diff --git a/mod/lti/tests/generator/lib.php b/mod/lti/tests/generator/lib.php
new file mode 100644
index 00000000000..b3d3480b146
--- /dev/null
+++ b/mod/lti/tests/generator/lib.php
@@ -0,0 +1,101 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+/**
+ * mod_lti data generator
+ *
+ * @package    mod_lti
+ * @category   phpunit
+ * @copyright  Copyright (c) 2012 Moodlerooms Inc. (http://www.moodlerooms.com)
+ * @author     Mark Nielsen
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+
+defined('MOODLE_INTERNAL') || die();
+
+/**
+ * Assignment module PHPUnit data generator class
+ *
+ * @package    mod_lti
+ * @category   phpunit
+ * @copyright  Copyright (c) 2012 Moodlerooms Inc. (http://www.moodlerooms.com)
+ * @author     Mark Nielsen
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+class mod_lti_generator extends phpunit_module_generator {
+
+    /**
+     * Create new lti module instance
+     *
+     * @param array|stdClass $record
+     * @param array $options
+     * @throws coding_exception
+     * @return stdClass activity record with extra cmid field
+     */
+    public function create_instance($record = null, array $options = null) {
+        global $CFG;
+
+        require_once("$CFG->dirroot/mod/lti/lib.php");
+
+        $this->instancecount++;
+        $i = $this->instancecount;
+
+        $record  = (object) (array) $record;
+        $options = (array) $options;
+
+        if (empty($record->course)) {
+            throw new coding_exception('module generator requires $record->course');
+        }
+        if (!isset($record->name)) {
+            $record->name = get_string('pluginname', 'lti').' '.$i;
+        }
+        if (!isset($record->intro)) {
+            $record->intro = 'Test lti '.$i;
+        }
+        if (!isset($record->introformat)) {
+            $record->introformat = FORMAT_MOODLE;
+        }
+        if (!isset($record->toolurl)) {
+            $record->toolurl = 'http://www.imsglobal.org/developers/LTI/test/v1p1/tool.php';
+        }
+        if (!isset($record->resourcekey)) {
+            $record->resourcekey = '12345';
+        }
+        if (!isset($record->password)) {
+            $record->password = 'secret';
+        }
+        if (!isset($record->grade)) {
+            $record->grade = 100;
+        }
+        if (!isset($record->instructorchoicesendname)) {
+            $record->instructorchoicesendname = 1;
+        }
+        if (!isset($record->instructorchoicesendemailaddr)) {
+            $record->instructorchoicesendemailaddr = 1;
+        }
+        if (!isset($record->instructorchoiceacceptgrades)) {
+            $record->instructorchoiceacceptgrades = 1;
+        }
+        if (isset($options['idnumber'])) {
+            $record->cmidnumber = $options['idnumber'];
+        } else {
+            $record->cmidnumber = '';
+        }
+        $record->coursemodule = $this->precreate_course_module($record->course, $options);
+        $id = lti_add_instance($record, null);
+        return $this->post_add_instance($id, $record->coursemodule);
+    }
+}
\ No newline at end of file
diff --git a/mod/lti/tests/generator_test.php b/mod/lti/tests/generator_test.php
new file mode 100644
index 00000000000..8a2bbcfe889
--- /dev/null
+++ b/mod/lti/tests/generator_test.php
@@ -0,0 +1,74 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+/**
+ * PHPUnit data generator tests
+ *
+ * @package    mod_lti
+ * @category   phpunit
+ * @copyright  Copyright (c) 2012 Moodlerooms Inc. (http://www.moodlerooms.com)
+ * @author     Mark Nielsen
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+
+defined('MOODLE_INTERNAL') || die();
+
+/**
+ * PHPUnit data generator testcase
+ *
+ * @package    mod_lti
+ * @category   phpunit
+ * @copyright  Copyright (c) 2012 Moodlerooms Inc. (http://www.moodlerooms.com)
+ * @author     Mark Nielsen
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+class mod_lti_generator_testcase extends advanced_testcase {
+    public function test_generator() {
+        global $DB;
+
+        $this->resetAfterTest(true);
+
+        $this->assertEquals(0, $DB->count_records('lti'));
+
+        $course = $this->getDataGenerator()->create_course();
+
+        /** @var mod_lti_generator $generator */
+        $generator = $this->getDataGenerator()->get_plugin_generator('mod_lti');
+        $this->assertInstanceOf('mod_lti_generator', $generator);
+        $this->assertEquals('lti', $generator->get_modulename());
+
+        $generator->create_instance(array('course' => $course->id));
+        $generator->create_instance(array('course' => $course->id));
+        $lti = $generator->create_instance(array('course' => $course->id));
+        $this->assertEquals(3, $DB->count_records('lti'));
+
+        $cm = get_coursemodule_from_instance('lti', $lti->id);
+        $this->assertEquals($lti->id, $cm->instance);
+        $this->assertEquals('lti', $cm->modname);
+        $this->assertEquals($course->id, $cm->course);
+
+        $context = context_module::instance($cm->id);
+        $this->assertEquals($lti->cmid, $context->instanceid);
+
+        // test gradebook integration using low level DB access - DO NOT USE IN PLUGIN CODE!
+        $lti = $generator->create_instance(array('course' => $course->id, 'assessed' => 1, 'scale' => 100));
+        $gitem = $DB->get_record('grade_items', array('courseid' => $course->id, 'itemtype' => 'mod', 'itemmodule' => 'lti', 'iteminstance' => $lti->id));
+        $this->assertNotEmpty($gitem);
+        $this->assertEquals(100, $gitem->grademax);
+        $this->assertEquals(0, $gitem->grademin);
+        $this->assertEquals(GRADE_TYPE_VALUE, $gitem->gradetype);
+    }
+}