diff --git a/generator/test_case_generator.go b/generator/test_case_generator.go
index a0021e438..925878746 100644
--- a/generator/test_case_generator.go
+++ b/generator/test_case_generator.go
@@ -114,6 +114,10 @@ var testTypeToTestConfig = map[string][]testConfig{
 			testDir: "./test/amp",
 			targets: map[string]map[string]struct{}{"os": {"al2": {}}, "arc": {"amd64": {}}},
 		},
+		{
+			testDir: "./test/agent_otel_merging",
+			targets: map[string]map[string]struct{}{"os": {"al2": {}}, "arc": {"amd64": {}}},
+		},
 	},
 	/*
 		You can only place 1 mac instance on a dedicate host a single time.
diff --git a/test/agent_otel_merging/agent_configs/config.json b/test/agent_otel_merging/agent_configs/config.json
new file mode 100644
index 000000000..f5e4dcadf
--- /dev/null
+++ b/test/agent_otel_merging/agent_configs/config.json
@@ -0,0 +1,11 @@
+{
+  "metrics": {
+    "metrics_collected": {
+      "cpu": {
+        "measurement": [
+          "cpu_usage_idle"
+        ]
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/agent_otel_merging/agent_otel_merging_test.go b/test/agent_otel_merging/agent_otel_merging_test.go
new file mode 100644
index 000000000..e86252e1d
--- /dev/null
+++ b/test/agent_otel_merging/agent_otel_merging_test.go
@@ -0,0 +1,129 @@
+// Copyright Amazon.com, Inc. or its affiliates. All Rights Reserved.
+// SPDX-License-Identifier: MIT
+
+package agent_otel_merging
+
+import (
+	"bytes"
+	"fmt"
+	"net/http"
+	"os"
+	"os/exec"
+	"path/filepath"
+	"strings"
+	"testing"
+	"time"
+
+	"github.com/aws/aws-sdk-go-v2/service/cloudwatch/types"
+	"github.com/stretchr/testify/require"
+
+	"github.com/aws/amazon-cloudwatch-agent-test/environment"
+	"github.com/aws/amazon-cloudwatch-agent-test/util/awsservice"
+	"github.com/aws/amazon-cloudwatch-agent-test/util/common"
+)
+
+func init() {
+	environment.RegisterEnvironmentMetaDataFlags()
+}
+
+// Tests merging of agent and OTEL yaml
+// Merges OTLP receiver to Agent yaml
+// And Checks if test_metric was generated(YAML merged successfully)
+func TestOtelMerging(t *testing.T) {
+	startAgent(t)
+	appendOtelConfig(t)
+	sendPayload(t)
+	verifyMetricsInCloudWatch(t)
+	verifyHealthCheck(t)
+}
+
+func startAgent(t *testing.T) {
+	common.CopyFile(filepath.Join("agent_configs", "config.json"), common.ConfigOutputPath)
+	require.NoError(t, common.StartAgent(common.ConfigOutputPath, true, false))
+	time.Sleep(10 * time.Second) // Wait for the agent to start properly
+}
+
+func appendOtelConfig(t *testing.T) {
+	cmd := exec.Command("sudo", "/opt/aws/amazon-cloudwatch-agent/bin/amazon-cloudwatch-agent-ctl",
+		"-a", "append-config", "-s", "-m", "ec2", "-c", "file:"+filepath.Join("resources", "otel.yaml"))
+	output, err := cmd.CombinedOutput()
+	require.NoError(t, err, "Failed to append OTEL config: %s", output)
+	time.Sleep(10 * time.Second) // Wait for the agent to apply the new configuration
+}
+
+func sendPayload(t *testing.T) {
+	currentTimestamp := time.Now().UnixNano()
+
+	payload, err := os.ReadFile(filepath.Join("resources", "metrics.json"))
+	require.NoError(t, err, "Failed to read JSON payload from metrics.json")
+
+	payloadStr := string(payload)
+	payloadStr = strings.ReplaceAll(payloadStr, "$CURRENT_TIMESTAMP", fmt.Sprintf("%d", currentTimestamp))
+	payloadStr = strings.ReplaceAll(payloadStr, "$INSTANCE_ID", environment.GetEnvironmentMetaData().InstanceId)
+
+	req, err := http.NewRequest("POST", "http://localhost:4318/v1/metrics", bytes.NewBuffer([]byte(payloadStr)))
+	require.NoError(t, err, "Failed to create HTTP request")
+
+	req.Header.Set("Content-Type", "application/json")
+
