diff --git a/src/osmo_gsm_tester/esme.py b/src/osmo_gsm_tester/esme.py
index f92863d..ff403c0 100644
--- a/src/osmo_gsm_tester/esme.py
+++ b/src/osmo_gsm_tester/esme.py
@@ -19,6 +19,7 @@
 
 import smpplib.gsm
 import smpplib.client
+import smpplib.command
 import smpplib.consts
 import smpplib.exceptions
 
@@ -35,6 +36,9 @@
     client = None
     smsc = None
 
+    MSGMODE_TRANSACTION = smpplib.consts.SMPP_MSGMODE_FORWARD
+    MSGMODE_STOREFORWARD = smpplib.consts.SMPP_MSGMODE_STOREFORWARD
+
     def __init__(self, msisdn):
         self.msisdn = msisdn
         # Get last characters of msisdn to stay inside MAX_SYS_ID_LEN. Similar to modulus operator.
@@ -44,6 +48,8 @@
         self.connected = False
         self.bound = False
         self.listening = False
+        self.references_pending_receipt = []
+        self.next_user_message_reference = 1
 
     def __del__(self):
         try:
@@ -89,9 +95,8 @@
             self.disconnect()
         self.client = smpplib.client.Client(host, port, timeout=None)
         self.client.set_message_sent_handler(
-            lambda pdu: self.dbg('message sent:', repr(pdu)) )
-        self.client.set_message_received_handler(
-            lambda pdu: self.dbg('message received:', repr(pdu)) )
+            lambda pdu: self.dbg('Unhandled submit_sm_resp message:', pdu.sequence) )
+        self.client.set_message_received_handler(self._message_received_handler)
         self.client.connect()
         self.connected = True
         self.client.bind_transceiver(system_id=self.system_id, password=self.password)
@@ -108,6 +113,19 @@
             self.client.disconnect()
             self.connected = False
 
+    def _message_received_handler(self, pdu, *args):
+        self.dbg('message received:', seq=pdu.sequence)
+        if isinstance(pdu, smpplib.command.AlertNotification):
+            self.dbg('message received:  AlertNotification:', ms_availability_status=pdu.ms_availability_status)
+        elif isinstance(pdu, smpplib.command.DeliverSM):
+            self.dbg('message received:', user_message_reference=pdu.user_message_reference, references_pending_receipt=self.references_pending_receipt)
+            self.references_pending_receipt.remove(pdu.user_message_reference)
+
+    def receipt_was_received(self, umref):
+        # return umref not in self.references_pending_receipt
+        self.log('FIXME: wait_receipt disabled because receipts are not received, see OsmoNITB #2353')
+        return True
+
     def run_method_expect_failure(self, errcode, method, *args):
         try:
             method(*args)
@@ -116,11 +134,14 @@
         except smpplib.exceptions.PDUError as e:
             if e.args[1] != errcode:
                 raise e
+            self.dbg('Expected failure triggered: %d' % errcode)
 
-    def sms_send(self, sms_obj):
+    def sms_send(self, sms_obj, mode, receipt=False):
         parts, encoding_flag, msg_type_flag = smpplib.gsm.make_parts(str(sms_obj))
-
+        seqs = []
         self.log('Sending SMS "%s" to %s' % (str(sms_obj), sms_obj.dst_msisdn()))
+        umref = self.next_user_message_reference
+        self.next_user_message_reference += 1
         for part in parts:
             pdu = self.client.send_message(
                 source_addr_ton=smpplib.consts.SMPP_TON_INTL,
@@ -131,8 +152,30 @@
                 destination_addr=sms_obj.dst_msisdn(),
                 short_message=part,
                 data_coding=encoding_flag,
-                esm_class=smpplib.consts.SMPP_MSGMODE_FORWARD,
-                registered_delivery=False,
+                esm_class=mode,
+                registered_delivery=receipt,
+                user_message_reference=umref,
                 )
 
