diff --git a/openbsc/tests/Makefile.am b/openbsc/tests/Makefile.am
index 7b145f7..2e342e0 100644
--- a/openbsc/tests/Makefile.am
+++ b/openbsc/tests/Makefile.am
@@ -11,6 +11,7 @@
 	mm_auth \
 	xid \
 	sndcp_xid \
+	slhc \
 	$(NULL)
 
 if BUILD_NAT
diff --git a/openbsc/tests/sgsn/Makefile.am b/openbsc/tests/sgsn/Makefile.am
index cf88101..bab3f0e 100644
--- a/openbsc/tests/sgsn/Makefile.am
+++ b/openbsc/tests/sgsn/Makefile.am
@@ -58,6 +58,7 @@
 	$(top_builddir)/src/gprs/oap_messages.o \
         $(top_builddir)/src/gprs/gprs_llc_xid.o \
 	$(top_builddir)/src/gprs/gprs_sndcp_xid.o \
+        $(top_builddir)/src/gprs/slhc.o \
 	$(top_builddir)/src/libcommon/libcommon.a \
 	$(LIBOSMOABIS_LIBS) \
 	$(LIBOSMOCORE_LIBS) \
diff --git a/openbsc/tests/slhc/Makefile.am b/openbsc/tests/slhc/Makefile.am
new file mode 100644
index 0000000..32a3cc4
--- /dev/null
+++ b/openbsc/tests/slhc/Makefile.am
@@ -0,0 +1,15 @@
+AM_CPPFLAGS = $(all_includes) -I$(top_srcdir)/include
+AM_CFLAGS=-Wall -ggdb3 $(LIBOSMOCORE_CFLAGS) $(LIBOSMOGSM_CFLAGS) $(LIBCARES_CFLAGS)
+
+EXTRA_DIST = slhc_test.ok
+
+noinst_PROGRAMS = slhc_test
+
+slhc_test_SOURCES = slhc_test.c
+
+slhc_test_LDADD = \
+	$(top_builddir)/src/gprs/slhc.o \
+	$(top_builddir)/src/libcommon/libcommon.a \
+	$(LIBOSMOCORE_LIBS)
+
+
diff --git a/openbsc/tests/slhc/slhc_test.c b/openbsc/tests/slhc/slhc_test.c
new file mode 100644
index 0000000..59a5425
--- /dev/null
+++ b/openbsc/tests/slhc/slhc_test.c
@@ -0,0 +1,298 @@
+/* Test SLHC/RFC1144 TCP/IP Header compression/decompression */
+
+/* (C) 2016 by sysmocom s.f.m.c. GmbH <info@sysmocom.de>
+ * All Rights Reserved
+ *
+ * Author: Philipp Maier
+ *
+ * This program is free software; you can redistribute it and/or modify
+ * it under the terms of the GNU Affero General Public License as published by
+ * the Free Software Foundation; either version 3 of the License, or
+ * (at your option) any later version.
+ *
+ * This program is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU Affero General Public License for more details.
+ *
+ * You should have received a copy of the GNU Affero General Public License
+ * along with this program.  If not, see <http://www.gnu.org/licenses/>.
+ */
+
+#include <openbsc/slhc.h>
+#include <openbsc/debug.h>
+
+#include <osmocom/core/talloc.h>
+#include <osmocom/core/utils.h>
+
+#include <osmocom/core/application.h>
+
+#include <stdio.h>
+#include <string.h>
+#include <arpa/inet.h>
+
+/* Number of compression slots (S0-1) */
+#define SLOTS 8
+
+/* Maximum packet bytes to display */
+#define DISP_MAX_BYTES 100
+
+/* Sample packets to test with */
+#define PACKETS_LEN 6
+char *packets[] = {
+	"4510004046dd40004006a9a7c0a8646ec0a864640017ad8b81980100f3ac984d801800e32a1600000101080a000647de06d1bf5efffd18fffd20fffd23fffd27",
+	"4510005b46de40004006a98bc0a8646ec0a864640017ad8b8198010cf3ac984d801800e3867500000101080a000647df06d1bf61fffb03fffd1ffffd21fffe22fffb05fffa2001fff0fffa2301fff0fffa2701fff0fffa1801fff0",
+	"4510003746df40004006a9aec0a8646ec0a864640017ad8b81980133f3ac989f801800e35fd700000101080a000647e106d1bf63fffd01",
+	"4510003746e040004006a9adc0a8646ec0a864640017ad8b81980136f3ac98a2801800e35fd200000101080a000647e106d1bf64fffb01",
+	"4510007446e140004006a96fc0a8646ec0a864640017ad8b81980139f3ac98a5801800e37b9b00000101080a000647e206d1bf640d0a2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d0d0a57656c6c636f6d6520746f20706f6c6c75780d0a2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d0d0a0d0a",
