diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4a59f529ad..de8593c282 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -65,6 +65,7 @@
   - Replaced sqlcmd.exe usages with Invoke-Sqlcmd calls (issue #567).
   - BREAKING CHANGE: removed $SQLAdminCredential parameter. Use common parameter PsDscRunAsCredential (WMF 5.0+) to run the resource under different credentials. PsDscRunAsCredential Windows account must be a sysadmin on SQL Server (issue #568).
   - fixed virtual directory creation for SQL Server 2016
+  - Added unit tests (issue #295).
 - Changes to xSQLServerDatabasePermission
   - Fixed code style, updated README.md and removed *-SqlDatabasePermission functions from xSQLServerHelper.psm1.
   - Added the option 'GrantWithGrant' with gives the user grant rights, together with the ability to grant others the same right.
diff --git a/Tests/Unit/MSFT_xSQLServerRSConfig.Tests.ps1 b/Tests/Unit/MSFT_xSQLServerRSConfig.Tests.ps1
new file mode 100644
index 0000000000..3913bf9dde
--- /dev/null
+++ b/Tests/Unit/MSFT_xSQLServerRSConfig.Tests.ps1
@@ -0,0 +1,303 @@
+$script:DSCModuleName      = 'xSQLServer'
+$script:DSCResourceName    = 'MSFT_xSQLServerRSConfig'
+
+#region HEADER
+
+# Unit Test Template Version: 1.2.0
+$script:moduleRoot = Split-Path -Parent (Split-Path -Parent $PSScriptRoot)
+if ( (-not (Test-Path -Path (Join-Path -Path $script:moduleRoot -ChildPath 'DSCResource.Tests'))) -or `
+     (-not (Test-Path -Path (Join-Path -Path $script:moduleRoot -ChildPath 'DSCResource.Tests\TestHelper.psm1'))) )
+{
+    & git @('clone','https://github.com/PowerShell/DscResource.Tests.git',(Join-Path -Path $script:moduleRoot -ChildPath '\DSCResource.Tests\'))
+}
+
+Import-Module -Name (Join-Path -Path $script:moduleRoot -ChildPath 'DSCResource.Tests\TestHelper.psm1') -Force
+
+$TestEnvironment = Initialize-TestEnvironment `
+    -DSCModuleName $script:DSCModuleName   `
+    -DSCResourceName $script:DSCResourceName  `
+    -TestType Unit
+
+#endregion HEADER
+
+function Invoke-TestSetup {
+    #Add-Type -Path (Join-Path -Path (Join-Path -Path (Join-Path -Path (Join-Path -Path $script:moduleRoot -ChildPath 'Tests') -ChildPath 'Unit') -ChildPath 'Stubs') -ChildPath 'SqlPowerShellSqlExecutionException.cs')
+    Import-Module -Name (Join-Path -Path (Join-Path -Path (Join-Path -Path (Join-Path -Path $script:moduleRoot -ChildPath 'Tests') -ChildPath 'Unit') -ChildPath 'Stubs') -ChildPath 'SQLPSStub.psm1') -Global -Force
+}
+
+function Invoke-TestCleanup {
+    Restore-TestEnvironment -TestEnvironment $TestEnvironment
+}
+
+# Begin Testing
+try
+{
+    Invoke-TestSetup
+
+    InModuleScope $script:DSCResourceName {
+        $mockNamedInstanceName = 'INSTANCE'
+        $mockDefaultInstanceName = 'MSSQLSERVER'
+        $mockReportingServicesDatabaseServerName = 'SERVER'
+        $mockReportingServicesDatabaseNamedInstanceName = $mockNamedInstanceName
+        $mockReportingServicesDatabaseDefaultInstanceName = $mockDefaultInstanceName
+
+        $mockGetItemProperty = {
+            return @{
+                InstanceName = $mockInstanceName
+                Version = $mockDynamic_SqlBuildVersion
+            }
+        }
+
+        $mockGetWmiObject_ConfigurationSetting_NamedInstance = {
+            return New-Object Object |
+                        Add-Member -MemberType NoteProperty -Name 'DatabaseServerName' -Value "$mockReportingServicesDatabaseServerName\$mockReportingServicesDatabaseNamedInstanceName" -PassThru |
+                        Add-Member -MemberType NoteProperty -Name 'IsInitialized' -Value $true -PassThru |
+                        Add-Member -MemberType NoteProperty -Name 'VirtualDirectoryReportServer' -Value '' -PassThru |
+                        Add-Member -MemberType NoteProperty -Name 'VirtualDirectoryReportManager' -Value '' -PassThru |
+                        Add-Member -MemberType ScriptMethod -Name SetVirtualDirectory {
+                            return $null
+                        } -PassThru |
+                        Add-Member -MemberType ScriptMethod -Name ReserveURL {
+                            return $null
+                        } -PassThru |
+                        Add-Member -MemberType ScriptMethod -Name GenerateDatabaseCreationScript {
+                            return @{
+                                Script = 'select * from something'
+                            }
+                        } -PassThru |
+                        Add-Member -MemberType ScriptMethod -Name GenerateDatabaseRightsScript {
+                            return @{
