diff --git a/bin/kafka-run-class.sh b/bin/kafka-run-class.sh
index fc89f25d9d255..81b423afa1ec9 100755
--- a/bin/kafka-run-class.sh
+++ b/bin/kafka-run-class.sh
@@ -73,28 +73,50 @@ do
   fi
 done
 
-for file in "$base_dir"/clients/build/libs/kafka-clients*.jar;
-do
-  if should_include_file "$file"; then
-    CLASSPATH="$CLASSPATH":"$file"
-  fi
-done
+if [ -z "$UPGRADE_KAFKA_STREAMS_TEST_VERSION" ]; then
+  clients_lib_dir=$(dirname $0)/../clients/build/libs
+  streams_lib_dir=$(dirname $0)/../streams/build/libs
+  rocksdb_lib_dir=$(dirname $0)/../streams/build/dependant-libs-${SCALA_VERSION}
+else
+  clients_lib_dir=/opt/kafka-$UPGRADE_KAFKA_STREAMS_TEST_VERSION/libs
+  streams_lib_dir=$clients_lib_dir
+  rocksdb_lib_dir=$streams_lib_dir
+fi
+
 
-for file in "$base_dir"/streams/build/libs/kafka-streams*.jar;
+for file in "$clients_lib_dir"/kafka-clients*.jar;
 do
   if should_include_file "$file"; then
     CLASSPATH="$CLASSPATH":"$file"
   fi
 done
 
-for file in "$base_dir"/streams/examples/build/libs/kafka-streams-examples*.jar;
+for file in "$streams_lib_dir"/kafka-streams*.jar;
 do
   if should_include_file "$file"; then
     CLASSPATH="$CLASSPATH":"$file"
   fi
 done
 
-for file in "$base_dir"/streams/build/dependant-libs-${SCALA_VERSION}/rocksdb*.jar;
+if [ -z "$UPGRADE_KAFKA_STREAMS_TEST_VERSION" ]; then
+  for file in "$base_dir"/streams/examples/build/libs/kafka-streams-examples*.jar;
+  do
+    if should_include_file "$file"; then
+      CLASSPATH="$CLASSPATH":"$file"
+    fi
+  done
+else
+  VERSION_NO_DOTS=`echo $UPGRADE_KAFKA_STREAMS_TEST_VERSION | sed 's/\.//g'`
+  SHORT_VERSION_NO_DOTS=${VERSION_NO_DOTS:0:((${#VERSION_NO_DOTS} - 1))} # remove last char, ie, bug-fix number
+  for file in "$base_dir"/streams/upgrade-system-tests-$SHORT_VERSION_NO_DOTS/build/libs/kafka-streams-upgrade-system-tests*.jar;
+  do
+    if should_include_file "$file"; then
+      CLASSPATH="$CLASSPATH":"$file"
+    fi
+  done
+fi
+
+for file in "$rocksdb_lib_dir"/rocksdb*.jar;
 do
   CLASSPATH="$CLASSPATH":"$file"
 done
diff --git a/build.gradle b/build.gradle
index 7a3b4119f81cf..727bdeae8a526 100644
--- a/build.gradle
+++ b/build.gradle
@@ -961,6 +961,54 @@ project(':streams:examples') {
   }
 }
 
+project(':streams:upgrade-system-tests-0100') {
+  archivesBaseName = "kafka-streams-upgrade-system-tests-0100"
+
+  dependencies {
+    testCompile libs.kafkaStreams_0100
+  }
+
+  systemTestLibs {
+    dependsOn testJar
+  }
+}
+
+project(':streams:upgrade-system-tests-0101') {
+  archivesBaseName = "kafka-streams-upgrade-system-tests-0101"
+
+  dependencies {
+    testCompile libs.kafkaStreams_0101
+  }
+
+  systemTestLibs {
+    dependsOn testJar
+  }
+}
+
+project(':streams:upgrade-system-tests-0102') {
+  archivesBaseName = "kafka-streams-upgrade-system-tests-0102"
+
+  dependencies {
+    testCompile libs.kafkaStreams_0102
+  }
+
+  systemTestLibs {
+    dependsOn testJar
+  }
+}
+
+project(':streams:upgrade-system-tests-0110') {
+  archivesBaseName = "kafka-streams-upgrade-system-tests-0110"
+
+  dependencies {
+    testCompile libs.kafkaStreams_0110
+  }
+
+  systemTestLibs {
+    dependsOn testJar
+  }
+}
+
 project(':jmh-benchmarks') {
 
   apply plugin: 'com.github.johnrengelman.shadow'
diff --git a/checkstyle/suppressions.xml b/checkstyle/suppressions.xml
index acff3f625bcb3..bc7a2bd5779fa 100644
--- a/checkstyle/suppressions.xml
+++ b/checkstyle/suppressions.xml
@@ -181,7 +181,7 @@
               files="SmokeTestDriver.java"/>
 
     <suppress checks="NPathComplexity"
-              files="KStreamKStreamJoinTest.java"/>
+              files="KStreamKStreamJoinTest.java|SmokeTestDriver.java"/>
     <suppress checks="NPathComplexity"
               files="KStreamKStreamLeftJoinTest.java"/>
 
diff --git a/clients/src/main/java/org/apache/kafka/common/security/authenticator/SaslClientCallbackHandler.java b/clients/src/main/java/org/apache/kafka/common/security/authenticator/SaslClientCallbackHandler.java
index 4756387bba8a8..4853f92ed6a86 100644
--- a/clients/src/main/java/org/apache/kafka/common/security/authenticator/SaslClientCallbackHandler.java
+++ b/clients/src/main/java/org/apache/kafka/common/security/authenticator/SaslClientCallbackHandler.java
@@ -16,7 +16,8 @@
  */
 package org.apache.kafka.common.security.authenticator;
 
-import java.util.Map;
+import org.apache.kafka.common.config.SaslConfigs;
+import org.apache.kafka.common.network.Mode;
 
 import javax.security.auth.Subject;
 import javax.security.auth.callback.Callback;
@@ -25,9 +26,7 @@
 import javax.security.auth.callback.UnsupportedCallbackException;
 import javax.security.sasl.AuthorizeCallback;
 import javax.security.sasl.RealmCallback;
-
-import org.apache.kafka.common.config.SaslConfigs;
-import org.apache.kafka.common.network.Mode;
+import java.util.Map;
 
 /**
  * Callback handler for Sasl clients. The callbacks required for the SASL mechanism
diff --git a/docs/streams/upgrade-guide.html b/docs/streams/upgrade-guide.html
index 87d34f127a70c..58cb91c7e62ef 100644
--- a/docs/streams/upgrade-guide.html
+++ b/docs/streams/upgrade-guide.html
@@ -34,28 +34,46 @@ <h1>Upgrade Guide &amp; API Changes</h1>
     </div>
 
     <p>
-        If you want to upgrade from 0.11.0.x to 1.0.0 you don't need to do any code changes as the public API is fully backward compatible.
+        If you want to upgrade from 0.10.2.x or 0.11.0.x to 1.0.x you don't need to do any code changes as the public API is fully backward compatible.
         However, some public APIs were deprecated and thus it is recommended to update your code eventually to allow for future upgrades.
-        See <a href="#streams_api_changes_100">below</a> a complete list of 1.0.0 API and semantic changes that allow you to advance your application and/or simplify your code base, including the usage of new features.
+        See below a complete list of <a href="#streams_api_changes_100">1.0</a> and <a href="#streams_api_changes_0110">0.11.0</a> API
+        and semantic changes that allow you to advance your application and/or simplify your code base, including the usage of new features.
+        Additionally, Streams API 1.0.x requires broker on-disk message format version 0.10 or higher; thus, you need to make sure that the message
+        format is configured correctly before you upgrade your Kafka Streams application.
     </p>
 
     <p>
-        If you want to upgrade from 0.10.2.x to 0.11.0 you don't need to do any code changes as the public API is fully backward compatible.
-        However, some configuration parameters were deprecated and thus it is recommended to update your code eventually to allow for future upgrades.
-        See <a href="#streams_api_changes_0110">below</a> a complete list of 0.11.0 API and semantic changes that allow you to advance your application and/or simplify your code base, including the usage of new features.
+        If you want to upgrade from 0.10.1.x to 1.0.x see the Upgrade Sections for <a href="/{{version}}/documentation/#upgrade_1020_streams"><b>0.10.2</b></a>,
+        <a href="/{{version}}/documentation/#upgrade_1100_streams"><b>0.11.0</b></a>, and
+        <a href="/{{version}}/documentation/#upgrade_100_streams"><b>1.0</b></a>.
+        Note, that a brokers on-disk message format must be on version 0.10 or higher to run a Kafka Streams application version 1.0 or higher.
+        See below a complete list of <a href="#streams_api_changes_0102">0.10.2</a>, <a href="#streams_api_changes_0110">0.11.0</a>,
+        and <a href="#streams_api_changes_100">1.0</a> API and semantical changes that allow you to advance your application and/or simplify your code base, including the usage of new features.
     </p>
 
     <p>
-        If you want to upgrade from 0.10.1.x to 0.10.2, see the <a href="/{{version}}/documentation/#upgrade_1020_streams"><b>Upgrade Section for 0.10.2</b></a>.
-        It highlights incompatible changes you need to consider to upgrade your code and application.
-        See <a href="#streams_api_changes_0102">below</a> a complete list of 0.10.2 API and semantic changes that allow you to advance your application and/or simplify your code base, including the usage of new features.
-    </p>
-
-    <p>
-        If you want to upgrade from 0.10.0.x to 0.10.1, see the <a href="/{{version}}/documentation/#upgrade_1010_streams"><b>Upgrade Section for 0.10.1</b></a>.
-        It highlights incompatible changes you need to consider to upgrade your code and application.
-        See <a href="#streams_api_changes_0101">below</a> a complete list of 0.10.1 API changes that allow you to advance your application and/or simplify your code base, including the usage of new features.
+        Upgrading from 0.10.0.x to 1.0.x directly is also possible.
+        Note, that a brokers must be on version 0.10.1 or higher and on-disk message format must be on version 0.10 or higher
+        to run a Kafka Streams application version 1.0 or higher.
+        See <a href="#streams_api_changes_0101">Streams API changes in 0.10.1</a>, <a href="#streams_api_changes_0102">Streams API changes in 0.10.2</a>,
+        <a href="#streams_api_changes_0110">Streams API changes in 0.11.0</a>, and <a href="#streams_api_changes_100">Streams API changes in 1.0</a>
+        for a complete list of API changes.
+        Upgrading to 1.0.2 requires two rolling bounces with config <code>upgrade.from="0.10.0"</code> set for first upgrade phase
+        (cf. <a href="https://cwiki.apache.org/confluence/display/KAFKA/KIP-268%3A+Simplify+Kafka+Streams+Rebalance+Metadata+Upgrade">KIP-268</a>).
+        As an alternative, an offline upgrade is also possible.
     </p>
+    <ul>
+        <li> prepare your application instances for a rolling bounce and make sure that config <code>upgrade.from</code> is set to <code>"0.10.0"</code> for new version 1.0.2</li>
+        <li> bounce each instance of your application once </li>
+        <li> prepare your newly deployed 1.0.2 application instances for a second round of rolling bounces; make sure to remove the value for config <code>upgrade.mode</code> </li>
+        <li> bounce each instance of your application once more to complete the upgrade </li>
+    </ul>
+    <p> Upgrading from 0.10.0.x to 1.0.0 or 1.0.1 requires an offline upgrade (rolling bounce upgrade is not supported) </p>
+    <ul>
+        <li> stop all old (0.10.0.x) application instances </li>
+        <li> update your code and swap old code and jar file with new code and new jar file </li>
+        <li> restart all new (1.0.0 or 1.0.1) application instances </li>
+    </ul>
 
     <h3><a id="streams_api_changes_100" href="#streams_api_changes_100">Streams API changes in 1.0.0</a></h3>
 
diff --git a/docs/upgrade.html b/docs/upgrade.html
index caf8e1cb27662..33b94d4299c8e 100644
--- a/docs/upgrade.html
+++ b/docs/upgrade.html
@@ -129,17 +129,77 @@ <h5><a id="upgrade_100_new_protocols" href="#upgrade_100_new_protocols">New Prot
          be used if the SaslHandshake request version is greater than 0. </li>
 </ul>
 
-<h5><a id="upgrade_100_streams" href="#upgrade_100_streams">Upgrading a 1.0.0 Kafka Streams Application</a></h5>
+<h5><a id="upgrade_100_streams" href="#upgrade_100_streams">Upgrading a 0.11.0 Kafka Streams Application</a></h5>
 <ul>
     <li> Upgrading your Streams application from 0.11.0 to 1.0.0 does not require a broker upgrade.
-        A Kafka Streams 1.0.0 application can connect to 0.11.0, 0.10.2 and 0.10.1 brokers (it is not possible to connect to 0.10.0 brokers though).
-        However, Kafka Streams 1.0 requires 0.10 message format or newer and does not work with older message formats. </li>
+         A Kafka Streams 1.0.0 application can connect to 0.11.0, 0.10.2 and 0.10.1 brokers (it is not possible to connect to 0.10.0 brokers though).
+         However, Kafka Streams 1.0 requires 0.10 message format or newer and does not work with older message formats. </li>
     <li> If you are monitoring on streams metrics, you will need make some changes to the metrics names in your reporting and monitoring code, because the metrics sensor hierarchy was changed. </li>
     <li> There are a few public APIs including <code>ProcessorContext#schedule()</code>, <code>Processor#punctuate()</code> and <code>KStreamBuilder</code>, <code>TopologyBuilder</code> are being deprecated by new APIs.
-        We recommend making corresponding code changes, which should be very minor since the new APIs look quite similar, when you upgrade.
+         We recommend making corresponding code changes, which should be very minor since the new APIs look quite similar, when you upgrade.
     <li> See <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_100">Streams API changes in 1.0.0</a> for more details. </li>
 </ul>
 
