diff --git a/audio/common/all-versions/test/utility/Android.bp b/audio/common/all-versions/test/utility/Android.bp
index 1602d25..757f8a8 100644
--- a/audio/common/all-versions/test/utility/Android.bp
+++ b/audio/common/all-versions/test/utility/Android.bp
@@ -25,7 +25,7 @@
 
 cc_library_static {
     name: "android.hardware.audio.common.test.utility",
-    defaults : ["hidl_defaults"],
+    defaults: ["hidl_defaults"],
     srcs: ["src/ValidateXml.cpp"],
     cflags: [
         "-O0",
@@ -34,7 +34,34 @@
     ],
     local_include_dirs: ["include/utility"],
     export_include_dirs: ["include"],
-    shared_libs: ["libxml2", "liblog"],
+    shared_libs: [
+        "libxml2",
+        "liblog",
+    ],
     static_libs: ["libgtest"],
     export_static_lib_headers: ["libgtest"],
 }
+
+// Note: this isn't a VTS test, but rather a unit test
+// to verify correctness of test utilities.
+cc_test {
+    name: "android.hardware.audio.common.test.utility_tests",
+    host_supported: true,
+    local_include_dirs: ["include/utility"],
+    srcs: [
+        "src/ValidateXml.cpp",
+        "tests/utility_tests.cpp",
+    ],
+    cflags: [
+        "-Werror",
+        "-Wall",
+        "-g",
+    ],
+    shared_libs: [
+        "libbase",
+        "libxml2",
+        "liblog",
+    ],
+    static_libs: ["libgtest"],
+    test_suites: ["general-tests"],
+}
diff --git a/audio/common/all-versions/test/utility/TEST_MAPPING b/audio/common/all-versions/test/utility/TEST_MAPPING
new file mode 100644
index 0000000..0bc1871
--- /dev/null
+++ b/audio/common/all-versions/test/utility/TEST_MAPPING
@@ -0,0 +1,7 @@
+{
+  "presubmit": [
+    {
+      "name": "android.hardware.audio.common.test.utility_tests"
+    }
+  ]
+}
diff --git a/audio/common/all-versions/test/utility/src/ValidateXml.cpp b/audio/common/all-versions/test/utility/src/ValidateXml.cpp
index a866104..f111c01 100644
--- a/audio/common/all-versions/test/utility/src/ValidateXml.cpp
+++ b/audio/common/all-versions/test/utility/src/ValidateXml.cpp
@@ -112,7 +112,8 @@
         return ::testing::AssertionFailure() << "Failed to parse xml\n" << context();
     }
 
-    if (xmlXIncludeProcess(doc.get()) == -1) {
+    // Process 'include' directives w/o modifying elements loaded from included files.
+    if (xmlXIncludeProcessFlags(doc.get(), XML_PARSE_NOBASEFIX) == -1) {
         return ::testing::AssertionFailure() << "Failed to resolve xincludes in xml\n" << context();
     }
 
diff --git a/audio/common/all-versions/test/utility/tests/utility_tests.cpp b/audio/common/all-versions/test/utility/tests/utility_tests.cpp
new file mode 100644
index 0000000..c523066
--- /dev/null
+++ b/audio/common/all-versions/test/utility/tests/utility_tests.cpp
@@ -0,0 +1,176 @@
+/*
+ * Copyright (C) 2021 The Android Open Source Project
+ *
+ * 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.