+                                Script = 'select * from something'
+                            }
+                        } -PassThru |
+                        Add-Member -MemberType ScriptMethod -Name SetDatabaseConnection {
+                            return $null
+                        } -PassThru |
+                        Add-Member -MemberType ScriptMethod -Name InitializeReportServer {
+                            return $null
+                        } -PassThru -Force
+        }
+
+        $mockGetWmiObject_ConfigurationSetting_DefaultInstance = {
+            return @{
+                DatabaseServerName = $mockReportingServicesDatabaseServerName
+                IsInitialized = $false
+            }
+        }
+
+        $mockGetWmiObject_ConfigurationSetting_ParameterFilter = {
+            $Class -eq 'MSReportServer_ConfigurationSetting'
+        }
+
+        $mockGetWmiObject_Language = {
+            return @{
+                Language = 'en-US'
+            }
+        }
+
+        $mockGetWmiObject_OperatingSystem_ParameterFilter = {
+            $Class -eq 'Win32_OperatingSystem'
+        }
+
+        Describe "xSQLServerRSConfig\Get-TargetResource" -Tag 'Get' {
+            BeforeAll {
+                $mockDynamic_SqlBuildVersion = '13.0.4001.0'
+
+                Mock -CommandName Get-ItemProperty -MockWith $mockGetItemProperty -Verifiable
+
+                $testParameters = @{
+                    InstanceName = $mockNamedInstanceName
+                    RSSQLServer = $mockReportingServicesDatabaseServerName
+                    RSSQLInstanceName = $mockReportingServicesDatabaseNamedInstanceName
+                }
+            }
+
+            Context 'When the system is in the desired state' {
+                BeforeEach {
+                    Mock -CommandName Get-WmiObject `
+                        -MockWith $mockGetWmiObject_ConfigurationSetting_NamedInstance `
+                        -ParameterFilter $mockGetWmiObject_ConfigurationSetting_ParameterFilter `
+                        -Verifiable
+                }
+
+                It 'Should return the same values as passed as parameters' {
+                    $resultGetTargetResource = Get-TargetResource @testParameters
+                    $resultGetTargetResource.InstanceName | Should Be $mockNamedInstanceName
+                    $resultGetTargetResource.RSSQLServer | Should Be $mockReportingServicesDatabaseServerName
+                    $resultGetTargetResource.RSSQLInstanceName | Should Be $mockReportingServicesDatabaseNamedInstanceName
+                    $resultGetTargetResource | Should BeOfType [System.Collections.Hashtable]
+                }
+
+                It 'Should return the the state as initialized' {
+                    $resultGetTargetResource = Get-TargetResource @testParameters
+                    $resultGetTargetResource.IsInitialized | Should Be $true
+                }
+            }
+
+            Context 'When the system is not in the desired state' {
+                BeforeEach {
+                    Mock -CommandName Get-WmiObject `
+                        -MockWith $mockGetWmiObject_ConfigurationSetting_DefaultInstance `
+                        -ParameterFilter $mockGetWmiObject_ConfigurationSetting_ParameterFilter `
+                        -Verifiable
+                }
+
+                It 'Should return the same values as passed as parameters' {
+                    $resultGetTargetResource = Get-TargetResource @testParameters
+                    $resultGetTargetResource.InstanceName | Should Be $mockNamedInstanceName
+                    $resultGetTargetResource.RSSQLServer | Should Be $mockReportingServicesDatabaseServerName
+                    $resultGetTargetResource.RSSQLInstanceName | Should Be 'MSSQLSERVER'
+                    $resultGetTargetResource | Should BeOfType [System.Collections.Hashtable]
+                }
+
+                It 'Should return the the state as initialized' {
+                    $resultGetTargetResource = Get-TargetResource @testParameters
+                    $resultGetTargetResource.IsInitialized | Should Be $false
+                }
+
+                Context 'When there is no Reporting Services instance' {
+                    BeforeEach {
+                        Mock -CommandName Get-ItemProperty
+                    }
+
+                    It 'Should return the the state as initialized' {
+                        { Get-TargetResource @testParameters } | Should Throw 'SQL Reporting Services instance ''INSTANCE'' does not exist!'
