diff -purN autotest/client/tests/kvm/tests/balloon_check.py autotest-new/client/tests/kvm/tests/balloon_check.py
--- autotest/client/tests/kvm/tests/balloon_check.py	1969-12-31 19:00:00.000000000 -0500
+++ autotest-new/client/tests/kvm/tests/balloon_check.py	2010-04-15 18:50:09.000000000 -0400
@@ -0,0 +1,51 @@
+import re, string, logging, random, time
+from autotest_lib.client.common_lib import error
+import kvm_test_utils, kvm_utils
+
+def run_balloon_check(test, params, env):
+    """
+    Check Memory ballooning:
+    1) Boot a guest
+    2) Change the memory between 60% to 95% of memory of guest using ballooning 
+    3) check memory info
+
+    @param test: kvm test object
+    @param params: Dictionary with the test parameters
+    @param env: Dictionary with test environment.
+    """
+    
+    vm = kvm_test_utils.get_living_vm(env, params.get("main_vm"))
+    session = kvm_test_utils.wait_for_login(vm)
+    fail = 0
+    
+    # Check memory size
+    logging.info("Memory size check")
+    expected_mem = int(params.get("mem"))
+    actual_mem = vm.get_memory_size()
+    if actual_mem != expected_mem:
+        logging.error("Memory size mismatch:")
+        logging.error("    Assigned to VM: %s" % expected_mem)
+        logging.error("    Reported by OS: %s" % actual_mem)
+    
+    
+    #Check if info balloon works or not.
+    status, output = vm.send_monitor_cmd("info balloon")
+    if status != 0:
+        logging.error("qemu monitor command failed: info balloon")
+        fail += 1
+ 
+    #Reduce memory to random size between 60% to 95% of actual memory
+    percent = random.uniform(0.6, 0.95)
+    new_mem = int(percent*actual_mem)
+    vm.send_monitor_cmd("balloon %s" % new_mem)
+    time.sleep(20)
+    status, output = vm.send_monitor_cmd("info balloon")
+    ballooned_mem = int(re.findall("\d+",output)[0])
+    if ballooned_mem != new_mem:
+        logging.error("memory ballooning failed while changing memory from %s to %s" %actual_mem %new_mem)  
+        fail += 1
+    
+    #Checking for test result
+    if fail != 0:
+        raise error.TestFail("Memory ballooning test failed ")
+    session.close()
diff -purN autotest/client/tests/kvm/tests_base.cfg.sample autotest-new/client/tests/kvm/tests_base.cfg.sample
--- autotest/client/tests/kvm/tests_base.cfg.sample	2010-04-15 09:14:10.000000000 -0400
+++ autotest-new/client/tests/kvm/tests_base.cfg.sample	2010-04-15 18:50:35.000000000 -0400
@@ -171,6 +171,10 @@ variants:
                 drift_threshold = 10
                 drift_threshold_single = 3
 
+    - balloon_check:  install setup unattended_install
+        type = balloon_check
+        extra_params += "-balloon virtio"
+
     - stress_boot:  install setup unattended_install
         type = stress_boot
         max_vms = 5