diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index f04e4033..6f5e33ad 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -42,3 +42,11 @@ jobs:
         run: docker build -t tpm-provider e2e_tests/provider_cfg/tpm
       - name: Run the container to execute the test script
         run: docker run -v $(pwd):/tmp/parsec -w /tmp/parsec tpm-provider /tmp/parsec/ci.sh tpm
+
+  installation-tests:
+    name: Installation tests
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v1
+      - name: Build and run the container
+        run: e2e_tests/installation_tests/run-installation-tests.sh
diff --git a/e2e_tests/installation_tests/Dockerfile b/e2e_tests/installation_tests/Dockerfile
new file mode 100644
index 00000000..22964814
--- /dev/null
+++ b/e2e_tests/installation_tests/Dockerfile
@@ -0,0 +1,38 @@
+FROM ubuntu:18.04
+
+ENV container docker
+
+RUN apt-get update
+RUN apt-get install -y git make gcc python3 python curl wget cmake \
+                       automake autoconf libtool pkg-config libssl-dev \
+                       # These libraries are needed for bindgen as it uses
+                       # libclang.so
+                       clang libclang-dev libc6-dev-i386
+RUN apt-get install -y systemd systemd-sysv
+RUN apt-get clean
+
+RUN useradd -m parsec
+RUN groupadd parsec-clients
+RUN usermod -a -G parsec-clients parsec
+
+USER parsec
+WORKDIR /home/parsec
+
+# Install Rust toolchain.
+RUN curl https://sh.rustup.rs -sSf | bash -s -- -y
+ENV PATH "/home/parsec/.cargo/bin:$PATH"
+
+# Install Parsec.
+RUN cargo install parsec-service --features mbed-crypto-provider
+RUN git clone https://github.com/parallaxsecond/parsec.git
+RUN cp parsec/config.toml config.toml
+
+# Install the systemd unit files.
+RUN mkdir -p .config/systemd/user
+RUN cp parsec/systemd-daemon/parsec.service .config/systemd/user/parsec.service
+
+USER root
+WORKDIR /root
+COPY context/run-tests.sh ./
+VOLUME [ "/sys/fs/cgroup" ]
+CMD [ "/lib/systemd/systemd" ]
diff --git a/e2e_tests/installation_tests/context/run-tests.sh b/e2e_tests/installation_tests/context/run-tests.sh
new file mode 100755
index 00000000..39404cab
--- /dev/null
+++ b/e2e_tests/installation_tests/context/run-tests.sh
@@ -0,0 +1,106 @@
+#!/usr/bin/env bash
+set -euo pipefail
+IFS=$'\n\t'
+
+function test_ping_parsec() {
+    # Creates a new test user, adds them to the parsec-clients group, and
+    # checks that the Parsec service can be pinged.
+
+    useradd -m test-user-1
+    usermod -a -G parsec-clients test-user-1
+
+    su test-user-1 <<'    EOSU'
+    set -eu
+    cd ${HOME}
+    curl https://sh.rustup.rs -sSf | bash -s -- -y
+    export PATH="${HOME}/.cargo/bin:$PATH"
+
+    git clone https://github.com/parallaxsecond/parsec-tool.git
+    cd parsec-tool
+    cargo build
+
+    set +e
+    cargo run -- ping
+
+    # This test passes if the above command pinged the Parsec service
+    # successfully.
+    [ $? -eq 0 ]
+    EOSU
+}
+
+function test_ping_parsec_not_in_group() {
+    # Creates a new test user, and tries to ping the Parsec service. This
+    # should fail, since the user is not in the appropriate group.
+
+    useradd -m test-user-2
+
+    su test-user-2 <<'    EOSU'
+    set -eu
+    cd ${HOME}
+    curl https://sh.rustup.rs -sSf | bash -s -- -y
+    export PATH="${HOME}/.cargo/bin:$PATH"
+
+    git clone https://github.com/parallaxsecond/parsec-tool.git
+    cd parsec-tool
+    cargo build
+
+    set +e
+    cargo run -- ping
+
+    # This test passes if the above command failed to ping the Parsec service.
+    [ $? -ne 0 ]
+    EOSU
+}
+
+function install_parsec() {
+    mkdir /tmp/parsec
+    chown parsec:parsec-clients /tmp/parsec
+    chown -R parsec:parsec /home/parsec
+    chmod 750 /tmp/parsec
+
+    # Configure and start the Parsec service as user `parsec`.
+    su parsec << '    EOSU'
+    set -eu
+    export PATH="${HOME}/.cargo/bin:$PATH"
+    cargo install --path ${HOME}/parsec --features 'mbed-crypto-provider'
+    mkdir -p ${HOME}/.config/systemd/user
+    cp ${HOME}/parsec/systemd-daemon/parsec.service \
+       ${HOME}/.config/systemd/user/parsec.service
+
+    systemctl --user daemon-reload
+    systemctl --user start parsec
+    EOSU
+}
+
+function main() {
+    install_parsec
+
+    # Register tests.
+    declare -a TESTS
+    TESTS[1]="test_ping_parsec"
+    TESTS[2]="test_ping_parsec_not_in_group"
+
+    # Run tests.
+    NUM_FAILED=0
+    for i in "${!TESTS[@]}"; do
+        TEST_NAME="${TESTS[$i]}"
+        echo "=== RUNNING TEST ${TEST_NAME} ==="
+        if ${TESTS[$i]}; then
+            echo "${TEST_NAME} passed."
+        else
+            echo "${TEST_NAME} failed!"
+            NUM_FAILED=$((NUM_FAILED + 1))
+        fi
+        echo "" # spacing
+    done
+
+    if [[ ${NUM_FAILED} -eq 0 ]]; then
+        echo "All tests passed!"
+    else
+        echo "${NUM_FAILED} test(s) failed!"
+    fi
+
+    return ${NUM_FAILED}
+}
+
+main "${@}" || exit 1
diff --git a/e2e_tests/installation_tests/run-installation-tests.sh b/e2e_tests/installation_tests/run-installation-tests.sh
new file mode 100755
index 00000000..44668901
--- /dev/null
+++ b/e2e_tests/installation_tests/run-installation-tests.sh
@@ -0,0 +1,30 @@
+#!/usr/bin/env bash
+set -euo pipefail
+IFS=$'\n\t'
+
+SCRIPT_DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" >/dev/null 2>&1 && pwd )"
+
+DOCKER_IMAGE_DIR="$SCRIPT_DIR"
+DOCKER_IMAGE_NAME="parsec"
+
+docker build -t ${DOCKER_IMAGE_NAME} ${DOCKER_IMAGE_DIR}
+DOCKER_CONTAINER_ID=$(docker run -d \
+                                 --rm \
+                                 --tmpfs /run \
+                                 --tmpfs /run/lock \
+                                 --tmpfs /tmp:exec \
+                                 -v /sys/fs/cgroup:/sys/fs/cgroup:ro \
+                                 -v $(git rev-parse --show-toplevel):/home/parsec/parsec \
+                                 ${DOCKER_IMAGE_NAME})
+
+# Give the systemd daemon some time to spin up.
+sleep 3
+
+echo "Running tests inside container..."
+docker exec ${DOCKER_CONTAINER_ID} /root/run-tests.sh
+TEST_STATUS=$?
+
+echo "Testing complete, stopping container."
+docker stop ${DOCKER_CONTAINER_ID}
+
+exit ${TEST_STATUS}