diff --git a/Makefile b/Makefile
index 9069b7d76..ca63a790a 100644
--- a/Makefile
+++ b/Makefile
@@ -221,28 +221,31 @@ performance-test: ## Run performance tests
 	$(CONTAINER_CLITOOL) run -v ${PWD}:/home/nginx/$(CONTAINER_VOLUME_FLAGS) --rm nginx-agent-benchmark:1.0.0
 
 integration-test:
-	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} IMAGE_PATH=$(IMAGE_PATH) TAG=${IMAGE_TAG} \
-		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=$(DOCKERFILE_PATH) \
+	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} IMAGE_PATH=${IMAGE_PATH} TAG=${IMAGE_TAG} \
+		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=${DOCKERFILE_PATH} \
 		${GOTEST} -v ./test/integration/install
-	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} BUILD_TARGET="install-agent-local" IMAGE_PATH=$(IMAGE_PATH) TAG=${IMAGE_TAG} \
-		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=$(DOCKERFILE_PATH) \
+	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} BUILD_TARGET="install-agent-local" IMAGE_PATH=${IMAGE_PATH} TAG=${IMAGE_TAG} \
+		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=${DOCKERFILE_PATH} \
 		${GOTEST} -v ./test/integration/api
-	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} BUILD_TARGET="install-agent-local" IMAGE_PATH=$(IMAGE_PATH) TAG=${IMAGE_TAG} \
-		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=$(DOCKERFILE_PATH) \
+	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} BUILD_TARGET="install-agent-local" IMAGE_PATH=${IMAGE_PATH} TAG=${IMAGE_TAG} \
+		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=${DOCKERFILE_PATH} \
 		${GOTEST} -v ./test/integration/features
-	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} BUILD_TARGET="install-agent-local" IMAGE_PATH=$(IMAGE_PATH) TAG=${IMAGE_TAG} \
-		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=$(DOCKERFILE_PATH) \
+	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} BUILD_TARGET="install-agent-local" IMAGE_PATH=${IMAGE_PATH} TAG=${IMAGE_TAG} \
+		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=${DOCKERFILE_PATH} \
 		${GOTEST} -v ./test/integration/grpc
+	PACKAGES_REPO=${OSS_PACKAGES_REPO} INSTALL_FROM_REPO=${INSTALL_FROM_REPO} PACKAGE_NAME=${PACKAGE_NAME} BASE_IMAGE=${BASE_IMAGE} BUILD_TARGET="install-agent-local" IMAGE_PATH=${IMAGE_PATH} TAG=${IMAGE_TAG} \
+		OS_VERSION=${OS_VERSION} OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} DOCKERFILE_PATH=${DOCKERFILE_PATH} \
+		${GOTEST} -v ./test/integration/upgrade
 
