diff --git a/tcms_github_app/tests/test_installation_repositories.py b/tcms_github_app/tests/test_installation_repositories.py
new file mode 100644
index 0000000..b240524
--- /dev/null
+++ b/tcms_github_app/tests/test_installation_repositories.py
@@ -0,0 +1,110 @@
+# Copyright (c) 2020 Alexander Todorov <atodorov@MrSenko.com>
+
+# Licensed under the GPL 3.0: https://www.gnu.org/licenses/gpl-3.0.txt
+# pylint: disable=too-many-ancestors
+
+import json
+import unittest.mock
+
+from django.urls import reverse
+from django.conf import settings
+
+from django_tenants.utils import schema_context
+from django_tenants.utils import tenant_context
+
+
+from tcms.utils import github
+from tcms.management.models import Product
+from tcms.testcases.models import BugSystem
+
+from tcms_tenants.tests import UserFactory
+
+from tcms_github_app.tests import AnonymousTestCase
+from tcms_github_app.tests import AppInstallationFactory
+from tcms_github_app.tests import UserSocialAuthFactory
+
+
+class HandleInstallationRepositoriesTestCase(AnonymousTestCase):
+    @classmethod
+    def setUpClass(cls):
+        super().setUpClass()
+        cls.url = reverse('github_app_webhook')
+        cls.social_user = UserSocialAuthFactory()
+
+    @unittest.mock.patch('tcms_github_app.utils.github_rpc_from_inst')
+    def test_adds_new_data_when_it_doesnt_exist(self, github_rpc):
+        mock_repo = unittest.mock.MagicMock()
+        mock_repo.fork = False
+        mock_repo.full_name = 'kiwitcms-bot/IT-CPE'
+        mock_repo.description = ''
+        mock_repo.html_url = 'https://github.com/%s' % mock_repo.full_name
+
+        github_rpc.return_value.get_repo = unittest.mock.MagicMock(side_effect=[mock_repo])
+
+        # assert products don't exist initially
+        for schema_name in ['public', self.tenant.schema_name]:
+            with schema_context(schema_name):
+                self.assertFalse(Product.objects.filter(name='kiwitcms-bot/IT-CPE').exists())
+                self.assertFalse(
+                    BugSystem.objects.filter(
+                        name='GitHub Issues for kiwitcms-bot/IT-CPE').exists())
+
+        # simulate already configured installation owned by the same user
+        # who owns the GitHub repository
+        app_inst = AppInstallationFactory(
+            sender=self.social_user.uid,
+            tenant_pk=self.tenant.pk,
+        )
+
+        payload = """
+{
+  "action": "added",
+  "installation": {
+    "id": %d,
+    "account": {
+    },
+    "repository_selection": "all",
+    "single_file_name": null
+  },
+  "repository_selection": "all",
+  "repositories_added": [
+    {
+      "id": 281502467,
+      "node_id": "MDEwOlJlcG9zaXRvcnkyODE1MDI0Njc=",
+      "name": "IT-CPE",
+      "full_name": "kiwitcms-bot/IT-CPE",
+      "private": false
+    }
+  ],
+  "repositories_removed": [
+
+  ],
+  "requester": null,
+  "sender": {
+    "login": "%s",
+    "id": %d
+  }
+}""".strip() % (app_inst.installation,
+                self.social_user.user.username,
+                self.social_user.uid)
+
+        signature = github.calculate_signature(
+            settings.KIWI_GITHUB_APP_SECRET,
+            json.dumps(json.loads(payload)).encode())
+
+        response = self.client.post(self.url,
+                                    json.loads(payload),
+                                    content_type='application/json',
+                                    HTTP_X_HUB_SIGNATURE=signature,
+                                    HTTP_X_GITHUB_EVENT='installation_repositories')
+
+        self.assertContains(response, 'ok')
+
+        # assert products have been imported *ONLY* on public
+        with tenant_context(self.tenant):
+            new_product = Product.objects.get(name='kiwitcms-bot/IT-CPE')
+            self.assertEqual(new_product.description, 'GitHub repository')
+
+            new_bugsystem = BugSystem.objects.get(name='GitHub Issues for kiwitcms-bot/IT-CPE')
+            self.assertEqual(new_bugsystem.tracker_type, 'tcms_github_app.issues.Integration')
+            self.assertEqual(new_bugsystem.base_url, 'https://github.com/kiwitcms-bot/IT-CPE')