+                    }
+                }
+            }
+        }
+
+        Describe "xSQLServerRSConfig\Set-TargetResource" -Tag 'Set' {
+            BeforeAll {
+                Mock -CommandName Import-SQLPSModule
+                Mock -CommandName Invoke-Sqlcmd
+                Mock -CommandName Get-ItemProperty -MockWith $mockGetItemProperty -Verifiable
+            }
+
+            Context 'When the system is not in the desired state' {
+                Context 'When configuring a named instance' {
+                    BeforeAll {
+                        $mockDynamic_SqlBuildVersion = '13.0.4001.0'
+
+                        Mock -CommandName Test-TargetResource -MockWith {
+                            return $true
+                        }
+
+                        $testParameters = @{
+                            InstanceName = $mockNamedInstanceName
+                            RSSQLServer = $mockReportingServicesDatabaseServerName
+                            RSSQLInstanceName = $mockReportingServicesDatabaseNamedInstanceName
+                        }
+                    }
+
+                    BeforeEach {
+                        Mock -CommandName Get-WmiObject `
+                            -MockWith $mockGetWmiObject_ConfigurationSetting_NamedInstance `
+                            -ParameterFilter $mockGetWmiObject_ConfigurationSetting_ParameterFilter `
+                            -Verifiable
+
+                        Mock -CommandName Get-WmiObject `
+                            -MockWith $mockGetWmiObject_Language `
+                            -ParameterFilter $mockGetWmiObject_OperatingSystem_ParameterFilter `
+                            -Verifiable
+                    }
+
+                    It 'Should configure Reporting Service without throwing an error' {
+                        { Set-TargetResource @testParameters } | Should Not Throw
+                    }
+
+                    Context 'When there is no Reporting Services instance' {
+                        BeforeEach {
+                            Mock -CommandName Get-ItemProperty
+                            Mock -CommandName Test-TargetResource
+                        }
+
+                        It 'Should return the the state as initialized' {
+                            { Set-TargetResource @testParameters } | Should Throw 'Test-TargetResource returned false after calling set.'
+                        }
+                    }
+                }
+
+                Context 'When configuring a default instance' {
+                    BeforeAll {
+                        $mockDynamic_SqlBuildVersion = '12.0.4100.1'
+
+                        Mock -CommandName Test-TargetResource -MockWith {
+                            return $true
+                        }
+
+                        $testParameters = @{
+                            InstanceName = $mockDefaultInstanceName
+                            RSSQLServer = $mockReportingServicesDatabaseServerName
+                            RSSQLInstanceName = $mockReportingServicesDatabaseDefaultInstanceName
+                        }
+                    }
+
+                    BeforeEach {
+                        Mock -CommandName Get-WmiObject `
+                            -MockWith $mockGetWmiObject_ConfigurationSetting_NamedInstance `
+                            -ParameterFilter $mockGetWmiObject_ConfigurationSetting_ParameterFilter `
+                            -Verifiable
+
+                        Mock -CommandName Get-WmiObject `
+                            -MockWith $mockGetWmiObject_Language `
+                            -ParameterFilter $mockGetWmiObject_OperatingSystem_ParameterFilter `
+                            -Verifiable
+                    }
+
+                    It 'Should configure Reporting Service without throwing an error' {
+                        { Set-TargetResource @testParameters } | Should Not Throw
+                    }
+                }
+            }
+        }
+
+        Describe "xSQLServerRSConfig\Test-TargetResource" -Tag 'Test' {
+            Context 'When the system is not in the desired state' {
+                BeforeAll {
+                    Mock -CommandName Get-TargetResource -MockWith {
+                        return @{
+                            IsInitialized = $false
+                        }
+                    }
+
+                    $testParameters = @{
+                        InstanceName = $mockNamedInstanceName
+                        RSSQLServer = $mockReportingServicesDatabaseServerName
+                        RSSQLInstanceName = $mockReportingServicesDatabaseNamedInstanceName
+                    }
+                }
+
+                It 'Should return state as not in desired state' {
+                    $resultTestTargetResource  = Test-TargetResource @testParameters
+                    $resultTestTargetResource | Should Be $false
+                }
+            }
+
+            Context 'When the system is in the desired state' {
+                BeforeAll {
+                    Mock -CommandName Get-TargetResource -MockWith {
+                        return @{
+                            IsInitialized = $true
+                        }
+                    }
+
+                    $testParameters = @{
+                        InstanceName = $mockNamedInstanceName
+                        RSSQLServer = $mockReportingServicesDatabaseServerName
+                        RSSQLInstanceName = $mockReportingServicesDatabaseNamedInstanceName
+                    }
+                }
+
+                It 'Should return state as in desired state' {
+                    $resultTestTargetResource  = Test-TargetResource @testParameters
+                    $resultTestTargetResource | Should Be $true
+                }
+            }
+        }
+    }
+}
+finally
+{
+    Invoke-TestCleanup
+}