+	client := &http.Client{}
+	resp, err := client.Do(req)
+	require.NoError(t, err, "Failed to send HTTP request")
+
+	defer resp.Body.Close()
+
+	require.True(t, resp.StatusCode >= 200 && resp.StatusCode < 300, "Unexpected status code: %d", resp.StatusCode)
+	time.Sleep(2 * time.Minute)
+}
+
+func verifyMetricsInCloudWatch(t *testing.T) {
+	metricName := "test_metric"
+	namespace := "CWAgent-testing-otel"
+
+	serviceDimName := "service.name"
+	serviceDimValue := "test-service"
+	instanceDimName := "instance_id"
+	instanceDimValue := environment.GetEnvironmentMetaData().InstanceId
+
+	dimensions := []types.Dimension{
+		{
+			Name:  &serviceDimName,
+			Value: &serviceDimValue,
+		},
+		{
+			Name:  &instanceDimName,
+			Value: &instanceDimValue,
+		},
+	}
+
+	startTime := time.Now().Add(-5 * time.Minute)
+	endTime := time.Now()
+	periodInSeconds := int32(1)
+	statType := []types.Statistic{types.StatisticAverage}
+
+	resp, err := awsservice.GetMetricStatistics(
+		metricName,
+		namespace,
+		dimensions,
+		startTime,
+		endTime,
+		periodInSeconds,
+		statType,
+		nil,
+	)
+
+	require.NoError(t, err, "Failed to fetch metric from CloudWatch")
+	require.NotEmpty(t, resp.Datapoints, "No data points found for the metric")
+
+}
+
+func verifyHealthCheck(t *testing.T) {
+	endpoint := "http://localhost:13133/health/status"
+
+	resp, err := http.Get(endpoint)
+	require.NoError(t, err, "Failed to send HTTP request")
+
+	defer resp.Body.Close()
+
+	require.Equal(t, 200, resp.StatusCode, "Expected HTTP status code 200, got %d", resp.StatusCode)
+}
diff --git a/test/agent_otel_merging/resources/metrics.json b/test/agent_otel_merging/resources/metrics.json
new file mode 100644
index 000000000..3afba52a0
--- /dev/null
+++ b/test/agent_otel_merging/resources/metrics.json
@@ -0,0 +1,47 @@
+{
+  "resourceMetrics": [
+    {
+      "resource": {
+        "attributes": [
+          {
+            "key": "service.name",
+            "value": {
+              "stringValue": "test-service"
+            }
+          },
+          {
+            "key": "instance_id",
+            "value": {
+              "stringValue": "$INSTANCE_ID"
+            }
+          }
+        ]
+      },
+      "scopeMetrics": [
+        {
+          "scope": {
+            "name": "my.library",
+            "version": "1.0.0"
+          },
+          "metrics": [
+            {
+              "name": "test_metric",
+              "unit": "1",
+              "sum": {
+                "aggregationTemporality": 1,
+                "isMonotonic": true,
+                "dataPoints": [
+                  {
+                    "asDouble": 0.0,
+                    "startTimeUnixNano": "$CURRENT_TIMESTAMP",
+                    "timeUnixNano": "$CURRENT_TIMESTAMP"
+                  }
+                ]
+              }
+            }
+          ]
+        }
+      ]
+    }
+  ]
+}
diff --git a/test/agent_otel_merging/resources/otel.yaml b/test/agent_otel_merging/resources/otel.yaml
new file mode 100644
index 000000000..a77e70fbb
--- /dev/null
+++ b/test/agent_otel_merging/resources/otel.yaml
@@ -0,0 +1,27 @@
+receivers:
+  otlp:
+    protocols:
+      grpc:
+      http:
+
+exporters:
+  awsemf/otel-merging:
+    namespace: "CWAgent-testing-otel"
+    log_group_name: "CWA"
+    dimension_rollup_option: "NoDimensionRollup"
+    log_stream_name: "Testing-otel"
+    resource_to_telemetry_conversion:
+      enabled: true
+    version: "0"
+
+extensions:
+  health_check:
+
+service:
+  extensions:
+    - health_check
+  pipelines:
+    metrics:
+      receivers: [otlp]
+      exporters: [awsemf/otel-merging]
+