diff --git a/autotests/wayland/CMakeLists.txt b/autotests/wayland/CMakeLists.txt
index f1a2333ad6..d46f6dff88 100644
--- a/autotests/wayland/CMakeLists.txt
+++ b/autotests/wayland/CMakeLists.txt
@@ -116,3 +116,12 @@ add_executable(testDontCrashCancelAnimation ${testDontCrashCancelAnimation_SRCS}
 target_link_libraries( testDontCrashCancelAnimation kwin Qt5::Test)
 add_test(kwin-testDontCrashCancelAnimation testDontCrashCancelAnimation)
 ecm_mark_as_test(testDontCrashCancelAnimation)
+
+########################################################
+# Transient Placement Test
+########################################################
+set( testTransientPlacmenet_SRCS transient_placement.cpp kwin_wayland_test.cpp )
+add_executable(testTransientPlacmenet ${testTransientPlacmenet_SRCS})
+target_link_libraries( testTransientPlacmenet kwin Qt5::Test)
+add_test(kwin-testTransientPlacmenet testTransientPlacmenet)
+ecm_mark_as_test(testTransientPlacmenet)
diff --git a/autotests/wayland/transient_placement.cpp b/autotests/wayland/transient_placement.cpp
new file mode 100644
index 0000000000..a8cc736b4f
--- /dev/null
+++ b/autotests/wayland/transient_placement.cpp
@@ -0,0 +1,307 @@
+/********************************************************************
+KWin - the KDE window manager
+This file is part of the KDE project.
+
+Copyright (C) 2016 Martin Gräßlin <mgraesslin@kde.org>
+
+This program 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 2 of the License, or
+(at your option) any later version.
+
+This program 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 this program.  If not, see <http://www.gnu.org/licenses/>.
+*********************************************************************/
+#include "kwin_wayland_test.h"
+#include "abstract_backend.h"
+#include "abstract_client.h"
+#include "cursor.h"
+#include "screenedge.h"
+#include "screens.h"
+#include "wayland_server.h"
+#include "workspace.h"
+#include "shell_client.h"
+#include <kwineffects.h>
+
+#include <KWayland/Client/connection_thread.h>
+#include <KWayland/Client/compositor.h>
+#include <KWayland/Client/event_queue.h>
+#include <KWayland/Client/keyboard.h>
+#include <KWayland/Client/registry.h>
+#include <KWayland/Client/pointer.h>
+#include <KWayland/Client/shell.h>
+#include <KWayland/Client/seat.h>
+#include <KWayland/Client/server_decoration.h>
+#include <KWayland/Client/shm_pool.h>
+#include <KWayland/Client/surface.h>
+#include <KWayland/Client/touch.h>
+#include <KWayland/Server/seat_interface.h>
+#include <KWayland/Server/surface_interface.h>
+
+namespace KWin
+{
+
+static const QString s_socketName = QStringLiteral("wayland_test_kwin_transient_placement-0");
+
+class TransientPlacementTest : public QObject
+{
+    Q_OBJECT
+private Q_SLOTS:
+    void initTestCase();
+    void init();
+    void cleanup();
+    void testSimplePosition_data();
+    void testSimplePosition();
+    void testDecorationPosition_data();
+    void testDecorationPosition();
+
+private:
+    AbstractClient *showWindow(const QSize &size, bool decorated = false, KWayland::Client::Surface *parent = nullptr, const QPoint &offset = QPoint());
+    KWayland::Client::Surface *surfaceForClient(AbstractClient *c) const;
+    KWayland::Client::ConnectionThread *m_connection = nullptr;