+<h5><a id="upgrade_100_streams_from_0102" href="#upgrade_100_streams_from_0102">Upgrading a 0.10.2 Kafka Streams Application</a></h5>
+<ul>
+    <li> Upgrading your Streams application from 0.10.2 to 1.0 does not require a broker upgrade.
+         A Kafka Streams 1.0 application can connect to 1.0, 0.11.0, 0.10.2 and 0.10.1 brokers (it is not possible to connect to 0.10.0 brokers though). </li>
+    <li> If you are monitoring on streams metrics, you will need make some changes to the metrics names in your reporting and monitoring code, because the metrics sensor hierarchy was changed. </li>
+    <li> There are a few public APIs including <code>ProcessorContext#schedule()</code>, <code>Processor#punctuate()</code> and <code>KStreamBuilder</code>, <code>TopologyBuilder</code> are being deprecated by new APIs.
+         We recommend making corresponding code changes, which should be very minor since the new APIs look quite similar, when you upgrade.
+    <li> If you specify customized <code>key.serde</code>, <code>value.serde</code> and <code>timestamp.extractor</code> in configs, it is recommended to use their replaced configure parameter as these configs are deprecated. </li>
+    <li> See <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_0110">Streams API changes in 0.11.0</a> for more details. </li>
+</ul>
+
+<h5><a id="upgrade_100_streams_from_0101" href="#upgrade_1100_streams_from_0101">Upgrading a 0.10.1 Kafka Streams Application</a></h5>
+<ul>
+    <li> Upgrading your Streams application from 0.10.1 to 1.0 does not require a broker upgrade.
+         A Kafka Streams 1.0 application can connect to 1.0, 0.11.0, 0.10.2 and 0.10.1 brokers (it is not possible to connect to 0.10.0 brokers though). </li>
+    <li> You need to recompile your code. Just swapping the Kafka Streams library jar file will not work and will break your application. </li>
+    <li> If you are monitoring on streams metrics, you will need make some changes to the metrics names in your reporting and monitoring code, because the metrics sensor hierarchy was changed. </li>
+    <li> There are a few public APIs including <code>ProcessorContext#schedule()</code>, <code>Processor#punctuate()</code> and <code>KStreamBuilder</code>, <code>TopologyBuilder</code> are being deprecated by new APIs.
+         We recommend making corresponding code changes, which should be very minor since the new APIs look quite similar, when you upgrade.
+    <li> If you specify customized <code>key.serde</code>, <code>value.serde</code> and <code>timestamp.extractor</code> in configs, it is recommended to use their replaced configure parameter as these configs are deprecated. </li>
+    <li> If you use a custom (i.e., user implemented) timestamp extractor, you will need to update this code, because the <code>TimestampExtractor</code> interface was changed. </li>
+    <li> If you register custom metrics, you will need to update this code, because the <code>StreamsMetric</code> interface was changed. </li>
+    <li> See <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_100">Streams API changes in 1.0.0</a>,
+         <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_0110">Streams API changes in 0.11.0</a> and
+         <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_0102">Streams API changes in 0.10.2</a> for more details. </li>
+</ul>
+
+<h5><a id="upgrade_100_streams_from_0100" href="#upgrade_100_streams_from_0100">Upgrading a 0.10.0 Kafka Streams Application</a></h5>
+<ul>
+    <li> Upgrading your Streams application from 0.10.0 to 1.0 does require a <a href="#upgrade_10_1">broker upgrade</a> because a Kafka Streams 1.0 application can only connect to 0.1, 0.11.0, 0.10.2, or 0.10.1 brokers. </li>
+    <li> There are couple of API changes, that are not backward compatible (cf. <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_100">Streams API changes in 1.0.0</a>,
+         <a href="/{{version}}/documentation/streams#streams_api_changes_0110">Streams API changes in 0.11.0</a>,
+         <a href="/{{version}}/documentation/streams#streams_api_changes_0102">Streams API changes in 0.10.2</a>, and
+         <a href="/{{version}}/documentation/streams#streams_api_changes_0101">Streams API changes in 0.10.1</a> for more details).
+         Thus, you need to update and recompile your code. Just swapping the Kafka Streams library jar file will not work and will break your application. </li>
+    <li> Upgrading from 0.10.0.x to 1.0.2 requires two rolling bounces with config <code>upgrade.from="0.10.0"</code> set for first upgrade phase
+        (cf. <a href="https://cwiki.apache.org/confluence/display/KAFKA/KIP-268%3A+Simplify+Kafka+Streams+Rebalance+Metadata+Upgrade">KIP-268</a>).
+        As an alternative, an offline upgrade is also possible.
+        <ul>
+            <li> prepare your application instances for a rolling bounce and make sure that config <code>upgrade.from</code> is set to <code>"0.10.0"</code> for new version 0.11.0.3 </li>
+            <li> bounce each instance of your application once </li>
+            <li> prepare your newly deployed 1.0.2 application instances for a second round of rolling bounces; make sure to remove the value for config <code>upgrade.mode</code> </li>
+            <li> bounce each instance of your application once more to complete the upgrade </li>
+        </ul>
+    </li>
+    <li> Upgrading from 0.10.0.x to 1.0.0 or 1.0.1 requires an offline upgrade (rolling bounce upgrade is not supported)
+        <ul>
+            <li> stop all old (0.10.0.x) application instances </li>
+            <li> update your code and swap old code and jar file with new code and new jar file </li>
+            <li> restart all new (1.0.0 or 1.0.1) application instances </li>
+        </ul>
+    </li>
+</ul>
+
+<h5><a id="upgrade_102_notable" href="#upgrade_102_notable">Notable changes in 1.0.2</a></h5>
+<ul>
+    <li> New Kafka Streams configuration parameter <code>upgrade.from</code> added that allows rolling bounce upgrade from version 0.10.0.x </li>
+    <li> See the <a href="/{{version}}/documentation/streams/upgrade-guide.html"><b>Kafka Streams upgrade guide</b></a> for details about this new config.
+</ul>
+
 <h4><a id="upgrade_11_0_0" href="#upgrade_11_0_0">Upgrading from 0.8.x, 0.9.x, 0.10.0.x, 0.10.1.x or 0.10.2.x to 0.11.0.0</a></h4>
 <p>Kafka 0.11.0.0 introduces a new message format version as well as wire protocol changes. By following the recommended rolling upgrade plan below,
   you guarantee no downtime during the upgrade. However, please review the <a href="#upgrade_1100_notable">notable changes in 0.11.0.0</a> before upgrading.
@@ -188,11 +248,55 @@ <h4><a id="upgrade_11_0_0" href="#upgrade_11_0_0">Upgrading from 0.8.x, 0.9.x, 0
 <h5><a id="upgrade_1100_streams" href="#upgrade_1100_streams">Upgrading a 0.10.2 Kafka Streams Application</a></h5>
 <ul>
     <li> Upgrading your Streams application from 0.10.2 to 0.11.0 does not require a broker upgrade.
-        A Kafka Streams 0.11.0 application can connect to 0.11.0, 0.10.2 and 0.10.1 brokers (it is not possible to connect to 0.10.0 brokers though). </li>
+         A Kafka Streams 0.11.0 application can connect to 0.11.0, 0.10.2 and 0.10.1 brokers (it is not possible to connect to 0.10.0 brokers though). </li>
     <li> If you specify customized <code>key.serde</code>, <code>value.serde</code> and <code>timestamp.extractor</code> in configs, it is recommended to use their replaced configure parameter as these configs are deprecated. </li>
     <li> See <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_0110">Streams API changes in 0.11.0</a> for more details. </li>
 </ul>
 
+<h5><a id="upgrade_1100_streams_from_0101" href="#upgrade_1100_streams_from_0101">Upgrading a 0.10.1 Kafka Streams Application</a></h5>
+<ul>
+    <li> Upgrading your Streams application from 0.10.1 to 0.11.0 does not require a broker upgrade.
+         A Kafka Streams 0.11.0 application can connect to 0.11.0, 0.10.2 and 0.10.1 brokers (it is not possible to connect to 0.10.0 brokers though). </li>
+    <li> You need to recompile your code. Just swapping the Kafka Streams library jar file will not work and will break your application. </li>
+    <li> If you specify customized <code>key.serde</code>, <code>value.serde</code> and <code>timestamp.extractor</code> in configs, it is recommended to use their replaced configure parameter as these configs are deprecated. </li>
+    <li> If you use a custom (i.e., user implemented) timestamp extractor, you will need to update this code, because the <code>TimestampExtractor</code> interface was changed. </li>
+    <li> If you register custom metrics, you will need to update this code, because the <code>StreamsMetric</code> interface was changed. </li>
+    <li> See <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_0110">Streams API changes in 0.11.0</a> and
+         <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_0102">Streams API changes in 0.10.2</a> for more details. </li>
+</ul>
+
+<h5><a id="upgrade_1100_streams_from_0100" href="#upgrade_1100_streams_from_0100">Upgrading a 0.10.0 Kafka Streams Application</a></h5>
+<ul>
+    <li> Upgrading your Streams application from 0.10.0 to 0.11.0 does require a <a href="#upgrade_10_1">broker upgrade</a> because a Kafka Streams 0.11.0 application can only connect to 0.11.0, 0.10.2, or 0.10.1 brokers. </li>
+    <li> There are couple of API changes, that are not backward compatible (cf. <a href="/{{version}}/documentation/streams#streams_api_changes_0110">Streams API changes in 0.11.0</a>,
+         <a href="/{{version}}/documentation/streams#streams_api_changes_0102">Streams API changes in 0.10.2</a>, and
+         <a href="/{{version}}/documentation/streams#streams_api_changes_0101">Streams API changes in 0.10.1</a> for more details).
+         Thus, you need to update and recompile your code. Just swapping the Kafka Streams library jar file will not work and will break your application. </li>
+    <li> Upgrading from 0.10.0.x to 0.11.0.3 requires two rolling bounces with config <code>upgrade.from="0.10.0"</code> set for first upgrade phase
+        (cf. <a href="https://cwiki.apache.org/confluence/display/KAFKA/KIP-268%3A+Simplify+Kafka+Streams+Rebalance+Metadata+Upgrade">KIP-268</a>).
+        As an alternative, an offline upgrade is also possible.
+        <ul>
+            <li> prepare your application instances for a rolling bounce and make sure that config <code>upgrade.from</code> is set to <code>"0.10.0"</code> for new version 0.11.0.3 </li>
+            <li> bounce each instance of your application once </li>
+            <li> prepare your newly deployed 0.11.0.3 application instances for a second round of rolling bounces; make sure to remove the value for config <code>upgrade.mode</code> </li>
+            <li> bounce each instance of your application once more to complete the upgrade </li>
+        </ul>
+    </li>
+    <li> Upgrading from 0.10.0.x to 0.11.0.0, 0.11.0.1, or 0.11.0.2 requires an offline upgrade (rolling bounce upgrade is not supported)
+        <ul>
+            <li> stop all old (0.10.0.x) application instances </li>
+            <li> update your code and swap old code and jar file with new code and new jar file </li>
+            <li> restart all new (0.11.0.0 , 0.11.0.1, or 0.11.0.2) application instances </li>
+        </ul>
+    </li>
+</ul>
+
+<h5><a id="upgrade_1103_notable" href="#upgrade_1103_notable">Notable changes in 0.11.0.3</a></h5>
+<ul>
+    <li> New Kafka Streams configuration parameter <code>upgrade.from</code> added that allows rolling bounce upgrade from version 0.10.0.x </li>
+    <li> See the <a href="/{{version}}/documentation/streams/upgrade-guide.html"><b>Kafka Streams upgrade guide</b></a> for details about this new config.
+</ul>
+
 <h5><a id="upgrade_1100_notable" href="#upgrade_1100_notable">Notable changes in 0.11.0.0</a></h5>
 <ul>
     <li>Unclean leader election is now disabled by default. The new default favors durability over availability. Users who wish to
@@ -343,6 +447,35 @@ <h5><a id="upgrade_1020_streams" href="#upgrade_1020_streams">Upgrading a 0.10.1
     <li> See <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_0102">Streams API changes in 0.10.2</a> for more details. </li>
 </ul>
 
+<h5><a id="upgrade_1020_streams_from_0100" href="#upgrade_1020_streams_from_0100">Upgrading a 0.10.0 Kafka Streams Application</a></h5>
+<ul>
+    <li> Upgrading your Streams application from 0.10.0 to 0.10.2 does require a <a href="#upgrade_10_1">broker upgrade</a> because a Kafka Streams 0.10.2 application can only connect to 0.10.2 or 0.10.1 brokers. </li>
+    <li> There are couple of API changes, that are not backward compatible (cf. <a href="/{{version}}/documentation/streams#streams_api_changes_0102">Streams API changes in 0.10.2</a> for more details).
+         Thus, you need to update and recompile your code. Just swapping the Kafka Streams library jar file will not work and will break your application. </li>
+    <li> Upgrading from 0.10.0.x to 0.10.2.2 requires two rolling bounces with config <code>upgrade.from="0.10.0"</code> set for first upgrade phase
+         (cf. <a href="https://cwiki.apache.org/confluence/display/KAFKA/KIP-268%3A+Simplify+Kafka+Streams+Rebalance+Metadata+Upgrade">KIP-268</a>).
+         As an alternative, an offline upgrade is also possible.
+        <ul>
+            <li> prepare your application instances for a rolling bounce and make sure that config <code>upgrade.from</code> is set to <code>"0.10.0"</code> for new version 0.10.2.2 </li>
+            <li> bounce each instance of your application once </li>
+            <li> prepare your newly deployed 0.10.2.2 application instances for a second round of rolling bounces; make sure to remove the value for config <code>upgrade.mode</code> </li>
+            <li> bounce each instance of your application once more to complete the upgrade </li>
+        </ul>
+    </li>
+    <li> Upgrading from 0.10.0.x to 0.10.2.0 or 0.10.2.1 requires an offline upgrade (rolling bounce upgrade is not supported)
+        <ul>
+            <li> stop all old (0.10.0.x) application instances </li>
+            <li> update your code and swap old code and jar file with new code and new jar file </li>
+            <li> restart all new (0.10.2.0 or 0.10.2.1) application instances </li>
+        </ul>
+    </li>
+</ul>
+
+<h5><a id="upgrade_10202_notable" href="#upgrade_10202_notable">Notable changes in 0.10.2.2</a></h5>
+<ul>
+    <li> New configuration parameter <code>upgrade.from</code> added that allows rolling bounce upgrade from version 0.10.0.x </li>
+</ul>
+
 <h5><a id="upgrade_10201_notable" href="#upgrade_10201_notable">Notable changes in 0.10.2.1</a></h5>
 <ul>
   <li> The default values for two configurations of the StreamsConfig class were changed to improve the resiliency of Kafka Streams applications. The internal Kafka Streams producer <code>retries</code> default value was changed from 0 to 10. The internal Kafka Streams consumer <code>max.poll.interval.ms</code>  default value was changed from 300000 to <code>Integer.MAX_VALUE</code>.
@@ -421,6 +554,23 @@ <h5><a id="upgrade_1010_streams" href="#upgrade_1010_streams">Upgrading a 0.10.0
     <li> Upgrading your Streams application from 0.10.0 to 0.10.1 does require a <a href="#upgrade_10_1">broker upgrade</a> because a Kafka Streams 0.10.1 application can only connect to 0.10.1 brokers. </li>
     <li> There are couple of API changes, that are not backward compatible (cf. <a href="/{{version}}/documentation/streams/upgrade-guide#streams_api_changes_0101">Streams API changes in 0.10.1</a> for more details).
          Thus, you need to update and recompile your code. Just swapping the Kafka Streams library jar file will not work and will break your application. </li>
+    <li> Upgrading from 0.10.0.x to 0.10.1.2 requires two rolling bounces with config <code>upgrade.from="0.10.0"</code> set for first upgrade phase
+         (cf. <a href="https://cwiki.apache.org/confluence/display/KAFKA/KIP-268%3A+Simplify+Kafka+Streams+Rebalance+Metadata+Upgrade">KIP-268</a>).
+         As an alternative, an offline upgrade is also possible.
+        <ul>
+            <li> prepare your application instances for a rolling bounce and make sure that config <code>upgrade.from</code> is set to <code>"0.10.0"</code> for new version 0.10.1.2 </li>
+            <li> bounce each instance of your application once </li>
+            <li> prepare your newly deployed 0.10.1.2 application instances for a second round of rolling bounces; make sure to remove the value for config <code>upgrade.mode</code> </li>
+            <li> bounce each instance of your application once more to complete the upgrade </li>
+        </ul>
+    </li>
+    <li> Upgrading from 0.10.0.x to 0.10.1.0 or 0.10.1.1 requires an offline upgrade (rolling bounce upgrade is not supported)
+        <ul>
+            <li> stop all old (0.10.0.x) application instances </li>
+            <li> update your code and swap old code and jar file with new code and new jar file </li>
+            <li> restart all new (0.10.1.0 or 0.10.1.1) application instances </li>
+        </ul>
+    </li>
 </ul>
 
 <h5><a id="upgrade_1010_notable" href="#upgrade_1010_notable">Notable changes in 0.10.1.0</a></h5>
diff --git a/gradle/dependencies.gradle b/gradle/dependencies.gradle
index cfb0b9bb39c13..f7027cf9de42e 100644
--- a/gradle/dependencies.gradle
+++ b/gradle/dependencies.gradle
@@ -59,6 +59,10 @@ versions += [
   log4j: "1.2.17",
   jopt: "5.0.4",
   junit: "4.12",
+  kafka_0100: "0.10.0.1",
+  kafka_0101: "0.10.1.1",
+  kafka_0102: "0.10.2.1",
+  kafka_0110: "0.11.0.2",
   lz4: "1.4",
   metrics: "2.2.0",
   // PowerMock 1.x doesn't support Java 9, so use PowerMock 2.0.0 beta
@@ -95,11 +99,15 @@ libs += [
   jettyServlets: "org.eclipse.jetty:jetty-servlets:$versions.jetty",
   jerseyContainerServlet: "org.glassfish.jersey.containers:jersey-container-servlet:$versions.jersey",
   jmhCore: "org.openjdk.jmh:jmh-core:$versions.jmh",
-  jmhGeneratorAnnProcess: "org.openjdk.jmh:jmh-generator-annprocess:$versions.jmh",
   jmhCoreBenchmarks: "org.openjdk.jmh:jmh-core-benchmarks:$versions.jmh",
+  jmhGeneratorAnnProcess: "org.openjdk.jmh:jmh-generator-annprocess:$versions.jmh",
+  joptSimple: "net.sf.jopt-simple:jopt-simple:$versions.jopt",
   junit: "junit:junit:$versions.junit",
+  kafkaStreams_0100: "org.apache.kafka:kafka-streams:$versions.kafka_0100",
+  kafkaStreams_0101: "org.apache.kafka:kafka-streams:$versions.kafka_0101",
+  kafkaStreams_0102: "org.apache.kafka:kafka-streams:$versions.kafka_0102",
+  kafkaStreams_0110: "org.apache.kafka:kafka-streams:$versions.kafka_0110",
   log4j: "log4j:log4j:$versions.log4j",
-  joptSimple: "net.sf.jopt-simple:jopt-simple:$versions.jopt",
   lz4: "org.lz4:lz4-java:$versions.lz4",
   metrics: "com.yammer.metrics:metrics-core:$versions.metrics",
   powermockJunit4: "org.powermock:powermock-module-junit4:$versions.powermock",
diff --git a/settings.gradle b/settings.gradle
index f0fdf07128c43..2820287b11edc 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -13,5 +13,7 @@
 // See the License for the specific language governing permissions and
 // limitations under the License.
 
