diff --git a/tests/qemu-iotests/049 b/tests/qemu-iotests/049
new file mode 100755
index 0000000000..6c6017e2d2
--- /dev/null
+++ b/tests/qemu-iotests/049
@@ -0,0 +1,123 @@
+#!/bin/bash
+#
+# Check qemu-img option parsing
+#
+# Copyright (C) 2013 Red Hat, Inc.
+#
+# 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/>.
+#
+
+# creator
+owner=kwolf@redhat.com
+
+seq=`basename $0`
+echo "QA output created by $seq"
+
+here=`pwd`
+tmp=/tmp/$$
+status=1	# failure is the default!
+
+_cleanup()
+{
+	_cleanup_test_img
+}
+trap "_cleanup; exit \$status" 0 1 2 3 15
+
+# get standard environment, filters and checks
+. ./common.rc
+. ./common.filter
+
+_supported_fmt qcow2
+_supported_proto file
+_supported_os Linux
+
+function filter_test_dir()
+{
+    sed -e "s#$IMGPROTO:$TEST_DIR#TEST_DIR#g" \
+        -e "s#$TEST_DIR#TEST_DIR#g"
+}
+
+function test_qemu_img()
+{
+    echo qemu-img "$@" | filter_test_dir
+    $QEMU_IMG "$@" 2>&1 | filter_test_dir
+    echo
+}
+
+echo "=== Check correct interpretation of suffixes for image size ==="
+echo
+sizes="1024 1024b 1k 1K 1M 1G 1T "
+sizes+="1024.0 1024.0b 1.5k 1.5K 1.5M 1.5G 1.5T"
+
+echo "== 1. Traditional size parameter =="
+echo
+for s in $sizes; do
+    test_qemu_img create -f $IMGFMT $TEST_IMG $s
+done
+
+echo "== 2. Specifying size via -o =="
+echo
+for s in $sizes; do
+    test_qemu_img create -f $IMGFMT -o size=$s $TEST_IMG
+done
+
+echo "== 3. Invalid sizes =="
+echo
+sizes="-1024 -1k 1kilobyte foobar"
+
+for s in $sizes; do
+    test_qemu_img create -f $IMGFMT $TEST_IMG -- $s
+    test_qemu_img create -f $IMGFMT -o size=$s $TEST_IMG
+done
+
+echo "== Check correct interpretation of suffixes for cluster size =="
+echo
+sizes="1024 1024b 1k 1K 1M "
+sizes+="1024.0 1024.0b 0.5k 0.5K 0.5M"
+
+for s in $sizes; do
+    test_qemu_img create -f $IMGFMT -o cluster_size=$s $TEST_IMG 64M
+done
+
+echo "== Check compat level option =="
+echo
+test_qemu_img create -f $IMGFMT -o compat=0.10 $TEST_IMG 64M
+test_qemu_img create -f $IMGFMT -o compat=1.1 $TEST_IMG 64M
+
+test_qemu_img create -f $IMGFMT -o compat=0.42 $TEST_IMG 64M
+test_qemu_img create -f $IMGFMT -o compat=foobar $TEST_IMG 64M
+
+echo "== Check preallocation option =="
+echo
+test_qemu_img create -f $IMGFMT -o preallocation=off $TEST_IMG 64M
+test_qemu_img create -f $IMGFMT -o preallocation=metadata $TEST_IMG 64M
+test_qemu_img create -f $IMGFMT -o preallocation=1234 $TEST_IMG 64M
+
+echo "== Check encryption option =="
+echo
+test_qemu_img create -f $IMGFMT -o encryption=off $TEST_IMG 64M
+test_qemu_img create -f $IMGFMT -o encryption=on $TEST_IMG 64M
+
+echo "== Check lazy_refcounts option (only with v3) =="
+echo
+test_qemu_img create -f $IMGFMT -o compat=1.1,lazy_refcounts=off $TEST_IMG 64M
+test_qemu_img create -f $IMGFMT -o compat=1.1,lazy_refcounts=on $TEST_IMG 64M
+
+test_qemu_img create -f $IMGFMT -o compat=0.10,lazy_refcounts=off $TEST_IMG 64M
+test_qemu_img create -f $IMGFMT -o compat=0.10,lazy_refcounts=on $TEST_IMG 64M
+
+# success, all done
+echo "*** done"
+rm -f $seq.full
+status=0
diff --git a/tests/qemu-iotests/049.out b/tests/qemu-iotests/049.out
new file mode 100644
index 0000000000..72db13f8d2
--- /dev/null
+++ b/tests/qemu-iotests/049.out
@@ -0,0 +1,212 @@
+QA output created by 049
+=== Check correct interpretation of suffixes for image size ===
+
+== 1. Traditional size parameter ==
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1024
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1024b
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1k
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1K
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1048576 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1G
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1073741824 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1T
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1099511627776 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1024.0
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1024.0b
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1.5k
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1536 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1.5K
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1536 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1.5M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1572864 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1.5G
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1610612736 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 1.5T
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1649267441664 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+== 2. Specifying size via -o ==
+
+qemu-img create -f qcow2 -o size=1024 TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1024b TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1k TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1K TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1M TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1048576 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1G TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1073741824 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1T TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1099511627776 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1024.0 TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1024.0b TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1.5k TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1536 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1.5K TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1536 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1.5M TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1572864 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1.5G TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1610612736 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o size=1.5T TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1649267441664 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+== 3. Invalid sizes ==
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 -- -1024
+qemu-img: Image size must be less than 8 EiB!