+	"4510004246e240004006a9a0c0a8646ec0a864640017ad8b81980179f3ac98a5801800e3dab000000101080a000647ec06d1bf6f706f6c6c7578206c6f67696e3a20"
+};
+
+/* Compress a packet using Van Jacobson RFC1144 header compression */
+static int compress(uint8_t *data_o, uint8_t *data_i, int len,
+		    struct slcompress *comp)
+{
+	uint8_t *comp_ptr;	/* Not used */
+	int compr_len;
+
+	/* Create a working copy of the incoming data */
+	memcpy(data_o, data_i, len);
+
+	/* Run compressor */
+	compr_len = slhc_compress(comp, data_i, len, data_o, &comp_ptr, 0);
+	return compr_len;
+}
+
+/* Expand a packet using Van Jacobson RFC1144 header compression */
+static int expand(uint8_t *data_o, uint8_t *data_i, int len,
+		  struct slcompress *comp)
+{
+	int data_decompressed_len;
+
+	/* Create a working copy of the incoming data */
+	memcpy(data_o, data_i, len);
+
+	/* Handle an uncompressed packet (learn header information */
+	if ((data_i[0] & SL_TYPE_UNCOMPRESSED_TCP) == SL_TYPE_UNCOMPRESSED_TCP) {
+		data_o[0] &= 0x4F;
+		data_decompressed_len = slhc_remember(comp, data_o, len);
+		return data_decompressed_len;
+	}
+
+	/* Uncompress compressed packets */
+	else if (data_o[0] & SL_TYPE_COMPRESSED_TCP) {
+		data_decompressed_len = slhc_uncompress(comp, data_o, len);
+		return data_decompressed_len;
+	}
+
+	/* Regular or unknown packets will not be touched */
+	return len;
+}
+
+/* Calculate IP Header checksum */
+static uint16_t calc_ip_csum(uint8_t *data, int len)
+{
+	int i;
+	uint32_t accumulator = 0;
+	uint16_t *pointer = (uint16_t *) data;
+
+	for (i = len; i > 1; i -= 2) {
+		accumulator += *pointer;
+		pointer++;
+	}
+
+	if (len % 2)
+		accumulator += *pointer;
+
+	accumulator = (accumulator & 0xffff) + ((accumulator >> 16) & 0xffff);
+	accumulator += (accumulator >> 16) & 0xffff;
+	return (~accumulator);
+}
+
+/* Calculate TCP/IP checksum */
+static uint16_t calc_tcpip_csum(const void *ctx, uint8_t *packet, int len)
+{
+	uint8_t *buf;
+	uint16_t csum;
+
+	buf = talloc_zero_size(ctx, len);
+	memset(buf, 0, len);
+	memcpy(buf, packet + 12, 8);
+	buf[9] = packet[9];
+	buf[11] = (len - 20) & 0xFF;
+	buf[10] = (len - 20) >> 8 & 0xFF;
+	memcpy(buf + 12, packet + 20, len - 20);
+	csum = calc_ip_csum(buf, len - 20 + 12);
+	talloc_free(buf);
+	return csum;
+}
+
+/* Check TCP/IP packet */
+static void check_packet(const void *ctx, uint8_t *packet, int len)
+{
+	/* Check IP header */
+	OSMO_ASSERT(len > 20);
+	OSMO_ASSERT(calc_ip_csum(packet, 20) == 0);
+
+	/* Check TCP packet */
+	if (packet[9] != 0x06)
+		return;
+	OSMO_ASSERT(len > 40);
+	OSMO_ASSERT(calc_tcpip_csum(ctx, packet, len) == 0);
+}
+
+/* Strip TCP options from TCP/IP packet */
+static int strip_tcp_options(const void *ctx, uint8_t *packet, int len)
+{
+	uint8_t doff;
+	uint16_t csum;
+
+	/* Check if the packet can be handled here */
+	if (len < 37)
+		return len;
+	if (packet[9] != 0x06)
+		return len;
+
+	/* Strip TCP/IP options from packet */
+	doff = ((packet[32] >> 4) & 0x0F) * 4;
+	memmove(packet + 40, packet + doff + 20, len - 40 - (doff - 20));
+	len = len - (doff - 20);
+
+	/* Repair data offset (TCP header length) */
+	packet[32] &= 0x0F;
+	packet[32] |= 0x50;
+
+	/* Repair checksum */
+	packet[36] = 0;
+	packet[37] = 0;
+	csum = calc_tcpip_csum(ctx, packet, len);
+	packet[36] = csum & 0xFF;
+	packet[37] = csum >> 8 & 0xFF;
+
+	/* Repair total length */
+	packet[3] = len & 0xFF;
+	packet[2] = len >> 8 & 0xFF;
+
+	/* Repair IP header checksum */
