diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/pom.xml b/components/device-mgt/org.wso2.carbon.device.mgt.core/pom.xml
index 40f3ab5f850..f5193fe9786 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/pom.xml
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/pom.xml
@@ -221,6 +221,14 @@
             <groupId>org.testng</groupId>
             <artifactId>testng</artifactId>
         </dependency>
+        <dependency>
+            <groupId>org.powermock</groupId>
+            <artifactId>powermock-module-testng</artifactId>
+        </dependency>
+        <dependency>
+            <groupId>org.powermock</groupId>
+            <artifactId>powermock-api-mockito</artifactId>
+        </dependency>
         <dependency>
             <groupId>org.wso2.carbon</groupId>
             <artifactId>org.wso2.carbon.user.core</artifactId>
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/permission/mgt/PermissionManagerServiceTest.java b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/permission/mgt/PermissionManagerServiceTest.java
new file mode 100644
index 00000000000..a5ca659e31c
--- /dev/null
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/permission/mgt/PermissionManagerServiceTest.java
@@ -0,0 +1,121 @@
+/*
+ * Copyright (c) 2017, WSO2 Inc. (http://www.wso2.org) All Rights Reserved.
+ *
+ * WSO2 Inc. licenses this file to you 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.
+ */
+package org.wso2.carbon.device.mgt.core.permission.mgt;
+
+import org.apache.commons.logging.Log;
+import org.apache.commons.logging.LogFactory;
+import org.powermock.api.mockito.PowerMockito;
+import org.powermock.core.classloader.annotations.PrepareForTest;
+import org.testng.Assert;
+import org.testng.IObjectFactory;
+import org.testng.annotations.BeforeClass;
+import org.testng.annotations.ObjectFactory;
+import org.testng.annotations.Test;
+import org.wso2.carbon.device.mgt.common.permission.mgt.Permission;
+import org.wso2.carbon.device.mgt.common.permission.mgt.PermissionManagementException;
+import org.wso2.carbon.device.mgt.common.permission.mgt.PermissionManagerService;
+import org.wso2.carbon.registry.core.exceptions.RegistryException;
+
+import java.util.Properties;
+
+import static org.mockito.MockitoAnnotations.initMocks;
+
+@PrepareForTest(PermissionUtils.class)
+public class PermissionManagerServiceTest {
+
+    private static final Log log = LogFactory.getLog(PermissionManagerServiceTest.class);;
+    private static final String PERMISSION_URL = "permission/admin/device-mgt/test/testPermission";
+    private static final String PERMISSION_PATH = "permission/admin/device-mgt/test/testPermission";
+    private static final String PERMISSION_METHOD = "ui.execute";
+    private static final String PERMISSION_NAME = "Test Permission";
+
+    //For create properties to retrieve permission.
+    private static final String HTTP_METHOD = "HTTP_METHOD";
+    private static final String URL = "URL";
+
+    private Permission permission;
+    private PermissionManagerService permissionManagerService;
+
+    @ObjectFactory
+    public IObjectFactory getObjectFactory() {
+        return new org.powermock.modules.testng.PowerMockObjectFactory();
+    }
+
+    @BeforeClass
+    public void init() throws RegistryException {
+        initMocks(this);
+        permissionManagerService = PermissionManagerServiceImpl.getInstance();
+        this.permission = new Permission();
+        permission.setName(PERMISSION_NAME);
+        permission.setPath(PERMISSION_PATH);
+        permission.setMethod(PERMISSION_METHOD);
+        permission.setUrl(PERMISSION_URL);
+    }
+
+    @Test (description = "Create a new permission in the permission tree.")
+    public void testCreatePermission() {
+        try {
+            PowerMockito.mockStatic(PermissionUtils.class);
+            PowerMockito.when(PermissionUtils.putPermission(permission)).thenReturn(true);
+
+            Assert.assertTrue(permissionManagerService.addPermission(permission));
+        } catch (PermissionManagementException e) {
+            log.error("Error creating permission " + e.getErrorMessage());
+        }
+    }
+
+    @Test (dependsOnMethods = {"testCreatePermission"}, description = "Test for retrieving the created permission " +
+            "from the permission tree.")
+    public void testGetPermission() throws PermissionManagementException {
+        Permission permission = permissionManagerService.getPermission(createProperties());
+
+        Assert.assertEquals(permission.getMethod(), PERMISSION_METHOD);
+        Assert.assertEquals(permission.getName(), PERMISSION_NAME);
+        Assert.assertEquals(permission.getPath(), PERMISSION_PATH);
+        Assert.assertEquals(permission.getUrl(), PERMISSION_URL);
+    }
+
+    @Test (dependsOnMethods = {"testCreatePermission"},
+            expectedExceptions = {PermissionManagementException.class},
+            expectedExceptionsMessageRegExp = "Resource URI/HTTP method is empty")
+    public void testGetPermissionError() throws PermissionManagementException {
+            Permission permission = permissionManagerService.getPermission(createErrorProperty());
+    }
+
+    /**
+     * Create a Property object which will be passed to getPermission method to retrieve a permission.
+     * @return : Property object which contains permission url and method.
+     * */
+    private Properties createProperties() {
+        Properties properties = new Properties();
+        properties.setProperty(URL, PERMISSION_URL);
+        properties.setProperty(HTTP_METHOD, PERMISSION_METHOD);
+        return properties;
+    }
+
+    /**
+     * Creates property object with empty properties.
+     * @return : Properties object with empty set of properties.
+     * */
+    private Properties createErrorProperty() {
+        Properties properties = new Properties();
+        properties.setProperty(URL, "");
+        properties.setProperty(HTTP_METHOD, "");
+        return properties;
+    }
+}
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/resources/testng.xml b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/resources/testng.xml
index 3315b7109a1..ba8e8de691b 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/resources/testng.xml
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/resources/testng.xml
@@ -42,6 +42,7 @@
             <class name="org.wso2.carbon.device.mgt.core.app.mgt.ApplicationManagementProviderServiceTest"/>
             <class name="org.wso2.carbon.device.mgt.core.service.GroupManagementProviderServiceTest"/>
             <class name="org.wso2.carbon.device.mgt.core.operation.OperationManagementTests"/>
+            <class name="org.wso2.carbon.device.mgt.core.permission.mgt.PermissionManagerServiceTest" />
         </classes>
     </test>
 </suite>
diff --git a/pom.xml b/pom.xml
index c30878f9e14..595af103141 100644
--- a/pom.xml
+++ b/pom.xml
@@ -1532,6 +1532,12 @@
                 <version>${power.mock.version}</version>
                 <scope>test</scope>
             </dependency>
+            <dependency>
+                <groupId>org.powermock</groupId>
+                <artifactId>powermock-module-testng</artifactId>
+                <version>${power.mock.version}</version>
+                <scope>test</scope>
+            </dependency>
         </dependencies>
     </dependencyManagement>
 
@@ -1961,7 +1967,7 @@
         <jacoco.maven.plugin.version>0.7.8</jacoco.maven.plugin.version>
         <jacoco.ant.verision>0.7.5.201505241946</jacoco.ant.verision>
         <ant.contrib.version>1.0b3</ant.contrib.version>
-        <power.mock.version>1.6.4</power.mock.version>
+        <power.mock.version>1.7.0</power.mock.version>
     </properties>
 
 </project>