diff --git a/README.md b/README.md
index 7e1ad405..5c85888f 100644
--- a/README.md
+++ b/README.md
@@ -36,6 +36,7 @@ In order to operate with the Service Account you must activate the following API
 - Cloud Billing API - cloudbilling.googleapis.com
 - Identity and Access Management API - iam.googleapis.com
 - Admin SDK - admin.googleapis.com
+- Google App Engine Admin API - appengine.googleapis.com
 
 ### GSuite
 #### Admin
diff --git a/examples/app_engine/README.md b/examples/app_engine/README.md
new file mode 100755
index 00000000..1794fa3b
--- /dev/null
+++ b/examples/app_engine/README.md
@@ -0,0 +1,13 @@
+# App Engine Project
+
+This example illustrates how to create a simple project with App Engine enabled.
+
+It will do the following:
+- Create a project
+- Active the Google App Engine Admin API on the new project
+- Create a new App Engine app
+
+Expected variables:
+- `admin_email`
+- `organization_id`
+- `billing_account`
diff --git a/examples/app_engine/main.tf b/examples/app_engine/main.tf
new file mode 100755
index 00000000..3959ce0c
--- /dev/null
+++ b/examples/app_engine/main.tf
@@ -0,0 +1,46 @@
+/**
+ * Copyright 2018 Google LLC
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+locals {
+  credentials_file_path = "${path.module}/sa-key.json"
+}
+
+/******************************************
+  Provider configuration
+ *****************************************/
+provider "gsuite" {
+  credentials             = "${file(local.credentials_file_path)}"
+  impersonated_user_email = "${var.admin_email}"
+}
+
+module "project-factory" {
+  source            = "../../"
+  random_project_id = "true"
+  name              = "appeng-sample"
+  org_id            = "${var.organization_id}"
+  billing_account   = "${var.billing_account}"
+  credentials_path  = "${local.credentials_file_path}"
+
+  app_engine {
+    location_id = "us-central"
+
+    feature_settings = [
+      {
+        split_health_checks = true
+      },
+    ]
+  }
+}
diff --git a/examples/app_engine/outputs.tf b/examples/app_engine/outputs.tf
new file mode 100755
index 00000000..5cc8dede
--- /dev/null
+++ b/examples/app_engine/outputs.tf
@@ -0,0 +1,30 @@
+/**
+ * Copyright 2018 Google LLC
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+output "project_info_example" {
+  value       = "${module.project-factory.project_id}"
+  description = "The ID of the created project"
+}
+
+output "domain_example" {
+  value       = "${module.project-factory.domain}"
+  description = "The organization's domain"
+}
+
+output "app_engine_enabled_example" {
+  value       = "${module.project-factory.app_engine_enabled}"
+  description = "Whether app engine is enabled"
+}
diff --git a/examples/app_engine/variables.tf b/examples/app_engine/variables.tf
new file mode 100755
index 00000000..9abe8149
--- /dev/null
+++ b/examples/app_engine/variables.tf
@@ -0,0 +1,27 @@
+/**
+ * Copyright 2018 Google LLC
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+variable "admin_email" {
+  description = "Admin user email on Gsuite"
+}
+
+variable "organization_id" {
+  description = "The organization id for the associated services"
+}
+
+variable "billing_account" {
+  description = "The ID of the billing account to associate this project with"
+}
diff --git a/main.tf b/main.tf
index 3f4d7c3c..498e3f08 100755
--- a/main.tf
+++ b/main.tf
@@ -37,6 +37,12 @@ locals {
   project_bucket_name = "${var.bucket_name != "" ? var.bucket_name : format("%s-state", var.name)}"
   create_bucket       = "${var.bucket_project != "" ? "true" : "false"}"
   gsuite_group        = "${var.group_name != "" || var.create_group}"
+  app_engine_enabled  = "${length(keys(var.app_engine)) > 0 ? true : false}"
+
+  app_engine_config = {
+    enabled  = "${list(var.app_engine)}"
+    disabled = "${list()}"
+  }
 }
 
 /******************************************
@@ -76,6 +82,8 @@ resource "google_project" "project" {
   auto_create_network = "${var.auto_create_network}"
 
   labels = "${var.labels}"
+
+  app_engine = "${local.app_engine_config["${local.app_engine_enabled ? "enabled" : "disabled"}"]}"
 }
 
 /******************************************
diff --git a/outputs.tf b/outputs.tf
index 374bcc8e..f8742375 100755
--- a/outputs.tf
+++ b/outputs.tf
@@ -62,3 +62,8 @@ output "project_bucket_url" {
   value       = "${google_storage_bucket.project_bucket.*.url}"
   description = "Project's bucket url"
 }
+
+output "app_engine_enabled" {
+  value       = "${local.app_engine_enabled}"
+  description = "Whether app engine is enabled"
+}
diff --git a/test/integration/gcloud/integration.bats b/test/integration/gcloud/integration.bats
index 50dde830..6d4ebf07 100755
--- a/test/integration/gcloud/integration.bats
+++ b/test/integration/gcloud/integration.bats
@@ -34,6 +34,24 @@
   [[ "$output" =~ 0\ destroyed ]]
 }
 
