diff --git a/hardware_chromeos_unittest.cc b/hardware_chromeos_unittest.cc
new file mode 100644
index 0000000..a6bad54
--- /dev/null
+++ b/hardware_chromeos_unittest.cc
@@ -0,0 +1,89 @@
+//
+// Copyright (C) 2016 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 "update_engine/hardware_chromeos.h"
+
+#include <memory>
+
+#include <base/files/file_util.h>
+#include <base/files/scoped_temp_dir.h>
+#include <gtest/gtest.h>
+
+#include "update_engine/common/constants.h"
+#include "update_engine/common/fake_hardware.h"
+#include "update_engine/common/test_utils.h"
+#include "update_engine/update_manager/umtest_utils.h"
+
+using chromeos_update_engine::test_utils::WriteFileString;
+using std::string;
+
+namespace chromeos_update_engine {
+
+class HardwareChromeOSTest : public ::testing::Test {
+ protected:
+  void SetUp() override { ASSERT_TRUE(root_dir_.CreateUniqueTempDir()); }
+
+  void WriteStatefulConfig(const string& config) {
+    base::FilePath kFile(root_dir_.path().value() + kStatefulPartition +
+                         "/etc/update_manager.conf");
+    ASSERT_TRUE(base::CreateDirectory(kFile.DirName()));
+    ASSERT_TRUE(WriteFileString(kFile.value(), config));
+  }
+
+  void WriteRootfsConfig(const string& config) {
+    base::FilePath kFile(root_dir_.path().value() + "/etc/update_manager.conf");
+    ASSERT_TRUE(base::CreateDirectory(kFile.DirName()));
+    ASSERT_TRUE(WriteFileString(kFile.value(), config));
+  }
+
+  // Helper method to call HardwareChromeOS::LoadConfig with the test directory.
+  void CallLoadConfig(bool normal_mode) {
+    hardware_.LoadConfig(root_dir_.path().value(), normal_mode);
+  }
+
+  HardwareChromeOS hardware_;
+  base::ScopedTempDir root_dir_;
+};
+
+TEST_F(HardwareChromeOSTest, NoFileFoundReturnsDefault) {
+  CallLoadConfig(true /* normal_mode */);
+  EXPECT_TRUE(hardware_.IsOOBEEnabled());
+}
+
+TEST_F(HardwareChromeOSTest, DontReadStatefulInNormalMode) {
+  WriteStatefulConfig("is_oobe_enabled=false");
+
+  CallLoadConfig(true /* normal_mode */);
+  EXPECT_TRUE(hardware_.IsOOBEEnabled());
+}
+
+TEST_F(HardwareChromeOSTest, ReadStatefulInDevMode) {
+  WriteRootfsConfig("is_oobe_enabled=true");
+  // Since the stateful is present, we should read that one.
+  WriteStatefulConfig("is_oobe_enabled=false");
+
+  CallLoadConfig(false /* normal_mode */);
+  EXPECT_FALSE(hardware_.IsOOBEEnabled());
+}
+
+TEST_F(HardwareChromeOSTest, ReadRootfsIfStatefulNotFound) {
+  WriteRootfsConfig("is_oobe_enabled=false");
+
+  CallLoadConfig(false /* normal_mode */);
+  EXPECT_FALSE(hardware_.IsOOBEEnabled());
+}
+
+}  // namespace chromeos_update_engine