-include 'core', 'examples', 'clients', 'tools', 'streams', 'streams:examples', 'log4j-appender',
+include 'core', 'examples', 'clients', 'tools', 'streams', 'streams:examples', 'streams:upgrade-system-tests-0100',
+        'streams:upgrade-system-tests-0101', 'streams:upgrade-system-tests-0102', 'streams:upgrade-system-tests-0110',
+        'log4j-appender',
         'connect:api', 'connect:transforms', 'connect:runtime', 'connect:json', 'connect:file', 'jmh-benchmarks'
diff --git a/streams/src/main/java/org/apache/kafka/streams/StreamsConfig.java b/streams/src/main/java/org/apache/kafka/streams/StreamsConfig.java
index 42e65df92a6c2..7510e381d394b 100644
--- a/streams/src/main/java/org/apache/kafka/streams/StreamsConfig.java
+++ b/streams/src/main/java/org/apache/kafka/streams/StreamsConfig.java
@@ -129,6 +129,11 @@ public class StreamsConfig extends AbstractConfig {
      */
     public static final String PRODUCER_PREFIX = "producer.";
 
+    /**
+     * Config value for parameter {@link #UPGRADE_FROM_CONFIG "upgrade.from"} for upgrading an application from version {@code 0.10.0.x}.
+     */
+    public static final String UPGRADE_FROM_0100 = "0.10.0";
+
     /**
      * Config value for parameter {@link #PROCESSING_GUARANTEE_CONFIG "processing.guarantee"} for at-least-once processing guarantees.
      */
@@ -280,6 +285,11 @@ public class StreamsConfig extends AbstractConfig {
     public static final String TIMESTAMP_EXTRACTOR_CLASS_CONFIG = "timestamp.extractor";
     private static final String TIMESTAMP_EXTRACTOR_CLASS_DOC = "Timestamp extractor class that implements the <code>org.apache.kafka.streams.processor.TimestampExtractor</code> interface. This config is deprecated, use <code>" + DEFAULT_TIMESTAMP_EXTRACTOR_CLASS_CONFIG + "</code> instead";
 
+    /** {@code upgrade.from} */
+    public static final String UPGRADE_FROM_CONFIG = "upgrade.from";
+    public static final String UPGRADE_FROM_DOC = "Allows upgrading from version 0.10.0 to version 0.10.1 (or newer) in a backward compatible way. " +
+        "Default is null. Accepted values are \"" + UPGRADE_FROM_0100 + "\" (for upgrading from 0.10.0.x).";
+
     /**
      * {@code value.serde}
      * @deprecated Use {@link #DEFAULT_VALUE_SERDE_CLASS_CONFIG} instead.
@@ -491,6 +501,12 @@ public class StreamsConfig extends AbstractConfig {
                     10 * 60 * 1000,
                     Importance.LOW,
                     STATE_CLEANUP_DELAY_MS_DOC)
+            .define(UPGRADE_FROM_CONFIG,
+                    ConfigDef.Type.STRING,
+                    null,
+                    in(null, UPGRADE_FROM_0100),
+                    Importance.LOW,
+                    UPGRADE_FROM_DOC)
             .define(WINDOW_STORE_CHANGE_LOG_ADDITIONAL_RETENTION_MS_CONFIG,
                     Type.LONG,
                     24 * 60 * 60 * 1000,
@@ -712,6 +728,7 @@ public Map<String, Object> getConsumerConfigs(final StreamThread streamThread,
         consumerProps.put(CommonClientConfigs.CLIENT_ID_CONFIG, clientId + "-consumer");
 
         // add configs required for stream partition assignor
+        consumerProps.put(UPGRADE_FROM_CONFIG, getString(UPGRADE_FROM_CONFIG));
         consumerProps.put(InternalConfig.STREAM_THREAD_INSTANCE, streamThread);
         consumerProps.put(REPLICATION_FACTOR_CONFIG, getInt(REPLICATION_FACTOR_CONFIG));
         consumerProps.put(NUM_STANDBY_REPLICAS_CONFIG, getInt(NUM_STANDBY_REPLICAS_CONFIG));
diff --git a/streams/src/main/java/org/apache/kafka/streams/processor/internals/StreamPartitionAssignor.java b/streams/src/main/java/org/apache/kafka/streams/processor/internals/StreamPartitionAssignor.java
index c4ca2078fb794..ab134be8d30cc 100644
--- a/streams/src/main/java/org/apache/kafka/streams/processor/internals/StreamPartitionAssignor.java
+++ b/streams/src/main/java/org/apache/kafka/streams/processor/internals/StreamPartitionAssignor.java
@@ -175,6 +175,8 @@ public int compare(TopicPartition p1, TopicPartition p2) {
     private String userEndPoint;
     private int numStandbyReplicas;
 
+    private int userMetadataVersion = SubscriptionInfo.CURRENT_VERSION;
+
     private Cluster metadataWithInternalTopics;
     private Map<HostInfo, Set<TopicPartition>> partitionsByHostState;
 
@@ -205,7 +207,13 @@ public void configure(Map<String, ?> configs) {
         // Setting the logger with the passed in client thread name
         logPrefix = String.format("stream-thread [%s] ", configs.get(CommonClientConfigs.CLIENT_ID_CONFIG));
         final LogContext logContext = new LogContext(logPrefix);
-        this.log = logContext.logger(getClass());
+        log = logContext.logger(getClass());
+
+        final String upgradeMode = (String) configs.get(StreamsConfig.UPGRADE_FROM_CONFIG);
+        if (StreamsConfig.UPGRADE_FROM_0100.equals(upgradeMode)) {
+            log.info("Downgrading metadata version from 2 to 1 for upgrade from 0.10.0.x.");
+            userMetadataVersion = 1;
+        }
 
         Object o = configs.get(StreamsConfig.InternalConfig.STREAM_THREAD_INSTANCE);
         if (o == null) {
@@ -266,7 +274,7 @@ public Subscription subscription(Set<String> topics) {
         final Set<TaskId> previousActiveTasks = threadDataProvider.prevActiveTasks();
         Set<TaskId> standbyTasks = threadDataProvider.cachedTasks();
         standbyTasks.removeAll(previousActiveTasks);
-        SubscriptionInfo data = new SubscriptionInfo(threadDataProvider.processId(), previousActiveTasks, standbyTasks, this.userEndPoint);
+        SubscriptionInfo data = new SubscriptionInfo(userMetadataVersion, threadDataProvider.processId(), previousActiveTasks, standbyTasks, this.userEndPoint);
 
         if (threadDataProvider.builder().sourceTopicPattern() != null &&
             !threadDataProvider.builder().subscriptionUpdates().getUpdates().equals(topics)) {
@@ -309,11 +317,16 @@ public Map<String, Assignment> assign(Cluster metadata, Map<String, Subscription
         // construct the client metadata from the decoded subscription info
         Map<UUID, ClientMetadata> clientsMetadata = new HashMap<>();
 
+        int minUserMetadataVersion = SubscriptionInfo.CURRENT_VERSION;
         for (Map.Entry<String, Subscription> entry : subscriptions.entrySet()) {
             String consumerId = entry.getKey();
             Subscription subscription = entry.getValue();
 
             SubscriptionInfo info = SubscriptionInfo.decode(subscription.userData());
+            final int usedVersion = info.version;
+            if (usedVersion < minUserMetadataVersion) {
+                minUserMetadataVersion = usedVersion;
+            }
 
             // create the new client metadata if necessary
             ClientMetadata clientMetadata = clientsMetadata.get(info.processId);
@@ -572,7 +585,7 @@ public Map<String, Assignment> assign(Cluster metadata, Map<String, Subscription
                 }
 
                 // finally, encode the assignment before sending back to coordinator
-                assignment.put(consumer, new Assignment(activePartitions, new AssignmentInfo(active, standby, partitionsByHostState).encode()));
+                assignment.put(consumer, new Assignment(activePartitions, new AssignmentInfo(minUserMetadataVersion, active, standby, partitionsByHostState).encode()));
             }
         }
 
diff --git a/streams/src/main/java/org/apache/kafka/streams/processor/internals/assignment/AssignmentInfo.java b/streams/src/main/java/org/apache/kafka/streams/processor/internals/assignment/AssignmentInfo.java
index 8607472c281f2..42abb4cac0b4a 100644
--- a/streams/src/main/java/org/apache/kafka/streams/processor/internals/assignment/AssignmentInfo.java
+++ b/streams/src/main/java/org/apache/kafka/streams/processor/internals/assignment/AssignmentInfo.java
@@ -55,7 +55,7 @@ public AssignmentInfo(List<TaskId> activeTasks, Map<TaskId, Set<TopicPartition>>
         this(CURRENT_VERSION, activeTasks, standbyTasks, hostState);
     }
 
-    protected AssignmentInfo(int version, List<TaskId> activeTasks, Map<TaskId, Set<TopicPartition>> standbyTasks,
+    public AssignmentInfo(int version, List<TaskId> activeTasks, Map<TaskId, Set<TopicPartition>> standbyTasks,
                              Map<HostInfo, Set<TopicPartition>> hostState) {
         this.version = version;
         this.activeTasks = activeTasks;
@@ -153,8 +153,7 @@ public static AssignmentInfo decode(ByteBuffer data) {
                 }
             }
 
-            return new AssignmentInfo(activeTasks, standbyTasks, hostStateToTopicPartitions);
-
+            return new AssignmentInfo(version, activeTasks, standbyTasks, hostStateToTopicPartitions);
         } catch (IOException ex) {
             throw new TaskAssignmentException("Failed to decode AssignmentInfo", ex);
         }
diff --git a/streams/src/main/java/org/apache/kafka/streams/processor/internals/assignment/SubscriptionInfo.java b/streams/src/main/java/org/apache/kafka/streams/processor/internals/assignment/SubscriptionInfo.java
index f583dbafc94f1..00227e799b848 100644
--- a/streams/src/main/java/org/apache/kafka/streams/processor/internals/assignment/SubscriptionInfo.java
+++ b/streams/src/main/java/org/apache/kafka/streams/processor/internals/assignment/SubscriptionInfo.java
@@ -31,7 +31,7 @@ public class SubscriptionInfo {
 
     private static final Logger log = LoggerFactory.getLogger(SubscriptionInfo.class);
 
-    private static final int CURRENT_VERSION = 2;
+    public static final int CURRENT_VERSION = 2;
 
     public final int version;
     public final UUID processId;
@@ -43,7 +43,7 @@ public SubscriptionInfo(UUID processId, Set<TaskId> prevTasks, Set<TaskId> stand
         this(CURRENT_VERSION, processId, prevTasks, standbyTasks, userEndPoint);
     }
 
-    private SubscriptionInfo(int version, UUID processId, Set<TaskId> prevTasks, Set<TaskId> standbyTasks, String userEndPoint) {
+    public SubscriptionInfo(int version, UUID processId, Set<TaskId> prevTasks, Set<TaskId> standbyTasks, String userEndPoint) {
         this.version = version;
         this.processId = processId;
         this.prevTasks = prevTasks;
diff --git a/streams/src/test/java/org/apache/kafka/streams/StreamsConfigTest.java b/streams/src/test/java/org/apache/kafka/streams/StreamsConfigTest.java
index b217bf9b5bfae..30ab69227540e 100644
--- a/streams/src/test/java/org/apache/kafka/streams/StreamsConfigTest.java
+++ b/streams/src/test/java/org/apache/kafka/streams/StreamsConfigTest.java
@@ -423,6 +423,7 @@ public void shouldNotOverrideUserConfigCommitIntervalMsIfExactlyOnceEnabled() {
         assertThat(streamsConfig.getLong(StreamsConfig.COMMIT_INTERVAL_MS_CONFIG), equalTo(commitIntervalMs));
     }
 
+    @SuppressWarnings("deprecation")
     @Test
     public void shouldBeBackwardsCompatibleWithDeprecatedConfigs() {
         final Properties props = minimalStreamsConfig();
@@ -457,6 +458,7 @@ public void shouldUseCorrectDefaultsWhenNoneSpecified() {
         assertTrue(config.defaultTimestampExtractor() instanceof FailOnInvalidTimestamp);
     }
 
+    @SuppressWarnings("deprecation")
     @Test
     public void shouldSpecifyCorrectKeySerdeClassOnErrorUsingDeprecatedConfigs() {
         final Properties props = minimalStreamsConfig();
@@ -470,6 +472,7 @@ public void shouldSpecifyCorrectKeySerdeClassOnErrorUsingDeprecatedConfigs() {
         }
     }
 
+    @SuppressWarnings("deprecation")
     @Test
     public void shouldSpecifyCorrectKeySerdeClassOnError() {
         final Properties props = minimalStreamsConfig();
@@ -483,6 +486,7 @@ public void shouldSpecifyCorrectKeySerdeClassOnError() {
         }
     }
 
+    @SuppressWarnings("deprecation")
     @Test
     public void shouldSpecifyCorrectValueSerdeClassOnErrorUsingDeprecatedConfigs() {
         final Properties props = minimalStreamsConfig();
@@ -496,6 +500,7 @@ public void shouldSpecifyCorrectValueSerdeClassOnErrorUsingDeprecatedConfigs() {
         }
     }
 
+    @SuppressWarnings("deprecation")
     @Test
     public void shouldSpecifyCorrectValueSerdeClassOnError() {
         final Properties props = minimalStreamsConfig();
@@ -518,9 +523,7 @@ public void configure(final Map configs, final boolean isKey) {
         }
 
         @Override
-        public void close() {
-
-        }
+        public void close() {}
 
         @Override
         public Serializer serializer() {
diff --git a/streams/src/test/java/org/apache/kafka/streams/integration/KStreamAggregationDedupIntegrationTest.java b/streams/src/test/java/org/apache/kafka/streams/integration/KStreamAggregationDedupIntegrationTest.java
index 4c12bb935448f..44e139a28bdbf 100644
--- a/streams/src/test/java/org/apache/kafka/streams/integration/KStreamAggregationDedupIntegrationTest.java
+++ b/streams/src/test/java/org/apache/kafka/streams/integration/KStreamAggregationDedupIntegrationTest.java
@@ -313,6 +313,4 @@ private <K, V> List<KeyValue<K, V>> receiveMessages(final Deserializer<K>
 
     }
 
-
-
 }
diff --git a/streams/src/test/java/org/apache/kafka/streams/processor/internals/StreamPartitionAssignorTest.java b/streams/src/test/java/org/apache/kafka/streams/processor/internals/StreamPartitionAssignorTest.java
index 918b6aa5bd444..d34bea3eeb22f 100644
--- a/streams/src/test/java/org/apache/kafka/streams/processor/internals/StreamPartitionAssignorTest.java
+++ b/streams/src/test/java/org/apache/kafka/streams/processor/internals/StreamPartitionAssignorTest.java
@@ -140,7 +140,7 @@ private void mockThreadDataProvider(final Set<TaskId> prevTasks,
                                         final Set<TaskId> cachedTasks,
                                         final UUID processId,
                                         final PartitionGrouper partitionGrouper,
-                                        final InternalTopologyBuilder builder) throws NoSuchFieldException, IllegalAccessException {
+                                        final InternalTopologyBuilder builder) {
         EasyMock.expect(threadDataProvider.name()).andReturn("name").anyTimes();
         EasyMock.expect(threadDataProvider.prevActiveTasks()).andReturn(prevTasks).anyTimes();
         EasyMock.expect(threadDataProvider.cachedTasks()).andReturn(cachedTasks).anyTimes();
@@ -179,7 +179,7 @@ public void shouldInterleaveTasksByGroupId() {
     }
 
     @Test
-    public void testSubscription() throws Exception {
+    public void testSubscription() {
         builder.addSource(null, "source1", null, null, null, "topic1");
         builder.addSource(null, "source2", null, null, null, "topic2");
         builder.addProcessor("processor", new MockProcessorSupplier(), "source1", "source2");
@@ -208,7 +208,7 @@ public void testSubscription() throws Exception {
 
 
     @Test
-    public void testAssignBasic() throws Exception {
+    public void testAssignBasic() {
         builder.addSource(null, "source1", null, null, null, "topic1");
         builder.addSource(null, "source2", null, null, null, "topic2");
         builder.addProcessor("processor", new MockProcessorSupplier(), "source1", "source2");
@@ -248,11 +248,9 @@ public void testAssignBasic() throws Exception {
 
         // check assignment info
 
-        Set<TaskId> allActiveTasks = new HashSet<>();
-
         // the first consumer
         AssignmentInfo info10 = checkAssignment(allTopics, assignments.get("consumer10"));
-        allActiveTasks.addAll(info10.activeTasks);
+        Set<TaskId> allActiveTasks = new HashSet<>(info10.activeTasks);
 
         // the second consumer
         AssignmentInfo info11 = checkAssignment(allTopics, assignments.get("consumer11"));
@@ -272,7 +270,7 @@ public void testAssignBasic() throws Exception {
     }
 
     @Test
-    public void shouldAssignEvenlyAcrossConsumersOneClientMultipleThreads() throws Exception {
+    public void shouldAssignEvenlyAcrossConsumersOneClientMultipleThreads() {
         builder.addSource(null, "source1", null, null, null, "topic1");
         builder.addSource(null, "source2", null, null, null, "topic2");
         builder.addProcessor("processor", new MockProcessorSupplier(), "source1");
@@ -340,7 +338,7 @@ public void shouldAssignEvenlyAcrossConsumersOneClientMultipleThreads() throws E
     }
 
     @Test
-    public void testAssignWithPartialTopology() throws Exception {
+    public void testAssignWithPartialTopology() {
         Properties props = configProps();
         props.put(StreamsConfig.PARTITION_GROUPER_CLASS_CONFIG, SingleGroupPartitionGrouperStub.class);
         StreamsConfig config = new StreamsConfig(props);
@@ -369,9 +367,8 @@ public void testAssignWithPartialTopology() throws Exception {
         Map<String, PartitionAssignor.Assignment> assignments = partitionAssignor.assign(metadata, subscriptions);
 
         // check assignment info
-        Set<TaskId> allActiveTasks = new HashSet<>();
         AssignmentInfo info10 = checkAssignment(Utils.mkSet("topic1"), assignments.get("consumer10"));
-        allActiveTasks.addAll(info10.activeTasks);
+        Set<TaskId> allActiveTasks = new HashSet<>(info10.activeTasks);
 
         assertEquals(3, allActiveTasks.size());
         assertEquals(allTasks, new HashSet<>(allActiveTasks));
@@ -379,7 +376,7 @@ public void testAssignWithPartialTopology() throws Exception {
 
