads)
+  #:use-module (guix packages)
+  #:use-module (guix grafts)
+  #:use-module (guix gexp)
+  #:use-module (guix utils)
+  #:export (%test-installed-os))
+
+;;; Commentary:
+;;;
+;;; Test the installation of GuixSD using the documented approach at the
+;;; command line.
+;;;
+;;; Code:
+
+(define-os-with-source (%minimal-os %minimal-os-source)
+  ;; The OS we want to install.
+  (use-modules (gnu) (gnu tests) (srfi srfi-1))
+
+  (operating-system
+    (host-name "liberigilo")
+    (timezone "Europe/Paris")
+    (locale "en_US.UTF-8")
+
+    (bootloader (grub-configuration (device "/dev/vdb")))
+    (kernel-arguments '("console=ttyS0"))
+    (file-systems (cons (file-system
+                          (device "my-root")
+                          (title 'label)
+                          (mount-point "/")
+                          (type "ext4"))
+                        %base-file-systems))
+    (users (cons (user-account
+                  (name "alice")
+                  (comment "Bob's sister")
+                  (group "users")
+                  (supplementary-groups '("wheel" "audio" "video"))
+                  (home-directory "/home/alice"))
+                 %base-user-accounts))
+    (services (cons (service marionette-service-type
+                             '((gnu services herd)
+                               (guix combinators)))
+                    %base-services))))
+
+(define (operating-system-with-current-guix os)
+  "Return a variant of OS that uses the current Guix."
+  (operating-system
+    (inherit os)
+    (services (modify-services (operating-system-user-services os)
+                (guix-service-type config =>
+                                   (guix-configuration
+                                    (inherit config)
+                                    (guix (current-guix))))))))
+
+(define (operating-system-with-gc-roots os roots)
+  "Return a variant of OS where ROOTS are registered as GC roots."
+  (operating-system
+    (inherit os)
+    (services (cons (service gc-root-service-type roots)
+                    (operating-system-user-services os)))))
+
+
+(define MiB (expt 2 20))
+
+(define* (run-install #:key
+                      (os (marionette-operating-system
+                           ;; Since the image has no network access, use the
+                           ;; current Guix so the store items we need are in
+                           ;; the image.
+                           (operating-system
+                             (inherit (operating-system-with-current-guix
+                                       installation-os))
+                             (kernel-arguments '("console=ttyS0")))
+                           #:imported-modules '((gnu services herd)
+                                                (guix combinators))))
+                      (target-size (* 1200 MiB)))
+  "Run the GuixSD installation procedure from OS and return a VM image of
+TARGET-SIZE bytes containing the installed system."
+
+  (mlet* %store-monad ((_      (set-grafting #f))
+                       (system (current-system))
+                       (target (operating-system-derivation %minimal-os))
+
+                       ;; Since the installation system has no network access,
+                       ;; we cheat a little bit by adding TARGET to its GC
+                       ;; roots.  This way, we know 'guix system init' will
+                       ;; succeed.
+                       (image  (system-disk-image
+                                (operating-system-with-gc-roots
+                                 os (list target))
+                                #:disk-image-size (* 1500 MiB))))
+    (define install
+      #~(begin
+          (use-modules (guix build utils)
+                       (gnu build marionette))
+
+          (set-path-environment-variable "PATH" '("bin")
+                                         (list #$qemu-minimal))
+
+          (system* "qemu-img" "create" "-f" "qcow2"
+                   #$output #$(number->string target-size))
+
+          (define marionette
+            (make-marionette
+             (cons (which #$(qemu-command system))
+                   (cons* "-no-reboot" "-m" "800"
+                          "-drive"
+                          (string-append "file=" #$image
+                                         ",if=virtio,readonly")
+                          "-drive"
+                          (string-append "file=" #$output ",if=virtio")
+                          (if (file-exists? "/dev/kvm")
+                              '("-enable-kvm")
+                              '())))))
+
+          (pk 'uname (marionette-eval '(uname) marionette))
+
+          ;; Wait for tty1.
+          (marionette-eval '(begin
+                              (use-modules (gnu services herd))
+                              (start 'term-tty1))
+                           marionette)
+
+          (marionette-eval '(call-with-output-file "/etc/litl-config.scm"
+                              (lambda (port)
+                                (write '#$%minimal-os-source port)))
+                           marionette)
+
+          (exit (marionette-eval '(zero? (system "
+. /etc/profile
+set -e -x;
+guix --version
+guix gc --list-live | grep isc-dhcp
+
+export GUIX_BUILD_OPTIONS=--no-grafts
+guix build isc-dhcp
+parted --script /dev/vdb mklabel gpt \\
+  mkpart primary ext2 1M 3M \\
+  mkpart primary ext2 3M 1G \\
+  set 1 boot on \\
+  set 1 bios_grub on
+mkfs.ext4 -L my-root /dev/vdb2
+ls -l /dev/vdb
+mount /dev/vdb2 /mnt
+df -h /mnt
+herd start cow-store /mnt
+mkdir /mnt/etc
+cp /etc/litl-config.scm /mnt/etc/config.scm
+guix system init /mnt/etc/config.scm /mnt --no-substitutes
+sync
+reboot\n"))
+                                 marionette))))
+
+    (gexp->derivation "installation" install
+                      #:modules '((guix build utils)
+                                  (gnu build marionette)))))
+
+
+(define %test-installed-os
+  ;; Test basic functionality of an OS installed like one would do by hand.
+  ;; This test is expensive in terms of CPU and storage usage since we need to
+  ;; build (current-guix) and then store a couple of full system images.
+  (mlet %store-monad ((image  (run-install))
+                      (system (current-system)))
+    (run-basic-test %minimal-os
+                    #~(let ((image #$image))
+                        ;; First we need a writable copy of the image.
+                        (format #t "copying image '~a'...~%" image)
+                        (copy-file image "disk.img")
+                        (chmod "disk.img" #o644)
+                        (list (string-append #$qemu-minimal "/bin/"
+                                             #$(qemu-command system))
+                              "-enable-kvm" "-no-reboot" "-m" "256"
+                              "-drive" "file=disk.img,if=virtio"))
+                    "installed-os")))
+
+;;; install.scm ends here