diff --git a/database/sql/instances_test.go b/database/sql/instances_test.go
new file mode 100644
index 00000000..2fb9f22e
--- /dev/null
+++ b/database/sql/instances_test.go
@@ -0,0 +1,171 @@
+// Copyright 2022 Cloudbase Solutions SRL
+//
+//    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.
+
+package sql
+
+import (
+	"context"
+	"fmt"
+	dbCommon "garm/database/common"
+	garmTesting "garm/internal/testing"
+	"garm/params"
+	"testing"
+
+	"github.com/stretchr/testify/suite"
+)
+
+type InstancesTestFixtures struct {
+	Org       params.Organization
+	Pool      params.Pool
+	Instances []params.Instance
+}
+
+type InstancesTestSuite struct {
+	suite.Suite
+	Store    dbCommon.Store
+	Fixtures *InstancesTestFixtures
+}
+
+func (s *InstancesTestSuite) SetupTest() {
+	// create testing sqlite database
+	db, err := NewSQLDatabase(context.Background(), garmTesting.GetTestSqliteDBConfig(s.T()))
+	if err != nil {
+		s.FailNow(fmt.Sprintf("failed to create db connection: %s", err))
+	}
+	s.Store = db
+
+	// create an organization for testing purposes
+	org, err := s.Store.CreateOrganization(context.Background(), "test-org", "test-creds", "test-webhookSecret")
+	if err != nil {
+		s.FailNow(fmt.Sprintf("failed to create org: %s", err))
+	}
+
+	// create an organization pool for testing purposes
+	createPoolParams := params.CreatePoolParams{
+		ProviderName:   "test-provider",
+		MaxRunners:     4,
+		MinIdleRunners: 2,
+		Image:          "test-image",
+		Flavor:         "test-flavor",
+		OSType:         "linux",
+		Tags:           []string{"self-hosted", "amd64", "linux"},
+	}
+	pool, err := s.Store.CreateOrganizationPool(context.Background(), org.ID, createPoolParams)
+	if err != nil {
+		s.FailNow(fmt.Sprintf("failed to create org pool: %s", err))
+	}
+
+	// create some instance objects in the database, for testing purposes
+	instances := []params.Instance{}
+	for i := 1; i <= 3; i++ {
+		instance, err := db.CreateInstance(
+			context.Background(),
+			pool.ID,
+			params.CreateInstanceParams{
+				Name:        fmt.Sprintf("test-instance-%v", i),
+				OSType:      "linux",
+				OSArch:      "amd64",
+				CallbackURL: "https://garm.example.com/",
+				Pool:        pool.ID,
+			},
+		)
+		if err != nil {
+			s.FailNow(fmt.Sprintf("failed to create instance object (test-instance-%v)", i))
+		}
+		instances = append(instances, instance)
+	}
+
+	// setup test fixtures
+	fixtures := &InstancesTestFixtures{
+		Org:       org,
+		Pool:      pool,
+		Instances: instances,
+	}
+	s.Fixtures = fixtures
+}
+
+func (s *InstancesTestSuite) TestCreateInstance() {
+	// setup enviroment for this test
+	instanceName := "test-create-instance"
+	createInstanceParams := params.CreateInstanceParams{
+		Name:        instanceName,
+		OSType:      "linux",
+		OSArch:      "amd64",
+		CallbackURL: "https://garm.example.com/",
+		Pool:        s.Fixtures.Pool.ID,
+	}
+
+	// call tested function
+	instance, err := s.Store.CreateInstance(context.Background(), s.Fixtures.Pool.ID, createInstanceParams)
+
+	// assertions
+	s.Require().Nil(err)
+	storeInstance, err := s.Store.GetInstanceByName(context.Background(), instanceName)
+	if err != nil {
+		s.FailNow(fmt.Sprintf("failed to get instance: %v", err))
+	}
+	s.Require().Equal(storeInstance.Name, instance.Name)
+	s.Require().Equal(storeInstance.PoolID, instance.PoolID)
+	s.Require().Equal(storeInstance.OSArch, instance.OSArch)
+	s.Require().Equal(storeInstance.OSType, instance.OSType)
+	s.Require().Equal(storeInstance.CallbackURL, instance.CallbackURL)
+}
+
+func (s *InstancesTestSuite) TestCreateInstanceFetchPoolFailed() {
+	_, err := s.Store.CreateInstance(context.Background(), "dummy-pool-id", params.CreateInstanceParams{})
+
+	s.Require().Equal("fetching pool: parsing id: invalid request", err.Error())
+}
+
+func (s *InstancesTestSuite) TestGetPoolInstanceByName() {
+	storeInstance := s.Fixtures.Instances[0] // this is already created in `SetupTest()`
+
+	instance, err := s.Store.GetPoolInstanceByName(context.Background(), s.Fixtures.Pool.ID, storeInstance.Name)
+
+	s.Require().Nil(err)
+	s.Require().Equal(storeInstance.Name, instance.Name)
+	s.Require().Equal(storeInstance.PoolID, instance.PoolID)
+	s.Require().Equal(storeInstance.OSArch, instance.OSArch)
+	s.Require().Equal(storeInstance.OSType, instance.OSType)
+	s.Require().Equal(storeInstance.CallbackURL, instance.CallbackURL)
+}
+
+func (s *InstancesTestSuite) TestGetPoolInstanceByNameFetchInstanceFailed() {
+	_, err := s.Store.GetPoolInstanceByName(context.Background(), s.Fixtures.Pool.ID, "not-existent-instance-name")
+
+	s.Require().Equal("fetching instance: fetching pool instance by name: not found", err.Error())
+}
+
+func (s *InstancesTestSuite) TestGetInstanceByName() {
+	storeInstance := s.Fixtures.Instances[1]
+
+	instance, err := s.Store.GetInstanceByName(context.Background(), storeInstance.Name)
+
+	s.Require().Nil(err)
+	s.Require().Equal(storeInstance.Name, instance.Name)
+	s.Require().Equal(storeInstance.PoolID, instance.PoolID)
+	s.Require().Equal(storeInstance.OSArch, instance.OSArch)
+	s.Require().Equal(storeInstance.OSType, instance.OSType)
+	s.Require().Equal(storeInstance.CallbackURL, instance.CallbackURL)
+}
+
+func (s *InstancesTestSuite) TestGetInstanceByNameFetchInstanceFailed() {
+	_, err := s.Store.GetInstanceByName(context.Background(), "not-existent-instance-name")
+
+	s.Require().Equal("fetching instance: fetching instance by name: not found", err.Error())
+}
+
+func TestInstTestSuite(t *testing.T) {
+	suite.Run(t, new(InstancesTestSuite))
+}