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diff --git a/src/test/java/org/onap/pnfsimulator/filesystem/WatcherEventProcessorTest.java b/src/test/java/org/onap/pnfsimulator/filesystem/WatcherEventProcessorTest.java
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+/*-
+ * ============LICENSE_START=======================================================
+ * Simulator
+ * ================================================================================
+ * Copyright (C) 2019 Nokia. All rights reserved.
+ * ================================================================================
+ * Licensed 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.
+ * ============LICENSE_END=========================================================
+ */
+
+package org.onap.pnfsimulator.filesystem;
+
+import static junit.framework.TestCase.fail;
+import static org.mockito.MockitoAnnotations.initMocks;
+
+import java.nio.file.Path;
+import java.nio.file.Paths;
+import java.nio.file.StandardWatchEventKinds;
+import java.nio.file.WatchEvent;
+import java.time.Instant;
+import java.util.Collections;
+import java.util.HashMap;
+import java.util.Optional;
+
+import org.bson.Document;
+import org.junit.jupiter.api.Assertions;
+import org.junit.jupiter.api.BeforeAll;
+import org.junit.jupiter.api.BeforeEach;
+import org.junit.jupiter.api.Test;
+import org.mockito.Mock;
+import org.mockito.Mockito;
+import org.onap.pnfsimulator.db.Storage;
+import org.onap.pnfsimulator.template.Template;
+
+class WatcherEventProcessorTest {
+
+    @Mock
+    private WatchEvent watchEvent;
+    @Mock
+    private Path templatesDir;
+
+    private Storage<Template> storage;
+    private static Path jsonFilePath;
+
+    @BeforeAll
+    static void init() {
+        jsonFilePath = Paths.get("src/test/resources/org/onap/pnfsimulator/simulator/filesystem/test1.json");
+    }
+
+    @BeforeEach
+    void resetMocks() {
+        initMocks(this);
+        storage = new InMemoryTemplateStorage();
+        initStubs();
+    }
+
+    @Test
+    void shouldProcessCreatedEventTest() {
+        // when
+        Mockito.when(watchEvent.kind()).thenReturn(StandardWatchEventKinds.ENTRY_CREATE);
+        WatcherEventProcessor.process(watchEvent, storage, templatesDir);
+        // then
+        verifyPersistedValue();
+    }
+
+    @Test
+    void shouldProcessModifiedEventTest() {
+        //given
+        storage.persist(new Template("test1.json", new Document(Collections.emptyMap()), Instant.now().getNano()));
+        // when
+        Mockito.when(watchEvent.kind()).thenReturn(StandardWatchEventKinds.ENTRY_MODIFY);
+        WatcherEventProcessor.process(watchEvent, storage, templatesDir);
+        // then
+        verifyPersistedValue();
+    }
+
+    private void verifyPersistedValue() {
+        Assertions.assertEquals(1, storage.getAll().size());
+        Optional<Template> templateFromStorage = storage.get("test1.json");
+        if (templateFromStorage.isPresent()) {
+            Template retrievedTemplate = templateFromStorage.get();
+            Document templateContent = retrievedTemplate.getContent();
+            Document flatContent = retrievedTemplate.getFlatContent();
+            Assertions.assertEquals("value1", templateContent.getString("field1"));
+            Assertions.assertEquals(2, templateContent.getInteger("field2", 0));
+            Assertions.assertEquals(1, flatContent.getInteger(":nested:key1[0]", 0));
+            Assertions.assertEquals(2, flatContent.getInteger(":nested:key1[1]", 0));
+            Assertions.assertEquals(3, flatContent.getInteger(":nested:key1[2]", 0));
+            Assertions.assertEquals("sampleValue2", flatContent.getString(":nested:key2"));
+        } else {
+            fail();
+        }
+    }
+
+    @Test
+    void shouldProcessDeletedEventTest() {
+        //given
+        HashMap<String, Object> legacyObject = new HashMap<>();
+        legacyObject.put("field1", "value1");
+        legacyObject.put("field2", 2);
+
+        storage.persist(new Template("test1.json", new Document(legacyObject), Instant.now().getNano()));
+        // when
+        Mockito.when(watchEvent.kind()).thenReturn(StandardWatchEventKinds.ENTRY_DELETE);
+        WatcherEventProcessor.process(watchEvent, storage, templatesDir);
+        // then
+        Assertions.assertEquals(0, storage.getAll().size());
+    }
+
+    private void initStubs() {
+        Mockito.when(templatesDir.resolve(jsonFilePath)).thenReturn(jsonFilePath);
+        Mockito.when(watchEvent.context()).thenReturn(jsonFilePath);
+    }
+
+}