+ */
+
+#include <android-base/file.h>
+#include <gtest/gtest.h>
+
+#include <ValidateXml.h>
+
+using ::android::hardware::audio::common::test::utility::validateXml;
+
+const char* XSD_SOURCE =
+        "<?xml version=\"1.0\" encoding=\"UTF-8\"?>"
+        "<xs:schema version=\"2.0\""
+        "           elementFormDefault=\"qualified\""
+        "           attributeFormDefault=\"unqualified\""
+        "           xmlns:xs=\"http://www.w3.org/2001/XMLSchema\">"
+        "  <xs:element name=\"audioPolicyConfiguration\">"
+        "    <xs:complexType>"
+        "      <xs:sequence>"
+        "        <xs:element name=\"modules\">"
+        "          <xs:complexType>"
+        "            <xs:sequence>"
+        "              <xs:element name=\"module\" maxOccurs=\"unbounded\">"
+        "                <xs:complexType>"
+        "                  <xs:attribute name=\"name\" type=\"xs:string\" use=\"required\"/>"
+        "                </xs:complexType>"
+        "              </xs:element>"
+        "            </xs:sequence>"
+        "          </xs:complexType>"
+        "        </xs:element>"
+        "      </xs:sequence>"
+        "    </xs:complexType>"
+        "  </xs:element>"
+        "</xs:schema>";
+
+const char* INVALID_XML_SOURCE =
+        "<?xml version=\"1.0\" encoding=\"UTF-8\" standalone=\"yes\"?>"
+        "<audioPolicyKonfiguration />";
+
+const char* VALID_XML_SOURCE =
+        "<?xml version=\"1.0\" encoding=\"UTF-8\" standalone=\"yes\"?>"
+        "<audioPolicyConfiguration>"
+        "  <modules>"
+        "    <module name=\"aaa\" />"
+        "    %s"
+        "  </modules>"
+        "</audioPolicyConfiguration>";
+
+const char* MODULE_SOURCE = "<module name=\"bbb\" />";
+
+const char* XI_INCLUDE = "<xi:include xmlns:xi=\"http://www.w3.org/2001/XInclude\" href=\"%s\" />";
+
+const char* XML_INCLUDED_SOURCE = "<?xml version=\"1.0\" encoding=\"UTF-8\"?>%s";
+
+namespace {
+
+std::string substitute(const char* fmt, const char* param) {
+    std::string buffer(static_cast<size_t>(strlen(fmt) + strlen(param)), '\0');
+    snprintf(buffer.data(), buffer.size(), fmt, param);
+    return buffer;
+}
+
+std::string substitute(const char* fmt, const std::string& s) {
+    return substitute(fmt, s.c_str());
+}
+
+}  // namespace
+
+TEST(ValidateXml, InvalidXml) {
+    TemporaryFile xml;
+    ASSERT_TRUE(android::base::WriteStringToFile(INVALID_XML_SOURCE, xml.path)) << strerror(errno);
+    TemporaryFile xsd;
+    ASSERT_TRUE(android::base::WriteStringToFile(XSD_SOURCE, xsd.path)) << strerror(errno);
+    EXPECT_FALSE(validateXml("xml", "xsd", xml.path, xsd.path));
+}
+
+TEST(ValidateXml, ValidXml) {
+    TemporaryFile xml;
+    ASSERT_TRUE(
+            android::base::WriteStringToFile(substitute(VALID_XML_SOURCE, MODULE_SOURCE), xml.path))
+            << strerror(errno);
+    TemporaryFile xsd;
+    ASSERT_TRUE(android::base::WriteStringToFile(XSD_SOURCE, xsd.path)) << strerror(errno);
+    EXPECT_TRUE(validateXml("xml", "xsd", xml.path, xsd.path));
+}
+
+TEST(ValidateXml, IncludeAbsolutePath) {
+    TemporaryFile xmlInclude;
+    ASSERT_TRUE(android::base::WriteStringToFile(substitute(XML_INCLUDED_SOURCE, MODULE_SOURCE),
+                                                 xmlInclude.path))
+            << strerror(errno);
+    TemporaryFile xml;
+    ASSERT_TRUE(android::base::WriteStringToFile(
+            substitute(VALID_XML_SOURCE, substitute(XI_INCLUDE, xmlInclude.path)), xml.path))
+            << strerror(errno);
