diff --git a/test/unit/idStore-migration-test.js b/test/unit/idStore-migration-test.js
new file mode 100644
index 000000000..df26c7f31
--- /dev/null
+++ b/test/unit/idStore-migration-test.js
@@ -0,0 +1,91 @@
+const async = require('async')
+const assert = require('assert')
+const ethUtil = require('ethereumjs-util')
+const BN = ethUtil.BN
+const configManagerGen = require('../lib/mock-config-manager')
+const delegateCallCode = require('../lib/example-code.json').delegateCallCode
+
+// The old way:
+const IdentityStore = require('../../app/scripts/lib/idStore')
+
+// The new ways:
+var KeyringController = require('../../app/scripts/keyring-controller')
+const mockEncryptor = require('../lib/mock-encryptor')
+const MockSimpleKeychain = require('../lib/mock-simple-keychain')
+const sinon = require('sinon')
+
+const mockVault = {
+  seed: 'picnic injury awful upper eagle junk alert toss flower renew silly vague',
+  account: '0x5d8de92c205279c10e5669f797b853ccef4f739a',
+}
+
+describe('IdentityStore to KeyringController migration', function() {
+
+  // The stars of the show:
+  let idStore, keyringController, seedWords
+
+  let password = 'password123'
+  let entropy = 'entripppppyy duuude'
+  let accounts = []
+  let newAccounts = []
+  let originalKeystore
+
+  // This is a lot of setup, I know!
+  // We have to create an old style vault, populate it,
+  // and THEN create a new one, before we can run tests on it.
+  beforeEach(function(done) {
+    this.sinon = sinon.sandbox.create()
+    window.localStorage = {} // Hacking localStorage support into JSDom
+    var configManager = configManagerGen()
+
+    window.localStorage = {} // Hacking localStorage support into JSDom
+
+    idStore = new IdentityStore({
+      configManager: configManagerGen(),
+      ethStore: {
+        addAccount(acct) { accounts.push(ethUtil.addHexPrefix(acct)) },
+        del(acct) { delete accounts[acct] },
+      },
+    })
+
+    idStore._createVault(password, mockVault.seed, null, function (err, seeds) {
+      assert.ifError(err, 'createNewVault threw error')
+      originalKeystore = idStore._idmgmt.keyStore
+
+      idStore.setLocked(function(err) {
+        assert.ifError(err, 'createNewVault threw error')
+        keyringController = new KeyringController({
+          configManager,
+          ethStore: {
+            addAccount(acct) { newAccounts.push(ethUtil.addHexPrefix(acct)) },
+          },
+        })
+
+        // Stub out the browser crypto for a mock encryptor.
+        // Browser crypto is tested in the integration test suite.
+        keyringController.encryptor = mockEncryptor
+        done()
+      })
+    })
+  })
+
+  describe('creating new vault type', function() {
+    it('should use the password to migrate the old vault', function(done) {
+      keyringController.createNewVault(password, null, function (err, state) {
+        assert.ifError(err, 'createNewVault threw error')
+
+        let newAccounts = keyringController.getAccounts()
+        let newAccount = ethUtil.addHexPrefix(newAccounts[0])
+        assert.equal(newAccount, accounts[0], 'restored the account')
+        assert.equal(newAccount, mockVault.account, 'restored the correct account')
+
+        const newSeed = keyringController.keyrings[0].mnemonic
+        assert.equal(newSeed, mockVault.seed, 'seed phrase transferred.')
+
+        assert(configManager.getVault(), 'new type of vault is persisted')
+        done()
+      })
+    })
+  })
+})
+