diff --git a/ui/status/kati_test.go b/ui/status/kati_test.go
new file mode 100644
index 0000000..f2cb813
--- /dev/null
+++ b/ui/status/kati_test.go
@@ -0,0 +1,175 @@
+// Copyright 2018 Google Inc. All rights reserved.
+//
+// Licensed 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 status
+
+import (
+	"testing"
+)
+
+type lastOutput struct {
+	counterOutput
+
+	action *Action
+	result ActionResult
+
+	msgLevel MsgLevel
+	msg      string
+}
+
+func (l *lastOutput) StartAction(a *Action, c Counts) {
+	l.action = a
+	l.counterOutput.StartAction(a, c)
+}
+func (l *lastOutput) FinishAction(r ActionResult, c Counts) {
+	l.result = r
+	l.counterOutput.FinishAction(r, c)
+}
+func (l *lastOutput) Message(level MsgLevel, msg string) {
+	l.msgLevel = level
+	l.msg = msg
+}
+func (l *lastOutput) Flush() {}
+
+func TestKatiNormalCase(t *testing.T) {
+	status := &Status{}
+	output := &lastOutput{}
+	status.AddOutput(output)
+
+	parser := &katiOutputParser{
+		st: status.StartTool(),
+	}
+
+	msg := "*kati*: verbose msg"
+	parser.parseLine(msg)
+	output.Expect(t, Counts{})
+
+	if output.msgLevel != VerboseLvl {
+		t.Errorf("Expected verbose message, but got %d", output.msgLevel)
+	}
+	if output.msg != msg {
+		t.Errorf("unexpected message contents:\nwant: %q\n got: %q\n", msg, output.msg)
+	}
+
+	parser.parseLine("out/build-aosp_arm.ninja is missing, regenerating...")
+	output.Expect(t, Counts{})
+
+	parser.parseLine("[1/1] initializing build system ...")
+	output.Expect(t, Counts{
+		TotalActions:    1,
+		RunningActions:  1,
+		StartedActions:  1,
+		FinishedActions: 0,
+	})
+
+	parser.parseLine("[2/5] including out/soong/Android-aosp_arm.mk ...")
+	output.Expect(t, Counts{
+		TotalActions:    5,
+		RunningActions:  1,
+		StartedActions:  2,
+		FinishedActions: 1,
+	})
+
+	parser.parseLine("[3/5] including a ...")
+	msg = "a random message"
+	parser.parseLine(msg)
+
+	// Start the next line to flush the previous result
+	parser.parseLine("[4/5] finishing build rules ...")
+
+	msg += "\n"
+	if output.result.Output != msg {
+		t.Errorf("output for action did not match:\nwant: %q\n got: %q\n", msg, output.result.Output)
+	}
+
+	parser.parseLine("[5/5] writing build rules ...")
+	parser.parseLine("*kati*: verbose msg")
+	parser.flushAction()
+
+	if output.result.Output != "" {
+		t.Errorf("expected no output for last action, but got %q", output.result.Output)
+	}
+
+	output.Expect(t, Counts{
+		TotalActions:    5,
+		RunningActions:  0,
+		StartedActions:  5,
+		FinishedActions: 5,
+	})
+}
+
+func TestKatiExtraIncludes(t *testing.T) {
+	status := &Status{}
+	output := &lastOutput{}
+	status.AddOutput(output)
+
+	parser := &katiOutputParser{
+		st: status.StartTool(),
+	}
+
+	parser.parseLine("[1/1] initializing build system ...")
+	parser.parseLine("[2/5] including out/soong/Android-aosp_arm.mk ...")
+	output.Expect(t, Counts{
+		TotalActions:    5,
+		RunningActions:  1,
+		StartedActions:  2,
+		FinishedActions: 1,
+	})
+
+	parser.parseLine("including a ...")
+
+	output.Expect(t, Counts{
+		TotalActions:    6,
+		RunningActions:  1,
+		StartedActions:  3,
+		FinishedActions: 2,
+	})
+
+	parser.parseLine("including b ...")
+
+	output.Expect(t, Counts{
+		TotalActions:    7,
+		RunningActions:  1,
+		StartedActions:  4,
+		FinishedActions: 3,
+	})
+
+	parser.parseLine("[3/5] finishing build rules ...")
+
+	output.Expect(t, Counts{
+		TotalActions:    7,
+		RunningActions:  1,
+		StartedActions:  5,
+		FinishedActions: 4,
+	})
+}
+
+func TestKatiFailOnError(t *testing.T) {
+	status := &Status{}
+	output := &lastOutput{}
+	status.AddOutput(output)
+
+	parser := &katiOutputParser{
+		st: status.StartTool(),
+	}
+
+	parser.parseLine("[1/1] initializing build system ...")
+	parser.parseLine("[2/5] inclduing out/soong/Android-aosp_arm.mk ...")
+	parser.parseLine("build/make/tools/Android.mk:19: error: testing")
+	parser.flushAction()
+
+	if output.result.Error == nil {
+		t.Errorf("Expected the last action to be marked as an error")
+	}
+}