+    TemporaryFile xsd;
+    ASSERT_TRUE(android::base::WriteStringToFile(XSD_SOURCE, xsd.path)) << strerror(errno);
+    EXPECT_TRUE(validateXml("xml", "xsd", xml.path, xsd.path));
+}
+
+TEST(ValidateXml, IncludeSameDirRelativePath) {
+    TemporaryFile xmlInclude;
+    ASSERT_TRUE(android::base::WriteStringToFile(substitute(XML_INCLUDED_SOURCE, MODULE_SOURCE),
+                                                 xmlInclude.path))
+            << strerror(errno);
+    TemporaryFile xml;
+    ASSERT_EQ(android::base::Dirname(xml.path), android::base::Dirname(xmlInclude.path));
+    ASSERT_TRUE(android::base::WriteStringToFile(
+            substitute(VALID_XML_SOURCE,
+                       substitute(XI_INCLUDE, android::base::Basename(xmlInclude.path))),
+            xml.path))
+            << strerror(errno);
+    TemporaryFile xsd;
+    ASSERT_TRUE(android::base::WriteStringToFile(XSD_SOURCE, xsd.path)) << strerror(errno);
+    EXPECT_TRUE(validateXml("xml", "xsd", xml.path, xsd.path));
+}
+
+TEST(ValidateXml, IncludeSubdirRelativePath) {
+    TemporaryDir xmlIncludeDir;
+    TemporaryFile xmlInclude(xmlIncludeDir.path);
+    ASSERT_TRUE(android::base::WriteStringToFile(substitute(XML_INCLUDED_SOURCE, MODULE_SOURCE),
+                                                 xmlInclude.path))
+            << strerror(errno);
+    TemporaryFile xml;
+    ASSERT_EQ(android::base::Dirname(xml.path), android::base::Dirname(xmlIncludeDir.path));
+    ASSERT_TRUE(android::base::WriteStringToFile(
+            substitute(VALID_XML_SOURCE,
+                       substitute(XI_INCLUDE, android::base::Basename(xmlIncludeDir.path) + "/" +
+                                                      android::base::Basename(xmlInclude.path))),
+            xml.path))
+            << strerror(errno);
+    TemporaryFile xsd;
+    ASSERT_TRUE(android::base::WriteStringToFile(XSD_SOURCE, xsd.path)) << strerror(errno);
+    EXPECT_TRUE(validateXml("xml", "xsd", xml.path, xsd.path));
+}
+
+TEST(ValidateXml, IncludeParentDirRelativePath) {
+    // An XML file from a subdirectory includes a file from the parent directory using '..' syntax.
+    TemporaryFile xmlInclude;
+    ASSERT_TRUE(android::base::WriteStringToFile(substitute(XML_INCLUDED_SOURCE, MODULE_SOURCE),
+                                                 xmlInclude.path))
+            << strerror(errno);
+    TemporaryDir xmlIncludeDir;
+    TemporaryFile xmlParentInclude(xmlIncludeDir.path);
+    ASSERT_TRUE(android::base::WriteStringToFile(
+            substitute(XML_INCLUDED_SOURCE,
+                       substitute(XI_INCLUDE, "../" + android::base::Basename(xmlInclude.path))),
+            xmlParentInclude.path))
+            << strerror(errno);
+    TemporaryFile xml;
+    ASSERT_EQ(android::base::Dirname(xml.path), android::base::Dirname(xmlInclude.path));
+    ASSERT_EQ(android::base::Dirname(xml.path), android::base::Dirname(xmlIncludeDir.path));
+    ASSERT_TRUE(android::base::WriteStringToFile(
+            substitute(
+                    VALID_XML_SOURCE,
+                    substitute(XI_INCLUDE, android::base::Basename(xmlIncludeDir.path) + "/" +
+                                                   android::base::Basename(xmlParentInclude.path))),
+            xml.path))
+            << strerror(errno);
+    TemporaryFile xsd;
+    ASSERT_TRUE(android::base::WriteStringToFile(XSD_SOURCE, xsd.path)) << strerror(errno);
+    EXPECT_TRUE(validateXml("xml", "xsd", xml.path, xsd.path));
+}