diff --git a/tests/components/automation/test_template.py b/tests/components/automation/test_template.py
new file mode 100644
index 00000000000..763b0194ded
--- /dev/null
+++ b/tests/components/automation/test_template.py
@@ -0,0 +1,351 @@
+"""
+tests.components.automation.test_template
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+Tests template automation.
+"""
+import unittest
+
+import homeassistant.core as ha
+import homeassistant.components.automation as automation
+
+
+class TestAutomationTemplate(unittest.TestCase):
+    """ Test the event automation. """
+
+    def setUp(self):  # pylint: disable=invalid-name
+        self.hass = ha.HomeAssistant()
+        self.hass.states.set('test.entity', 'hello')
+        self.calls = []
+
+        def record_call(service):
+            self.calls.append(service)
+
+        self.hass.services.register('test', 'automation', record_call)
+
+    def tearDown(self):  # pylint: disable=invalid-name
+        """ Stop down stuff we started. """
+        self.hass.stop()
+
+    def test_if_fires_on_change_bool(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ true }}',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+    def test_if_fires_on_change_str(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': 'true',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+    def test_if_fires_on_change_str_crazy(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': 'TrUE',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+    def test_if_not_fires_on_change_bool(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ false }}',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+    def test_if_not_fires_on_change_str(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': 'False',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+    def test_if_not_fires_on_change_str_crazy(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': 'Anything other than "true" is false.',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+    def test_if_fires_on_no_change(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ true }}',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'hello')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+    def test_if_fires_on_two_change(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ true }}',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        # Trigger once
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+        # Trigger again
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+    def test_if_fires_on_change_with_template(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ is_state("test.entity", "world") }}',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+    def test_if_not_fires_on_change_with_template(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ is_state("test.entity", "hello") }}',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+    def test_if_fires_on_change_with_template_advanced(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '''{%- if is_state("test.entity", "world") -%}
+                                         true
+                                         {%- else -%}
+                                         false
+                                         {%- endif -%}''',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+    def test_if_fires_on_no_change_with_template_advanced(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '''{%- if is_state("test.entity", "world") -%}
+                                         true
+                                         {%- else -%}
+                                         false
+                                         {%- endif -%}''',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        # Different state
+        self.hass.states.set('test.entity', 'worldz')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+        # Different state
+        self.hass.states.set('test.entity', 'hello')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+    def test_if_fires_on_change_with_template_2(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ not is_state("test.entity", "world") }}',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+        self.hass.states.set('test.entity', 'home')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+        self.hass.states.set('test.entity', 'work')
+        self.hass.pool.block_till_done()
+        self.assertEqual(2, len(self.calls))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(2, len(self.calls))
+
+        self.hass.states.set('test.entity', 'home')
+        self.hass.pool.block_till_done()
+        self.assertEqual(3, len(self.calls))
+
+    def test_if_action(self):
+        automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'event',
+                    'event_type': 'test_event',
+                },
+                'condition': [{
+                    'platform': 'template',
+                    'value_template': '{{ is_state("test.entity", "world") }}'
+                }],
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        })
+
+        # Condition is not true yet
+        self.hass.bus.fire('test_event')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+        # Change condition to true, but it shouldn't be triggered yet
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+        # Condition is true and event is triggered
+        self.hass.bus.fire('test_event')
+        self.hass.pool.block_till_done()
+        self.assertEqual(1, len(self.calls))
+
+    def test_if_fires_on_change_with_bad_template(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ ',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))
+
+    def test_if_fires_on_change_with_bad_template_2(self):
+        self.assertTrue(automation.setup(self.hass, {
+            automation.DOMAIN: {
+                'trigger': {
+                    'platform': 'template',
+                    'value_template': '{{ xyz | round(0) }}',
+                },
+                'action': {
+                    'service': 'test.automation'
+                }
+            }
+        }))
+
+        self.hass.states.set('test.entity', 'world')
+        self.hass.pool.block_till_done()
+        self.assertEqual(0, len(self.calls))