diff --git a/stackhpc_cloud_tests/host/test_ntp.py b/stackhpc_cloud_tests/host/test_ntp.py
new file mode 100644
index 0000000..65c26cf
--- /dev/null
+++ b/stackhpc_cloud_tests/host/test_ntp.py
@@ -0,0 +1,81 @@
+import os
+import re
+import pytest
+
+MAX_OFFSET_SECONDS = 0.5  # 500 ms limit
+
+
+def _get_parsed_ntp_sources():
+    # fetch and parse NTP_SOURCES
+    raw_ntp_sources = os.environ.get("NTP_SOURCES")
+    if not raw_ntp_sources or not raw_ntp_sources.strip():
+        return []
+    return [s.strip() for s in raw_ntp_sources.split(",") if s.strip()]
+
+
+# 1. Verify NTP_SOURCES is set
+def test_ntp_sources_env_var():
+    raw_ntp_sources = os.environ.get("NTP_SOURCES")
+    assert (
+        raw_ntp_sources is not None and raw_ntp_sources.strip() != ""
+    ), "NTP_SOURCES environment variable is not set or empty."
+
+    ntp_sources = _get_parsed_ntp_sources()
+    assert ntp_sources, "NTP_SOURCES contains no valid source entries."
+
+
+# 2. Check that chrony is running and syncing properly
+def test_chrony_service_and_sync_status(host):
+    # Check timedatectl
+    timedate_stdout = host.check_output("timedatectl status")
+    assert (
+        "NTP service: active" in timedate_stdout
+        or "System clock synchronized: yes" in timedate_stdout
+    ), f"System clock is not synchronized according to timedatectl:\n{timedate_stdout}"
+
+    # Check chrony has an active reference source marked with '*'
+    sources_stdout = host.check_output("chronyc -n sources")
+    active_source_match = re.search(
+        r"^\^?\*\s+([^\s]+)", sources_stdout, re.MULTILINE
+    )
+    assert active_source_match is not None, (
+        f"Chrony has no active reference source (no source marked with '*').\n"
+        f"Output:\n{sources_stdout}"
+    )
+
+
+# 3. Check that one of the NTP_SOURCES values is actively used by chrony (*=current source)
+def test_active_source_matches_expected(host):
+    ntp_sources = _get_parsed_ntp_sources()
+    assert ntp_sources, "Cannot verify active source because NTP_SOURCES is missing or invalid."
+
+    sources_stdout = host.check_output("chronyc -n sources")
+    active_source_match = re.search(
+        r"^\^?\*\s+([^\s]+)", sources_stdout, re.MULTILINE
+    )
+    assert active_source_match is not None, "No active chrony source found to validate."
+
+    active_source = active_source_match.group(1)
+    is_valid_source = any(
+        src in active_source or active_source in src for src in ntp_sources
+    )
+    assert is_valid_source, (
+        f"Active chrony source '{active_source}' does not match any expected NTP_SOURCES in {ntp_sources}.\n"
+        f"Chronyc Sources Output:\n{sources_stdout}"
+    )
+
+
+# 4. Check time offset
+def test_ntp_time_offset(host):
+    chrony_stdout = host.check_output("chronyc tracking")
+
+    match = re.search(r"System time\s+:\s+([0-9.]+)\s+seconds", chrony_stdout)
+    assert (
+        match is not None
+    ), f"Could not parse system time offset from chronyc output:\n{chrony_stdout}"
+
+    offset = float(match.group(1))
+    assert offset <= MAX_OFFSET_SECONDS, (
+        f"NTP time offset {offset:.4f}s exceeds maximum threshold of {MAX_OFFSET_SECONDS}s (500ms).\n"
+        f"Chronyc Tracking:\n{chrony_stdout}"
+    )
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