diff --git a/tests/qemu-iotests/287 b/tests/qemu-iotests/287
new file mode 100755
index 0000000000..f98a4cadc1
--- /dev/null
+++ b/tests/qemu-iotests/287
@@ -0,0 +1,152 @@
+#!/usr/bin/env bash
+#
+# Test case for an image using zstd compression
+#
+# Copyright (c) 2020 Virtuozzo International GmbH
+#
+# 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=dplotnikov@virtuozzo.com
+
+seq="$(basename $0)"
+echo "QA output created by $seq"
+
+status=1	# failure is the default!
+
+# standard environment
+. ./common.rc
+. ./common.filter
+
+# This tests qocw2-specific low-level functionality
+_supported_fmt qcow2
+_supported_proto file
+_supported_os Linux
+_unsupported_imgopts 'compat=0.10' data_file
+
+COMPR_IMG="$TEST_IMG.compressed"
+RAND_FILE="$TEST_DIR/rand_data"
+
+_cleanup()
+{
+    _cleanup_test_img
+    _rm_test_img "$COMPR_IMG"
+    rm -f "$RAND_FILE"
+}
+trap "_cleanup; exit \$status" 0 1 2 3 15
+
+# for all the cases
+CLUSTER_SIZE=65536
+
+# Check if we can run this test.
+if IMGOPTS='compression_type=zstd' _make_test_img 64M |
+    grep "Invalid parameter 'zstd'"; then
+    _notrun "ZSTD is disabled"
+fi
+
+echo
+echo "=== Testing compression type incompatible bit setting for zlib ==="
+echo
+_make_test_img -o compression_type=zlib 64M
+$PYTHON qcow2.py "$TEST_IMG" dump-header | grep incompatible_features
+
+echo
+echo "=== Testing compression type incompatible bit setting for zstd ==="
+echo
+_make_test_img -o compression_type=zstd 64M
+$PYTHON qcow2.py "$TEST_IMG" dump-header | grep incompatible_features
+
+echo
+echo "=== Testing zlib with incompatible bit set ==="
+echo
+_make_test_img -o compression_type=zlib 64M
+$PYTHON qcow2.py "$TEST_IMG" set-feature-bit incompatible 3
+# to make sure the bit was actually set
+$PYTHON qcow2.py "$TEST_IMG" dump-header | grep incompatible_features
+
+if $QEMU_IMG info "$TEST_IMG" >/dev/null 2>&1 ; then
+    echo "Error: The image opened successfully. The image must not be opened."
+fi
+
+echo
+echo "=== Testing zstd with incompatible bit unset ==="
+echo
+_make_test_img -o compression_type=zstd 64M
+$PYTHON qcow2.py "$TEST_IMG" set-header incompatible_features 0
+# to make sure the bit was actually unset
+$PYTHON qcow2.py "$TEST_IMG" dump-header | grep incompatible_features
+
+if $QEMU_IMG info "$TEST_IMG" >/dev/null 2>&1 ; then
+    echo "Error: The image opened successfully. The image must not be opened."
+fi
+
+echo
+echo "=== Testing compression type values ==="
+echo
+# zlib=0
+_make_test_img -o compression_type=zlib 64M
+peek_file_be "$TEST_IMG" 104 1
+echo
+
+# zstd=1
+_make_test_img -o compression_type=zstd 64M
+peek_file_be "$TEST_IMG" 104 1
+echo
+
+echo
+echo "=== Testing simple reading and writing with zstd ==="
+echo
+_make_test_img -o compression_type=zstd 64M
+$QEMU_IO -c "write -c -P 0xAC 64K 64K " "$TEST_IMG" | _filter_qemu_io
+$QEMU_IO -c "read -P 0xAC 64K 64K " "$TEST_IMG" | _filter_qemu_io
+# read on the cluster boundaries
+$QEMU_IO -c "read -v 131070 8 " "$TEST_IMG" | _filter_qemu_io
+$QEMU_IO -c "read -v 65534 8" "$TEST_IMG" | _filter_qemu_io
+
+echo
+echo "=== Testing adjacent clusters reading and writing with zstd ==="
+echo
+_make_test_img -o compression_type=zstd 64M
+$QEMU_IO -c "write -c -P 0xAB 0 64K " "$TEST_IMG" | _filter_qemu_io
+$QEMU_IO -c "write -c -P 0xAC 64K 64K " "$TEST_IMG" | _filter_qemu_io
+$QEMU_IO -c "write -c -P 0xAD 128K 64K " "$TEST_IMG" | _filter_qemu_io
+
+$QEMU_IO -c "read -P 0xAB 0 64k " "$TEST_IMG" | _filter_qemu_io
+$QEMU_IO -c "read -P 0xAC 64K 64k " "$TEST_IMG" | _filter_qemu_io
+$QEMU_IO -c "read -P 0xAD 128K 64k " "$TEST_IMG" | _filter_qemu_io
