diff --git a/ipatests/test_xmlrpc/test_user_plugin.py b/ipatests/test_xmlrpc/test_user_plugin.py
index f867b042d..a8b46d629 100644
--- a/ipatests/test_xmlrpc/test_user_plugin.py
+++ b/ipatests/test_xmlrpc/test_user_plugin.py
@@ -32,6 +32,7 @@ import re
 
 from ipalib import api, errors
 from ipaplatform.constants import constants as platformconstants
+from ipapython import ipautil
 from ipatests.test_xmlrpc import objectclasses
 from ipatests.util import (
     assert_deepequal, assert_equal, assert_not_equal, raises)
@@ -786,6 +787,86 @@ class TestUserWithGroup(XMLRPC_test):
         )
 
 
+@pytest.mark.tier1
+class TestUserWithUPGDisabled(XMLRPC_test):
+    """ Tests with UPG plugin disabled """
+
+    @classmethod
+    def managed_entries_upg(cls, action='enable'):
+        """ Change the UPG plugin state """
+        assert action in ('enable', 'disable')
+        ipautil.run(['ipa-managed-entries', '-e', 'UPG Definition', action])
+
+    @classmethod
+    def setup_class(cls):
+        super(TestUserWithUPGDisabled, cls).setup_class()
+        cls.managed_entries_upg(action='disable')
+
+    @classmethod
+    def teardown_class(cls):
+        cls.managed_entries_upg(action='enable')
+        super(TestUserWithUPGDisabled, cls).teardown_class()
+
+    def test_create_without_upg(self):
+        """ Try to create user without User's Primary GID
+
+        As the UPG plugin is disabled, the user gets assigned to the Default
+        Group for new users (ipausers) which is not POSIX and the command
+        is expected to fail
+        """
+        testuser = UserTracker(
+            name=u'tuser1', givenname=u'Test', sn=u'Tuser1'
+        )
+        command = testuser.make_create_command()
+        with raises_exact(errors.NotFound(
+                reason=u'Default group for new users is not POSIX')):
+            command()
+
+    def test_create_without_upg_with_gid_set(self):
+        """ Create user without User's Primary GID with GID set
+
+        The UPG plugin is disabled, but the user is provided with a group
+        """
+        testuser = UserTracker(
+            name=u'tuser1', givenname=u'Test', sn=u'Tuser1',
+            gidnumber=1000
+        )
+        testuser.track_create()
+        del testuser.attrs['mepmanagedentry']
+        testuser.attrs.update(gidnumber=[u'1000'])
+        testuser.attrs.update(
+            description=[],
+            objectclass=add_oc(objectclasses.user_base, u'ipantuserattrs')
+        )
+        command = testuser.make_create_command()
+        result = command()
+        testuser.check_create(result, [u'description'])
+        testuser.delete()
+
+    def test_create_where_managed_group_exists(self, user, group):
+        """ Create a managed group and then try to create user
+        with the same name the group has
+
+        As the UPG plugin is disabled, there is no conflict
+        """
+        group.create()
+        testuser = UserTracker(
+            name=group.cn, givenname=u'Test', sn=u'Tuser1',
+            gidnumber=1000
+        )
+        testuser.track_create()
+        del testuser.attrs['mepmanagedentry']
+        testuser.attrs.update(gidnumber=[u'1000'])
+        testuser.attrs.update(
+            description=[],
+            objectclass=add_oc(objectclasses.user_base, u'ipantuserattrs')
+        )
+        command = testuser.make_create_command()
+        result = command()
+        testuser.check_create(result, [u'description'])
+        testuser.delete()
+
+
 @pytest.mark.tier1
 class TestManagers(XMLRPC_test):
     def test_assign_nonexistent_manager(self, user, user2):