diff --git a/src/test/groovy/io/openliberty/tools/gradle/InstallFeature_localEsa_Test.groovy b/src/test/groovy/io/openliberty/tools/gradle/InstallFeature_localEsa_Test.groovy
new file mode 100644
index 00000000..b8b91d44
--- /dev/null
+++ b/src/test/groovy/io/openliberty/tools/gradle/InstallFeature_localEsa_Test.groovy
@@ -0,0 +1,43 @@
+package io.openliberty.tools.gradle
+
+import static org.junit.Assert.*
+
+import org.junit.BeforeClass
+import org.junit.After
+import org.junit.AfterClass
+import org.junit.FixMethodOrder
+import org.junit.Test
+import org.junit.runners.MethodSorters
+import io.openliberty.tools.common.plugins.util.PluginExecutionException
+import org.gradle.testkit.runner.BuildResult
+
+class InstallFeature_localEsa_Test extends AbstractIntegrationTest{
+    static File resourceDir = new File("build/resources/test/local-esa-test")
+    static File buildDir = new File(integTestDir, "/LocalEsaTest")
+	static File jsonPath = new File(buildDir, "io/openliberty/features/json-1.0/23.0.0.10/json-1.0-23.0.0.10.esa")
+    def featureFile = new File(buildDir, "build/wlp/lib/features/com.ibm.websphere.appserver.json-1.0.mf")
+    
+
+    @BeforeClass
+    public static void setup() {
+        createTestProject(buildDir, resourceDir, "build.gradle")
+    }
+
+    @Test
+    public void test_localEsa() {
+        try {
+            def jsonFile = new File(buildDir, "build/wlp/lib/features/com.ibm.websphere.appserver.json-1.0.mf")
+            def jspFile = new File(buildDir, "build/wlp/lib/features/com.ibm.websphere.appserver.jsp-2.3.mf")
+            runTasks(buildDir, 'installFeature')
+
+            assert jsonFile.exists() : "json-1.0 cannot be generated"
+            assert jspFile.exists() : "jsp-2.3 cannot be generated"
+            
+        } catch (Exception e) {
+            throw new AssertionError ("test should pass", e)
+        }
+    }
+
+
+
+}
diff --git a/src/test/resources/local-esa-test/build.gradle b/src/test/resources/local-esa-test/build.gradle
new file mode 100644
index 00000000..f50deee2
--- /dev/null
+++ b/src/test/resources/local-esa-test/build.gradle
@@ -0,0 +1,30 @@
+apply plugin: 'liberty'
+
+buildscript {
+    repositories{
+      mavenLocal()
+      mavenCentral()
+      maven {
+            name = 'Sonatype Nexus Snapshots'
+            url = 'https://oss.sonatype.org/content/repositories/snapshots/'
+      }
+    }
+    dependencies {
+        classpath "io.openliberty.tools:liberty-gradle-plugin:$lgpVersion"
+    }
+}
+
+repositories {
+      mavenLocal()
+      mavenCentral()
+}
+
+def featureName = new File(project.projectDir, '/json-1.0-23.0.0.10.esa').toString()
+liberty {
+    runtime = ['group': 'io.openliberty','name':'openliberty-kernel','version':runtimeVersion]
+    server {
+        features {
+            name = [featureName, 'jsp-2.3']
+        }
+    }
+}
diff --git a/src/test/resources/local-esa-test/json-1.0-23.0.0.10.esa b/src/test/resources/local-esa-test/json-1.0-23.0.0.10.esa
new file mode 100644
index 00000000..936d5827
Binary files /dev/null and b/src/test/resources/local-esa-test/json-1.0-23.0.0.10.esa differ
diff --git a/src/test/resources/local-esa-test/json-1.0-23.0.0.10.esa.asc b/src/test/resources/local-esa-test/json-1.0-23.0.0.10.esa.asc
new file mode 100644
index 00000000..07377e14
--- /dev/null
+++ b/src/test/resources/local-esa-test/json-1.0-23.0.0.10.esa.asc
@@ -0,0 +1,17 @@
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+eAkXG+p7uY6tYB4F2pTDmUS0KFwxECiRjpdlbrJeZGbSzrR+ZBI=
+=MrkF
+-----END PGP SIGNATURE-----
diff --git a/src/test/resources/local-esa-test/settings.gradle b/src/test/resources/local-esa-test/settings.gradle
new file mode 100644
index 00000000..c2d3edc1
--- /dev/null
+++ b/src/test/resources/local-esa-test/settings.gradle
@@ -0,0 +1 @@
+//Empty
\ No newline at end of file