diff --git a/test/python/factory/wsgi.py b/test/python/factory/wsgi.py
new file mode 100644
index 000000000..8ad4887b2
--- /dev/null
+++ b/test/python/factory/wsgi.py
@@ -0,0 +1,23 @@
+def wsgi_a(env, start_response):
+    start_response("200", [("Content-Length", "1")])
+    return [b"1"]
+
+
+def wsgi_b(env, start_response):
+    start_response("200", [("Content-Length", "1")])
+    return [b"2"]
+
+
+def wsgi_a_factory():
+    return wsgi_a
+
+
+def wsgi_b_factory():
+    return wsgi_b
+
+
+wsgi_invalid_callable = None
+
+
+def wsgi_factory_returning_invalid_callable():
+    return wsgi_invalid_callable
diff --git a/test/test_python_factory.py b/test/test_python_factory.py
new file mode 100644
index 000000000..d1752c248
--- /dev/null
+++ b/test/test_python_factory.py
@@ -0,0 +1,140 @@
+from unit.applications.lang.python import ApplicationPython
+from unit.option import option
+
+prerequisites = {"modules": {"python": "all"}}
+
+client = ApplicationPython()
+
+
+def test_python_factory_targets():
+    python_dir = f"{option.test_dir}/python"
+
+    assert "success" in client.conf(
+        {
+            "listeners": {
+                "*:8080": {"pass": "applications/targets/1"},
+                "*:8081": {"pass": "applications/targets/2"},
+                "*:8082": {"pass": "applications/targets/factory-1"},
+                "*:8083": {"pass": "applications/targets/factory-2"},
+            },
+            "applications": {
+                "targets": {
+                    "type": client.get_application_type(),
+                    "working_directory": f"{python_dir}/factory/",
+                    "path": f"{python_dir}/factory/",
+                    "targets": {
+                        "1": {
+                            "module": "wsgi",
+                            "callable": "wsgi_a",
+                            "factory": False,
+                        },
+                        "2": {
+                            "module": "wsgi",
+                            "callable": "wsgi_b",
+                            "factory": False,
+                        },
+                        "factory-1": {
+                            "module": "wsgi",
+                            "callable": "wsgi_a_factory",
+                            "factory": True,
+                        },
+                        "factory-2": {
+                            "module": "wsgi",
+                            "callable": "wsgi_b_factory",
+                            "factory": True,
+                        },
+                    },
+                }
+            },
+        }
+    )
+
+    resp = client.get(port=8080)
+    assert resp["status"] == 200
+    assert resp["body"] == "1"
+
+    resp = client.get(port=8081)
+    assert resp["status"] == 200
+    assert resp["body"] == "2"
+
+    resp = client.get(port=8082)
+    assert resp["status"] == 200
+    assert resp["body"] == "1"
+
+    resp = client.get(port=8083)
+    assert resp["status"] == 200
+    assert resp["body"] == "2"
+
+
+def test_python_factory_without_targets():
+    python_dir = f"{option.test_dir}/python"
+
+    assert "success" in client.conf(
+        {
+            "listeners": {
+                "*:8080": {"pass": "applications/python-app-factory"},
+                "*:8081": {"pass": "applications/python-app"},
+            },
+            "applications": {
+                "python-app-factory": {
+                    "type": client.get_application_type(),
+                    "working_directory": f"{python_dir}/factory/",
+                    "path": f"{python_dir}/factory/",
+                    "module": "wsgi",
+                    "callable": "wsgi_a_factory",
+                    "factory": True,
+                },
+                "python-app": {
+                    "type": client.get_application_type(),
+                    "working_directory": f"{python_dir}/factory/",
+                    "path": f"{python_dir}/factory/",
+                    "module": "wsgi",
+                    "callable": "wsgi_b",
+                    "factory": False,
+                },
+            },
+        }
+    )
+
+    resp = client.get(port=8080)
+    assert resp["status"] == 200
+    assert resp["body"] == "1"
+
+    resp = client.get(port=8081)
+    assert resp["status"] == 200
+    assert resp["body"] == "2"
+
+
+def test_python_factory_invalid_callable_value(skip_alert):
+    skip_alert(
+        r"failed to apply new conf",
+        r"did not return callable object",
+        r"can not be called to fetch callable",
+    )
+    python_dir = f"{option.test_dir}/python"
+
+    invalid_callable_values = [
+        "wsgi_factory_returning_invalid_callable",
+        "wsgi_invalid_callable",
+    ]
+
+    for callable_value in invalid_callable_values:
+        assert "error" in client.conf(
+            {
+                "listeners": {"*:8080": {"pass": "applications/targets/1"}},
+                "applications": {
+                    "targets": {
+                        "type": client.get_application_type(),
+                        "working_directory": f"{python_dir}/factory/",
+                        "path": f"{python_dir}/factory/",
+                        "targets": {
+                            "1": {
+                                "module": "wsgi",
+                                "callable": callable_value,
+                                "factory": True,
+                            },
+                        },
+                    }
+                },
+            }
+        )