diff --git a/Makefile b/Makefile
index e2eb72ccf0..ecf642fa37 100644
--- a/Makefile
+++ b/Makefile
@@ -593,7 +593,7 @@ localbenchmarks: test-binaries
 localsystem:
 	# Wipe existing config, database, and cache: start with clean slate.
 	$(RM) -rf ${HOME}/.local/share/containers ${HOME}/.config/containers
-	if timeout -v 1 true; then PODMAN=$(CURDIR)/bin/podman bats test/system/; else echo "Skipping $@: 'timeout -v' unavailable'"; fi
+	if timeout -v 1 true; then PODMAN=$(CURDIR)/bin/podman QUADLET=$(CURDIR)/bin/quadlet bats test/system/; else echo "Skipping $@: 'timeout -v' unavailable'"; fi
 
 .PHONY: remotesystem
 remotesystem:
diff --git a/hack/bats b/hack/bats
index 9bc2d2c152..1e732d3ac9 100755
--- a/hack/bats
+++ b/hack/bats
@@ -54,6 +54,7 @@ $0 also passes through \$OCI_RUNTIME, should you need to test that.
 # By default, test the podman in our working directory.
 # Some tests cd out of our workdir, so abs path is important
 export PODMAN=${PODMAN:-$(pwd)/bin/podman}
+export QUADLET=${QUADLET:-$(pwd)/bin/quadlet}
 