 
     @Test
-    public void testAssignEmptyMetadata() throws Exception {
+    public void testAssignEmptyMetadata() {
         builder.addSource(null, "source1", null, null, null, "topic1");
         builder.addSource(null, "source2", null, null, null, "topic2");
         builder.addProcessor("processor", new MockProcessorSupplier(), "source1", "source2");
@@ -409,9 +406,8 @@ public void testAssignEmptyMetadata() throws Exception {
             new HashSet<>(assignments.get("consumer10").partitions()));
 
         // check assignment info
-        Set<TaskId> allActiveTasks = new HashSet<>();
         AssignmentInfo info10 = checkAssignment(Collections.<String>emptySet(), assignments.get("consumer10"));
-        allActiveTasks.addAll(info10.activeTasks);
+        Set<TaskId> allActiveTasks = new HashSet<>(info10.activeTasks);
 
         assertEquals(0, allActiveTasks.size());
         assertEquals(Collections.<TaskId>emptySet(), new HashSet<>(allActiveTasks));
@@ -434,7 +430,7 @@ public void testAssignEmptyMetadata() throws Exception {
     }
 
     @Test
-    public void testAssignWithNewTasks() throws Exception {
+    public void testAssignWithNewTasks() {
         builder.addSource(null, "source1", null, null, null, "topic1");
         builder.addSource(null, "source2", null, null, null, "topic2");
         builder.addSource(null, "source3", null, null, null, "topic3");
@@ -466,13 +462,9 @@ public void testAssignWithNewTasks() throws Exception {
         // check assigned partitions: since there is no previous task for topic 3 it will be assigned randomly so we cannot check exact match
         // also note that previously assigned partitions / tasks may not stay on the previous host since we may assign the new task first and
         // then later ones will be re-assigned to other hosts due to load balancing
-        Set<TaskId> allActiveTasks = new HashSet<>();
-        Set<TopicPartition> allPartitions = new HashSet<>();
-        AssignmentInfo info;
-
-        info = AssignmentInfo.decode(assignments.get("consumer10").userData());
-        allActiveTasks.addAll(info.activeTasks);
-        allPartitions.addAll(assignments.get("consumer10").partitions());
+        AssignmentInfo info = AssignmentInfo.decode(assignments.get("consumer10").userData());
+        Set<TaskId> allActiveTasks = new HashSet<>(info.activeTasks);
+        Set<TopicPartition> allPartitions = new HashSet<>(assignments.get("consumer10").partitions());
 
         info = AssignmentInfo.decode(assignments.get("consumer11").userData());
         allActiveTasks.addAll(info.activeTasks);
@@ -487,7 +479,7 @@ public void testAssignWithNewTasks() throws Exception {
     }
 
     @Test
-    public void testAssignWithStates() throws Exception {
+    public void testAssignWithStates() {
         String applicationId = "test";
         builder.setApplicationId(applicationId);
         builder.addSource(null, "source1", null, null, null, "topic1");
@@ -576,7 +568,7 @@ private Set<TaskId> tasksForState(String applicationId, String storeName, List<T
     }
 
     @Test
-    public void testAssignWithStandbyReplicas() throws Exception {
+    public void testAssignWithStandbyReplicas() {
         Properties props = configProps();
         props.setProperty(StreamsConfig.NUM_STANDBY_REPLICAS_CONFIG, "1");
         StreamsConfig config = new StreamsConfig(props);
@@ -613,13 +605,10 @@ public void testAssignWithStandbyReplicas() throws Exception {
 
         Map<String, PartitionAssignor.Assignment> assignments = partitionAssignor.assign(metadata, subscriptions);
 
-        Set<TaskId> allActiveTasks = new HashSet<>();
-        Set<TaskId> allStandbyTasks = new HashSet<>();
-
         // the first consumer
         AssignmentInfo info10 = checkAssignment(allTopics, assignments.get("consumer10"));
-        allActiveTasks.addAll(info10.activeTasks);
-        allStandbyTasks.addAll(info10.standbyTasks.keySet());
+        Set<TaskId> allActiveTasks = new HashSet<>(info10.activeTasks);
+        Set<TaskId> allStandbyTasks = new HashSet<>(info10.standbyTasks.keySet());
 
         // the second consumer
         AssignmentInfo info11 = checkAssignment(allTopics, assignments.get("consumer11"));
@@ -647,7 +636,7 @@ public void testAssignWithStandbyReplicas() throws Exception {
     }
 
     @Test
-    public void testOnAssignment() throws Exception {
+    public void testOnAssignment() {
         TopicPartition t2p3 = new TopicPartition("topic2", 3);
 
         builder.addSource(null, "source1", null, null, null, "topic1");
@@ -675,7 +664,7 @@ public void testOnAssignment() throws Exception {
     }
 
     @Test
-    public void testAssignWithInternalTopics() throws Exception {
+    public void testAssignWithInternalTopics() {
         String applicationId = "test";
         builder.setApplicationId(applicationId);
         builder.addInternalTopic("topicX");
@@ -706,7 +695,7 @@ public void testAssignWithInternalTopics() throws Exception {
     }
 
     @Test
-    public void testAssignWithInternalTopicThatsSourceIsAnotherInternalTopic() throws Exception {
+    public void testAssignWithInternalTopicThatsSourceIsAnotherInternalTopic() {
         String applicationId = "test";
         builder.setApplicationId(applicationId);
         builder.addInternalTopic("topicX");
@@ -741,9 +730,8 @@ public void testAssignWithInternalTopicThatsSourceIsAnotherInternalTopic() throw
     }
 
     @Test
-    public void shouldAddUserDefinedEndPointToSubscription() throws Exception {
-        final String applicationId = "application-id";
-        builder.setApplicationId(applicationId);
+    public void shouldAddUserDefinedEndPointToSubscription() {
+        builder.setApplicationId("application-id");
         builder.addSource(null, "source", null, null, null, "input");
         builder.addProcessor("processor", new MockProcessorSupplier(), "source");
         builder.addSink("sink", "output", null, null, null, "processor");
@@ -752,7 +740,8 @@ public void shouldAddUserDefinedEndPointToSubscription() throws Exception {
         mockThreadDataProvider(Collections.<TaskId>emptySet(),
                                Collections.<TaskId>emptySet(),
                                uuid1,
-                               defaultPartitionGrouper, builder);
+                               defaultPartitionGrouper,
+                               builder);
         configurePartitionAssignor(0, userEndPoint);
         final PartitionAssignor.Subscription subscription = partitionAssignor.subscription(Utils.mkSet("input"));
         final SubscriptionInfo subscriptionInfo = SubscriptionInfo.decode(subscription.userData());
@@ -760,7 +749,59 @@ public void shouldAddUserDefinedEndPointToSubscription() throws Exception {
     }
 
     @Test
-    public void shouldMapUserEndPointToTopicPartitions() throws Exception {
+    public void shouldReturnLowestAssignmentVersionForDifferentSubscriptionVersions() {
+        final Map<String, PartitionAssignor.Subscription> subscriptions = new HashMap<>();
+        final Set<TaskId> emptyTasks = Collections.emptySet();
+        subscriptions.put(
+            "consumer1",
+            new PartitionAssignor.Subscription(
+                Collections.singletonList("topic1"),
+                new SubscriptionInfo(1, UUID.randomUUID(), emptyTasks, emptyTasks, null).encode()
+            )
+        );
+        subscriptions.put(
+            "consumer2",
+            new PartitionAssignor.Subscription(
+                Collections.singletonList("topic1"),
+                new SubscriptionInfo(2, UUID.randomUUID(), emptyTasks, emptyTasks, null).encode()
+            )
+        );
+
+        mockThreadDataProvider(
+            emptyTasks,
+            emptyTasks,
+            UUID.randomUUID(),
+            defaultPartitionGrouper,
+            builder);
+        configurePartitionAssignor(0, null);
+        final Map<String, PartitionAssignor.Assignment> assignment = partitionAssignor.assign(metadata, subscriptions);
+
+        assertEquals(2, assignment.size());
+        assertEquals(1, AssignmentInfo.decode(assignment.get("consumer1").userData()).version);
+        assertEquals(1, AssignmentInfo.decode(assignment.get("consumer2").userData()).version);
+    }
+
+    @Test
+    public void shouldDownGradeSubscription() {
+        final Set<TaskId> emptyTasks = Collections.emptySet();
+
+        mockThreadDataProvider(
+            emptyTasks,
+            emptyTasks,
+            UUID.randomUUID(),
+            defaultPartitionGrouper,
+            builder);
+
+        configurationMap.put(StreamsConfig.UPGRADE_FROM_CONFIG, StreamsConfig.UPGRADE_FROM_0100);
+        configurePartitionAssignor(0, null);
+
+        PartitionAssignor.Subscription subscription = partitionAssignor.subscription(Utils.mkSet("topic1"));
+
+        assertEquals(1, SubscriptionInfo.decode(subscription.userData()).version);
+    }
+
+    @Test
+    public void shouldMapUserEndPointToTopicPartitions() {
         final String applicationId = "application-id";
         builder.setApplicationId(applicationId);
         builder.addSource(null, "source", null, null, null, "topic1");
@@ -790,7 +831,7 @@ public void shouldMapUserEndPointToTopicPartitions() throws Exception {
     }
 
     @Test
-    public void shouldThrowExceptionIfApplicationServerConfigIsNotHostPortPair() throws Exception {
+    public void shouldThrowExceptionIfApplicationServerConfigIsNotHostPortPair() {
         final String myEndPoint = "localhost";
         final String applicationId = "application-id";
         builder.setApplicationId(applicationId);
@@ -821,7 +862,7 @@ public void shouldThrowExceptionIfApplicationServerConfigPortIsNotAnInteger() {
     }
 
     @Test
-    public void shouldExposeHostStateToTopicPartitionsOnAssignment() throws Exception {
+    public void shouldExposeHostStateToTopicPartitionsOnAssignment() {
         List<TopicPartition> topic = Collections.singletonList(new TopicPartition("topic", 0));
         final Map<HostInfo, Set<TopicPartition>> hostState =
                 Collections.singletonMap(new HostInfo("localhost", 80),
@@ -837,7 +878,7 @@ public void shouldExposeHostStateToTopicPartitionsOnAssignment() throws Exceptio
     }
 
     @Test
-    public void shouldSetClusterMetadataOnAssignment() throws Exception {
+    public void shouldSetClusterMetadataOnAssignment() {
         final List<TopicPartition> topic = Collections.singletonList(new TopicPartition("topic", 0));
         final Map<HostInfo, Set<TopicPartition>> hostState =
                 Collections.singletonMap(new HostInfo("localhost", 80),
@@ -865,7 +906,7 @@ public void shouldReturnEmptyClusterMetadataIfItHasntBeenBuilt() {
     }
 
     @Test
-    public void shouldNotLoopInfinitelyOnMissingMetadataAndShouldNotCreateRelatedTasks() throws Exception {
+    public void shouldNotLoopInfinitelyOnMissingMetadataAndShouldNotCreateRelatedTasks() {
         final String applicationId = "application-id";
 
         final StreamsBuilder builder = new StreamsBuilder();
@@ -970,7 +1011,7 @@ public Object apply(final Object value1, final Object value2) {
     }
 
     @Test
-    public void shouldUpdatePartitionHostInfoMapOnAssignment() throws Exception {
+    public void shouldUpdatePartitionHostInfoMapOnAssignment() {
         final TopicPartition partitionOne = new TopicPartition("topic", 1);
         final TopicPartition partitionTwo = new TopicPartition("topic", 2);
         final Map<HostInfo, Set<TopicPartition>> firstHostState = Collections.singletonMap(
@@ -993,7 +1034,7 @@ public void shouldUpdatePartitionHostInfoMapOnAssignment() throws Exception {
     }
 
     @Test
-    public void shouldUpdateClusterMetadataOnAssignment() throws Exception {
+    public void shouldUpdateClusterMetadataOnAssignment() {
         final TopicPartition topicOne = new TopicPartition("topic", 1);
         final TopicPartition topicTwo = new TopicPartition("topic2", 2);
         final Map<HostInfo, Set<TopicPartition>> firstHostState = Collections.singletonMap(
@@ -1015,7 +1056,7 @@ public void shouldUpdateClusterMetadataOnAssignment() throws Exception {
     }
 
     @Test
-    public void shouldNotAddStandbyTaskPartitionsToPartitionsForHost() throws Exception {
+    public void shouldNotAddStandbyTaskPartitionsToPartitionsForHost() {
         final String applicationId = "appId";
         final StreamsBuilder builder = new StreamsBuilder();
 
diff --git a/streams/src/test/java/org/apache/kafka/streams/processor/internals/assignment/AssignmentInfoTest.java b/streams/src/test/java/org/apache/kafka/streams/processor/internals/assignment/AssignmentInfoTest.java
index ec94ad81acd6d..8032f7da86556 100644
--- a/streams/src/test/java/org/apache/kafka/streams/processor/internals/assignment/AssignmentInfoTest.java
+++ b/streams/src/test/java/org/apache/kafka/streams/processor/internals/assignment/AssignmentInfoTest.java
@@ -64,10 +64,9 @@ public void shouldDecodePreviousVersion() throws IOException {
         assertEquals(oldVersion.activeTasks, decoded.activeTasks);
         assertEquals(oldVersion.standbyTasks, decoded.standbyTasks);
         assertEquals(0, decoded.partitionsByHost.size()); // should be empty as wasn't in V1
-        assertEquals(2, decoded.version); // automatically upgraded to v2 on decode;
+        assertEquals(1, decoded.version);
     }
 
-
     /**
      * This is a clone of what the V1 encoding did. The encode method has changed for V2
      * so it is impossible to test compatibility without having this
diff --git a/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestClient.java b/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestClient.java
index 887f763e8fade..6902bd6d3768a 100644
--- a/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestClient.java
+++ b/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestClient.java
@@ -19,6 +19,7 @@
 import org.apache.kafka.clients.consumer.ConsumerConfig;
 import org.apache.kafka.clients.producer.ProducerConfig;
 import org.apache.kafka.common.serialization.Serdes;
+import org.apache.kafka.common.utils.Bytes;
 import org.apache.kafka.streams.Consumed;
 import org.apache.kafka.streams.KafkaStreams;
 import org.apache.kafka.streams.StreamsBuilder;
@@ -30,10 +31,13 @@
 import org.apache.kafka.streams.kstream.KTable;
 import org.apache.kafka.streams.kstream.Materialized;
 import org.apache.kafka.streams.kstream.Predicate;
+import org.apache.kafka.streams.kstream.Produced;
 import org.apache.kafka.streams.kstream.Serialized;
 import org.apache.kafka.streams.kstream.TimeWindows;
 import org.apache.kafka.streams.kstream.ValueJoiner;
+import org.apache.kafka.streams.state.KeyValueStore;
 import org.apache.kafka.streams.state.Stores;
+import org.apache.kafka.streams.state.WindowStore;
 
 import java.io.File;
 import java.util.Properties;
@@ -47,7 +51,7 @@ public class SmokeTestClient extends SmokeTestUtil {
     private Thread thread;
     private boolean uncaughtException = false;
 
-    public SmokeTestClient(File stateDir, String kafka) {
+    public SmokeTestClient(final File stateDir, final String kafka) {
         super();
         this.stateDir = stateDir;
         this.kafka = kafka;
@@ -57,7 +61,7 @@ public void start() {
         streams = createKafkaStreams(stateDir, kafka);
         streams.setUncaughtExceptionHandler(new Thread.UncaughtExceptionHandler() {
             @Override
-            public void uncaughtException(Thread t, Throwable e) {
+            public void uncaughtException(final Thread t, final Throwable e) {
                 System.out.println("SMOKE-TEST-CLIENT-EXCEPTION");
                 uncaughtException = true;
                 e.printStackTrace();
@@ -94,7 +98,7 @@ public void close() {
         }
     }
 
-    private static KafkaStreams createKafkaStreams(File stateDir, String kafka) {
+    private static Properties getStreamsConfig(final File stateDir, final String kafka) {
         final Properties props = new Properties();
         props.put(StreamsConfig.APPLICATION_ID_CONFIG, "SmokeTest");
         props.put(StreamsConfig.STATE_DIR_CONFIG, stateDir.toString());
@@ -109,25 +113,29 @@ private static KafkaStreams createKafkaStreams(File stateDir, String kafka) {
         props.put(ProducerConfig.ACKS_CONFIG, "all");
         //TODO remove this config or set to smaller value when KIP-91 is merged
         props.put(StreamsConfig.producerPrefix(ProducerConfig.REQUEST_TIMEOUT_MS_CONFIG), 60000);
+        return props;
+    }
 
-        StreamsBuilder builder = new StreamsBuilder();
-        Consumed<String, Integer> stringIntConsumed = Consumed.with(stringSerde, intSerde);
-        KStream<String, Integer> source = builder.stream("data", stringIntConsumed);
-        source.to(stringSerde, intSerde, "echo");
-        KStream<String, Integer> data = source.filter(new Predicate<String, Integer>() {
+    private static KafkaStreams createKafkaStreams(final File stateDir, final String kafka) {
+        final StreamsBuilder builder = new StreamsBuilder();
+        final Consumed<String, Integer> stringIntConsumed = Consumed.with(stringSerde, intSerde);
+        final KStream<String, Integer> source = builder.stream("data", stringIntConsumed);
+        source.to("echo", Produced.with(stringSerde, intSerde));
+        final KStream<String, Integer> data = source.filter(new Predicate<String, Integer>() {
             @Override
-            public boolean test(String key, Integer value) {
+            public boolean test(final String key, final Integer value) {
                 return value == null || value != END;
             }
         });
         data.process(SmokeTestUtil.printProcessorSupplier("data"));
 
