diff --git a/test/zdtm/static/Makefile b/test/zdtm/static/Makefile
index 1c74bdc1d..730089b11 100644
--- a/test/zdtm/static/Makefile
+++ b/test/zdtm/static/Makefile
@@ -482,6 +482,7 @@ TST_DIR		=				\
 		symlink				\
 		symlink01			\
 		unbindable			\
+		inotify_overlayfs		\
 
 TST_DIR_FILE	=				\
 		chroot				\
diff --git a/test/zdtm/static/inotify_overlayfs.c b/test/zdtm/static/inotify_overlayfs.c
new file mode 100644
index 000000000..5044037a9
--- /dev/null
+++ b/test/zdtm/static/inotify_overlayfs.c
@@ -0,0 +1,213 @@
+#include <sched.h>
+#include <unistd.h>
+#include <limits.h>
+#include <ftw.h>
+
+#include <sys/types.h>
+#include <sys/stat.h>
+#include <sys/mount.h>
+#include <fcntl.h>
+#include <string.h>
+#include <stdio.h>
+#include <errno.h>
+#include <stdlib.h>
+#include <dirent.h>
+#include <sys/inotify.h>
+
+#include "zdtmtst.h"
+
+const char *test_doc = "Check inotify C/R on overlayfs";
+const char *test_author = "CRIU contributors";
+
+char *dirname = "inotify_overlayfs.test";
+TEST_OPTION(dirname, string, "directory name", 1);
+
+#define BUFF_SIZE ((sizeof(struct inotify_event) + PATH_MAX))
+#define TEST_FNAME "testfile"
+
+#define OVL_DIR_SUFFIX "zdtm_inotify_ovl.XXXXXX"
+
+static int rm_entry(const char *path, const struct stat *st,
+		    int flag, struct FTW *ftw)
+{
+	return remove(path);
+}
+
+/*
+ * Clean up overlay backing dirs matching the zdtm_inotify_ovl prefix
+ * in the given directory.  Called at setup to remove leftovers from
+ * previous runs.  Post-test cleanup is handled by
+ * inotify_overlayfs.hook (--clean).
+ */
+static void cleanup_stale_ovl_dirs(const char *parent)
+{
+	DIR *d;
+	struct dirent *de;
+	char path[PATH_MAX];
+
+	d = opendir(parent);
+	if (!d)
+		return;
+
+	while ((de = readdir(d)) != NULL) {
+		if (strncmp(de->d_name, "zdtm_inotify_ovl.",
+			    strlen("zdtm_inotify_ovl.")) != 0)
+			continue;
+		snprintf(path, sizeof(path), "%s/%s", parent, de->d_name);
+		nftw(path, rm_entry, 16, FTW_DEPTH | FTW_PHYS);
+	}
+	closedir(d);
+}
+
+int main(int argc, char *argv[])
+{
+	char merged[PATH_MAX], watch_path[PATH_MAX];
+	char buf[BUFF_SIZE];
+	int inotify_fd, wd, fd, dir_fd;
+	char *zdtm_newns = getenv("ZDTM_NEWNS");
+	cleanup_free char *cwd = NULL;
+
+	cwd = get_current_dir_name();
+	snprintf(merged, sizeof(merged), "%s/%s", cwd, dirname);
+
+	if (zdtm_newns && !strcmp(zdtm_newns, "1")) {
+		char ovl_dir[PATH_MAX - 2];
+		char ovl_lower[PATH_MAX], ovl_upper[PATH_MAX];
+		char ovl_work[PATH_MAX];
+		char ovl_mnt[] = "/tmp/zdtm_ino_mnt.XXXXXX";
+		char opts[3 * PATH_MAX + 32];
+
+		/*
+		 * Phase 1: running before namespace creation.
+		 *
+		 * Overlay backing dirs (lower/upper/work) are placed
+		 * in cwd so they live on a real filesystem — tmpfs
+		 * does not support overlayfs upperdir on all kernels.
+		 *
+		 * The overlay is mounted at a temporary directory
+		 * under /tmp, which is outside ZDTM_ROOT and will
+		 * not be visible after pivot_root.  After unshare
+		 * we bind-mount it into the test directory; the bind
+		 * creates a shared/master relationship that
+		 * --external mnt[]:s can detect.
