diff --git a/tests/unit/states/boto_ec2_test.py b/tests/unit/states/boto_ec2_test.py
new file mode 100644
index 0000000000..599f856c7f
--- /dev/null
+++ b/tests/unit/states/boto_ec2_test.py
@@ -0,0 +1,93 @@
+# -*- coding: utf-8 -*-
+'''
+    :codeauthor: :email:`Jayesh Kariya <jayeshk@saltstack.com>`
+'''
+# Import Python libs
+from __future__ import absolute_import
+
+# Import Salt Testing Libs
+from salttesting import skipIf, TestCase
+from salttesting.mock import (
+    NO_MOCK,
+    NO_MOCK_REASON,
+    MagicMock,
+    patch)
+
+from salttesting.helpers import ensure_in_syspath
+
+ensure_in_syspath('../../')
+
+# Import Salt Libs
+from salt.states import boto_ec2
+
+boto_ec2.__salt__ = {}
+boto_ec2.__opts__ = {}
+
+
+@skipIf(NO_MOCK, NO_MOCK_REASON)
+class BotoEc2TestCase(TestCase):
+    '''
+    Test cases for salt.states.boto_ec2
+    '''
+    # 'key_present' function tests: 1
+
+    def test_key_present(self):
+        '''
+        Test to ensure key pair is present.
+        '''
+        name = 'mykeypair'
+        upublic = 'salt://mybase/public_key.pub'
+
+        ret = {'name': name,
+               'result': True,
+               'changes': {},
+               'comment': ''}
+
+        mock = MagicMock(side_effect=[True, False, False])
+        mock_bool = MagicMock(side_effect=[IOError, True])
+        with patch.dict(boto_ec2.__salt__, {'boto_ec2.get_key': mock,
+                                            'cp.get_file_str': mock_bool}):
+            comt = ('The key name {0} already exists'.format(name))
+            ret.update({'comment': comt})
+            self.assertDictEqual(boto_ec2.key_present(name), ret)
+
+            comt = ('File {0} not found.'.format(upublic))
+            ret.update({'comment': comt, 'result': False})
+            self.assertDictEqual(boto_ec2.key_present(name,
+                                                      upload_public=upublic),
+                                 ret)
+
+            with patch.dict(boto_ec2.__opts__, {'test': True}):
+                comt = ('The key {0} is set to be created.'.format(name))
+                ret.update({'comment': comt, 'result': None})
+                self.assertDictEqual(boto_ec2.key_present
+                                     (name, upload_public=upublic), ret)
+
+    # 'key_absent' function tests: 1
+
+    def test_key_absent(self):
+        '''
+        Test to deletes a key pair
+        '''
+        name = 'new_table'
+
+        ret = {'name': name,
+               'result': True,
+               'changes': {},
+               'comment': ''}
+
+        mock = MagicMock(side_effect=[False, True])
+        with patch.dict(boto_ec2.__salt__, {'boto_ec2.get_key': mock}):
+            comt = ('The key name {0} does not exist'.format(name))
+            ret.update({'comment': comt})
+            self.assertDictEqual(boto_ec2.key_absent(name), ret)
+
+            with patch.dict(boto_ec2.__opts__, {'test': True}):
+                comt = ('The key {0} is set to be deleted.'.format(name))
+                ret.update({'comment': comt, 'result': None})
+                self.assertDictEqual(boto_ec2.key_absent(name), ret)
+
+
+if __name__ == '__main__':
+    from integration import run_tests
+    run_tests(BotoEc2TestCase, needs_daemon=False)