diff --git a/packages/nodes-base/credentials/PayPalApi.credentials.ts b/packages/nodes-base/credentials/PayPalApi.credentials.ts
index 897a66b627e98..9b2514efffe28 100644
--- a/packages/nodes-base/credentials/PayPalApi.credentials.ts
+++ b/packages/nodes-base/credentials/PayPalApi.credentials.ts
@@ -28,7 +28,7 @@ export class PayPalApi implements ICredentialType {
 			default: 'live',
 			options: [
 				{
-					name: 'Sanbox',
+					name: 'Sandbox',
 					value: 'sanbox',
 				},
 				{
diff --git a/packages/nodes-base/nodes/PayPal/GenericFunctions.ts b/packages/nodes-base/nodes/PayPal/GenericFunctions.ts
index a7859b335c8ec..1e8b84b4ebb3b 100644
--- a/packages/nodes-base/nodes/PayPal/GenericFunctions.ts
+++ b/packages/nodes-base/nodes/PayPal/GenericFunctions.ts
@@ -38,8 +38,8 @@ export async function payPalApiRequest(this: IHookFunctions | IExecuteFunctions
 function getEnvironment(env: string): string {
 	// @ts-ignore
 	return {
-		'sanbox': 'https://api.sandbox.paypal.com',
-		'live': 'https://api.paypal.com',
+		'sanbox': 'https://api-m.sandbox.paypal.com',
+		'live': 'https://api-m.paypal.com',
 	}[env];
 }
 
diff --git a/packages/nodes-base/nodes/PayPal/PayPal.node.ts b/packages/nodes-base/nodes/PayPal/PayPal.node.ts
index f72cffde6648b..36e4d6ee3499a 100644
--- a/packages/nodes-base/nodes/PayPal/PayPal.node.ts
+++ b/packages/nodes-base/nodes/PayPal/PayPal.node.ts
@@ -1,8 +1,14 @@
+import {
+	OptionsWithUri
+} from 'request';
 import {
 	IExecuteFunctions,
 } from 'n8n-core';
 import {
+	ICredentialsDecrypted,
+	ICredentialTestFunctions,
 	IDataObject,
+	INodeCredentialTestResult,
 	INodeExecutionData,
 	INodeType,
 	INodeTypeDescription,
@@ -46,6 +52,7 @@ export class PayPal implements INodeType {
 			{
 				name: 'payPalApi',
 				required: true,
+				testedBy: 'payPalApiTest',
 			},
 		],
 		properties: [
@@ -75,6 +82,58 @@ export class PayPal implements INodeType {
 		],
 	};
 
+	methods = {
+		credentialTest: {
+			async payPalApiTest(this: ICredentialTestFunctions, credential: ICredentialsDecrypted): Promise<INodeCredentialTestResult> {
+				const credentials = credential.data;
+				const clientId = credentials!.clientId;
+				const clientSecret = credentials!.secret;
+				const environment = credentials!.env;
+
+				if (!clientId || !clientSecret || !environment) {
+					return {
+						status: 'Error',
+						message: `Connection details not valid: missing credentials`,
+					};
+				}
+
+				let baseUrl = '';
+				if (environment !== 'live') {
+					baseUrl = 'https://api-m.sandbox.paypal.com';
+				} else {
+					baseUrl = 'https://api-m.paypal.com';
+				}
+
+				const base64Key = Buffer.from(`${clientId}:${clientSecret}`).toString('base64');
+
+				const options: OptionsWithUri = {
+					headers: {
+						'Authorization': `Basic ${base64Key}`,
+					},
+					method: 'POST',
+					uri: `${baseUrl}/v1/oauth2/token`,
+					form: {
+						grant_type: 'client_credentials',
+					},
+				};
+
+				try {
+					await this.helpers.request!(options);
+					return {
+						status: 'OK',
+						message: 'Authentication successful!',
+					};
+				}
+				catch (error) {
+					return {
+						status: 'Error',
+						message: `Connection details not valid: ${error.message}`,
+					};
+				}
+			},
+		},
+	};
+
 	async execute(this: IExecuteFunctions): Promise<INodeExecutionData[][]> {
 		const items = this.getInputData();
 		const returnData: IDataObject[] = [];
@@ -168,5 +227,6 @@ export class PayPal implements INodeType {
 			}
 		}
 		return [this.helpers.returnJsonArray(returnData)];
+
 	}
 }