         // min
-        KGroupedStream<String, Integer>
-            groupedData =
+        final KGroupedStream<String, Integer> groupedData =
             data.groupByKey(Serialized.with(stringSerde, intSerde));
 
-        groupedData.aggregate(
+        groupedData
+            .windowedBy(TimeWindows.of(TimeUnit.DAYS.toMillis(1)))
+            .aggregate(
                 new Initializer<Integer>() {
                     public Integer apply() {
                         return Integer.MAX_VALUE;
@@ -135,21 +143,24 @@ public Integer apply() {
                 },
                 new Aggregator<String, Integer, Integer>() {
                     @Override
-                    public Integer apply(String aggKey, Integer value, Integer aggregate) {
+                    public Integer apply(final String aggKey, final Integer value, final Integer aggregate) {
                         return (value < aggregate) ? value : aggregate;
                     }
                 },
-                TimeWindows.of(TimeUnit.DAYS.toMillis(1)),
-                intSerde, "uwin-min"
-        ).toStream().map(
-                new Unwindow<String, Integer>()
-        ).to(stringSerde, intSerde, "min");
+                Materialized.<String, Integer, WindowStore<Bytes, byte[]>>as("uwin-min").withValueSerde(intSerde))
+            .toStream(new Unwindow<String, Integer>())
+            .to("min", Produced.with(stringSerde, intSerde));
 
-        KTable<String, Integer> minTable = builder.table("min", stringIntConsumed);
+        final KTable<String, Integer> minTable = builder.table(
+            "min",
+            Consumed.with(stringSerde, intSerde),
+            Materialized.<String, Integer, KeyValueStore<Bytes, byte[]>>as("minStoreName"));
         minTable.toStream().process(SmokeTestUtil.printProcessorSupplier("min"));
 
         // max
-        groupedData.aggregate(
+        groupedData
+            .windowedBy(TimeWindows.of(TimeUnit.DAYS.toMillis(2)))
+            .aggregate(
                 new Initializer<Integer>() {
                     public Integer apply() {
                         return Integer.MIN_VALUE;
@@ -157,21 +168,24 @@ public Integer apply() {
                 },
                 new Aggregator<String, Integer, Integer>() {
                     @Override
-                    public Integer apply(String aggKey, Integer value, Integer aggregate) {
+                    public Integer apply(final String aggKey, final Integer value, final Integer aggregate) {
                         return (value > aggregate) ? value : aggregate;
                     }
                 },
-                TimeWindows.of(TimeUnit.DAYS.toMillis(2)),
-                intSerde, "uwin-max"
-        ).toStream().map(
-                new Unwindow<String, Integer>()
-        ).to(stringSerde, intSerde, "max");
+                Materialized.<String, Integer, WindowStore<Bytes, byte[]>>as("uwin-max").withValueSerde(intSerde))
+            .toStream(new Unwindow<String, Integer>())
+            .to("max", Produced.with(stringSerde, intSerde));
 
-        KTable<String, Integer> maxTable = builder.table("max", stringIntConsumed);
+        final KTable<String, Integer> maxTable = builder.table(
+            "max",
+            Consumed.with(stringSerde, intSerde),
+            Materialized.<String, Integer, KeyValueStore<Bytes, byte[]>>as("maxStoreName"));
         maxTable.toStream().process(SmokeTestUtil.printProcessorSupplier("max"));
 
         // sum
-        groupedData.aggregate(
+        groupedData
+            .windowedBy(TimeWindows.of(TimeUnit.DAYS.toMillis(2)))
+            .aggregate(
                 new Initializer<Long>() {
                     public Long apply() {
                         return 0L;
@@ -179,70 +193,74 @@ public Long apply() {
                 },
                 new Aggregator<String, Integer, Long>() {
                     @Override
-                    public Long apply(String aggKey, Integer value, Long aggregate) {
+                    public Long apply(final String aggKey, final Integer value, final Long aggregate) {
                         return (long) value + aggregate;
                     }
                 },
-                TimeWindows.of(TimeUnit.DAYS.toMillis(2)),
-                longSerde, "win-sum"
-        ).toStream().map(
-                new Unwindow<String, Long>()
-        ).to(stringSerde, longSerde, "sum");
-
-        Consumed<String, Long> stringLongConsumed = Consumed.with(stringSerde, longSerde);
-        KTable<String, Long> sumTable = builder.table("sum", stringLongConsumed);
+                Materialized.<String, Long, WindowStore<Bytes, byte[]>>as("win-sum").withValueSerde(longSerde))
+            .toStream(new Unwindow<String, Long>())
+            .to("sum", Produced.with(stringSerde, longSerde));
+
+        final Consumed<String, Long> stringLongConsumed = Consumed.with(stringSerde, longSerde);
+        final KTable<String, Long> sumTable = builder.table("sum", stringLongConsumed);
         sumTable.toStream().process(SmokeTestUtil.printProcessorSupplier("sum"));
+
         // cnt
-        groupedData.count(TimeWindows.of(TimeUnit.DAYS.toMillis(2)), "uwin-cnt")
-            .toStream().map(
-                new Unwindow<String, Long>()
-        ).to(stringSerde, longSerde, "cnt");
+        groupedData
+            .windowedBy(TimeWindows.of(TimeUnit.DAYS.toMillis(2)))
+            .count(Materialized.<String, Long, WindowStore<Bytes, byte[]>>as("uwin-cnt"))
+            .toStream(new Unwindow<String, Long>())
+            .to("cnt", Produced.with(stringSerde, longSerde));
 
-        KTable<String, Long> cntTable = builder.table("cnt", stringLongConsumed);
+        final KTable<String, Long> cntTable = builder.table(
+            "cnt",
+            Consumed.with(stringSerde, longSerde),
+            Materialized.<String, Long, KeyValueStore<Bytes, byte[]>>as("cntStoreName"));
         cntTable.toStream().process(SmokeTestUtil.printProcessorSupplier("cnt"));
 
         // dif
-        maxTable.join(minTable,
+        maxTable
+            .join(
+                minTable,
                 new ValueJoiner<Integer, Integer, Integer>() {
-                    public Integer apply(Integer value1, Integer value2) {
+                    public Integer apply(final Integer value1, final Integer value2) {
                         return value1 - value2;
                     }
-                }
-        ).to(stringSerde, intSerde, "dif");
+                })
+            .toStream()
+            .to("dif", Produced.with(stringSerde, intSerde));
 
         // avg
-        sumTable.join(
+        sumTable
+            .join(
                 cntTable,
                 new ValueJoiner<Long, Long, Double>() {
-                    public Double apply(Long value1, Long value2) {
+                    public Double apply(final Long value1, final Long value2) {
                         return (double) value1 / (double) value2;
                     }
-                }
-        ).to(stringSerde, doubleSerde, "avg");
+                })
+            .toStream()
+            .to("avg", Produced.with(stringSerde, doubleSerde));
 
         // test repartition
-        Agg agg = new Agg();
-        cntTable.groupBy(agg.selector(),
-                         Serialized.with(stringSerde, longSerde)
-        ).aggregate(agg.init(),
-                    agg.adder(),
-                    agg.remover(),
-                    Materialized.<String, Long>as(Stores.inMemoryKeyValueStore("cntByCnt"))
-                            .withKeySerde(Serdes.String())
-                            .withValueSerde(Serdes.Long())
-        ).to(stringSerde, longSerde, "tagg");
-
-        final KafkaStreams streamsClient = new KafkaStreams(builder.build(), props);
+        final Agg agg = new Agg();
+        cntTable.groupBy(agg.selector(), Serialized.with(stringSerde, longSerde))
+            .aggregate(agg.init(), agg.adder(), agg.remover(),
+                Materialized.<String, Long>as(Stores.inMemoryKeyValueStore("cntByCnt"))
+                    .withKeySerde(Serdes.String())
+                    .withValueSerde(Serdes.Long()))
+            .toStream()
+            .to("tagg", Produced.with(stringSerde, longSerde));
+
+        final KafkaStreams streamsClient = new KafkaStreams(builder.build(), getStreamsConfig(stateDir, kafka));
         streamsClient.setUncaughtExceptionHandler(new Thread.UncaughtExceptionHandler() {
             @Override
-            public void uncaughtException(Thread t, Throwable e) {
+            public void uncaughtException(final Thread t, final Throwable e) {
                 System.out.println("FATAL: An unexpected exception is encountered on thread " + t + ": " + e);
-                
                 streamsClient.close(30, TimeUnit.SECONDS);
             }
         });
 
         return streamsClient;
     }
-
 }
diff --git a/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestDriver.java b/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestDriver.java
index fdc9326427c80..1e661baad4a2b 100644
--- a/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestDriver.java
+++ b/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestDriver.java
@@ -130,53 +130,65 @@ public void run() {
         System.out.println("shutdown");
     }
 
-    public static Map<String, Set<Integer>> generate(String kafka, final int numKeys, final int maxRecordsPerKey) {
+    public static Map<String, Set<Integer>> generate(final String kafka,
+                                                     final int numKeys,
+                                                     final int maxRecordsPerKey) {
+        return generate(kafka, numKeys, maxRecordsPerKey, true);
+    }
+
+    public static Map<String, Set<Integer>> generate(final String kafka,
+                                                     final int numKeys,
+                                                     final int maxRecordsPerKey,
+                                                     final boolean autoTerminate) {
         final Properties producerProps = new Properties();
         producerProps.put(ProducerConfig.CLIENT_ID_CONFIG, "SmokeTest");
         producerProps.put(ProducerConfig.BOOTSTRAP_SERVERS_CONFIG, kafka);
         producerProps.put(ProducerConfig.KEY_SERIALIZER_CLASS_CONFIG, ByteArraySerializer.class);
         producerProps.put(ProducerConfig.VALUE_SERIALIZER_CLASS_CONFIG, ByteArraySerializer.class);
-        // the next 4 config values make sure that all records are produced with no loss and
-        // no duplicates
+        // the next 2 config values make sure that all records are produced with no loss and no duplicates
         producerProps.put(ProducerConfig.RETRIES_CONFIG, Integer.MAX_VALUE);
         producerProps.put(ProducerConfig.ACKS_CONFIG, "all");
         producerProps.put(ProducerConfig.REQUEST_TIMEOUT_MS_CONFIG, 45000);
 
-        KafkaProducer<byte[], byte[]> producer = new KafkaProducer<>(producerProps);
+        final KafkaProducer<byte[], byte[]> producer = new KafkaProducer<>(producerProps);
 
         int numRecordsProduced = 0;
 
-        Map<String, Set<Integer>> allData = new HashMap<>();
-        ValueList[] data = new ValueList[numKeys];
+        final Map<String, Set<Integer>> allData = new HashMap<>();
+        final ValueList[] data = new ValueList[numKeys];
         for (int i = 0; i < numKeys; i++) {
             data[i] = new ValueList(i, i + maxRecordsPerKey - 1);
             allData.put(data[i].key, new HashSet<Integer>());
         }
-        Random rand = new Random();
+        final Random rand = new Random();
 
-        int remaining = data.length;
+        int remaining = 1; // dummy value must be positive if <autoTerminate> is false
+        if (autoTerminate) {
+            remaining = data.length;
+        }
 
         List<ProducerRecord<byte[], byte[]>> needRetry = new ArrayList<>();
 
         while (remaining > 0) {
-            int index = rand.nextInt(remaining);
-            String key = data[index].key;
+            final int index = autoTerminate ? rand.nextInt(remaining) : rand.nextInt(numKeys);
+            final String key = data[index].key;
             int value = data[index].next();
 
-            if (value < 0) {
+            if (autoTerminate && value < 0) {
                 remaining--;
                 data[index] = data[remaining];
             } else {
 
-                ProducerRecord<byte[], byte[]> record =
-                        new ProducerRecord<>("data", stringSerde.serializer().serialize("", key), intSerde.serializer().serialize("", value));
+                final ProducerRecord<byte[], byte[]> record =
+                    new ProducerRecord<>("data", stringSerde.serializer().serialize("", key), intSerde.serializer().serialize("", value));
 
                 producer.send(record, new TestCallback(record, needRetry));
 
                 numRecordsProduced++;
                 allData.get(key).add(value);
-                if (numRecordsProduced % 100 == 0)
+                if (numRecordsProduced % 100 == 0) {
                     System.out.println(numRecordsProduced + " records produced");
+                }
                 Utils.sleep(2);
             }
         }
diff --git a/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestUtil.java b/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestUtil.java
index dc4c91b4097ed..87ca82918a951 100644
--- a/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestUtil.java
+++ b/streams/src/test/java/org/apache/kafka/streams/tests/SmokeTestUtil.java
@@ -44,20 +44,15 @@ private static ProcessorSupplier<Object, Object> printProcessorSupplier(final St
             public Processor<Object, Object> get() {
                 return new AbstractProcessor<Object, Object>() {
                     private int numRecordsProcessed = 0;
-                    private ProcessorContext context;
 
                     @Override
                     public void init(final ProcessorContext context) {
                         System.out.println("initializing processor: topic=" + topic + " taskId=" + context.taskId());
                         numRecordsProcessed = 0;
-                        this.context = context;
                     }
 
                     @Override
                     public void process(final Object key, final Object value) {
-                        if (printOffset) {
-                            System.out.println(">>> " + context.offset());
-                        }
                         numRecordsProcessed++;
                         if (numRecordsProcessed % 100 == 0) {
                             System.out.println(System.currentTimeMillis());
@@ -66,19 +61,19 @@ public void process(final Object key, final Object value) {
                     }
 
                     @Override
-                    public void punctuate(final long timestamp) { }
+                    public void punctuate(final long timestamp) {}
 
                     @Override
-                    public void close() { }
+                    public void close() {}
                 };
             }
         };
     }
 
-    public static final class Unwindow<K, V> implements KeyValueMapper<Windowed<K>, V, KeyValue<K, V>> {
+    public static final class Unwindow<K, V> implements KeyValueMapper<Windowed<K>, V, K> {
         @Override
-        public KeyValue<K, V> apply(final Windowed<K> winKey, final V value) {
-            return new KeyValue<>(winKey.key(), value);
+        public K apply(final Windowed<K> winKey, final V value) {
+            return winKey.key();
         }
     }
 
diff --git a/streams/src/test/java/org/apache/kafka/streams/tests/StreamsSmokeTest.java b/streams/src/test/java/org/apache/kafka/streams/tests/StreamsSmokeTest.java
index 64597bdcda606..c0e345ff2b6d6 100644
--- a/streams/src/test/java/org/apache/kafka/streams/tests/StreamsSmokeTest.java
+++ b/streams/src/test/java/org/apache/kafka/streams/tests/StreamsSmokeTest.java
@@ -23,7 +23,7 @@
 public class StreamsSmokeTest {
 
     /**
-     *  args ::= command kafka zookeeper stateDir
+     *  args ::= command kafka zookeeper stateDir disableAutoTerminate
      *  command := "run" | "process"
      *
      * @param args
@@ -32,11 +32,13 @@ public static void main(String[] args) throws InterruptedException {
         String kafka = args[0];
         String stateDir = args.length > 1 ? args[1] : null;
         String command = args.length > 2 ? args[2] : null;
+        boolean disableAutoTerminate = args.length > 3;
 
