diff --git a/tests/client/test_inventory_manager.py b/tests/client/test_inventory_manager.py
new file mode 100644
index 0000000..2dcf2aa
--- /dev/null
+++ b/tests/client/test_inventory_manager.py
@@ -0,0 +1,61 @@
+import unittest
+
+from hippolyzer.lib.base.datatypes import UUID
+from hippolyzer.lib.client.inventory_manager import InventoryManager
+from tests.client import MockClientRegion
+
+CREATE_FOLDER_PAYLOAD = {
+    '_base_uri': 'slcap://InventoryAPIv3',
+    '_created_categories': [
+        UUID(int=2),
+    ],
+    '_created_items': [],
+    '_embedded': {
+        'categories': {
+            f'{UUID(int=2)}': {
+                '_embedded': {'categories': {}, 'items': {}, 'links': {}},
+                '_links': {
+                    'parent': {'href': f'/category/{UUID(int=1)}'},
+                    'self': {'href': f'/category/{UUID(int=2)}'}
+                },
+                'agent_id': f'{UUID(int=9)}',
+                'category_id': f'{UUID(int=2)}',
+                'name': 'New Folder',
+                'parent_id': f'{UUID(int=1)}',
+                'type_default': -1,
+                'version': 1
+            }
+        },
+        'items': {}, 'links': {}
+    },
+    '_links': {
+        'categories': {'href': f'/category/{UUID(int=1)}/categories'},
+        'category': {'href': f'/category/{UUID(int=1)}', 'name': 'self'},
+        'children': {'href': f'/category/{UUID(int=1)}/children'},
+        'items': {'href': f'/category/{UUID(int=1)}/items'},
+        'links': {'href': f'/category/{UUID(int=1)}/links'},
+        'parent': {'href': '/category/00000000-0000-0000-0000-000000000000'},
+        'self': {'href': f'/category/{UUID(int=1)}/children'}
+    },
+    '_updated_category_versions': {str(UUID(int=1)): 27},
+    'agent_id': UUID(int=9),
+    'category_id': UUID(int=1),
+    'name': 'My Inventory',
+    'parent_id': UUID.ZERO,
+    'type_default': 8,
+    'version': 27,
+}
+
+
+class TestParcelOverlay(unittest.IsolatedAsyncioTestCase):
+    async def asyncSetUp(self):
+        self.region = MockClientRegion()
+        self.session = self.region.session()
+        self.inv_manager = InventoryManager(self.session)
+        self.model = self.inv_manager.model
+        self.handler = self.region.message_handler
+
+    def test_create_folder_response(self):
+        self.inv_manager.process_aisv3_response(CREATE_FOLDER_PAYLOAD)
+        self.assertIsNotNone(self.model.get_category(UUID(int=1)))
+        self.assertIsNotNone(self.model.get_category(UUID(int=2)))