diff --git a/client/Cargo.toml b/client/Cargo.toml
index a0574e8f2b..26e3795775 100644
--- a/client/Cargo.toml
+++ b/client/Cargo.toml
@@ -20,6 +20,7 @@ futures = "0.3.9"
 jsonrpsee = { git = "https://github.com/paritytech/jsonrpsee/", branch = "extract-async-client", features = ["client"] }
 log = "0.4.13"
 thiserror = "1.0.23"
+serde_json = "1"
 
 sc-client-db = { git = "https://github.com/paritytech/substrate.git", branch = "master" }
 sp-keyring = { git = "https://github.com/paritytech/substrate.git", branch = "master" }
@@ -38,3 +39,5 @@ async-std = { version = "1.8.0", features = ["attributes"] }
 env_logger = "0.8.2"
 node-cli = { git = "https://github.com/paritytech/substrate.git", branch = "master", default-features = false }
 tempdir = "0.3.7"
+subxt = { path = ".." }
+test-runtime = { path = "../test-runtime" }
diff --git a/client/src/lib.rs b/client/src/lib.rs
index 3ea925662d..d3d82fb8f0 100644
--- a/client/src/lib.rs
+++ b/client/src/lib.rs
@@ -14,8 +14,13 @@
 // You should have received a copy of the GNU General Public License
 // along with subxt.  If not, see <http://www.gnu.org/licenses/>.
 
+//! Client for embedding substrate nodes.
+
 #![deny(missing_docs)]
 
+#[cfg(test)]
+mod tests;
+
 use async_std::task;
 use futures::{
     channel::mpsc,
diff --git a/client/src/tests.rs b/client/src/tests.rs
new file mode 100644
index 0000000000..e7eabc311c
--- /dev/null
+++ b/client/src/tests.rs
@@ -0,0 +1,79 @@
+use node_cli::service::NewFullBase;
+use sp_keyring::AccountKeyring;
+use subxt::{ClientBuilder, PairSigner};
+use test_runtime::node_runtime::{self, system, DefaultConfig}
+use crate::{
+    DatabaseSource,
+    KeystoreConfig,
+    Role,
+    SubxtClient,
+    SubxtClientConfig,
+    WasmExecutionMethod,
+};
+use tempdir::TempDir;
+
+#[async_std::test]
+pub async fn test_embedded_client() {
+    let tmp = TempDir::new("subxt-").expect("failed to create tempdir");
+    let config = SubxtClientConfig {
+        impl_name: "full-client",
+        impl_version: "0.0.1",
+        author: "",
+        copyright_start_year: 2020,
+        db: DatabaseSource::RocksDb {
+            path: tmp.path().join("db"),
+            cache_size: 16,
+        },
+        keystore: KeystoreConfig::Path {
+            path: tmp.path().join("keystore"),
+            password: None,
+        },
+        chain_spec: node_cli::chain_spec::development_config(),
+        role: Role::Authority(AccountKeyring::Alice),
+        telemetry: None,
+        wasm_method: WasmExecutionMethod::Compiled,
+        tokio_handle: tokio::runtime::Handle::current(),
+    };
+
+    let NewFullBase {
+        task_manager,
+        rpc_handlers,
+        ..
+    } = node_cli::service::new_full_base(config.into_service_config(), |_, _| ())
+        .unwrap();
+
+    let client = SubxtClient::new(task_manager, rpc_handlers);
+
+    let ext_client = ClientBuilder::new()
+        .set_client(client)
+        .build::<DefaultConfig>()
+        .await
+        .unwrap();
+    let api: node_runtime::RuntimeApi<DefaultConfig> =
+        ext_client.clone().to_runtime_api();
+
+    // verify that we can read storage
+    api.storage()
+        .system()
+        .account(AccountKeyring::Alice.to_account_id().into(), None)
+        .await
+        .unwrap();
+
+    let alice = PairSigner::<DefaultConfig, _>::new(AccountKeyring::Alice.pair());
+    let bob_address = AccountKeyring::Bob.to_account_id().into();
+
+    // verify that we can call dispatchable functions
+    let result = api
+        .tx()
+        .balances()
+        .transfer(bob_address, 100_000_000_000_000_000)
+        .sign_and_submit_then_watch(&alice)
+        .await
+        .unwrap();
+
+    // verify that we receive events
+    let success = result
+        .find_event::<system::events::ExtrinsicSuccess>()
+        .unwrap();
+    assert!(success.is_some());
+}