diff --git a/Makefile b/Makefile
index e68b19f2..3c096a99 100644
--- a/Makefile
+++ b/Makefile
@@ -59,6 +59,7 @@ test_images:
 	sudo -E ./tests/test_cli.sh tests/cli/test_compose_ext4-filesystem.sh  \
 				    tests/cli/test_compose_partitioned-disk.sh \
 				    tests/cli/test_compose_tar.sh              \
+				    tests/cli/test_compose_tar_kickstart.sh    \
 				    tests/cli/test_compose_qcow2.sh            \
 				    tests/cli/test_compose_live-iso.sh
 
diff --git a/test/check-cli b/test/check-cli
index 7efb54fa..cda74801 100755
--- a/test/check-cli
+++ b/test/check-cli
@@ -25,9 +25,6 @@ class TestImages(composertest.ComposerTestCase):
     def test_partitioned_disk(self):
         self.runCliTest("/tests/cli/test_compose_partitioned-disk.sh")
 
-    def test_tar(self):
-        self.runCliTest("/tests/cli/test_compose_tar.sh")
-
 
 class TestQcow2(composertest.ComposerTestCase):
     def test_qcow2(self):
@@ -39,5 +36,13 @@ class TestLiveIso(composertest.ComposerTestCase):
         self.runCliTest("/tests/cli/test_compose_live-iso.sh")
 
 
+class TestTar(composertest.ComposerTestCase):
+    def test_tar(self):
+        self.runCliTest("/tests/cli/test_compose_tar.sh")
+
+    def test_tar_kickstart(self):
+        self.runCliTest("/tests/cli/test_compose_tar_kickstart.sh")
+
+
 if __name__ == '__main__':
     composertest.main()
diff --git a/tests/cli/test_compose_tar_kickstart.sh b/tests/cli/test_compose_tar_kickstart.sh
new file mode 100755
index 00000000..544ff4aa
--- /dev/null
+++ b/tests/cli/test_compose_tar_kickstart.sh
@@ -0,0 +1,128 @@
+#!/bin/bash
+# Note: execute this file from the project root directory
+
+#####
+#
+# Build tar image and install it using liveimg kickstart command
+#
+#####
+
+set -e
+
+. /usr/share/beakerlib/beakerlib.sh
+. $(dirname $0)/lib/lib.sh
+
+CLI="${CLI:-./src/bin/composer-cli}"
+
+rlJournalStart
+    rlPhaseStartSetup
+        rlAssertExists $QEMU_BIN
+        if ! rlCheckRpm httpd; then
+            dnf -y install httpd
+        fi
+        systemctl start httpd
+
+        ks_path="/var/www/html/ks-tar.cfg"
+        tmp_dir=$(mktemp -d /tmp/composer.XXXXX)
+        ssh_key_dir=$(mktemp -d /tmp/composer-ssh-keys.XXXXXX)
+
+        rlRun -t -c "ssh-keygen -t rsa -N '' -f $ssh_key_dir/id_rsa"
+        pub_key=$(cat $ssh_key_dir/id_rsa.pub)
+
+        bp_name="test-tar"
+        blueprint="$bp_name.toml"
+        cat > $blueprint << __EOF__
+name = "$bp_name"
+description = "tar image test"
+version = "0.0.1"
+modules = []
+
+[[packages]]
+name = "openssh-server"
+version = "*"
+
+[[customizations.user]]
+name = "root"
+key = "$pub_key"
+
+__EOF__
+        rlRun -t -c "$CLI blueprints push $blueprint"
+        image_path="/var/www/html/root.tar.xz"
+
+        version=$(awk -F = '$1 == "VERSION_ID" { print $2 }' /etc/os-release | tr -d \")
+        arch=$(uname -m)
+        baseurl=$(curl "https://mirrors.fedoraproject.org/mirrorlist?repo=fedora-${version}&arch=${arch}" | \
+            grep -v "^#" | head -n 1)
+        rlRun -t -c "curl --remote-name-all $baseurl/images/pxeboot/{vmlinuz,initrd.img}"
+
+        rlRun -t -c "fallocate -l 5G disk.img"
+    rlPhaseEnd
+
+    rlPhaseStartTest "compose start"
+        rlAssertEquals "SELinux operates in enforcing mode" "$(getenforce)" "Enforcing"
+        uuid=$($CLI compose start $bp_name liveimg-tar)
+        rlAssertEquals "exit code should be zero" $? 0
+
+        uuid=$(echo $uuid | cut -f 2 -d' ')
+    rlPhaseEnd
+
+    rlPhaseStartTest "compose finished"
+        if [ -n "$uuid" ]; then
+            until $CLI compose info $uuid | grep 'FINISHED\|FAILED'; do
+                sleep 60
+                rlLogInfo "Waiting for compose to finish ..."
+            done;
+            check_compose_status "$UUID"
+        else
+            rlFail "Compose uuid is empty!"
+        fi
+
+        rlRun -t -c "$CLI compose image $uuid"
+        image="$uuid-root.tar.xz"
+    rlPhaseEnd
+
+    rlPhaseStartTest "Install tar image using kickstart liveimg command"
+        cat > $ks_path << __EOF__
+cmdline
+lang en_US.UTF-8
+timezone America/New_York
+keyboard us
+rootpw --lock
+sshkey --username root "$pub_key"
+bootloader --location=mbr
+zerombr
+clearpart --initlabel --all
+autopart
+# reboot is used together with --no-reboot qemu-kvm parameter, which makes the qemu-kvm
+# process exit after the installation is complete and anaconda reboots the system
+# (using 'poweroff' ks command just halted the machine without powering it off)
+reboot
+
+liveimg --url http://10.0.2.2/root.tar.xz
+
+__EOF__
+        mv $image $image_path
+        restorecon $image_path
+        rlLogInfo "Starting installation from tar image in a VM"
+        $QEMU -m 2048 -drive file=disk.img,format=raw -nographic -kernel vmlinuz -initrd initrd.img \
+            -append "inst.ks=http://10.0.2.2/ks-tar.cfg inst.stage2=$baseurl console=ttyS0" --no-reboot
+
+        rlLogInfo "Installation of the image finished."
+    rlPhaseEnd
+
+    rlPhaseStartTest "Boot and check the installed system"
+        boot_image "-drive file=disk.img,format=raw" 600
+        # run generic tests to verify the instance
+        CHECK_CMDLINE=0 verify_image root localhost "-i $ssh_key_dir/id_rsa -p 2222"
+    rlPhaseEnd
+
+    rlPhaseStartCleanup
+        rlRun -t -c "killall -9 $QEMU_BIN"
+        rlRun -t -c "rm -rf $image $blueprint $image_path vmlinuz initrd.img disk.img $ks_path"
+        rlRun -t -c "$CLI blueprints delete $bp_name"
+        rlRun -t -c "$CLI compose delete $uuid"
+        rlRun -t -c "systemctl stop httpd"
+    rlPhaseEnd
+
+rlJournalEnd
+rlJournalPrintText