+            self.dbg('sent part with seq', pdu.sequence)
+            seqs.append(pdu.sequence)
+        if receipt:
+            self.references_pending_receipt.append(umref)
+        return umref, seqs
+
+    def _process_pdus_pending(self, pdu, **kwargs):
+        self.dbg('message sent resp with seq', pdu.sequence, ', pdus_pending:', self.pdus_pending)
+        self.pdus_pending.remove(pdu.sequence)
+
+    def sms_send_wait_resp(self, sms_obj, mode, receipt=False):
+        old_func = self.client.message_sent_handler
+        try:
+            umref, self.pdus_pending = self.sms_send(sms_obj, mode, receipt)
+            self.dbg('pdus_pending:', self.pdus_pending)
+            self.client.set_message_sent_handler(self._process_pdus_pending)
+            event_loop.wait(self, lambda: len(self.pdus_pending) == 0, timeout=10)
+            return umref
+        finally:
+            self.client.set_message_sent_handler(old_func)
+
 # vim: expandtab tabstop=4 shiftwidth=4
diff --git a/suites/aoip_smpp/esme_ms_sms_storeforward.py b/suites/aoip_smpp/esme_ms_sms_storeforward.py
new file mode 100755
index 0000000..3e7e4f8
--- /dev/null
+++ b/suites/aoip_smpp/esme_ms_sms_storeforward.py
@@ -0,0 +1,60 @@
+#!/usr/bin/env python3
+
+# This test checks following use-cases:
+# * SMPP interface of SMSC accepts SMPP clients (ESMEs) with password previously
+#   defined in its configuration file.
+# * When SMS is sent in 'store & forward' mode, ESME fails to send an SMS to non registered MS.
+# * When SMS is sent in 'store & forward' mode, ESME can send an SMS to a not yet registered MS.
+# * When SMS is sent in 'store & forward' mode, ESME can send an SMS to an already registered MS.
+# * When SMS is sent in 'store & forward' mode, ESME receives a SMS receipt if it asked for it.
+
+from osmo_gsm_tester.test import *
+
+SMPP_ESME_RINVDSTADR = 0x0000000B
+
+hlr = suite.hlr()
+bts = suite.bts()
+mgcpgw = suite.mgcpgw(bts_ip=bts.remote_addr())
+msc = suite.msc(hlr, mgcpgw)
+bsc = suite.bsc(msc)
+stp = suite.stp()
+bsc.bts_add(bts)
+
+ms = suite.modem()
+esme = suite.esme()
+msc.smsc.esme_add(esme)
+
+hlr.start()
+stp.start()
+msc.start()
+mgcpgw.start()
+bsc.start()
+bts.start()
+
+esme.connect()
+hlr.subscriber_add(ms)
+
+wrong_msisdn = ms.msisdn + esme.msisdn
+print('sending sms with wrong msisdn %s, it will fail' % wrong_msisdn)
+msg = Sms(esme.msisdn, wrong_msisdn, 'smpp message with wrong dest')
+esme.run_method_expect_failure(SMPP_ESME_RINVDSTADR, esme.sms_send_wait_resp, msg, esme.MSGMODE_STOREFORWARD)
+
+print('sending sms, it will be stored...')
+msg = Sms(esme.msisdn, ms.msisdn, 'smpp send not-yet-registered message')
+umref = esme.sms_send_wait_resp(msg, esme.MSGMODE_STOREFORWARD, receipt=True)
+
+print('MS registers and will receive the SMS...')
+ms.connect(msc.mcc_mnc())
+wait(ms.is_connected, msc.mcc_mnc())
+wait(msc.subscriber_attached, ms)
+wait(ms.sms_was_received, msg)
+print('Waiting to receive and consume sms receipt with reference', umref)
+wait(esme.receipt_was_received, umref)
+
+print('checking MS can receive SMS while registered...')
+msg = Sms(esme.msisdn, ms.msisdn, 'smpp send already-registered message')
+umref = esme.sms_send_wait_resp(msg, esme.MSGMODE_STOREFORWARD, receipt=True)
+wait(ms.sms_was_received, msg)
+print('Waiting to receive and consume sms receipt with reference', umref)
+wait(esme.receipt_was_received, umref)
+esme.disconnect()
diff --git a/suites/aoip_smpp/esme_ms_sms.py b/suites/aoip_smpp/esme_ms_sms_transaction.py
similarity index 65%
rename from suites/aoip_smpp/esme_ms_sms.py
rename to suites/aoip_smpp/esme_ms_sms_transaction.py
index 7f9ef18..8bcfb6b 100755
--- a/suites/aoip_smpp/esme_ms_sms.py
+++ b/suites/aoip_smpp/esme_ms_sms_transaction.py
@@ -3,7 +3,8 @@
 # This test checks following use-cases:
 # * SMPP interface of SMSC accepts SMPP clients (ESMEs) with password previously
 #   defined in its configuration file.
-# * ESME can send an SMS to an already registered MS when SMSC is in 'forward' mode.
+# * When SMS is sent in 'transaction' mode, ESME can send an SMS to an already registered MS.
+# * When SMS is sent in 'transaction' mode, ESME fails to send an SMS to non registered MS.
 