-        System.out.println("StreamsTest instance started");
+        System.out.println("StreamsTest instance started (StreamsSmokeTest)");
         System.out.println("command=" + command);
         System.out.println("kafka=" + kafka);
         System.out.println("stateDir=" + stateDir);
+        System.out.println("disableAutoTerminate=" + disableAutoTerminate);
 
         switch (command) {
             case "standalone":
@@ -46,8 +48,12 @@ public static void main(String[] args) throws InterruptedException {
                 // this starts the driver (data generation and result verification)
                 final int numKeys = 10;
                 final int maxRecordsPerKey = 500;
-                Map<String, Set<Integer>> allData = SmokeTestDriver.generate(kafka, numKeys, maxRecordsPerKey);
-                SmokeTestDriver.verify(kafka, allData, maxRecordsPerKey);
+                if (disableAutoTerminate) {
+                    SmokeTestDriver.generate(kafka, numKeys, maxRecordsPerKey, false);
+                } else {
+                    Map<String, Set<Integer>> allData = SmokeTestDriver.generate(kafka, numKeys, maxRecordsPerKey);
+                    SmokeTestDriver.verify(kafka, allData, maxRecordsPerKey);
+                }
                 break;
             case "process":
                 // this starts a KafkaStreams client
diff --git a/streams/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java b/streams/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
new file mode 100644
index 0000000000000..5486374b62cb3
--- /dev/null
+++ b/streams/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
@@ -0,0 +1,72 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements. See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You 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.
+ */
+package org.apache.kafka.streams.tests;
+
+import org.apache.kafka.streams.KafkaStreams;
+import org.apache.kafka.streams.StreamsBuilder;
+import org.apache.kafka.streams.StreamsConfig;
+import org.apache.kafka.streams.kstream.KStream;
+
+import java.util.Properties;
+
+public class StreamsUpgradeTest {
+
+    @SuppressWarnings("unchecked")
+    public static void main(final String[] args) {
+        if (args.length < 2) {
+            System.err.println("StreamsUpgradeTest requires two argument (kafka-url, state-dir, [upgradeFrom: optional]) but only " + args.length + " provided: "
+                + (args.length > 0 ? args[0] : ""));
+        }
+        final String kafka = args[0];
+        final String stateDir = args[1];
+        final String upgradeFrom = args.length > 2 ? args[2] : null;
+
+        System.out.println("StreamsTest instance started (StreamsUpgradeTest trunk)");
+        System.out.println("kafka=" + kafka);
+        System.out.println("stateDir=" + stateDir);
+        System.out.println("upgradeFrom=" + upgradeFrom);
+
+        final StreamsBuilder builder = new StreamsBuilder();
+        final KStream dataStream = builder.stream("data");
+        dataStream.process(SmokeTestUtil.printProcessorSupplier("data"));
+        dataStream.to("echo");
+
+        final Properties config = new Properties();
+        config.setProperty(StreamsConfig.APPLICATION_ID_CONFIG, "StreamsUpgradeTest");
+        config.setProperty(StreamsConfig.BOOTSTRAP_SERVERS_CONFIG, kafka);
+        config.setProperty(StreamsConfig.STATE_DIR_CONFIG, stateDir);
+        config.put(StreamsConfig.COMMIT_INTERVAL_MS_CONFIG, 1000);
+        if (upgradeFrom != null) {
+            config.setProperty(StreamsConfig.UPGRADE_FROM_CONFIG, upgradeFrom);
+        }
+
+
+        final KafkaStreams streams = new KafkaStreams(builder.build(), config);
+        streams.start();
+
+        Runtime.getRuntime().addShutdownHook(new Thread() {
+            @Override
+            public void run() {
+                System.out.println("closing Kafka Streams instance");
+                System.out.flush();
+                streams.close();
+                System.out.println("UPGRADE-TEST-CLIENT-CLOSED");
+                System.out.flush();
+            }
+        });
+    }
+}
diff --git a/streams/upgrade-system-tests-0100/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java b/streams/upgrade-system-tests-0100/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
new file mode 100644
index 0000000000000..72d7f5a7b044a
--- /dev/null
+++ b/streams/upgrade-system-tests-0100/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
@@ -0,0 +1,104 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements. See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You 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.
+ */
+package org.apache.kafka.streams.tests;
+
+import org.apache.kafka.streams.KafkaStreams;
+import org.apache.kafka.streams.StreamsConfig;
+import org.apache.kafka.streams.kstream.KStream;
+import org.apache.kafka.streams.kstream.KStreamBuilder;
+import org.apache.kafka.streams.processor.AbstractProcessor;
+import org.apache.kafka.streams.processor.Processor;
+import org.apache.kafka.streams.processor.ProcessorContext;
+import org.apache.kafka.streams.processor.ProcessorSupplier;
+
+import java.util.Properties;
+
+public class StreamsUpgradeTest {
+
+    @SuppressWarnings("unchecked")
+    public static void main(final String[] args) {
+        if (args.length < 3) {
+            System.err.println("StreamsUpgradeTest requires three argument (kafka-url, zookeeper-url, state-dir) but only " + args.length + " provided: "
+                + (args.length > 0 ? args[0] + " " : "")
+                + (args.length > 1 ? args[1] : ""));
+        }
+        final String kafka = args[0];
+        final String zookeeper = args[1];
+        final String stateDir = args[2];
+
+        System.out.println("StreamsTest instance started (StreamsUpgradeTest v0.10.0)");
+        System.out.println("kafka=" + kafka);
+        System.out.println("zookeeper=" + zookeeper);
+        System.out.println("stateDir=" + stateDir);
+
+        final KStreamBuilder builder = new KStreamBuilder();
+        final KStream dataStream = builder.stream("data");
+        dataStream.process(printProcessorSupplier());
+        dataStream.to("echo");
+
+        final Properties config = new Properties();
+        config.setProperty(StreamsConfig.APPLICATION_ID_CONFIG, "StreamsUpgradeTest");
+        config.setProperty(StreamsConfig.BOOTSTRAP_SERVERS_CONFIG, kafka);
+        config.setProperty(StreamsConfig.ZOOKEEPER_CONNECT_CONFIG, zookeeper);
+        config.setProperty(StreamsConfig.STATE_DIR_CONFIG, stateDir);
+        config.put(StreamsConfig.COMMIT_INTERVAL_MS_CONFIG, 1000);
+
+        final KafkaStreams streams = new KafkaStreams(builder, config);
+        streams.start();
+
+        Runtime.getRuntime().addShutdownHook(new Thread() {
+            @Override
+            public void run() {
+                System.out.println("closing Kafka Streams instance");
+                System.out.flush();
+                streams.close();
+                System.out.println("UPGRADE-TEST-CLIENT-CLOSED");
+                System.out.flush();
+            }
+        });
+    }
+
+    private static <K, V> ProcessorSupplier<K, V> printProcessorSupplier() {
+        return new ProcessorSupplier<K, V>() {
+            public Processor<K, V> get() {
+                return new AbstractProcessor<K, V>() {
+                    private int numRecordsProcessed = 0;
+
+                    @Override
+                    public void init(final ProcessorContext context) {
+                        System.out.println("initializing processor: topic=data taskId=" + context.taskId());
+                        numRecordsProcessed = 0;
+                    }
+
+                    @Override
+                    public void process(final K key, final V value) {
+                        numRecordsProcessed++;
+                        if (numRecordsProcessed % 100 == 0) {
+                            System.out.println("processed " + numRecordsProcessed + " records from topic=data");
+                        }
+                    }
+
+                    @Override
+                    public void punctuate(final long timestamp) {}
+
+                    @Override
+                    public void close() {}
+                };
+            }
+        };
+    }
+}
diff --git a/streams/upgrade-system-tests-0101/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java b/streams/upgrade-system-tests-0101/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
new file mode 100644
index 0000000000000..eebd0fab83ca0
--- /dev/null
+++ b/streams/upgrade-system-tests-0101/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
@@ -0,0 +1,114 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements. See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You 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.
+ */
+package org.apache.kafka.streams.tests;
+
+import org.apache.kafka.streams.KafkaStreams;
+import org.apache.kafka.streams.StreamsConfig;
+import org.apache.kafka.streams.kstream.KStream;
+import org.apache.kafka.streams.kstream.KStreamBuilder;
+import org.apache.kafka.streams.processor.AbstractProcessor;
+import org.apache.kafka.streams.processor.Processor;
+import org.apache.kafka.streams.processor.ProcessorContext;
+import org.apache.kafka.streams.processor.ProcessorSupplier;
+
+import java.util.Properties;
+
+public class StreamsUpgradeTest {
+
+    /**
+     * This test cannot be run executed, as long as Kafka 0.10.1.2 is not released
+     */
+    @SuppressWarnings("unchecked")
+    public static void main(final String[] args) {
+        if (args.length < 3) {
+            System.err.println("StreamsUpgradeTest requires three argument (kafka-url, zookeeper-url, state-dir, [upgradeFrom: optional]) but only " + args.length + " provided: "
+                + (args.length > 0 ? args[0] + " " : "")
+                + (args.length > 1 ? args[1] : ""));
+        }
+        final String kafka = args[0];
+        final String zookeeper = args[1];
+        final String stateDir = args[2];
+        final String upgradeFrom = args.length > 3 ? args[3] : null;
+
+        System.out.println("StreamsTest instance started (StreamsUpgradeTest v0.10.1)");
+        System.out.println("kafka=" + kafka);
+        System.out.println("zookeeper=" + zookeeper);
+        System.out.println("stateDir=" + stateDir);
+        System.out.println("upgradeFrom=" + upgradeFrom);
+
+        final KStreamBuilder builder = new KStreamBuilder();
+        final KStream dataStream = builder.stream("data");
+        dataStream.process(printProcessorSupplier());
+        dataStream.to("echo");
+
+        final Properties config = new Properties();
+        config.setProperty(StreamsConfig.APPLICATION_ID_CONFIG, "StreamsUpgradeTest");
+        config.setProperty(StreamsConfig.BOOTSTRAP_SERVERS_CONFIG, kafka);
+        config.setProperty(StreamsConfig.ZOOKEEPER_CONNECT_CONFIG, zookeeper);
+        config.setProperty(StreamsConfig.STATE_DIR_CONFIG, stateDir);
+        config.put(StreamsConfig.COMMIT_INTERVAL_MS_CONFIG, 1000);
+        if (upgradeFrom != null) {
+            // TODO: because Kafka 0.10.1.2 is not released yet, thus `UPGRADE_FROM_CONFIG` is not available yet
+            //config.setProperty(StreamsConfig.UPGRADE_FROM_CONFIG, upgradeFrom);
+            config.setProperty("upgrade.from", upgradeFrom);
+        }
+
+        final KafkaStreams streams = new KafkaStreams(builder, config);
+        streams.start();
+
+        Runtime.getRuntime().addShutdownHook(new Thread() {
+            @Override
+            public void run() {
+                System.out.println("closing Kafka Streams instance");
+                System.out.flush();
+                streams.close();
+                System.out.println("UPGRADE-TEST-CLIENT-CLOSED");
+                System.out.flush();
+            }
+        });
+    }
+
+    private static <K, V> ProcessorSupplier<K, V> printProcessorSupplier() {
+        return new ProcessorSupplier<K, V>() {
+            public Processor<K, V> get() {
+                return new AbstractProcessor<K, V>() {
+                    private int numRecordsProcessed = 0;
+
+                    @Override
+                    public void init(final ProcessorContext context) {
+                        System.out.println("initializing processor: topic=data taskId=" + context.taskId());
+                        numRecordsProcessed = 0;
+                    }
+
+                    @Override
+                    public void process(final K key, final V value) {
+                        numRecordsProcessed++;
+                        if (numRecordsProcessed % 100 == 0) {
+                            System.out.println("processed " + numRecordsProcessed + " records from topic=data");
+                        }
+                    }
+
+                    @Override
+                    public void punctuate(final long timestamp) {}
+
+                    @Override
+                    public void close() {}
+                };
+            }
+        };
+    }
+}
diff --git a/streams/upgrade-system-tests-0102/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java b/streams/upgrade-system-tests-0102/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
new file mode 100644
index 0000000000000..18240f04ff1c5
--- /dev/null
+++ b/streams/upgrade-system-tests-0102/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
@@ -0,0 +1,108 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements. See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You 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.
+ */
+package org.apache.kafka.streams.tests;
+
+import org.apache.kafka.streams.KafkaStreams;
+import org.apache.kafka.streams.StreamsConfig;
+import org.apache.kafka.streams.kstream.KStream;
+import org.apache.kafka.streams.kstream.KStreamBuilder;
+import org.apache.kafka.streams.processor.AbstractProcessor;
+import org.apache.kafka.streams.processor.Processor;
+import org.apache.kafka.streams.processor.ProcessorContext;
+import org.apache.kafka.streams.processor.ProcessorSupplier;
+
+import java.util.Properties;
+
+public class StreamsUpgradeTest {
+
+    /**
+     * This test cannot be run executed, as long as Kafka 0.10.2.2 is not released
+     */
+    @SuppressWarnings("unchecked")
+    public static void main(final String[] args) {
+        if (args.length < 2) {
+            System.err.println("StreamsUpgradeTest requires three argument (kafka-url, state-dir, [upgradeFrom: optional]) but only " + args.length + " provided: "
+                + (args.length > 0 ? args[0] : ""));
+        }
+        final String kafka = args[0];
+        final String stateDir = args[1];
+        final String upgradeFrom = args.length > 2 ? args[2] : null;
+
+        System.out.println("StreamsTest instance started (StreamsUpgradeTest v0.10.2)");
+        System.out.println("kafka=" + kafka);
+        System.out.println("stateDir=" + stateDir);
+        System.out.println("upgradeFrom=" + upgradeFrom);
+
+        final KStreamBuilder builder = new KStreamBuilder();
+        final KStream dataStream = builder.stream("data");
+        dataStream.process(printProcessorSupplier());
+        dataStream.to("echo");
+
+        final Properties config = new Properties();
+        config.setProperty(StreamsConfig.APPLICATION_ID_CONFIG, "StreamsUpgradeTest");
+        config.setProperty(StreamsConfig.BOOTSTRAP_SERVERS_CONFIG, kafka);
+        config.setProperty(StreamsConfig.STATE_DIR_CONFIG, stateDir);
+        config.put(StreamsConfig.COMMIT_INTERVAL_MS_CONFIG, 1000);
+        if (upgradeFrom != null) {
+            // TODO: because Kafka 0.10.2.2 is not released yet, thus `UPGRADE_FROM_CONFIG` is not available yet
+            //config.setProperty(StreamsConfig.UPGRADE_FROM_CONFIG, upgradeFrom);
+            config.setProperty("upgrade.from", upgradeFrom);
+        }
+
+        final KafkaStreams streams = new KafkaStreams(builder, config);
+        streams.start();
+
+        Runtime.getRuntime().addShutdownHook(new Thread() {
+            @Override
+            public void run() {
+                streams.close();
+                System.out.println("UPGRADE-TEST-CLIENT-CLOSED");
+                System.out.flush();
+            }
+        });
+    }
+
+    private static <K, V> ProcessorSupplier<K, V> printProcessorSupplier() {
+        return new ProcessorSupplier<K, V>() {
+            public Processor<K, V> get() {
+                return new AbstractProcessor<K, V>() {
+                    private int numRecordsProcessed = 0;
+
+                    @Override
+                    public void init(final ProcessorContext context) {
+                        System.out.println("initializing processor: topic=data taskId=" + context.taskId());
+                        numRecordsProcessed = 0;
+                    }
+
+                    @Override
+                    public void process(final K key, final V value) {
+                        numRecordsProcessed++;
+                        if (numRecordsProcessed % 100 == 0) {
+                            System.out.println("processed " + numRecordsProcessed + " records from topic=data");
+                        }
+                    }
+
+                    @Override
+                    public void punctuate(final long timestamp) {}
+
+                    @Override
+                    public void close() {}
+                };
+            }
+        };
+    }
+}
diff --git a/streams/upgrade-system-tests-0110/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java b/streams/upgrade-system-tests-0110/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
new file mode 100644
index 0000000000000..779021d867245
--- /dev/null
+++ b/streams/upgrade-system-tests-0110/src/test/java/org/apache/kafka/streams/tests/StreamsUpgradeTest.java
@@ -0,0 +1,108 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements. See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF licenses this file to You 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.
+ */
+package org.apache.kafka.streams.tests;
+
+import org.apache.kafka.streams.KafkaStreams;
+import org.apache.kafka.streams.StreamsConfig;
+import org.apache.kafka.streams.kstream.KStream;
+import org.apache.kafka.streams.kstream.KStreamBuilder;
+import org.apache.kafka.streams.processor.AbstractProcessor;
+import org.apache.kafka.streams.processor.Processor;
+import org.apache.kafka.streams.processor.ProcessorContext;
+import org.apache.kafka.streams.processor.ProcessorSupplier;
+
+import java.util.Properties;
+
+public class StreamsUpgradeTest {
+
+    /**
+     * This test cannot be run executed, as long as Kafka 0.11.0.3 is not released
+     */
+    @SuppressWarnings("unchecked")
+    public static void main(final String[] args) {
+        if (args.length < 2) {
+            System.err.println("StreamsUpgradeTest requires three argument (kafka-url, state-dir, [upgradeFrom: optional]) but only " + args.length + " provided: "
+                + (args.length > 0 ? args[0] : ""));
+        }
+        final String kafka = args[0];
+        final String stateDir = args[1];
+        final String upgradeFrom = args.length > 2 ? args[2] : null;
+
+        System.out.println("StreamsTest instance started (StreamsUpgradeTest v0.11.0)");
+        System.out.println("kafka=" + kafka);
+        System.out.println("stateDir=" + stateDir);
+        System.out.println("upgradeFrom=" + upgradeFrom);
+
+        final KStreamBuilder builder = new KStreamBuilder();
+        final KStream dataStream = builder.stream("data");
+        dataStream.process(printProcessorSupplier());
+        dataStream.to("echo");
+
+        final Properties config = new Properties();
+        config.setProperty(StreamsConfig.APPLICATION_ID_CONFIG, "StreamsUpgradeTest");
+        config.setProperty(StreamsConfig.BOOTSTRAP_SERVERS_CONFIG, kafka);
+        config.setProperty(StreamsConfig.STATE_DIR_CONFIG, stateDir);
+        config.put(StreamsConfig.COMMIT_INTERVAL_MS_CONFIG, 1000);
+        if (upgradeFrom != null) {
+            // TODO: because Kafka 0.11.0.3 is not released yet, thus `UPGRADE_FROM_CONFIG` is not available yet
+            //config.setProperty(StreamsConfig.UPGRADE_FROM_CONFIG, upgradeFrom);
+            config.setProperty("upgrade.from", upgradeFrom);
+        }
+
+        final KafkaStreams streams = new KafkaStreams(builder, config);
+        streams.start();
+
+        Runtime.getRuntime().addShutdownHook(new Thread() {
+            @Override
+            public void run() {
+                streams.close();
+                System.out.println("UPGRADE-TEST-CLIENT-CLOSED");
+                System.out.flush();
+            }
+        });
+    }
+
+    private static <K, V> ProcessorSupplier<K, V> printProcessorSupplier() {
+        return new ProcessorSupplier<K, V>() {
+            public Processor<K, V> get() {
+                return new AbstractProcessor<K, V>() {
+                    private int numRecordsProcessed = 0;
+
+                    @Override
+                    public void init(final ProcessorContext context) {
+                        System.out.println("initializing processor: topic=data taskId=" + context.taskId());
+                        numRecordsProcessed = 0;
+                    }
+
+                    @Override
+                    public void process(final K key, final V value) {
+                        numRecordsProcessed++;
+                        if (numRecordsProcessed % 100 == 0) {
+                            System.out.println("processed " + numRecordsProcessed + " records from topic=data");
+                        }
+                    }
+
+                    @Override
+                    public void punctuate(final long timestamp) {}
+
+                    @Override
+                    public void close() {}
+                };
+            }
+        };
+    }
+}
diff --git a/tests/docker/Dockerfile b/tests/docker/Dockerfile
index 3ca99938fb60b..6fe05ffed6d2a 100644
--- a/tests/docker/Dockerfile
+++ b/tests/docker/Dockerfile
@@ -40,13 +40,13 @@ COPY ./ssh-config /root/.ssh/config
 RUN ssh-keygen -q -t rsa -N '' -f /root/.ssh/id_rsa && cp -f /root/.ssh/id_rsa.pub /root/.ssh/authorized_keys
 
