diff --git a/pytest_fixtures/component/provision_pxe.py b/pytest_fixtures/component/provision_pxe.py
index aaa9837b810..8ea993e561f 100644
--- a/pytest_fixtures/component/provision_pxe.py
+++ b/pytest_fixtures/component/provision_pxe.py
@@ -285,6 +285,7 @@ def pxe_loader(request):
     PXE_LOADER_MAP = {
         'bios': {'vm_firmware': 'bios', 'pxe_loader': 'PXELinux BIOS'},
         'uefi': {'vm_firmware': 'uefi', 'pxe_loader': 'Grub2 UEFI'},
+        'ipxe': {'vm_firmware': 'bios', 'pxe_loader': 'iPXE Embedded'},
     }
     return Box(PXE_LOADER_MAP[getattr(request, 'param', 'bios')])
 
diff --git a/tests/foreman/api/test_provisioning.py b/tests/foreman/api/test_provisioning.py
index a3e71c95c06..23ac3d85887 100644
--- a/tests/foreman/api/test_provisioning.py
+++ b/tests/foreman/api/test_provisioning.py
@@ -21,6 +21,7 @@
 from wait_for import wait_for
 
 from robottelo.config import settings
+from robottelo.utils.installer import InstallerCommand
 
 
 @pytest.mark.e2e
@@ -147,3 +148,123 @@ def test_rhel_pxe_provisioning(
     # assert that the host is subscribed and consumes
     # subsctiption provided by the activation key
     assert provisioning_host.subscribed, 'Host is not subscribed'
+
+
+@pytest.mark.e2e
+@pytest.mark.parametrize('pxe_loader', ['ipxe'], indirect=True)
+@pytest.mark.on_premises_provisioning
+@pytest.mark.rhel_ver_match('[8]')
+def test_rhel_ipxe_provisioning(
+    request,
+    module_provisioning_sat,
+    module_sca_manifest_org,
+    module_location,
+    provisioning_host,
+    pxe_loader,
+    module_provisioning_rhel_content,
+    provisioning_hostgroup,
+    module_lce_library,
+    module_default_org_view,
+):
+    """Provision a host using iPXE workflow
+
+    :id: 9e016e1d-757a-48e7-9159-131bb65dc4ed
+
+    :steps:
+        1. Configure satellite for provisioning
+        2. provision a host
+        3. Check that resulting host is registered to Satellite
+        4. Check host is subscribed to Satellite
+
+    :expectedresults:
+        1. Provisioning via iPXE is successful
+        2. Host installs right version of RHEL
+        3. Satellite is able to run REX job on the host
+        4. Host is registered to Satellite and subscription status is 'Success'
+
+    :parametrized: yes
+    """
+    # TODO: parametrize iPXE Chain BIOS as pxe loader after #BZ:2171172 is fixed
+    sat = module_provisioning_sat.sat
+    # set http url
+    ipxe_http_url = sat.install(
+        InstallerCommand(
+            f'foreman-proxy-dhcp-ipxefilename "http://{sat.hostname}/unattended/iPXE?bootstrap=1"'
+        )
+    )
+    assert ipxe_http_url.status == 0
+    host_mac_addr = provisioning_host._broker_args['provisioning_nic_mac_addr']
+    host = sat.api.Host(
+        hostgroup=provisioning_hostgroup,
+        organization=module_sca_manifest_org,
+        location=module_location,
+        name=gen_string('alpha').lower(),
+        mac=host_mac_addr,
+        operatingsystem=module_provisioning_rhel_content.os,
+        subnet=module_provisioning_sat.subnet,
+        host_parameters_attributes=[
+            {'name': 'remote_execution_connect_by_ip', 'value': 'true', 'parameter_type': 'boolean'}
+        ],
+        build=True,  # put the host in build mode
+    ).create(create_missing=False)
+    # Clean up the host to free IP leases on Satellite.
+    # broker should do that as a part of the teardown, putting here just to make sure.
+    request.addfinalizer(host.delete)
+    # Start the VM, do not ensure that we can connect to SSHD
+    provisioning_host.power_control(ensure=False)
+
+    # TODO: Implement Satellite log capturing logic to verify that
+    # all the events are captured in the logs.
+
+    # Host should do call back to the Satellite reporting
+    # the result of the installation. Wait until Satellite reports that the host is installed.
+    wait_for(
+        lambda: host.read().build_status_label != 'Pending installation',
+        timeout=1500,
+        delay=10,
+    )
+    host = host.read()
+    assert host.build_status_label == 'Installed'
+
+    # Change the hostname of the host as we know it already.
+    # In the current infra environment we do not support
+    # addressing hosts using FQDNs, falling back to IP.
+    provisioning_host.hostname = host.ip
+    # Host is not blank anymore
+    provisioning_host.blank = False
+
+    # Wait for the host to be rebooted and SSH daemon to be started.
+    provisioning_host.wait_for_connection()
+
+    # Perform version check and check if root password is properly updated
+    host_os = host.operatingsystem.read()
+    expected_rhel_version = f'{host_os.major}.{host_os.minor}'
+    host_ssh_os = module_provisioning_sat.sat.execute(
+        f'sshpass -p {settings.provisioning.host_root_password} '
+        'ssh -o StrictHostKeyChecking=no -o PubkeyAuthentication=no -o PasswordAuthentication=yes '
+        f'-o UserKnownHostsFile=/dev/null root@{provisioning_host.hostname} cat /etc/redhat-release'
+    )
+    assert host_ssh_os.status == 0
+    assert (
+        expected_rhel_version in host_ssh_os.stdout
+    ), 'Different than the expected OS version was installed'
+
+    # Run a command on the host using REX to verify that Satellite's SSH key is present on the host
+    template_id = (
+        sat.api.JobTemplate().search(query={'search': 'name="Run Command - Script Default"'})[0].id
+    )
+    job = sat.api.JobInvocation().run(
+        data={
+            'job_template_id': template_id,
+            'inputs': {
+                'command': f'subscription-manager config | grep "hostname = {sat.hostname}"'
+            },
+            'search_query': f"name = {host.name}",
+            'targeting_type': 'static_query',
+        },
+    )
+    assert job['result'] == 'success', 'Job invocation failed'
+
+    # assert that the host is subscribed and consumes
+    # subsctiption provided by the activation key
+    assert provisioning_host.subscribed, 'Host is not subscribed'