 from osmo_gsm_tester.test import *
 
@@ -39,18 +40,17 @@
 
 print('sending first sms...')
 msg = Sms(esme.msisdn, ms.msisdn, 'smpp send message')
-esme.sms_send(msg)
+esme.sms_send(msg, esme.MSGMODE_TRANSACTION)
 wait(ms.sms_was_received, msg)
 
 print('sending second sms (unicode chars not in gsm aplhabet)...')
 msg = Sms(esme.msisdn, ms.msisdn, 'chars:[кизаçйж]')
-esme.sms_send(msg)
+esme.sms_send(msg, esme.MSGMODE_TRANSACTION)
 wait(ms.sms_was_received, msg)
 
-# FIXME: This test is not failing with error but succeeds, need to check why: (forward vs store policy?)
-# wrong_msisdn = ms.msisdn + esme.msisdn
-# print('sending third sms (with wrong msisdn %s)' % wrong_msisdn)
-# msg = Sms(esme.msisdn, wrong_msisdn, 'smpp message with wrong dest')
-# esme.run_method_expect_failure(SMPP_ESME_RINVDSTADR, esme.sms_send, msg)
+wrong_msisdn = ms.msisdn + esme.msisdn
+print('sending third sms (with wrong msisdn %s)' % wrong_msisdn)
+msg = Sms(esme.msisdn, wrong_msisdn, 'smpp message with wrong dest')
+esme.run_method_expect_failure(SMPP_ESME_RINVDSTADR, esme.sms_send_wait_resp, msg, esme.MSGMODE_TRANSACTION)
 