+
+qemu-img create -f qcow2 -o size=-1024 TEST_DIR/t.qcow2
+qemu-img: qcow2 doesn't support shrinking images yet
+qemu-img: Formatting or formatting option not supported for file format 'qcow2'
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=-1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 -- -1k
+qemu-img: Image size must be less than 8 EiB!
+
+qemu-img create -f qcow2 -o size=-1k TEST_DIR/t.qcow2
+qemu-img: qcow2 doesn't support shrinking images yet
+qemu-img: Formatting or formatting option not supported for file format 'qcow2'
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=-1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 -- 1kilobyte
+qemu-img: Invalid image size specified! You may use k, M, G or T suffixes for 
+qemu-img: kilobytes, megabytes, gigabytes and terabytes.
+
+qemu-img create -f qcow2 -o size=1kilobyte TEST_DIR/t.qcow2
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=1024 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 TEST_DIR/t.qcow2 -- foobar
+qemu-img: Invalid image size specified! You may use k, M, G or T suffixes for 
+qemu-img: kilobytes, megabytes, gigabytes and terabytes.
+
+qemu-img create -f qcow2 -o size=foobar TEST_DIR/t.qcow2
+qemu-img: Parameter 'size' expects a size
+qemu-img: Invalid options for file format 'qcow2'.
+
+== Check correct interpretation of suffixes for cluster size ==
+
+qemu-img create -f qcow2 -o cluster_size=1024 TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=1024 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=1024b TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=1024 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=1k TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=1024 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=1K TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=1024 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=1M TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=1048576 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=1024.0 TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=1024 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=1024.0b TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=1024 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=0.5k TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=512 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=0.5K TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=512 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o cluster_size=0.5M TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=524288 lazy_refcounts=off 
+
+== Check compat level option ==
+
+qemu-img create -f qcow2 -o compat=0.10 TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 compat='0.10' encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o compat=1.1 TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 compat='1.1' encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o compat=0.42 TEST_DIR/t.qcow2 64M
+Invalid compatibility level: '0.42'
+qemu-img: TEST_DIR/t.qcow2: error while creating qcow2: Invalid argument
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 compat='0.42' encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o compat=foobar TEST_DIR/t.qcow2 64M
+Invalid compatibility level: 'foobar'
+qemu-img: TEST_DIR/t.qcow2: error while creating qcow2: Invalid argument
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 compat='foobar' encryption=off cluster_size=65536 lazy_refcounts=off 
+
+== Check preallocation option ==
+
+qemu-img create -f qcow2 -o preallocation=off TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=65536 preallocation='off' lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o preallocation=metadata TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=65536 preallocation='metadata' lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o preallocation=1234 TEST_DIR/t.qcow2 64M
+Invalid preallocation mode: '1234'
+qemu-img: TEST_DIR/t.qcow2: error while creating qcow2: Invalid argument
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=65536 preallocation='1234' lazy_refcounts=off 
+
+== Check encryption option ==
+
+qemu-img create -f qcow2 -o encryption=off TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o encryption=on TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 encryption=on cluster_size=65536 lazy_refcounts=off 
+
+== Check lazy_refcounts option (only with v3) ==
+
+qemu-img create -f qcow2 -o compat=1.1,lazy_refcounts=off TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 compat='1.1' encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o compat=1.1,lazy_refcounts=on TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 compat='1.1' encryption=off cluster_size=65536 lazy_refcounts=on 
+
+qemu-img create -f qcow2 -o compat=0.10,lazy_refcounts=off TEST_DIR/t.qcow2 64M
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 compat='0.10' encryption=off cluster_size=65536 lazy_refcounts=off 
+
+qemu-img create -f qcow2 -o compat=0.10,lazy_refcounts=on TEST_DIR/t.qcow2 64M
+Lazy refcounts only supported with compatibility level 1.1 and above (use compat=1.1 or greater)
+qemu-img: TEST_DIR/t.qcow2: error while creating qcow2: Invalid argument
+Formatting 'TEST_DIR/t.qcow2', fmt=qcow2 size=67108864 compat='0.10' encryption=off cluster_size=65536 lazy_refcounts=on 
+
+*** done
diff --git a/tests/qemu-iotests/group b/tests/qemu-iotests/group
index 1c0dfefd32..fcf57e0510 100644
--- a/tests/qemu-iotests/group
+++ b/tests/qemu-iotests/group
@@ -55,3 +55,4 @@
 046 rw auto aio
 047 rw auto
 048 img auto quick
+049 rw auto