diff --git a/test/python/factory/wsgi.py b/test/python/factory/wsgi.py
new file mode 100644
index 000000000..c1551b34f
--- /dev/null
+++ b/test/python/factory/wsgi.py
@@ -0,0 +1,19 @@
+def wsgi_a(env, start_response):
+    start_response('200', [('Content-Length', '1')])
+    return [b'1']
+
+
+def wsgi_b(env, start_response):
+    start_response('200', [('Content-Length', '1')])
+    return [b'2']
+
+def wsgi_a_factory():
+    return wsgi_a
+
+def wsgi_b_factory():
+    return wsgi_b
+
+wsgi_invalid_callable = None
+
+def wsgi_factory_returning_invalid_callable():
+    return wsgi_invalid_callable
\ No newline at end of file
diff --git a/test/test_python_factory.py b/test/test_python_factory.py
new file mode 100644
index 000000000..ae61d462c
--- /dev/null
+++ b/test/test_python_factory.py
@@ -0,0 +1,146 @@
+from unit.applications.lang.python import ApplicationPython
+from unit.option import option
+
+prerequisites = {'modules': {'python': 'all'}}
+
+client = ApplicationPython()
+
+def test_python_factory_targets():
+    python_dir = f'{option.test_dir}/python'
+
+    assert 'success' in client.conf(
+        {
+            "listeners": {
+                "*:8080": {
+                    "pass": "applications/targets/1"
+                },
+                "*:8081": {
+                    "pass": "applications/targets/2"
+                },
+                "*:8082": {
+                    "pass": "applications/targets/factory-1"
+                },
+                "*:8083": {
+                    "pass": "applications/targets/factory-2"
+                },
+            },
+            "applications": {
+                "targets": {
+                    "type": client.get_application_type(),
+                    "working_directory": f'{python_dir}/factory/',
+                    "path": f'{python_dir}/factory/',
+                    "targets": {
+                        "1": {
+                            "module": "wsgi",
+                            "callable": "wsgi_a",
+                            "factory": False
+                        },
+                        "2": {
+                            "module": "wsgi",
+                            "callable": "wsgi_b",
+                            "factory": False
+                        },
+                        "factory-1": {
+                            "module": "wsgi",
+                            "callable": "wsgi_a_factory",
+                            "factory": True
+                        },
+                        "factory-2": {
+                            "module": "wsgi",
+                            "callable": "wsgi_b_factory",
+                            "factory": True
+                        },
+                    },
+                }
+            },
+        }
+    )
+
+    resp = client.get(port=8080)
+    assert resp['status'] == 200
+    assert resp['body'] == '1'
+
+    resp = client.get(port=8081)
+    assert resp['status'] == 200
+    assert resp['body'] == '2'
+
+    resp = client.get(port=8082)
+    assert resp['status'] == 200
+    assert resp['body'] == '1'
+
+    resp = client.get(port=8083)
+    assert resp['status'] == 200
+    assert resp['body'] == '2'
+
+def test_python_factory_without_targets():
+    python_dir = f'{option.test_dir}/python'
+
+    assert 'success' in client.conf(
+        {
+            "listeners": {
+                "*:8080": {
+                    "pass": "applications/python-app-factory"
+                },
+                "*:8081": {
+                    "pass": "applications/python-app"
+                }
+            },
+            "applications": {
+                "python-app-factory": {
+                    "type": client.get_application_type(),
+                    "working_directory": f'{python_dir}/factory/',
+                    "path": f'{python_dir}/factory/',
+                    "module": "wsgi",
+                    "callable": "wsgi_a_factory",
+                    "factory": True
+                },
+                "python-app": {
+                    "type": client.get_application_type(),
+                    "working_directory": f'{python_dir}/factory/',
+                    "path": f'{python_dir}/factory/',
+                    "module": "wsgi",
+                    "callable": "wsgi_b",
+                    "factory": False
+                }
+            },
+        }
+    )
+
+    resp = client.get(port=8080)
+    assert resp['status'] == 200
+    assert resp['body'] == '1'
+
+    resp = client.get(port=8081)
+    assert resp['status'] == 200
+    assert resp['body'] == '2'
+
+def test_python_factory_invalid_callable_value(skip_alert):
+    skip_alert(r"[\s\S]*") # This regex will match to any string
+    python_dir = f'{option.test_dir}/python'
+
+    invalid_callable_values = ["wsgi_factory_returning_invalid_callable", "wsgi_invalid_callable"]
+
+    for callable_value in invalid_callable_values:
+        assert 'error' in client.conf(
+            {
+                "listeners": {
+                    "*:8080": {
+                        "pass": "applications/targets/1"
+                    }
+                },
+                "applications": {
+                    "targets": {
+                        "type": client.get_application_type(),
+                        "working_directory": f'{python_dir}/factory/',
+                        "path": f'{python_dir}/factory/',
+                        "targets": {
+                            "1": {
+                                "module": "wsgi",
+                                "callable": callable_value,
+                                "factory": True
+                            },
+                        },
+                    }
+                },
+            }
+        )
\ No newline at end of file