+    KWayland::Client::Compositor *m_compositor = nullptr;
+    KWayland::Client::ServerSideDecorationManager *m_deco = nullptr;
+    KWayland::Client::Seat *m_seat = nullptr;
+    KWayland::Client::ShmPool *m_shm = nullptr;
+    KWayland::Client::Shell *m_shell = nullptr;
+    KWayland::Client::EventQueue *m_queue = nullptr;
+    QThread *m_thread = nullptr;
+};
+
+void TransientPlacementTest::initTestCase()
+{
+    qRegisterMetaType<KWin::ShellClient*>();
+    qRegisterMetaType<KWin::AbstractClient*>();
+    QSignalSpy workspaceCreatedSpy(kwinApp(), &Application::workspaceCreated);
+    QVERIFY(workspaceCreatedSpy.isValid());
+    waylandServer()->backend()->setInitialWindowSize(QSize(1280, 1024));
+    QMetaObject::invokeMethod(waylandServer()->backend(), "setOutputCount", Qt::DirectConnection, Q_ARG(int, 2));
+    waylandServer()->init(s_socketName.toLocal8Bit());
+
+    kwinApp()->start();
+    QVERIFY(workspaceCreatedSpy.wait());
+    QCOMPARE(screens()->count(), 2);
+    QCOMPARE(screens()->geometry(0), QRect(0, 0, 1280, 1024));
+    QCOMPARE(screens()->geometry(1), QRect(1280, 0, 1280, 1024));
+    setenv("QT_QPA_PLATFORM", "wayland", true);
+    waylandServer()->initWorkspace();
+}
+
+void TransientPlacementTest::init()
+{
+    using namespace KWayland::Client;
+    // setup connection
+    m_connection = new ConnectionThread;
+    QSignalSpy connectedSpy(m_connection, &ConnectionThread::connected);
+    QVERIFY(connectedSpy.isValid());
+    m_connection->setSocketName(s_socketName);
+
+    m_thread = new QThread(this);
+    m_connection->moveToThread(m_thread);
+    m_thread->start();
+
+    m_connection->initConnection();
+    QVERIFY(connectedSpy.wait());
+
+    m_queue = new EventQueue(this);
+    QVERIFY(!m_queue->isValid());
+    m_queue->setup(m_connection);
+    QVERIFY(m_queue->isValid());
+
+    Registry registry;
+    registry.setEventQueue(m_queue);
+    QSignalSpy compositorSpy(&registry, &Registry::compositorAnnounced);
+    QSignalSpy shmSpy(&registry, &Registry::shmAnnounced);
+    QSignalSpy shellSpy(&registry, &Registry::shellAnnounced);
+    QSignalSpy seatSpy(&registry, &Registry::seatAnnounced);
+    QSignalSpy allAnnounced(&registry, &Registry::interfacesAnnounced);
+    QVERIFY(allAnnounced.isValid());
+    QVERIFY(shmSpy.isValid());
+    QVERIFY(shellSpy.isValid());
+    QVERIFY(compositorSpy.isValid());
+    QVERIFY(seatSpy.isValid());
+    registry.create(m_connection->display());
+    QVERIFY(registry.isValid());
+    registry.setup();
+    QVERIFY(allAnnounced.wait());
+    QVERIFY(!compositorSpy.isEmpty());
+    QVERIFY(!shmSpy.isEmpty());
+    QVERIFY(!shellSpy.isEmpty());
+    QVERIFY(!seatSpy.isEmpty());
+
+    m_compositor = registry.createCompositor(compositorSpy.first().first().value<quint32>(), compositorSpy.first().last().value<quint32>(), this);
+    QVERIFY(m_compositor->isValid());
+    m_shm = registry.createShmPool(shmSpy.first().first().value<quint32>(), shmSpy.first().last().value<quint32>(), this);
+    QVERIFY(m_shm->isValid());
+    m_shell = registry.createShell(shellSpy.first().first().value<quint32>(), shellSpy.first().last().value<quint32>(), this);
+    QVERIFY(m_shell->isValid());