+
+echo
+echo "=== Testing incompressible cluster processing with zstd ==="
+echo
+# create a 2M image and fill it with 1M likely incompressible data
+# and 1M compressible data
+dd if=/dev/urandom of="$RAND_FILE" bs=1M count=1 seek=1
+QEMU_IO_OPTIONS="$QEMU_IO_OPTIONS_NO_FMT" \
+$QEMU_IO -f raw -c "write -P 0xFA 0 1M" "$RAND_FILE" | _filter_qemu_io
+
+$QEMU_IMG convert -f raw -O $IMGFMT -c \
+-o "$(_optstr_add "$IMGOPTS" "compression_type=zlib")" "$RAND_FILE" \
+"$TEST_IMG" | _filter_qemu_io
+
+$QEMU_IMG convert -O $IMGFMT -c \
+-o "$(_optstr_add "$IMGOPTS" "compression_type=zstd")" "$TEST_IMG" \
+"$COMPR_IMG" | _filter_qemu_io
+
+$QEMU_IMG compare "$TEST_IMG" "$COMPR_IMG"
+
+# success, all done
+echo "*** done"
+rm -f $seq.full
+status=0
diff --git a/tests/qemu-iotests/287.out b/tests/qemu-iotests/287.out
new file mode 100644
index 0000000000..6b9dfb4af0
--- /dev/null
+++ b/tests/qemu-iotests/287.out
@@ -0,0 +1,67 @@
+QA output created by 287
+
+=== Testing compression type incompatible bit setting for zlib ===
+
+Formatting 'TEST_DIR/t.IMGFMT', fmt=IMGFMT size=67108864
+incompatible_features     []
+
+=== Testing compression type incompatible bit setting for zstd ===
+
+Formatting 'TEST_DIR/t.IMGFMT', fmt=IMGFMT size=67108864
+incompatible_features     [3]
+
+=== Testing zlib with incompatible bit set  ===
+
+Formatting 'TEST_DIR/t.IMGFMT', fmt=IMGFMT size=67108864
+incompatible_features     [3]
+
+=== Testing zstd with incompatible bit unset  ===
+
+Formatting 'TEST_DIR/t.IMGFMT', fmt=IMGFMT size=67108864
+incompatible_features     []
+
+=== Testing compression type values  ===
+
+Formatting 'TEST_DIR/t.IMGFMT', fmt=IMGFMT size=67108864
+   0
+Formatting 'TEST_DIR/t.IMGFMT', fmt=IMGFMT size=67108864
+   1
+
+=== Testing simple reading and writing with zstd ===
+
+Formatting 'TEST_DIR/t.IMGFMT', fmt=IMGFMT size=67108864
+wrote 65536/65536 bytes at offset 65536
+64 KiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+read 65536/65536 bytes at offset 65536
+64 KiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+0001fffe:  ac ac 00 00 00 00 00 00  ........
+read 8/8 bytes at offset 131070
+8 bytes, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+0000fffe:  00 00 ac ac ac ac ac ac  ........
+read 8/8 bytes at offset 65534
+8 bytes, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+
+=== Testing adjacent clusters reading and writing with zstd ===
+
+Formatting 'TEST_DIR/t.IMGFMT', fmt=IMGFMT size=67108864
+wrote 65536/65536 bytes at offset 0
+64 KiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+wrote 65536/65536 bytes at offset 65536
+64 KiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+wrote 65536/65536 bytes at offset 131072
+64 KiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+read 65536/65536 bytes at offset 0
+64 KiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+read 65536/65536 bytes at offset 65536
+64 KiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+read 65536/65536 bytes at offset 131072
+64 KiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+
+=== Testing incompressible cluster processing with zstd ===
+
+1+0 records in
+1+0 records out
+wrote 1048576/1048576 bytes at offset 0
+1 MiB, X ops; XX:XX:XX.X (XXX YYY/sec and XXX ops/sec)
+Images are identical.
+*** done
diff --git a/tests/qemu-iotests/group b/tests/qemu-iotests/group
index 435dccd5af..3bbe02c88d 100644
--- a/tests/qemu-iotests/group
+++ b/tests/qemu-iotests/group
@@ -294,6 +294,7 @@
 283 auto quick
 284 rw
 286 rw quick
+287 auto quick
 288 quick
 289 rw quick
 290 rw auto quick
