diff --git a/api/controller/payload_unittest.py b/api/controller/payload_unittest.py
new file mode 100644
index 0000000..16cfe47
--- /dev/null
+++ b/api/controller/payload_unittest.py
@@ -0,0 +1,57 @@
+# -*- coding: utf-8 -*-
+# Copyright 2019 The Chromium OS Authors. All rights reserved.
+# Use of this source code is governed by a BSD-style license that can be
+# found in the LICENSE file.
+
+"""Payload operations."""
+
+from __future__ import print_function
+
+from chromite.api import api_config
+from chromite.api import controller
+from chromite.api.controller import payload
+from chromite.api.gen.chromite.api import payload_pb2
+from chromite.api.gen.chromiumos import common_pb2
+from chromite.lib import cros_test_lib
+from chromite.lib.paygen import paygen_payload_lib
+
+
+class PayloadApiTests(cros_test_lib.MockTestCase, api_config.ApiConfigMixin):
+  """Unittests for SetBinhost."""
+
+  def setUp(self):
+    self.response = payload_pb2.PayloadGenerationResult()
+
+    src_build = payload_pb2.Build(version='1.0.0', bucket='test',
+                                  channel='test-channel', build_target=
+                                  common_pb2.BuildTarget(name='cave'))
+
+    src_image = payload_pb2.UnsignedImage(
+        build=src_build, image_type=6, milestone='R70')
+
+    tgt_build = payload_pb2.Build(version='2.0.0', bucket='test',
+                                  channel='test-channel', build_target=
+                                  common_pb2.BuildTarget(name='cave'))
+
+    tgt_image = payload_pb2.UnsignedImage(
+        build=tgt_build, image_type=6, milestone='R70')
+
+    self.req = payload_pb2.PayloadGenerationRequest(
+        tgt_unsigned_image=tgt_image, src_unsigned_image=src_image,
+        bucket='test-destination-bucket', verify=True, keyset='update_signer')
+
+    self.result = payload_pb2.PayloadGenerationResult()
+
+  def testValidateOnly(self):
+    """Sanity check that a validate only call does not execute any logic."""
+
+    res = payload.GeneratePayload(self.req, self.result,
+                                  self.validate_only_config)
+    self.assertEqual(res, controller.RETURN_CODE_VALID_INPUT)
+
+  def testCallSucceeds(self):
+    """Check that a call is made succesfully."""
+    # Deep patch the paygen lib, this is a full run through service as well.
+    self.PatchObject(paygen_payload_lib, 'PaygenPayload')
+    res = payload.GeneratePayload(self.req, self.result, self.api_config)
+    self.assertEqual(res, controller.RETURN_CODE_SUCCESS)