+    m_seat = registry.createSeat(seatSpy.first().first().value<quint32>(), seatSpy.first().last().value<quint32>(), this);
+    QVERIFY(m_seat->isValid());
+    QSignalSpy hasPointerSpy(m_seat, &Seat::hasPointerChanged);
+    QVERIFY(hasPointerSpy.isValid());
+    QVERIFY(hasPointerSpy.wait());
+
+    m_deco = registry.createServerSideDecorationManager(registry.interface(Registry::Interface::ServerSideDecorationManager).name, registry.interface(Registry::Interface::ServerSideDecorationManager).version, this);
+    QVERIFY(m_deco->isValid());
+
+    screens()->setCurrent(0);
+    Cursor::setPos(QPoint(640, 512));
+}
+
+void TransientPlacementTest::cleanup()
+{
+    delete m_deco;
+    m_deco = nullptr;
+    delete m_compositor;
+    m_compositor = nullptr;
+    delete m_seat;
+    m_seat = nullptr;
+    delete m_shm;
+    m_shm = nullptr;
+    delete m_shell;
+    m_shell = nullptr;
+    delete m_queue;
+    m_queue = nullptr;
+    if (m_thread) {
+        m_connection->deleteLater();
+        m_thread->quit();
+        m_thread->wait();
+        delete m_thread;
+        m_thread = nullptr;
+        m_connection = nullptr;
+    }
+}
+
+AbstractClient *TransientPlacementTest::showWindow(const QSize &size, bool decorated, KWayland::Client::Surface *parent, const QPoint &offset)
+{
+    using namespace KWayland::Client;
+#define VERIFY(statement) \
+    if (!QTest::qVerify((statement), #statement, "", __FILE__, __LINE__))\
+        return nullptr;
+#define COMPARE(actual, expected) \
+    if (!QTest::qCompare(actual, expected, #actual, #expected, __FILE__, __LINE__))\
+        return nullptr;
+    QSignalSpy clientAddedSpy(waylandServer(), &WaylandServer::shellClientAdded);
+    VERIFY(clientAddedSpy.isValid());
+
+    Surface *surface = m_compositor->createSurface(m_compositor);
+    VERIFY(surface);
+    ShellSurface *shellSurface = m_shell->createSurface(surface, surface);
+    VERIFY(shellSurface);
+    if (parent) {
+        shellSurface->setTransient(parent, offset);
+    }
+    if (decorated) {
+        auto deco = m_deco->create(surface, surface);
+        QSignalSpy decoSpy(deco, &ServerSideDecoration::modeChanged);
+        VERIFY(decoSpy.isValid());
+        VERIFY(decoSpy.wait());
+        deco->requestMode(ServerSideDecoration::Mode::Server);
+        VERIFY(decoSpy.wait());
+        COMPARE(deco->mode(), ServerSideDecoration::Mode::Server);
+    }
+    // let's render
+    QImage img(size, QImage::Format_ARGB32);
+    img.fill(Qt::blue);
+    surface->attachBuffer(m_shm->createBuffer(img));
+    surface->damage(QRect(QPoint(0, 0), size));
+    surface->commit(Surface::CommitFlag::None);
+
+    m_connection->flush();
+    VERIFY(clientAddedSpy.wait());
+    AbstractClient *c = workspace()->activeClient();
+    VERIFY(c);
+    COMPARE(clientAddedSpy.first().first().value<ShellClient*>(), c);
+
+#undef VERIFY
+#undef COMPARE
+
+    return c;
+}
+
+KWayland::Client::Surface *TransientPlacementTest::surfaceForClient(AbstractClient *c) const
+{
+    const auto &surfaces = KWayland::Client::Surface::all();
+    auto it = std::find_if(surfaces.begin(), surfaces.end(), [c] (KWayland::Client::Surface *s) { return s->id() == c->surface()->id(); });
+    if (it != surfaces.end()) {
+        return *it;
+    }
+    return nullptr;
+}
+