 # Because 'make' doesn't do this by default
 chcon -t container_runtime_exec_t $PODMAN
diff --git a/test/system/252-quadlet.bats b/test/system/252-quadlet.bats
new file mode 100644
index 0000000000..e583344acd
--- /dev/null
+++ b/test/system/252-quadlet.bats
@@ -0,0 +1,263 @@
+#!/usr/bin/env bats   -*- bats -*-
+#
+# Tests generated configurations for systemd.
+#
+
+load helpers
+load helpers.systemd
+
+UNIT_FILES=()
+
+function start_time() {
+    sleep_to_next_second # Ensure we're on a new second with no previous logging
+    STARTED_TIME=$(date "+%F %R:%S") # Start time for new log time
+}
+
+function setup() {
+    skip_if_remote "quadlet tests are meaningless over remote"
+
+    start_time
+
+    basic_setup
+}
+
+function teardown() {
+    for UNIT_FILE in ${UNIT_FILES[@]}; do
+        if [[ -e "$UNIT_FILE" ]]; then
+            local service=$(basename "$UNIT_FILE")
+            run systemctl stop "$service"
+            if [ $status -ne 0 ]; then
+               echo "# WARNING: systemctl stop failed in teardown: $output" >&3
+            fi
+            rm -f "$UNIT_FILE"
+        fi
+    done
+    systemctl daemon-reload
+
+    basic_teardown
+}
+
+# Converts the quadlet file and installs the result it in $UNIT_DIR
+function run_quadlet() {
+    local sourcefile="$1"
+    local service=$(quadlet_to_service_name "$sourcefile")
+
+    # quadlet always works on an entire directory, so copy the file
+    # to transform to a tmpdir
+    local quadlet_tmpdir=$(mktemp -d --tmpdir=$PODMAN_TMPDIR quadlet.XXXXXX)
+    cp $sourcefile $quadlet_tmpdir/
+
+    QUADLET_UNIT_DIRS="$quadlet_tmpdir" run $QUADLET $_DASHUSER $UNIT_DIR
+    assert $status -eq 0 "Failed to convert quadlet file: $sourcefile"
+    is "$output" "" "quadlet should report no errors"
+
+    # Ensure this is teared down
+    UNIT_FILES+=("$UNIT_DIR/$service")
+
+    QUADLET_SERVICE_NAME="$service"
+    QUADLET_SYSLOG_ID="$(basename $service .service)"
+    QUADLET_CONTAINER_NAME="systemd-$QUADLET_SYSLOG_ID"
+
+    cat $UNIT_DIR/$QUADLET_SERVICE_NAME
+}
+
+function service_setup() {
+    local service="$1"
+    local option="$2"
+
+    systemctl daemon-reload
+
+    local startargs=""
+    local statusexit=0
+    local activestate="active"
+
+    # If option wait, start and wait for service to exist
+    if [ "$option" == "wait" ]; then
+        startargs="--wait"
+        statusexit=3
+        local activestate="inactive"
+    fi
+
+    run systemctl $startargs start "$service"
+    assert $status -eq 0 "Error starting systemd unit $service: $output"
+
+    run systemctl status "$service"
+    assert $status -eq $statusexit "systemctl status $service: $output"
+
+    run systemctl show -P ActiveState "$service"
+    assert $status -eq 0 "systemctl show $service: $output"
+    is "$output" $activestate
+}
+
+# Helper to stop a systemd service running a container
+function service_cleanup() {
+    local service="$1"
+    local expected_state="$2"
+
+    run systemctl stop "$service"
+    assert $status -eq 0 "Error stopping systemd unit $service: $output"
+
+    # Regression test for #11304: confirm that unit stops into correct state
+    if [[ -n "$expected_state" ]]; then
+        run systemctl show --property=ActiveState "$service"
+        assert "$output" = "ActiveState=$expected_state" \
+               "state of service after systemctl stop"
+    fi
+
+    rm -f "$UNIT_DIR/$service"
+    systemctl daemon-reload
+}
+
+@test "quadlet - basic" {
+    local quadlet_file=$PODMAN_TMPDIR/basic_$(random_string).container
+    cat > $quadlet_file <<EOF
+[Container]
+Image=$IMAGE
+Exec=sh -c "echo STARTED CONTAINER; echo "READY=1" | socat -u STDIN unix-sendto:\$NOTIFY_SOCKET; top"
+Notify=yes
+EOF
+
+    run_quadlet "$quadlet_file"
+    service_setup $QUADLET_SERVICE_NAME
+
+    # Ensure we have output. Output is synced via sd-notify (socat in Exec)
+    run journalctl "--since=$STARTED_TIME" --unit="$QUADLET_SERVICE_NAME"
+    is "$output" '.*STARTED CONTAINER.*'
+
+    run_podman container inspect  --format "{{.State.Status}}" $QUADLET_CONTAINER_NAME
+    is "$output" "running" "container should be started by systemd and hence be running"
+
+    service_cleanup $QUADLET_SERVICE_NAME failed
+}
+
+@test "quadlet - envvar" {
+    local quadlet_file=$PODMAN_TMPDIR/envvar_$(random_string).container
+    cat > $quadlet_file <<EOF
+[Container]
+Image=$IMAGE
+Exec=sh -c "echo OUTPUT: \"\$FOOBAR\" \"\$BAR\""
+Environment="FOOBAR=Foo  Bar" BAR=bar
+EOF
+
+    run_quadlet "$quadlet_file"
+    service_setup $QUADLET_SERVICE_NAME wait
+
+    # Ensure we have the right output, sync is done via waiting for service to exit (service_setup wait)
+
+    # Note: Here we have to filter by syslog id instead of unit, because there is a (known) race
+    # condition where if the cgroup is cleaned up before journald sees the message, then the journal
+    # doesn't know the cgroup  and thus not the unit. (See https://github.com/systemd/systemd/issues/2913)
+    run journalctl "--since=$STARTED_TIME"  SYSLOG_IDENTIFIER="$QUADLET_SYSLOG_ID"
+    is "$output" '.*OUTPUT: Foo  Bar bar.*'
+
+    service_cleanup $QUADLET_SERVICE_NAME inactive
+}
+
+@test "quadlet - ContainerName" {
+    local quadlet_file=$PODMAN_TMPDIR/containername_$(random_string).container
+    cat > $quadlet_file <<EOF
+[Container]
+ContainerName=customcontainername
+Image=$IMAGE
+Exec=top"
+EOF
+
+    run_quadlet "$quadlet_file"
+    service_setup $QUADLET_SERVICE_NAME
+
+    # Ensure we can access with the custom container name
+    run_podman container inspect  --format "{{.State.Status}}" customcontainername
+    is "$output" "running" "container should be started by systemd and hence be running"
+
+    service_cleanup $QUADLET_SERVICE_NAME failed
+}
+
+@test "quadlet - labels" {
+    local quadlet_file=$PODMAN_TMPDIR/labels_$(random_string).container
+    cat > $quadlet_file <<EOF
+[Container]
+Image=$IMAGE
+Exec=top
+Label="foo=foo bar" "key=val"
+Annotation="afoo=afoo bar"
+Annotation="akey=aval"
+EOF
+
+    run_quadlet "$quadlet_file"
+    service_setup $QUADLET_SERVICE_NAME
+
+    run_podman container inspect --format "{{.Config.Labels.foo}}" $QUADLET_CONTAINER_NAME
+    is "$output" "foo bar"
+    run_podman container inspect --format "{{.Config.Labels.key}}" $QUADLET_CONTAINER_NAME
+    is "$output" "val"
+    run_podman container inspect --format "{{.Config.Annotations.afoo}}" $QUADLET_CONTAINER_NAME
+    is "$output" "afoo bar"
+    run_podman container inspect --format "{{.Config.Annotations.akey}}" $QUADLET_CONTAINER_NAME
+    is "$output" "aval"
+
+    service_cleanup $QUADLET_SERVICE_NAME failed
+}
+
+@test "quadlet - volume" {
+    local quadlet_file=$PODMAN_TMPDIR/basic_$(random_string).volume
+    cat > $quadlet_file <<EOF
+[Volume]
+Label=foo=bar other="with space"
+EOF
+
+    run_quadlet "$quadlet_file"
+
+    service_setup $QUADLET_SERVICE_NAME
+
+    local volume_name=systemd-$(basename $quadlet_file .volume)
+    run_podman volume ls
+    is "$output" ".*local.*${volume_name}.*"
+
+    run_podman volume inspect  --format "{{.Labels.foo}}" $volume_name
+    is "$output" "bar"
+    run_podman volume inspect  --format "{{.Labels.other}}" $volume_name
+    is "$output" "with space"
+
+    service_cleanup $QUADLET_SERVICE_NAME inactive
+}
+
+# A quadlet container depends on a quadlet volume
+@test "quadlet - volume dependency" {
+    local quadlet_vol_file=$PODMAN_TMPDIR/dep_$(random_string).volume
+    cat > $quadlet_vol_file <<EOF
+[Volume]
+EOF
+
+    run_quadlet "$quadlet_vol_file"
+
+    local vol_service=$QUADLET_SERVICE_NAME
+    local volume_name=systemd-$(basename $quadlet_vol_file .volume)
+
+    local quadlet_file=$PODMAN_TMPDIR/user_$(random_string).container
+    cat > $quadlet_file <<EOF
+[Container]
+Image=$IMAGE
+Exec=top
+Volume=$vol_service:/tmp
+EOF
+
+    # Volume should not exist
+    run_podman volume ls
+    assert "$output" !~ ".*${volume_name}.*"
+
+    service_setup $QUADLET_SERVICE_NAME
+
+    # Volume system unit should be active
+    run systemctl show --property=ActiveState "$vol_service"
+    assert "$output" = "ActiveState=active" \
+           "volume should be active via dependency"
+
+    # Volume should exist
+    volume_name=systemd-$(basename $quadlet_vol_file .volume)
+    run_podman volume ls
+    is "$output" ".*local.*${volume_name}.*"
+
+    service_cleanup $QUADLET_SERVICE_NAME inactive
+}
+
+# vim: filetype=sh
diff --git a/test/system/helpers.bash b/test/system/helpers.bash
index 264ca83c9f..0c7a690223 100644
--- a/test/system/helpers.bash
+++ b/test/system/helpers.bash
@@ -2,6 +2,7 @@
 
