diff --git a/GPy/testing/sparse_gplvm_tests.py b/GPy/testing/sparse_gplvm_tests.py
new file mode 100644
index 00000000..72bb5bf8
--- /dev/null
+++ b/GPy/testing/sparse_gplvm_tests.py
@@ -0,0 +1,47 @@
+# Copyright (c) 2012, Nicolo Fusi, James Hensman
+# Licensed under the BSD 3-clause license (see LICENSE.txt)
+
+import unittest
+import numpy as np
+import GPy
+
+class sparse_GPLVMTests(unittest.TestCase):
+    def test_bias_kern(self):
+        N, M, Q, D = 10, 3, 2, 4
+        X = np.random.rand(N, Q)
+        k = GPy.kern.rbf(Q) + GPy.kern.white(Q, 0.00001)
+        K = k.K(X)
+        Y = np.random.multivariate_normal(np.zeros(N),K,D).T
+        k = GPy.kern.bias(Q) + GPy.kern.white(Q, 0.00001)
+        m = GPy.models.sparse_GPLVM(Y, Q, kernel = k, M=M)
+        m.ensure_default_constraints()
+        m.randomize()
+        self.assertTrue(m.checkgrad())
+
+    def test_linear_kern(self):
+        N, M, Q, D = 10, 3, 2, 4
+        X = np.random.rand(N, Q)
+        k = GPy.kern.rbf(Q) + GPy.kern.white(Q, 0.00001)
+        K = k.K(X)
+        Y = np.random.multivariate_normal(np.zeros(N),K,D).T
+        k = GPy.kern.linear(Q) + GPy.kern.white(Q, 0.00001)
+        m = GPy.models.sparse_GPLVM(Y, Q, kernel = k, M=M)
+        m.ensure_default_constraints()
+        m.randomize()
+        self.assertTrue(m.checkgrad())
+
+    def test_rbf_kern(self):
+        N, M, Q, D = 10, 3, 2, 4
+        X = np.random.rand(N, Q)
+        k = GPy.kern.rbf(Q) + GPy.kern.white(Q, 0.00001)
+        K = k.K(X)
+        Y = np.random.multivariate_normal(np.zeros(N),K,D).T
+        k = GPy.kern.rbf(Q) + GPy.kern.white(Q, 0.00001)
+        m = GPy.models.sparse_GPLVM(Y, Q, kernel = k, M=M)
+        m.ensure_default_constraints()
+        m.randomize()
+        self.assertTrue(m.checkgrad())
+
+if __name__ == "__main__":
+    print "Running unit tests, please be (very) patient..."
+    unittest.main()