+void TransientPlacementTest::testSimplePosition_data()
+{
+    QTest::addColumn<QSize>("parentSize");
+    QTest::addColumn<QPoint>("parentPosition");
+    QTest::addColumn<QSize>("transientSize");
+    QTest::addColumn<QPoint>("transientOffset");
+    QTest::addColumn<QRect>("expectedGeometry");
+
+    QTest::newRow("0/0") << QSize(640, 512) << QPoint(0, 0) << QSize(10, 100) << QPoint(0, 0) << QRect(0, 0, 10, 100);
+    QTest::newRow("bottomRight") << QSize(640, 512) << QPoint(0, 0) << QSize(10, 100) << QPoint(639, 511) << QRect(639, 511, 10, 100);
+    QTest::newRow("offset") << QSize(640, 512) << QPoint(200, 300) << QSize(100, 10) << QPoint(320, 256) << QRect(520, 556, 100, 10);
+}
+
+void TransientPlacementTest::testSimplePosition()
+{
+    // this test verifies that the position of a transient window is taken from the passed position
+    // there are no further constraints like window too large to fit screen, cascading transients, etc
+    QFETCH(QSize, parentSize);
+    AbstractClient *parent = showWindow(parentSize);
+    QVERIFY(parent->clientPos().isNull());
+    QVERIFY(!parent->isDecorated());
+    QFETCH(QPoint, parentPosition);
+    parent->move(parentPosition);
+    QFETCH(QSize, transientSize);
+    QFETCH(QPoint, transientOffset);
+    AbstractClient *transient = showWindow(transientSize, false, surfaceForClient(parent), transientOffset);
+    QVERIFY(transient);
+    QVERIFY(!transient->isDecorated());
+    QVERIFY(transient->hasTransientPlacementHint());
+    QTEST(transient->geometry(), "expectedGeometry");
+}
+
+void TransientPlacementTest::testDecorationPosition_data()
+{
+    QTest::addColumn<QSize>("parentSize");
+    QTest::addColumn<QPoint>("parentPosition");
+    QTest::addColumn<QSize>("transientSize");
+    QTest::addColumn<QPoint>("transientOffset");
+    QTest::addColumn<QRect>("expectedGeometry");
+
+    QTest::newRow("0/0") << QSize(640, 512) << QPoint(0, 0) << QSize(10, 100) << QPoint(0, 0) << QRect(0, 0, 10, 100);
+    QTest::newRow("bottomRight") << QSize(640, 512) << QPoint(0, 0) << QSize(10, 100) << QPoint(639, 511) << QRect(639, 511, 10, 100);
+    QTest::newRow("offset") << QSize(640, 512) << QPoint(200, 300) << QSize(100, 10) << QPoint(320, 256) << QRect(520, 556, 100, 10);
+}
+
+void TransientPlacementTest::testDecorationPosition()
+{
+    // this test verifies that a transient window is correctly placed if the parent window has a
+    // server side decoration
+    QFETCH(QSize, parentSize);
+    AbstractClient *parent = showWindow(parentSize, true);
+    QVERIFY(!parent->clientPos().isNull());
+    QVERIFY(parent->isDecorated());
+    QFETCH(QPoint, parentPosition);
+    parent->move(parentPosition);
+    QFETCH(QSize, transientSize);
+    QFETCH(QPoint, transientOffset);
+    AbstractClient *transient = showWindow(transientSize, false, surfaceForClient(parent), transientOffset);
+    QVERIFY(transient);
+    QVERIFY(!transient->isDecorated());
+    QVERIFY(transient->hasTransientPlacementHint());
+    QFETCH(QRect, expectedGeometry);
+    expectedGeometry.translate(parent->clientPos());
+    QEXPECT_FAIL("", "Fix me", Continue);
+    QCOMPARE(transient->geometry(), expectedGeometry);
+}
+
+}
+
+WAYLANDTEST_MAIN(KWin::TransientPlacementTest)
+#include "transient_placement.moc"