diff --git a/oak-it/src/test/java/org/apache/jackrabbit/oak/composite/CompositeNodeStoreClusterObservationTest.java b/oak-it/src/test/java/org/apache/jackrabbit/oak/composite/CompositeNodeStoreClusterObservationTest.java
new file mode 100644
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--- /dev/null
+++ b/oak-it/src/test/java/org/apache/jackrabbit/oak/composite/CompositeNodeStoreClusterObservationTest.java
@@ -0,0 +1,120 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you 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 org.apache.jackrabbit.oak.composite;
+
+import com.google.common.collect.Lists;
+import org.apache.jackrabbit.oak.api.CommitFailedException;
+import org.apache.jackrabbit.oak.plugins.document.DocumentMKBuilderProvider;
+import org.apache.jackrabbit.oak.plugins.document.DocumentNodeStore;
+import org.apache.jackrabbit.oak.plugins.document.DocumentStore;
+import org.apache.jackrabbit.oak.plugins.document.TestNodeObserver;
+import org.apache.jackrabbit.oak.plugins.document.memory.MemoryDocumentStore;
+import org.apache.jackrabbit.oak.spi.blob.BlobStore;
+import org.apache.jackrabbit.oak.spi.blob.MemoryBlobStore;
+import org.apache.jackrabbit.oak.spi.commit.CommitInfo;
+import org.apache.jackrabbit.oak.spi.commit.EmptyHook;
+import org.apache.jackrabbit.oak.spi.mount.MountInfoProvider;
+import org.apache.jackrabbit.oak.spi.mount.Mounts;
+import org.apache.jackrabbit.oak.spi.state.NodeBuilder;
+import org.apache.jackrabbit.oak.spi.state.NodeStore;
+import org.junit.Before;
+import org.junit.Ignore;
+import org.junit.Rule;
+import org.junit.Test;
+
+import java.util.List;
+
+import static org.junit.Assert.assertTrue;
+
+public class CompositeNodeStoreClusterObservationTest {
+
+    private MemoryDocumentStore ds;
+    private MemoryBlobStore bs;
+
+    @Rule
+    public DocumentMKBuilderProvider builderProvider = new DocumentMKBuilderProvider();
+
+    private CompositeNodeStore store;
+    private DocumentNodeStore remote;
+    private DocumentNodeStore globalStore;
+
+    private TestNodeObserver observer;
+
+    @Before
+    public void initStore() {
+
+        remote = createNodeStore(1);
+        globalStore = createNodeStore(2);
+
+        MountInfoProvider mip = Mounts.newBuilder().build();
+
+        List<MountedNodeStore> nonDefaultStores = Lists.newArrayList();
+        store = new CompositeNodeStore(mip, globalStore, nonDefaultStores);
+
+        observer = new TestNodeObserver("/test");
+    }
+
+    @Test
+    public void localObserver() throws CommitFailedException {
+        store.addObserver(observer);
+
+        NodeBuilder builder = store.getRoot().builder();
+        builder.child("test").setProperty("foo", "bar");
+        merge(store, builder);
+
+        assertTrue("Node added event not observed for local change", observer.added.containsKey("/test"));
+    }
+
+    @Ignore("OAK-7710")
+    @Test
+    public void remoteObserver() throws CommitFailedException {
+        store.addObserver(observer);
+
+        NodeBuilder builder = remote.getRoot().builder();
+        builder.child("test").setProperty("foo", "bar");
+        merge(remote, builder);
+
+        remote.runBackgroundOperations();
+        globalStore.runBackgroundOperations();
+
+        assertTrue("Node added event not observed for local change", observer.added.containsKey("/test"));
+    }
+
+    private static void merge(NodeStore store, NodeBuilder builder)
+            throws CommitFailedException {
+        store.merge(builder, EmptyHook.INSTANCE, CommitInfo.EMPTY);
+    }
+
+    private DocumentNodeStore createNodeStore(int clusterId) {
+        if (ds == null) {
+            ds = new MemoryDocumentStore();
+        }
+        if (bs == null) {
+            bs = new MemoryBlobStore();
+        }
+        return createNodeStore(clusterId, ds, bs);
+    }
+
+    private DocumentNodeStore createNodeStore(int clusterId,
+                                              DocumentStore ds, BlobStore bs) {
+        return builderProvider.newBuilder().setDocumentStore(ds)
+                .setBlobStore(bs).setClusterId(clusterId)
+                .setAsyncDelay(0).build();
+    }
+}