+	packet[10] = 0;
+	packet[11] = 0;
+	csum = calc_ip_csum(packet, 20);
+	packet[10] = csum & 0xFF;
+	packet[11] = csum >> 8 & 0xFF;
+	printf("csum=%04x\n", csum);
+
+	return len;
+}
+
+/* Compress / Decompress packets */
+static void test_slhc(const void *ctx)
+{
+	char packet_ascii[2048];
+	int i;
+
+	struct slcompress *comp;
+	uint8_t packet[1024];
+	int packet_len;
+	uint8_t packet_compr[1024];
+	int packet_compr_len;
+	uint8_t packet_decompr[1024];
+	int packet_decompr_len;
+
+	printf("Allocating compression state...\n");
+	comp = slhc_init(ctx, SLOTS, SLOTS);
+	OSMO_ASSERT(comp);
+
+	for(i=0;i<PACKETS_LEN;i++) {
+		/* Read input file */
+		memset(packet_ascii, 0, sizeof(packet_ascii));
+		memset(packet, 0, sizeof(packet));
+		memset(packet_compr, 0, sizeof(packet_compr));
+		memset(packet_decompr, 0, sizeof(packet_decompr));
+		strcpy(packet_ascii,packets[i]);
+
+		packet_len =
+		    osmo_hexparse(packet_ascii, packet, sizeof(packet));
+		check_packet(ctx, packet, packet_len);
+		packet_len = strip_tcp_options(ctx, packet, packet_len);
+		check_packet(ctx, packet, packet_len);
+
+		/* Run compression/decompression algorithm */
+		printf("Compressing...\n");
+		packet_compr_len =
+		    compress(packet_compr, packet, packet_len, comp);
+		printf("Decompressing...\n");
+		packet_decompr_len =
+		    expand(packet_decompr, packet_compr, packet_compr_len,
+			   comp);
+		OSMO_ASSERT(packet_decompr_len == packet_len);
+		check_packet(ctx,packet_decompr,packet_decompr_len);
+
+		/* Display results */
+		printf("Results:\n");
+		if (packet_compr_len > DISP_MAX_BYTES)
+			packet_compr_len = DISP_MAX_BYTES;
+		if (packet_len > DISP_MAX_BYTES)
+			packet_len = DISP_MAX_BYTES;
+		if (packet_decompr_len > DISP_MAX_BYTES)
+			packet_decompr_len = DISP_MAX_BYTES;
+		printf("Original Packet:    (%i bytes) %s\n", packet_len,
+		       osmo_hexdump_nospc(packet, packet_len));
+		printf("DecompressedPacket: (%i bytes) %s\n",
+		       packet_decompr_len, osmo_hexdump_nospc(packet_decompr,
+							      packet_decompr_len));
+		printf("CompressedPacket:   (%i bytes) %s\n", packet_compr_len,
+		       osmo_hexdump_nospc(packet_compr, packet_compr_len));
+		slhc_o_status(comp);
+		slhc_o_status(comp);
+
+		printf("\n");
+	}
+
+	printf("Freeing compression state...\n");
+	slhc_free(comp);
+	printf("\n");
+}
+
+static struct log_info_cat gprs_categories[] = {
+	[DSNDCP] = {
+		    .name = "DSNDCP",
+		    .description =
+		    "GPRS Sub-Network Dependent Control Protocol (SNDCP)",
+		    .enabled = 1,.loglevel = LOGL_DEBUG,
+		    },
+	[DSLHC] = {
+		   .name = "DSLHC",
+		   .description =
+		   "Van Jacobson RFC1144 TCP/IP header compression (SLHC)",
+		   .enabled = 1,.loglevel = LOGL_DEBUG,
+		   }
+};
+
+static struct log_info info = {
+	.cat = gprs_categories,
+	.num_cat = ARRAY_SIZE(gprs_categories),
+};
+
+int main(int argc, char **argv)
+{
+	void *ctx;
+
+	osmo_init_logging(&info);
+
+	ctx = talloc_named_const(NULL, 0, "slhc_ctx");
+
+	test_slhc(ctx);
+
+	printf("Done\n");
+
+	talloc_report_full(ctx, stderr);
+	OSMO_ASSERT(talloc_total_blocks(ctx) == 1);
+	return 0;
+}
+
+/* stubs */
+struct osmo_prim_hdr;
+int bssgp_prim_cb(struct osmo_prim_hdr *oph, void *ctx)
+{
+	abort();
+}
diff --git a/openbsc/tests/slhc/slhc_test.ok b/openbsc/tests/slhc/slhc_test.ok
new file mode 100644
index 0000000..636241d
--- /dev/null
+++ b/openbsc/tests/slhc/slhc_test.ok
@@ -0,0 +1,52 @@
+Allocating compression state...