 # Install binary test dependencies.
-ENV MIRROR="http://mirrors.ocf.berkeley.edu/apache/"
-RUN mkdir -p "/opt/kafka-0.8.2.2" && curl -s "${MIRROR}kafka/0.8.2.2/kafka_2.10-0.8.2.2.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.8.2.2"
-RUN mkdir -p "/opt/kafka-0.9.0.1" && curl -s "${MIRROR}kafka/0.9.0.1/kafka_2.11-0.9.0.1.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.9.0.1"
-RUN mkdir -p "/opt/kafka-0.10.0.1" && curl -s "${MIRROR}kafka/0.10.0.1/kafka_2.11-0.10.0.1.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.10.0.1"
-RUN mkdir -p "/opt/kafka-0.10.1.1" && curl -s "${MIRROR}kafka/0.10.1.1/kafka_2.11-0.10.1.1.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.10.1.1"
-RUN mkdir -p "/opt/kafka-0.10.2.1" && curl -s "${MIRROR}kafka/0.10.2.1/kafka_2.11-0.10.2.1.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.10.2.1"
-RUN mkdir -p "/opt/kafka-0.11.0.0" && curl -s "${MIRROR}kafka/0.11.0.0/kafka_2.11-0.11.0.0.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.11.0.0"
+ENV MIRROR="https://s3-us-west-2.amazonaws.com/kafka-packages"
+RUN mkdir -p "/opt/kafka-0.8.2.2" && curl -s "${MIRROR}/kafka_2.10-0.8.2.2.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.8.2.2"
+RUN mkdir -p "/opt/kafka-0.9.0.1" && curl -s "${MIRROR}/kafka_2.11-0.9.0.1.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.9.0.1"
+RUN mkdir -p "/opt/kafka-0.10.0.1" && curl -s "${MIRROR}/kafka_2.11-0.10.0.1.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.10.0.1"
+RUN mkdir -p "/opt/kafka-0.10.1.1" && curl -s "${MIRROR}/kafka_2.11-0.10.1.1.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.10.1.1"
+RUN mkdir -p "/opt/kafka-0.10.2.1" && curl -s "${MIRROR}/kafka_2.11-0.10.2.1.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.10.2.1"
+RUN mkdir -p "/opt/kafka-0.11.0.2" && curl -s "${MIRROR}/kafka_2.11-0.11.0.2.tgz" | tar xz --strip-components=1 -C "/opt/kafka-0.11.0.2"
 
 # Set up the ducker user.
 RUN useradd -ms /bin/bash ducker && mkdir -p /home/ducker/ && rsync -aiq /root/.ssh/ /home/ducker/.ssh && chown -R ducker /home/ducker/ /mnt/ && echo 'ducker ALL=(ALL) NOPASSWD: ALL' >> /etc/sudoers
diff --git a/tests/kafkatest/services/streams.py b/tests/kafkatest/services/streams.py
index f3f7348bf4e08..f60074c7c6b4f 100644
--- a/tests/kafkatest/services/streams.py
+++ b/tests/kafkatest/services/streams.py
@@ -20,6 +20,7 @@
 from ducktape.utils.util import wait_until
 
 from kafkatest.directory_layout.kafka_path import KafkaPathResolverMixin
+from kafkatest.version import LATEST_0_10_0, LATEST_0_10_1
 
 
 class StreamsTestBaseService(KafkaPathResolverMixin, Service):
@@ -33,6 +34,8 @@ class StreamsTestBaseService(KafkaPathResolverMixin, Service):
     LOG4J_CONFIG_FILE = os.path.join(PERSISTENT_ROOT, "tools-log4j.properties")
     PID_FILE = os.path.join(PERSISTENT_ROOT, "streams.pid")
 
+    CLEAN_NODE_ENABLED = True
+
     logs = {
         "streams_log": {
             "path": LOG_FILE,
@@ -43,6 +46,114 @@ class StreamsTestBaseService(KafkaPathResolverMixin, Service):
         "streams_stderr": {
             "path": STDERR_FILE,
             "collect_default": True},
+        "streams_log.0-1": {
+            "path": LOG_FILE + ".0-1",
+            "collect_default": True},
+        "streams_stdout.0-1": {
+            "path": STDOUT_FILE + ".0-1",
+            "collect_default": True},
+        "streams_stderr.0-1": {
+            "path": STDERR_FILE + ".0-1",
+            "collect_default": True},
+        "streams_log.0-2": {
+            "path": LOG_FILE + ".0-2",
+            "collect_default": True},
+        "streams_stdout.0-2": {
+            "path": STDOUT_FILE + ".0-2",
+            "collect_default": True},
+        "streams_stderr.0-2": {
+            "path": STDERR_FILE + ".0-2",
+            "collect_default": True},
+        "streams_log.0-3": {
+            "path": LOG_FILE + ".0-3",
+            "collect_default": True},
+        "streams_stdout.0-3": {
+            "path": STDOUT_FILE + ".0-3",
+            "collect_default": True},
+        "streams_stderr.0-3": {
+            "path": STDERR_FILE + ".0-3",
+            "collect_default": True},
+        "streams_log.0-4": {
+            "path": LOG_FILE + ".0-4",
+            "collect_default": True},
+        "streams_stdout.0-4": {
+            "path": STDOUT_FILE + ".0-4",
+            "collect_default": True},
+        "streams_stderr.0-4": {
+            "path": STDERR_FILE + ".0-4",
+            "collect_default": True},
+        "streams_log.0-5": {
+            "path": LOG_FILE + ".0-5",
+            "collect_default": True},
+        "streams_stdout.0-5": {
+            "path": STDOUT_FILE + ".0-5",
+            "collect_default": True},
+        "streams_stderr.0-5": {
+            "path": STDERR_FILE + ".0-5",
+            "collect_default": True},
+        "streams_log.0-6": {
+            "path": LOG_FILE + ".0-6",
+            "collect_default": True},
+        "streams_stdout.0-6": {
+            "path": STDOUT_FILE + ".0-6",
+            "collect_default": True},
+        "streams_stderr.0-6": {
+            "path": STDERR_FILE + ".0-6",
+            "collect_default": True},
+        "streams_log.1-1": {
+            "path": LOG_FILE + ".1-1",
+            "collect_default": True},
+        "streams_stdout.1-1": {
+            "path": STDOUT_FILE + ".1-1",
+            "collect_default": True},
+        "streams_stderr.1-1": {
+            "path": STDERR_FILE + ".1-1",
+            "collect_default": True},
+        "streams_log.1-2": {
+            "path": LOG_FILE + ".1-2",
+            "collect_default": True},
+        "streams_stdout.1-2": {
+            "path": STDOUT_FILE + ".1-2",
+            "collect_default": True},
+        "streams_stderr.1-2": {
+            "path": STDERR_FILE + ".1-2",
+            "collect_default": True},
+        "streams_log.1-3": {
+            "path": LOG_FILE + ".1-3",
+            "collect_default": True},
+        "streams_stdout.1-3": {
+            "path": STDOUT_FILE + ".1-3",
+            "collect_default": True},
+        "streams_stderr.1-3": {
+            "path": STDERR_FILE + ".1-3",
+            "collect_default": True},
+        "streams_log.1-4": {
+            "path": LOG_FILE + ".1-4",
+            "collect_default": True},
+        "streams_stdout.1-4": {
+            "path": STDOUT_FILE + ".1-4",
+            "collect_default": True},
+        "streams_stderr.1-4": {
+            "path": STDERR_FILE + ".1-4",
+            "collect_default": True},
+        "streams_log.1-5": {
+            "path": LOG_FILE + ".1-5",
+            "collect_default": True},
+        "streams_stdout.1-5": {
+            "path": STDOUT_FILE + ".1-5",
+            "collect_default": True},
+        "streams_stderr.1-5": {
+            "path": STDERR_FILE + ".1-5",
+            "collect_default": True},
+        "streams_log.1-6": {
+            "path": LOG_FILE + ".1-6",
+            "collect_default": True},
+        "streams_stdout.1-6": {
+            "path": STDOUT_FILE + ".1-6",
+            "collect_default": True},
+        "streams_stderr.1-6": {
+            "path": STDERR_FILE + ".1-6",
+            "collect_default": True},
     }
 
     def __init__(self, test_context, kafka, streams_class_name, user_test_args, user_test_args1=None, user_test_args2=None, user_test_args3=None):
@@ -108,7 +219,8 @@ def wait_node(self, node, timeout_sec=None):
 
     def clean_node(self, node):
         node.account.kill_process("streams", clean_shutdown=False, allow_fail=True)
-        node.account.ssh("rm -rf " + self.PERSISTENT_ROOT, allow_fail=False)
+        if self.CLEAN_NODE_ENABLED:
+            node.account.ssh("rm -rf " + self.PERSISTENT_ROOT, allow_fail=False)
 
     def start_cmd(self, node):
         args = self.args.copy()
@@ -170,7 +282,28 @@ def clean_node(self, node):
 class StreamsSmokeTestDriverService(StreamsSmokeTestBaseService):
     def __init__(self, test_context, kafka):
         super(StreamsSmokeTestDriverService, self).__init__(test_context, kafka, "run")
+        self.DISABLE_AUTO_TERMINATE = ""
+
+    def disable_auto_terminate(self):
+        self.DISABLE_AUTO_TERMINATE = "disableAutoTerminate"
+
+    def start_cmd(self, node):
+        args = self.args.copy()
+        args['kafka'] = self.kafka.bootstrap_servers()
+        args['state_dir'] = self.PERSISTENT_ROOT
+        args['stdout'] = self.STDOUT_FILE
+        args['stderr'] = self.STDERR_FILE
+        args['pidfile'] = self.PID_FILE
+        args['log4j'] = self.LOG4J_CONFIG_FILE
+        args['disable_auto_terminate'] = self.DISABLE_AUTO_TERMINATE
+        args['kafka_run_class'] = self.path.script("kafka-run-class.sh", node)
 
+        cmd = "( export KAFKA_LOG4J_OPTS=\"-Dlog4j.configuration=file:%(log4j)s\"; " \
+              "INCLUDE_TEST_JARS=true %(kafka_run_class)s %(streams_class_name)s " \
+              " %(kafka)s %(state_dir)s %(user_test_args)s %(disable_auto_terminate)s" \
+              " & echo $! >&3 ) 1>> %(stdout)s 2>> %(stderr)s 3> %(pidfile)s" % args
+
+        return cmd
 
 class StreamsSmokeTestJobRunnerService(StreamsSmokeTestBaseService):
     def __init__(self, test_context, kafka):
@@ -211,3 +344,41 @@ def __init__(self, test_context, kafka, eosEnabled):
                                                                 kafka,
                                                                 "org.apache.kafka.streams.tests.BrokerCompatibilityTest",
                                                                 eosEnabled)
+
+class StreamsUpgradeTestJobRunnerService(StreamsTestBaseService):
+    def __init__(self, test_context, kafka):
+        super(StreamsUpgradeTestJobRunnerService, self).__init__(test_context,
+                                                                 kafka,
+                                                                 "org.apache.kafka.streams.tests.StreamsUpgradeTest",
+                                                                 "")
+        self.UPGRADE_FROM = ""
+
+    def set_version(self, kafka_streams_version):
+        self.KAFKA_STREAMS_VERSION = kafka_streams_version
+
+    def set_upgrade_from(self, upgrade_from):
+        self.UPGRADE_FROM = upgrade_from
+
+    def start_cmd(self, node):
+        args = self.args.copy()
+        args['kafka'] = self.kafka.bootstrap_servers()
+        if self.KAFKA_STREAMS_VERSION == str(LATEST_0_10_0) or self.KAFKA_STREAMS_VERSION == str(LATEST_0_10_1):
+            args['zk'] = self.kafka.zk.connect_setting()
+        else:
+            args['zk'] = ""
+        args['state_dir'] = self.PERSISTENT_ROOT
+        args['stdout'] = self.STDOUT_FILE
+        args['stderr'] = self.STDERR_FILE
+        args['pidfile'] = self.PID_FILE
+        args['log4j'] = self.LOG4J_CONFIG_FILE
+        args['version'] = self.KAFKA_STREAMS_VERSION
+        args['upgrade_from'] = self.UPGRADE_FROM
+        args['kafka_run_class'] = self.path.script("kafka-run-class.sh", node)
+
+        cmd = "( export KAFKA_LOG4J_OPTS=\"-Dlog4j.configuration=file:%(log4j)s\"; " \
+              "INCLUDE_TEST_JARS=true UPGRADE_KAFKA_STREAMS_TEST_VERSION=%(version)s " \
+              " %(kafka_run_class)s %(streams_class_name)s " \
+              " %(kafka)s %(zk)s %(state_dir)s %(user_test_args)s %(upgrade_from)s" \
+              " & echo $! >&3 ) 1>> %(stdout)s 2>> %(stderr)s 3> %(pidfile)s" % args
+
+        return cmd
diff --git a/tests/kafkatest/tests/streams/streams_upgrade_test.py b/tests/kafkatest/tests/streams/streams_upgrade_test.py
index 81b7ffe7047c9..e97bbb7fcfd97 100644
--- a/tests/kafkatest/tests/streams/streams_upgrade_test.py
+++ b/tests/kafkatest/tests/streams/streams_upgrade_test.py
@@ -15,21 +15,48 @@
 
 from ducktape.mark.resource import cluster
 from ducktape.tests.test import Test
-from ducktape.mark import parametrize, ignore
+from ducktape.mark import ignore, matrix, parametrize
 from kafkatest.services.kafka import KafkaService
 from kafkatest.services.zookeeper import ZookeeperService
-from kafkatest.services.streams import StreamsSmokeTestDriverService, StreamsSmokeTestJobRunnerService
-from kafkatest.version import LATEST_0_10_1, LATEST_0_10_2, LATEST_0_11_0, DEV_BRANCH, KafkaVersion
+from kafkatest.services.streams import StreamsSmokeTestDriverService, StreamsSmokeTestJobRunnerService, StreamsUpgradeTestJobRunnerService
+from kafkatest.version import LATEST_0_10_0, LATEST_0_10_1, LATEST_0_10_2, LATEST_0_11_0, DEV_BRANCH, DEV_VERSION, KafkaVersion
+import random
 import time
 
+broker_upgrade_versions = [str(LATEST_0_10_1), str(LATEST_0_10_2), str(LATEST_0_11_0), str(DEV_BRANCH)]
+simple_upgrade_versions_metadata_version_2 = [str(LATEST_0_10_1), str(LATEST_0_10_2), str(LATEST_0_11_0), str(DEV_VERSION)]
 
 class StreamsUpgradeTest(Test):
     """
-    Tests rolling upgrades and downgrades of the Kafka Streams library.
+    Test upgrading Kafka Streams (all version combination)
+    If metadata was changes, upgrade is more difficult
+    Metadata version was bumped in 0.10.1.0
     """
 
     def __init__(self, test_context):
         super(StreamsUpgradeTest, self).__init__(test_context)
+        self.topics = {
+            'echo' : { 'partitions': 5 },
+            'data' : { 'partitions': 5 },
+        }
+
+    def perform_broker_upgrade(self, to_version):
+        self.logger.info("First pass bounce - rolling broker upgrade")
+        for node in self.kafka.nodes:
+            self.kafka.stop_node(node)
+            node.version = KafkaVersion(to_version)
+            self.kafka.start_node(node)
+
+    @cluster(num_nodes=6)
+    @matrix(from_version=broker_upgrade_versions, to_version=broker_upgrade_versions)
+    def test_upgrade_downgrade_brokers(self, from_version, to_version):
+        """
+        Start a smoke test client then perform rolling upgrades on the broker. 
+        """
+
+        if from_version == to_version:
+            return
+
         self.replication = 3
         self.partitions = 1
         self.isr = 2
@@ -55,45 +82,7 @@ def __init__(self, test_context):
             'tagg' : { 'partitions': self.partitions, 'replication-factor': self.replication,
                        'configs': {"min.insync.replicas": self.isr} }
         }
-        
-
-    def perform_streams_upgrade(self, to_version):
-        self.logger.info("First pass bounce - rolling streams upgrade")
-
-        # get the node running the streams app
-        node = self.processor1.node
-        self.processor1.stop()
-
-        # change it's version. This will automatically make it pick up a different
-        # JAR when it starts again
-        node.version = KafkaVersion(to_version)
-        self.processor1.start()
-
-    def perform_broker_upgrade(self, to_version):
-        self.logger.info("First pass bounce - rolling broker upgrade")
-        for node in self.kafka.nodes:
-            self.kafka.stop_node(node)
-            node.version = KafkaVersion(to_version)
-            self.kafka.start_node(node)
-
 