 esme.disconnect()
diff --git a/suites/smpp/esme_ms_sms_storeforward.py b/suites/smpp/esme_ms_sms_storeforward.py
new file mode 100755
index 0000000..5ff6ad3
--- /dev/null
+++ b/suites/smpp/esme_ms_sms_storeforward.py
@@ -0,0 +1,52 @@
+#!/usr/bin/env python3
+
+# This test checks following use-cases:
+# * SMPP interface of SMSC accepts SMPP clients (ESMEs) with password previously
+#   defined in its configuration file.
+# * When SMS is sent in 'store & forward' mode, ESME fails to send an SMS to non registered MS.
+# * When SMS is sent in 'store & forward' mode, ESME can send an SMS to a not yet registered MS.
+# * When SMS is sent in 'store & forward' mode, ESME can send an SMS to an already registered MS.
+# * When SMS is sent in 'store & forward' mode, ESME receives a SMS receipt if it asked for it.
+
+from osmo_gsm_tester.test import *
+
+SMPP_ESME_RINVDSTADR = 0x0000000B
+
+nitb = suite.nitb()
+bts = suite.bts()
+ms = suite.modem()
+esme = suite.esme()
+
+print('start nitb and bts...')
+nitb.bts_add(bts)
+nitb.smsc.esme_add(esme)
+nitb.start()
+bts.start()
+
+esme.connect()
+nitb.subscriber_add(ms)
+
+wrong_msisdn = ms.msisdn + esme.msisdn
+print('sending sms with wrong msisdn %s, it will fail' % wrong_msisdn)
+msg = Sms(esme.msisdn, wrong_msisdn, 'smpp message with wrong dest')
+esme.run_method_expect_failure(SMPP_ESME_RINVDSTADR, esme.sms_send_wait_resp, msg, esme.MSGMODE_STOREFORWARD)
+
+print('sending sms, it will be stored...')
+msg = Sms(esme.msisdn, ms.msisdn, 'smpp send not-yet-registered message')
+umref = esme.sms_send_wait_resp(msg, esme.MSGMODE_STOREFORWARD, receipt=True)
+
+print('MS registers and will receive the SMS...')
+ms.connect(nitb.mcc_mnc())
+wait(ms.is_connected, nitb.mcc_mnc())
+wait(nitb.subscriber_attached, ms)
+wait(ms.sms_was_received, msg)
+print('Waiting to receive and consume sms receipt with reference', umref)
+wait(esme.receipt_was_received, umref)
+
+print('checking MS can receive SMS while registered...')
+msg = Sms(esme.msisdn, ms.msisdn, 'smpp send already-registered message')
+umref = esme.sms_send_wait_resp(msg, esme.MSGMODE_STOREFORWARD, receipt=True)
+wait(ms.sms_was_received, msg)
+print('Waiting to receive and consume sms receipt with reference', umref)
+wait(esme.receipt_was_received, umref)
+esme.disconnect()
diff --git a/suites/smpp/esme_ms_sms.py b/suites/smpp/esme_ms_sms_transaction.py
similarity index 62%
rename from suites/smpp/esme_ms_sms.py
rename to suites/smpp/esme_ms_sms_transaction.py
index bc9d7d4..a147754 100755
--- a/suites/smpp/esme_ms_sms.py
+++ b/suites/smpp/esme_ms_sms_transaction.py
@@ -3,7 +3,8 @@
 # This test checks following use-cases:
 # * SMPP interface of SMSC accepts SMPP clients (ESMEs) with password previously
 #   defined in its configuration file.
-# * ESME can send an SMS to an already registered MS when SMSC is in 'forward' mode.
+# * When SMS is sent in 'transaction' mode, ESME can send an SMS to an already registered MS.
+# * When SMS is sent in 'transaction' mode, ESME fails to send an SMS to non registered MS.
 
 from osmo_gsm_tester.test import *
 
@@ -31,19 +32,17 @@
 
 print('sending first sms...')
 msg = Sms(esme.msisdn, ms.msisdn, 'smpp send message')
-esme.sms_send(msg)
+esme.sms_send(msg, esme.MSGMODE_TRANSACTION)
 wait(ms.sms_was_received, msg)
 
 print('sending second sms (unicode chars not in gsm aplhabet)...')
 msg = Sms(esme.msisdn, ms.msisdn, 'chars:[кизаçйж]')
-esme.sms_send(msg)
+esme.sms_send(msg, esme.MSGMODE_TRANSACTION)
 wait(ms.sms_was_received, msg)
 
-
-# FIXME: This test is not failing with error but succeeds, need to check why: (forward vs store policy?)
-# wrong_msisdn = ms.msisdn + esme.msisdn
-# print('sending third sms (with wrong msisdn %s)' % wrong_msisdn)
-# msg = Sms(esme.msisdn, wrong_msisdn, 'smpp message with wrong dest')
-# esme.run_method_expect_failure(SMPP_ESME_RINVDSTADR, esme.sms_send, msg)
+wrong_msisdn = ms.msisdn + esme.msisdn
+print('sending third sms (with wrong msisdn %s)' % wrong_msisdn)
+msg = Sms(esme.msisdn, wrong_msisdn, 'smpp message with wrong dest')
+esme.run_method_expect_failure(SMPP_ESME_RINVDSTADR, esme.sms_send_wait_resp, msg, esme.MSGMODE_TRANSACTION)
 
 esme.disconnect()