+csum=b3a9
+Compressing...
+Decompressing...
+Results:
+Original Packet:    (52 bytes) 4510003446dd40004006a9b3c0a8646ec0a864640017ad8b81980100f3ac984d501800e371410000fffd18fffd20fffd23fffd27
+DecompressedPacket: (52 bytes) 4510003446dd40004006a9b3c0a8646ec0a864640017ad8b81980100f3ac984d501800e371410000fffd18fffd20fffd23fffd27
+CompressedPacket:   (52 bytes) 7510003446dd40004000a9b3c0a8646ec0a864640017ad8b81980100f3ac984d501800e371410000fffd18fffd20fffd23fffd27
+
+csum=97a9
+Compressing...
+Decompressing...
+Results:
+Original Packet:    (79 bytes) 4510004f46de40004006a997c0a8646ec0a864640017ad8b8198010cf3ac984d501800e3cda40000fffb03fffd1ffffd21fffe22fffb05fffa2001fff0fffa2301fff0fffa2701fff0fffa1801fff0
+DecompressedPacket: (79 bytes) 4510004f46de40004006a997c0a8646ec0a864640017ad8b8198010cf3ac984d501800e3cda40000fffb03fffd1ffffd21fffe22fffb05fffa2001fff0fffa2301fff0fffa2701fff0fffa1801fff0
+CompressedPacket:   (43 bytes) df00cda4fffb03fffd1ffffd21fffe22fffb05fffa2001fff0fffa2301fff0fffa2701fff0fffa1801fff0
+
+csum=baa9
+Compressing...
+Decompressing...
+Results:
+Original Packet:    (43 bytes) 4510002b46df40004006a9bac0a8646ec0a864640017ad8b81980133f3ac989f501800e3a70a0000fffd01
+DecompressedPacket: (43 bytes) 4510002b46df40004006a9bac0a8646ec0a864640017ad8b81980133f3ac989f501800e3a70a0000fffd01
+CompressedPacket:   (9 bytes) dc00a70a5227fffd01
+
+csum=b9a9
+Compressing...
+Decompressing...
+Results:
+Original Packet:    (43 bytes) 4510002b46e040004006a9b9c0a8646ec0a864640017ad8b81980136f3ac98a2501800e3a7060000fffb01
+DecompressedPacket: (43 bytes) 4510002b46e040004006a9b9c0a8646ec0a864640017ad8b81980136f3ac98a2501800e3a7060000fffb01
+CompressedPacket:   (7 bytes) db00a706fffb01
+
+csum=7ba9
+Compressing...
+Decompressing...
+Results:
+Original Packet:    (100 bytes) 4510006846e140004006a97bc0a8646ec0a864640017ad8b81980139f3ac98a5501800e3c2d000000d0a2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d0d0a57656c6c636f6d6520746f20706f6c6c75780d0a2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d
+DecompressedPacket: (100 bytes) 4510006846e140004006a97bc0a8646ec0a864640017ad8b81980139f3ac98a5501800e3c2d000000d0a2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d0d0a57656c6c636f6d6520746f20706f6c6c75780d0a2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d
+CompressedPacket:   (68 bytes) db00c2d00d0a2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d0d0a57656c6c636f6d6520746f20706f6c6c75780d0a2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d2d0d0a0d0a
+
+csum=aca9
+Compressing...
+Decompressing...
+Results:
+Original Packet:    (54 bytes) 4510003646e240004006a9acc0a8646ec0a864640017ad8b81980179f3ac98a5501800e321fb0000706f6c6c7578206c6f67696e3a20
+DecompressedPacket: (54 bytes) 4510003646e240004006a9acc0a8646ec0a864640017ad8b81980179f3ac98a5501800e321fb0000706f6c6c7578206c6f67696e3a20
+CompressedPacket:   (18 bytes) df0021fb706f6c6c7578206c6f67696e3a20
+
+Freeing compression state...
+
+Done
diff --git a/openbsc/tests/testsuite.at b/openbsc/tests/testsuite.at
index 85a81d6..5f37b8e 100644
--- a/openbsc/tests/testsuite.at
+++ b/openbsc/tests/testsuite.at
@@ -136,3 +136,8 @@
 AT_CHECK([$abs_top_builddir/tests/sndcp_xid/sndcp_xid_test], [], [expout], [ignore])
 AT_CLEANUP
 
+AT_SETUP([slhc])
+AT_KEYWORDS([slhc])
+cat $abs_srcdir/slhc/slhc_test.ok > expout
+AT_CHECK([$abs_top_builddir/tests/slhc/slhc_test], [], [expout], [ignore])
+AT_CLEANUP