-    @cluster(num_nodes=6)
-    @parametrize(from_version=str(LATEST_0_10_1), to_version=str(DEV_BRANCH))
-    @parametrize(from_version=str(LATEST_0_10_2), to_version=str(DEV_BRANCH))
-    @parametrize(from_version=str(LATEST_0_10_1), to_version=str(LATEST_0_11_0))
-    @parametrize(from_version=str(LATEST_0_10_2), to_version=str(LATEST_0_11_0))
-    @parametrize(from_version=str(LATEST_0_11_0), to_version=str(LATEST_0_10_2))
-    @parametrize(from_version=str(DEV_BRANCH), to_version=str(LATEST_0_10_2))
-    def test_upgrade_downgrade_streams(self, from_version, to_version):
-        """
-        Start a smoke test client, then abort (kill -9) and restart it a few times.
-        Ensure that all records are delivered.
-
-        Note, that just like tests/core/upgrade_test.py, a prerequisite for this test to succeed
-        if the inclusion of all parametrized versions of kafka in kafka/vagrant/base.sh 
-        (search for get_kafka()). For streams in particular, that means that someone has manually
-        copies the kafka-stream-$version-test.jar in the right S3 bucket as shown in base.sh.
-        """
         # Setup phase
         self.zk = ZookeeperService(self.test_context, num_nodes=1)
         self.zk.start()
@@ -108,13 +97,12 @@ def test_upgrade_downgrade_streams(self, from_version, to_version):
         
         self.driver = StreamsSmokeTestDriverService(self.test_context, self.kafka)
         self.processor1 = StreamsSmokeTestJobRunnerService(self.test_context, self.kafka)
-
         
         self.driver.start()
         self.processor1.start()
         time.sleep(15)
 
-        self.perform_streams_upgrade(to_version)
+        self.perform_broker_upgrade(to_version)
 
         time.sleep(15)
         self.driver.wait()
@@ -126,42 +114,239 @@ def test_upgrade_downgrade_streams(self, from_version, to_version):
         node.account.ssh("grep ALL-RECORDS-DELIVERED %s" % self.driver.STDOUT_FILE, allow_fail=False)
         self.processor1.node.account.ssh_capture("grep SMOKE-TEST-CLIENT-CLOSED %s" % self.processor1.STDOUT_FILE, allow_fail=False)
 
+    @matrix(from_version=simple_upgrade_versions_metadata_version_2, to_version=simple_upgrade_versions_metadata_version_2)
+    def test_simple_upgrade_downgrade(self, from_version, to_version):
+        """
+        Starts 3 KafkaStreams instances with <old_version>, and upgrades one-by-one to <new_version>
+        """
 
+        if from_version == to_version:
+            return
 
-    @cluster(num_nodes=6)
-    @parametrize(from_version=str(LATEST_0_10_2), to_version=str(DEV_BRANCH))
-    def test_upgrade_brokers(self, from_version, to_version):
+        self.zk = ZookeeperService(self.test_context, num_nodes=1)
+        self.zk.start()
+
+        self.kafka = KafkaService(self.test_context, num_nodes=1, zk=self.zk, topics=self.topics)
+        self.kafka.start()
+
+        self.driver = StreamsSmokeTestDriverService(self.test_context, self.kafka)
+        self.driver.disable_auto_terminate()
+        self.processor1 = StreamsUpgradeTestJobRunnerService(self.test_context, self.kafka)
+        self.processor2 = StreamsUpgradeTestJobRunnerService(self.test_context, self.kafka)
+        self.processor3 = StreamsUpgradeTestJobRunnerService(self.test_context, self.kafka)
+
+        self.driver.start()
+        self.start_all_nodes_with(from_version)
+
+        self.processors = [self.processor1, self.processor2, self.processor3]
+
+        counter = 1
+        random.seed()
+
+        # upgrade one-by-one via rolling bounce
+        random.shuffle(self.processors)
+        for p in self.processors:
+            p.CLEAN_NODE_ENABLED = False
+            self.do_rolling_bounce(p, "", to_version, counter)
+            counter = counter + 1
+
+        # shutdown
+        self.driver.stop()
+        self.driver.wait()
+
+        random.shuffle(self.processors)
+        for p in self.processors:
+            node = p.node
+            with node.account.monitor_log(p.STDOUT_FILE) as monitor:
+                p.stop()
+                monitor.wait_until("UPGRADE-TEST-CLIENT-CLOSED",
+                                   timeout_sec=60,
+                                   err_msg="Never saw output 'UPGRADE-TEST-CLIENT-CLOSED' on" + str(node.account))
+
+        self.driver.stop()
+
+    #@parametrize(new_version=str(LATEST_0_10_1)) we cannot run this test until Kafka 0.10.1.2 is released
+    #@parametrize(new_version=str(LATEST_0_10_2)) we cannot run this test until Kafka 0.10.2.2 is released
+    #@parametrize(new_version=str(LATEST_0_11_0)) we cannot run this test until Kafka 0.11.0.3 is released
+    @parametrize(new_version=str(DEV_VERSION))
+    def test_metadata_upgrade(self, new_version):
         """
-        Start a smoke test client then perform rolling upgrades on the broker. 
+        Starts 3 KafkaStreams instances with version 0.10.0, and upgrades one-by-one to <new_version>
         """
-        # Setup phase
+
         self.zk = ZookeeperService(self.test_context, num_nodes=1)
         self.zk.start()
 
-        # number of nodes needs to be >= 3 for the smoke test
-        self.kafka = KafkaService(self.test_context, num_nodes=3,
-                                  zk=self.zk, version=KafkaVersion(from_version), topics=self.topics)
+        self.kafka = KafkaService(self.test_context, num_nodes=1, zk=self.zk, topics=self.topics)
         self.kafka.start()
-        
-        # allow some time for topics to be created
-        time.sleep(10)
-        
+
         self.driver = StreamsSmokeTestDriverService(self.test_context, self.kafka)
-        self.processor1 = StreamsSmokeTestJobRunnerService(self.test_context, self.kafka)
+        self.driver.disable_auto_terminate()
+        self.processor1 = StreamsUpgradeTestJobRunnerService(self.test_context, self.kafka)
+        self.processor2 = StreamsUpgradeTestJobRunnerService(self.test_context, self.kafka)
+        self.processor3 = StreamsUpgradeTestJobRunnerService(self.test_context, self.kafka)
 
-        
         self.driver.start()
-        self.processor1.start()
-        time.sleep(15)
+        self.start_all_nodes_with(str(LATEST_0_10_0))
 
-        self.perform_broker_upgrade(to_version)
+        self.processors = [self.processor1, self.processor2, self.processor3]
 
-        time.sleep(15)
+        counter = 1
+        random.seed()
+
+        # first rolling bounce
+        random.shuffle(self.processors)
+        for p in self.processors:
+            p.CLEAN_NODE_ENABLED = False
+            self.do_rolling_bounce(p, "0.10.0", new_version, counter)
+            counter = counter + 1
+
+        # second rolling bounce
+        random.shuffle(self.processors)
+        for p in self.processors:
+            self.do_rolling_bounce(p, "", new_version, counter)
+            counter = counter + 1
+
+        # shutdown
+        self.driver.stop()
         self.driver.wait()
+
+        random.shuffle(self.processors)
+        for p in self.processors:
+            node = p.node
+            with node.account.monitor_log(p.STDOUT_FILE) as monitor:
+                p.stop()
+                monitor.wait_until("UPGRADE-TEST-CLIENT-CLOSED",
+                                   timeout_sec=60,
+                                   err_msg="Never saw output 'UPGRADE-TEST-CLIENT-CLOSED' on" + str(node.account))
+
         self.driver.stop()
 
-        self.processor1.stop()
+    def start_all_nodes_with(self, version):
+        # start first with <version>
+        self.prepare_for(self.processor1, version)
+        node1 = self.processor1.node
+        with node1.account.monitor_log(self.processor1.STDOUT_FILE) as monitor:
+            with node1.account.monitor_log(self.processor1.LOG_FILE) as log_monitor:
+                self.processor1.start()
+                log_monitor.wait_until("Kafka version : " + version,
+                                       timeout_sec=60,
+                                       err_msg="Could not detect Kafka Streams version " + version + " " + str(node1.account))
+                monitor.wait_until("processed 100 records from topic",
+                                   timeout_sec=60,
+                                   err_msg="Never saw output 'processed 100 records from topic' on" + str(node1.account))
 
-        node = self.driver.node
-        node.account.ssh("grep ALL-RECORDS-DELIVERED %s" % self.driver.STDOUT_FILE, allow_fail=False)
-        self.processor1.node.account.ssh_capture("grep SMOKE-TEST-CLIENT-CLOSED %s" % self.processor1.STDOUT_FILE, allow_fail=False)
+        # start second with <version>
+        self.prepare_for(self.processor2, version)
+        node2 = self.processor2.node
+        with node1.account.monitor_log(self.processor1.STDOUT_FILE) as first_monitor:
+            with node2.account.monitor_log(self.processor2.STDOUT_FILE) as second_monitor:
+                with node2.account.monitor_log(self.processor2.LOG_FILE) as log_monitor:
+                    self.processor2.start()
+                    log_monitor.wait_until("Kafka version : " + version,
+                                           timeout_sec=60,
+                                           err_msg="Could not detect Kafka Streams version " + version + " " + str(node2.account))
+                    first_monitor.wait_until("processed 100 records from topic",
+                                             timeout_sec=60,
+                                             err_msg="Never saw output 'processed 100 records from topic' on" + str(node1.account))
+                    second_monitor.wait_until("processed 100 records from topic",
+                                              timeout_sec=60,
+                                              err_msg="Never saw output 'processed 100 records from topic' on" + str(node2.account))
+
+        # start third with <version>
+        self.prepare_for(self.processor3, version)
+        node3 = self.processor3.node
+        with node1.account.monitor_log(self.processor1.STDOUT_FILE) as first_monitor:
+            with node2.account.monitor_log(self.processor2.STDOUT_FILE) as second_monitor:
+                with node3.account.monitor_log(self.processor3.STDOUT_FILE) as third_monitor:
+                    with node3.account.monitor_log(self.processor3.LOG_FILE) as log_monitor:
+                        self.processor3.start()
+                        log_monitor.wait_until("Kafka version : " + version,
+                                               timeout_sec=60,
+                                               err_msg="Could not detect Kafka Streams version " + version + " " + str(node3.account))
+                        first_monitor.wait_until("processed 100 records from topic",
+                                                 timeout_sec=60,
+                                                 err_msg="Never saw output 'processed 100 records from topic' on" + str(node1.account))
+                        second_monitor.wait_until("processed 100 records from topic",
+                                                  timeout_sec=60,
+                                                  err_msg="Never saw output 'processed 100 records from topic' on" + str(node2.account))
+                        third_monitor.wait_until("processed 100 records from topic",
+                                                  timeout_sec=60,
+                                                  err_msg="Never saw output 'processed 100 records from topic' on" + str(node3.account))
+
+    @staticmethod
+    def prepare_for(processor, version):
+        processor.node.account.ssh("rm -rf " + processor.PERSISTENT_ROOT, allow_fail=False)
+        if version == str(DEV_VERSION):
+            processor.set_version("")  # set to TRUNK
+        else:
+            processor.set_version(version)
+
+    def do_rolling_bounce(self, processor, upgrade_from, new_version, counter):
+        first_other_processor = None
+        second_other_processor = None
+        for p in self.processors:
+            if p != processor:
+                if first_other_processor is None:
+                    first_other_processor = p
+                else:
+                    second_other_processor = p
+
+        node = processor.node
+        first_other_node = first_other_processor.node
+        second_other_node = second_other_processor.node
+
+        # stop processor and wait for rebalance of others
+        with first_other_node.account.monitor_log(first_other_processor.STDOUT_FILE) as first_other_monitor:
+            with second_other_node.account.monitor_log(second_other_processor.STDOUT_FILE) as second_other_monitor:
+                processor.stop()
+                first_other_monitor.wait_until("processed 100 records from topic",
+                                               timeout_sec=60,
+                                               err_msg="Never saw output 'processed 100 records from topic' on" + str(first_other_node.account))
+                second_other_monitor.wait_until("processed 100 records from topic",
+                                                timeout_sec=60,
+                                                err_msg="Never saw output 'processed 100 records from topic' on" + str(second_other_node.account))
+        node.account.ssh_capture("grep UPGRADE-TEST-CLIENT-CLOSED %s" % processor.STDOUT_FILE, allow_fail=False)
+
+        if upgrade_from == "":  # upgrade disabled -- second round of rolling bounces
+            roll_counter = ".1-"  # second round of rolling bounces
+        else:
+            roll_counter = ".0-"  # first  round of rolling boundes
+
+        node.account.ssh("mv " + processor.STDOUT_FILE + " " + processor.STDOUT_FILE + roll_counter + str(counter), allow_fail=False)
+        node.account.ssh("mv " + processor.STDERR_FILE + " " + processor.STDERR_FILE + roll_counter + str(counter), allow_fail=False)
+        node.account.ssh("mv " + processor.LOG_FILE + " " + processor.LOG_FILE + roll_counter + str(counter), allow_fail=False)
+
+        if new_version == str(DEV_VERSION):
+            processor.set_version("")  # set to TRUNK
+        else:
+            processor.set_version(new_version)
+        processor.set_upgrade_from(upgrade_from)
+
+        grep_metadata_error = "grep \"org.apache.kafka.streams.errors.TaskAssignmentException: unable to decode subscription data: version=2\" "
+        with node.account.monitor_log(processor.STDOUT_FILE) as monitor:
+            with node.account.monitor_log(processor.LOG_FILE) as log_monitor:
+                with first_other_node.account.monitor_log(first_other_processor.STDOUT_FILE) as first_other_monitor:
+                    with second_other_node.account.monitor_log(second_other_processor.STDOUT_FILE) as second_other_monitor:
+                        processor.start()
+
+                        log_monitor.wait_until("Kafka version : " + new_version,
+                                               timeout_sec=60,
+                                               err_msg="Could not detect Kafka Streams version " + new_version + " " + str(node.account))
+                        first_other_monitor.wait_until("processed 100 records from topic",
+                                                       timeout_sec=60,
+                                                       err_msg="Never saw output 'processed 100 records from topic' on" + str(first_other_node.account))
+                        found = list(first_other_node.account.ssh_capture(grep_metadata_error + first_other_processor.STDERR_FILE, allow_fail=True))
+                        if len(found) > 0:
+                            raise Exception("Kafka Streams failed with 'unable to decode subscription data: version=2'")
+
+                        second_other_monitor.wait_until("processed 100 records from topic",
+                                                        timeout_sec=60,
+                                                        err_msg="Never saw output 'processed 100 records from topic' on" + str(second_other_node.account))
+                        found = list(second_other_node.account.ssh_capture(grep_metadata_error + second_other_processor.STDERR_FILE, allow_fail=True))
+                        if len(found) > 0:
+                            raise Exception("Kafka Streams failed with 'unable to decode subscription data: version=2'")
+
+                        monitor.wait_until("processed 100 records from topic",
+                                           timeout_sec=60,
+                                           err_msg="Never saw output 'processed 100 records from topic' on" + str(node.account))
diff --git a/tests/kafkatest/version.py b/tests/kafkatest/version.py
index 8a9373c1413e7..b49a3ef2fcc7c 100644
--- a/tests/kafkatest/version.py
+++ b/tests/kafkatest/version.py
@@ -61,6 +61,7 @@ def get_version(node=None):
         return DEV_BRANCH
 
 DEV_BRANCH = KafkaVersion("dev")
+DEV_VERSION = KafkaVersion("1.0.2-SNAPSHOT")
 
 # 0.8.2.X versions
 V_0_8_2_1 = KafkaVersion("0.8.2.1")
@@ -91,7 +92,9 @@ def get_version(node=None):
 
 # 0.11.0.0 versions
 V_0_11_0_0 = KafkaVersion("0.11.0.0")
-LATEST_0_11_0 = V_0_11_0_0
+V_0_11_0_1 = KafkaVersion("0.11.0.1")
+V_0_11_0_2 = KafkaVersion("0.11.0.2")
+LATEST_0_11_0 = V_0_11_0_2
 LATEST_0_11 = LATEST_0_11_0
 
 # 1.0.0 versions
diff --git a/vagrant/base.sh b/vagrant/base.sh
index 2ebebf9adaacf..86ceefe68972a 100755
--- a/vagrant/base.sh
+++ b/vagrant/base.sh
@@ -93,8 +93,8 @@ get_kafka 0.10.1.1 2.11
 chmod a+rw /opt/kafka-0.10.1.1
 get_kafka 0.10.2.1 2.11
 chmod a+rw /opt/kafka-0.10.2.1
-get_kafka 0.11.0.0 2.11
-chmod a+rw /opt/kafka-0.11.0.0
+get_kafka 0.11.0.2 2.11
+chmod a+rw /opt/kafka-0.11.0.2
 
 
 # For EC2 nodes, we want to use /mnt, which should have the local disk. On local