+		 */
+		cleanup_stale_ovl_dirs(cwd);
+
+		snprintf(ovl_dir, sizeof(ovl_dir), "%s/" OVL_DIR_SUFFIX, cwd);
+		if (!mkdtemp(ovl_dir)) {
+			pr_perror("Can't create overlay tmpdir");
+			return 1;
+		}
+
+		snprintf(ovl_lower, sizeof(ovl_lower), "%s/l", ovl_dir);
+		snprintf(ovl_upper, sizeof(ovl_upper), "%s/u", ovl_dir);
+		snprintf(ovl_work, sizeof(ovl_work), "%s/w", ovl_dir);
+
+		if (mkdir(ovl_lower, 0700) < 0) {
+			pr_perror("Can't mkdir %s", ovl_lower);
+			return 1;
+		}
+		if (mkdir(ovl_upper, 0700) < 0) {
+			pr_perror("Can't mkdir %s", ovl_upper);
+			return 1;
+		}
+		if (mkdir(ovl_work, 0700) < 0) {
+			pr_perror("Can't mkdir %s", ovl_work);
+			return 1;
+		}
+
+		/* Create a test file in the lower layer */
+		dir_fd = openat(AT_FDCWD, ovl_lower, O_RDONLY | O_DIRECTORY);
+		if (dir_fd < 0) {
+			pr_perror("Can't open lower dir %s", ovl_lower);
+			return 1;
+		}
+		fd = openat(dir_fd, TEST_FNAME, O_CREAT | O_WRONLY, 0644);
+		close(dir_fd);
+		if (fd < 0) {
+			pr_perror("Can't create test file in lower");
+			return 1;
+		}
+		close(fd);
+
+		/*
+		 * Mount overlay at a path outside ZDTM_ROOT so it
+		 * does not appear in mountinfo after pivot_root.
+		 */
+		if (!mkdtemp(ovl_mnt)) {
+			pr_perror("Can't create overlay mount dir");
+			return 1;
+		}
+		snprintf(opts, sizeof(opts),
+			 "lowerdir=%s,upperdir=%s,workdir=%s",
+			 ovl_lower, ovl_upper, ovl_work);
+
+		if (mount("overlay", ovl_mnt, "overlay", 0, opts) < 0) {
+			pr_perror("Can't mount overlayfs at %s", ovl_mnt);
+			return 1;
+		}
+
+		if (unshare(CLONE_NEWNS)) {
+			pr_perror("unshare");
+			return 1;
+		}
+
+		/* Bind-mount into test directory inside new mntns */
+		if (mkdir(merged, 0700) < 0) {
+			pr_perror("Can't mkdir %s", merged);
+			return 1;
+		}
+		if (mount(ovl_mnt, merged, NULL, MS_BIND, NULL) < 0) {
+			pr_perror("Can't bind-mount overlay to %s", merged);
+			return 1;
+		}
+	}
+
+	/*
+	 * test_init handles ZDTM_NEWNS internally:
+	 *  "1" -> ns_create() re-execs with "2" (never returns)
+	 *  "2" -> ns_init() forks, child continues
+	 *  unset -> normal execution
+	 */
+	test_init(argc, argv);
+
+	snprintf(watch_path, sizeof(watch_path),
+		 "%s/" TEST_FNAME, dirname);
+
+	inotify_fd = inotify_init1(IN_NONBLOCK);
+	if (inotify_fd < 0) {
+		pr_perror("inotify_init1 failed");
+		return 1;
+	}
+
+	wd = inotify_add_watch(inotify_fd, watch_path, IN_OPEN);
+	if (wd < 0) {
+		pr_perror("inotify_add_watch failed for %s", watch_path);
+		close(inotify_fd);
+		return 1;
+	}
+
+	test_daemon();
+	test_waitsig();
+
+	/* After restore, trigger an inotify event */
+	fd = open(watch_path, O_RDONLY);
+	if (fd < 0) {
+		fail("Can't open %s after restore", watch_path);
+		close(inotify_fd);
+		return 1;
+	}
+	close(fd);
+
+	/* Check that we got the event */
+	memset(buf, 0, sizeof(buf));
+	if (read(inotify_fd, buf, sizeof(buf)) <= 0) {
+		fail("No inotify events after restore");
+		close(inotify_fd);
+		return 1;
+	}
+
+	close(inotify_fd);
+	pass();
+	return 0;
+}
diff --git a/test/zdtm/static/inotify_overlayfs.desc b/test/zdtm/static/inotify_overlayfs.desc
new file mode 100644
index 000000000..f1c3a1714
--- /dev/null
+++ b/test/zdtm/static/inotify_overlayfs.desc
@@ -0,0 +1,2 @@
+{'flags': 'suid', 'flavor': 'ns', 'feature': 'mnt_id',
+ 'opts': '--external mnt[]:s'}
diff --git a/test/zdtm/static/inotify_overlayfs.hook b/test/zdtm/static/inotify_overlayfs.hook
new file mode 100755
index 000000000..06d128755
--- /dev/null
+++ b/test/zdtm/static/inotify_overlayfs.hook
@@ -0,0 +1,19 @@
+#!/bin/bash
+
+[ "$1" == "--clean" ] || exit 0
+
+# Remove overlay backing dirs left by the ZDTM_NEWNS=1 phase.
+# The test creates them in its working directory, which is the
+# same directory as this hook script.
+test_dir=$(dirname "$(readlink -f "$0")")
+for dir in "$test_dir"/zdtm_inotify_ovl.* ; do
+	[ -d "$dir" ] && rm -rf "$dir"
+done
+
+# Remove overlay mount point dirs from /tmp.
+for dir in /tmp/zdtm_ino_mnt.* ; do
+	umount "$dir" 2>/dev/null || true
+	[ -d "$dir" ] && rmdir "$dir"
+done
+
+exit 0