diff --git a/tests/components/sensor/test_wunderground.py b/tests/components/sensor/test_wunderground.py
new file mode 100644
index 00000000000..c6664b71254
--- /dev/null
+++ b/tests/components/sensor/test_wunderground.py
@@ -0,0 +1,138 @@
+"""The tests for the forecast.io platform."""
+import unittest
+
+from homeassistant.components.sensor import wunderground
+from homeassistant.const import TEMP_CELSIUS
+from homeassistant import core as ha
+
+VALID_CONFIG_PWS = {
+    'platform': 'wunderground',
+    'api_key': 'foo',
+    'pws_id': 'bar',
+    'monitored_conditions': [
+        'weather', 'feelslike_c'
+    ]
+}
+
+VALID_CONFIG = {
+    'platform': 'wunderground',
+    'api_key': 'foo',
+    'monitored_conditions': [
+        'weather', 'feelslike_c'
+    ]
+}
+
+FEELS_LIKE = '40'
+WEATHER = 'Clear'
+ICON_URL = 'http://icons.wxug.com/i/c/k/clear.gif'
+
+
+def mocked_requests_get(*args, **kwargs):
+    class MockResponse:
+        def __init__(self, json_data, status_code):
+            self.json_data = json_data
+            self.status_code = status_code
+
+        def json(self):
+            return self.json_data
+
+    if str(args[0]).startswith('http://api.wunderground.com/api/foo/'):
+        # Return valid response
+        print('VALID RESPONSE')
+        return MockResponse({
+            "response": {
+                "version": "0.1",
+                "termsofService":
+                    "http://www.wunderground.com/weather/api/d/terms.html",
+                "features": {
+                    "conditions": 1
+                }
+            }, "current_observation": {
+                "image": {
+                    "url":
+                        'http://icons.wxug.com/graphics/wu2/logo_130x80.png',
+                    "title": "Weather Underground",
+                    "link": "http://www.wunderground.com"
+                },
+                "feelslike_c": FEELS_LIKE,
+                "weather": WEATHER,
+                "icon_url": ICON_URL
+            }
+        }, 200)
+    else:
+        # Return invalid api key
+        print('INVALID RESPONSE')
+        return MockResponse({
+                "response": {
+                    "version": "0.1",
+                    "termsofService":
+                        "http://www.wunderground.com/weather/api/d/terms.html",
+                    "features": {},
+                    "error": {
+                        "type": "keynotfound",
+                        "description": "this key does not exist"
+                    }
+                }
+            }, 200)
+
+
+class TestWundergroundSetup(unittest.TestCase):
+    """Test the wunderground platform."""
+
+    DEVICES = []
+
+    def add_devices(self, devices):
+        for device in devices:
+            self.DEVICES.append(device)
+
+    def setUp(self):
+        """Initialize values for this testcase class."""
+        self.DEVICES = []
+        self.hass = ha.HomeAssistant()
+        self.key = 'foo'
+        self.config = VALID_CONFIG_PWS
+        self.lat = 37.8267
+        self.lon = -122.423
+        self.hass.config.latitude = self.lat
+        self.hass.config.longitude = self.lon
+
+    @unittest.mock.patch('requests.get', side_effect=mocked_requests_get)
+    def test_setup(self, req_mock):
+        """Test that the component is loaded if passed in PSW Id."""
+        print('1')
+        self.assertTrue(
+            wunderground.setup_platform(self.hass, VALID_CONFIG_PWS,
+                                        self.add_devices, None))
+        print('2')
+        self.assertTrue(
+            wunderground.setup_platform(self.hass, VALID_CONFIG,
+                                        self.add_devices,
+                                        None))
+        invalid_config = {
+            'platform': 'wunderground',
+            'api_key': 'BOB',
+            'pws_id': 'bar',
+            'monitored_conditions': [
+                'weather', 'feelslike_c'
+            ]
+        }
+
+        self.assertFalse(
+            wunderground.setup_platform(self.hass, invalid_config,
+                                        self.add_devices, None))
+
+    @unittest.mock.patch('requests.get', side_effect=mocked_requests_get)
+    def test_sensor(self, req_mock):
+        wunderground.setup_platform(self.hass, VALID_CONFIG, self.add_devices,
+                                    None)
+        print(str(self.DEVICES))
+        for device in self.DEVICES:
+            self.assertTrue(str(device.name).startswith('PWS_'))
+            if device.name == 'PWS_weather':
+                self.assertEqual(ICON_URL, device.entity_picture)
+                self.assertEqual(WEATHER, device.state)
+                self.assertIsNone(device.unit_of_measurement)
+            else:
+                self.assertIsNone(device.entity_picture)
+                self.assertEqual(FEELS_LIKE, device.state)
+                self.assertEqual(TEMP_CELSIUS, device.unit_of_measurement)