+@test "Terraform plan setting of App Engine settings" {
+
+  run terraform plan
+  [ "$status" -eq 0 ]
+  [[ "$output" =~ 0\ to\ add ]]
+  [[ "$output" =~ 1\ to\ change ]]
+  [[ "$output" =~ 0\ to\ destroy ]]
+}
+
+@test "Terraform apply" {
+
+  run terraform apply -auto-approve
+  [ "$status" -eq 0 ]
+  [[ "$output" =~ 0\ added ]]
+  [[ "$output" =~ 1\ changed ]]
+  [[ "$output" =~ 0\ destroyed ]]
+}
+
 # #################################### #
 #             gcloud tests             #
 # #################################### #
@@ -49,14 +67,18 @@
   [[ "${lines[5]}" = "projectId: $PROJECT_ID" ]]
 }
 
-@test "Test the compute api must be activated" {
+@test "Test the correct apis are activated" {
 
   export PROJECT_ID="$(terraform output project_info_example)"
   export GROUP_EMAIL="$(terraform output group_email_example)"
 
   run gcloud services list
   [ "$status" -eq 0 ]
-  [[ "${lines[1]}" = *"compute.googleapis.com"* ]]
+  [[ "${lines[2]}" = *"compute.googleapis.com"* ]]
+
+  run gcloud services list
+  [ "$status" -eq 0 ]
+  [[ "${lines[1]}" = *"appengine.googleapis.com"* ]]
 }
 
 @test "Test that project has the shared vpc associated (host project)" {
@@ -69,25 +91,16 @@
   [[ "${lines[1]}" = "$SHARED_VPC" ]]
 }
 
-@test "Test project has the service account created" {
-
-  export PROJECT_ID="$(terraform output project_info_example)"
-  export GROUP_EMAIL="$(terraform output group_email_example)"
-
-  run gcloud iam service-accounts list --format=list
-  [ "$status" -eq 0 ]
-  [[ "${lines[1]}" = "   email: project-service-account@$PROJECT_ID.iam.gserviceaccount.com" ]]
-}
-
-@test "Test project has not the default service account" {
+@test "Test project has only the expected service accounts" {
 
   export PROJECT_ID="$(terraform output project_info_example)"
   export GROUP_EMAIL="$(terraform output group_email_example)"
 
-  run gcloud iam service-accounts list
+  run gcloud iam service-accounts list --format="get(email)"
   [ "$status" -eq 0 ]
-  [[ "${lines[1]}" =~ project-service-account@$PROJECT_ID.iam.gserviceaccount.com ]]
-  [[ "${lines[2]}" = "" ]]
+  [[ "${lines[0]}" = "$PROJECT_ID@appspot.gserviceaccount.com" ]]
+  [[ "${lines[1]}" = "project-service-account@$PROJECT_ID.iam.gserviceaccount.com" ]]
+  [[ "${lines[3]}" = "" ]]
 }
 
 @test "Test Gsuite group $GROUP_EMAIL has role:$GROUP_ROLE on project" {
@@ -132,6 +145,21 @@
   [[ "$output" = *"{u'role': u'roles/compute.networkUser', u'members': [u'group:$GROUP_EMAIL', u'serviceAccount:project-service-account@$PROJECT_ID.iam.gserviceaccount.com']}"* ]]
 }
 
+@test "Test App Engine app created with the correct settings" {
+
+  PROJECT_ID="$(terraform output project_info_example)"
+  AUTH_DOMAIN="$(echo $GSUITE_ADMIN_ACCOUNT | cut -d '@' -f2)"
+
+  run gcloud --project=${PROJECT_ID} app describe
+  [ "$status" -eq 0 ]
+  [[ "${lines[0]}" = "authDomain: $AUTH_DOMAIN" ]]
+  [[ "${lines[4]}" = "featureSettings: {}" ]]
+  [[ "${lines[6]}" = "id: $PROJECT_ID}" ]]
+  [[ "${lines[7]}" = "name: apps/$PROJECT_ID" ]]
+  [[ "${lines[8]}" = "locationId: $REGION" ]]
+  [[ "${lines[9]}" = "servingStatus: SERVING" ]]
+}
+
 # #################################### #
 #      Terraform destroy test          #
 # #################################### #
diff --git a/test/integration/gcloud/run.sh b/test/integration/gcloud/run.sh
index 65384884..07500b31 100755
--- a/test/integration/gcloud/run.sh
+++ b/test/integration/gcloud/run.sh
@@ -72,6 +72,16 @@ module "project-factory" {
   sa_group                 = "$SA_GROUP"
   folder_id                = "$FOLDER_ID"
   credentials_path         = "\${local.credentials_file_path}"
+  app_engine {
+    location_id = "$REGION"
+    auth_domain = "$(echo $GSUITE_ADMIN_ACCOUNT | cut -d '@' -f2)"
+
+    feature_settings = [
+      {
+        split_health_checks = false
+      },
+    ]
+  }
 }
 EOF
 }
diff --git a/test/integration/gcloud/sample.sh b/test/integration/gcloud/sample.sh
index 2acab054..8eb9d57f 100644
--- a/test/integration/gcloud/sample.sh
+++ b/test/integration/gcloud/sample.sh
@@ -35,4 +35,5 @@ export GROUP_NAME="test-group$RANDOM"
 export CREATE_GROUP="true"
 export FOLDER_ID=""
 export GROUP_ROLE="roles/editor"
+export REGION="us-east4"
 export CLOUDSDK_AUTH_CREDENTIAL_FILE_OVERRIDE=$CREDENTIALS_PATH
diff --git a/variables.tf b/variables.tf
index 0271e7d7..6ff6cf70 100755
--- a/variables.tf
+++ b/variables.tf
@@ -112,3 +112,9 @@ variable "auto_create_network" {
   description = "Create the default network"
   default     = "false"
 }
+
+variable "app_engine" {
+  description = "A map for app engine configuration"
+  type        = "map"
+  default     = {}
+}