 # Podman command to run; may be podman-remote
 PODMAN=${PODMAN:-podman}
+QUADLET=${QUADLET:-quadlet}
 
 # Standard image to use for most tests
 PODMAN_TEST_IMAGE_REGISTRY=${PODMAN_TEST_IMAGE_REGISTRY:-"quay.io"}
@@ -864,5 +865,13 @@ EOF
     run_podman build -t $imagename ${PODMAN_TMPDIR}
 }
 
+##########################
+#  sleep_to_next_second  #  Sleep until second rolls over
+##########################
+
+function sleep_to_next_second() {
+    sleep 0.$(printf '%04d' $((10000 - 10#$(date +%4N))))
+}
+
 # END   miscellaneous tools
 ###############################################################################
diff --git a/test/system/helpers.systemd.bash b/test/system/helpers.systemd.bash
index afbab6e081..813bd806f5 100644
--- a/test/system/helpers.systemd.bash
+++ b/test/system/helpers.systemd.bash
@@ -46,3 +46,16 @@ install_kube_template() {
         cp $unit_file $UNIT_DIR/$unit_name
     fi
 }
+
+quadlet_to_service_name() {
+    local filename=$(basename -- "$1")
+    local extension="${filename##*.}"
+    local filename="${filename%.*}"
+    local suffix=""
+
+    if [ "$extension" == "volume" ]; then
+        suffix="-volume"
+    fi
+
+    echo "$filename$suffix.service"
+}