 official-image-integration-test:
-	PACKAGES_REPO=${OSS_PACKAGES_REPO} PACKAGE_NAME=${PACKAGE_NAME} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} BASE_IMAGE=${BASE_IMAGE} IMAGE_PATH=$(IMAGE_PATH) TAG=${TAG} ARCH=${OSARCH} OS_VERSION=${OS_VERSION} BUILD_TARGET="install" \
-	    OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} DOCKERFILE_PATH=$(OFFICIAL_IMAGE_DOCKERFILE_PATH) \
+	PACKAGES_REPO=${OSS_PACKAGES_REPO} PACKAGE_NAME=${PACKAGE_NAME} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} BASE_IMAGE=${BASE_IMAGE} IMAGE_PATH=${IMAGE_PATH} TAG=${TAG} ARCH=${OSARCH} OS_VERSION=${OS_VERSION} BUILD_TARGET="install" \
+	    OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} DOCKERFILE_PATH=${OFFICIAL_IMAGE_DOCKERFILE_PATH} \
 		${GOTEST} -v ./test/integration/features
-	PACKAGES_REPO=${OSS_PACKAGES_REPO} PACKAGE_NAME=${PACKAGE_NAME} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} BASE_IMAGE=${BASE_IMAGE} IMAGE_PATH=$(IMAGE_PATH) TAG=${TAG} ARCH=${OSARCH} OS_VERSION=${OS_VERSION} BUILD_TARGET="install" \
-	    OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} DOCKERFILE_PATH=$(OFFICIAL_IMAGE_DOCKERFILE_PATH) \
+	PACKAGES_REPO=${OSS_PACKAGES_REPO} PACKAGE_NAME=${PACKAGE_NAME} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} BASE_IMAGE=${BASE_IMAGE} IMAGE_PATH=${IMAGE_PATH} TAG=${TAG} ARCH=${OSARCH} OS_VERSION=${OS_VERSION} BUILD_TARGET="install" \
+	    OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} DOCKERFILE_PATH=${OFFICIAL_IMAGE_DOCKERFILE_PATH} \
 		${GOTEST} -v ./test/integration/grpc
-	PACKAGES_REPO=${OSS_PACKAGES_REPO} PACKAGE_NAME=${PACKAGE_NAME} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} BASE_IMAGE=${BASE_IMAGE} IMAGE_PATH=$(IMAGE_PATH) TAG=${TAG} ARCH=${OSARCH} OS_VERSION=${OS_VERSION} BUILD_TARGET="install" \
-        OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} DOCKERFILE_PATH=$(OFFICIAL_IMAGE_DOCKERFILE_PATH) \
+	PACKAGES_REPO=${OSS_PACKAGES_REPO} PACKAGE_NAME=${PACKAGE_NAME} CONTAINER_NGINX_IMAGE_REGISTRY=${CONTAINER_NGINX_IMAGE_REGISTRY} BASE_IMAGE=${BASE_IMAGE} IMAGE_PATH=${IMAGE_PATH} TAG=${TAG} ARCH=${OSARCH} OS_VERSION=${OS_VERSION} BUILD_TARGET="install" \
+        OS_RELEASE=${OS_RELEASE} CONTAINER_OS_TYPE=${CONTAINER_OS_TYPE} DOCKERFILE_PATH=${OFFICIAL_IMAGE_DOCKERFILE_PATH} \
         ${GOTEST} -v ./test/integration/api
 
 test-performance-run: ## Run benchmark performance tests
diff --git a/scripts/workflow/generate_results.sh b/scripts/workflow/generate_results.sh
index cd5dd9682..d5c6af5fa 100644
--- a/scripts/workflow/generate_results.sh
+++ b/scripts/workflow/generate_results.sh
@@ -32,20 +32,9 @@ DURATION=$(echo "$END_SECONDS - $START_SECONDS" | bc)
 
 MSG=""        # individual test msg
 FAIL_MSG=""   # msg for entire job run
-RESULT=""
 HAS_FAILED=false
 IS_RUNNING=false
 
-load_job_status(){
-    if [ "$JOB_RESULT" == "success" ]; then
-        RESULT="pass"
-    elif [ "$JOB_RESULT" == "failure" ]; then
-        RESULT="fail"
-    else
-        RESULT="skip"
-    fi
-}
-
 format_logs_to_json(){
     line="$1"
     json="{"
@@ -110,6 +99,5 @@ format_results(){
 
 # Main body of the script
 {
-    load_job_status
     format_results
 }
diff --git a/test/docker/nginx-official-image/deb/Dockerfile b/test/docker/nginx-official-image/deb/Dockerfile
index f8a9c9bb5..00869783b 100644
--- a/test/docker/nginx-official-image/deb/Dockerfile
+++ b/test/docker/nginx-official-image/deb/Dockerfile
@@ -13,9 +13,9 @@ ARG CONTAINER_OS_TYPE
 WORKDIR /agent
 COPY ./build/${PACKAGE_NAME}.${CONTAINER_OS_TYPE} /agent/build/${PACKAGE_NAME}.${CONTAINER_OS_TYPE}
 
-RUN  apt-get update \ 
-    && apt install --no-install-recommends --no-install-suggests --allow-downgrades -y /agent/build/${PACKAGE_NAME}.${CONTAINER_OS_TYPE} \ 
-    &&  rm /agent/build/${PACKAGE_NAME}.${CONTAINER_OS_TYPE}
+RUN  apt-get update \
+    && apt install --no-install-recommends --no-install-suggests --allow-downgrades -y /agent/build/${PACKAGE_NAME}.${CONTAINER_OS_TYPE} \
+    &&  rm /agent/build/${PACKAGE_NAME}.${CONTAINER_OS_TYPE} 
 
 RUN unlink /var/log/nginx/access.log
 RUN unlink /var/log/nginx/error.log
diff --git a/test/docker/nginx-oss/deb/Dockerfile b/test/docker/nginx-oss/deb/Dockerfile
index 8fc77e7f4..5300a1efa 100644
--- a/test/docker/nginx-oss/deb/Dockerfile
+++ b/test/docker/nginx-oss/deb/Dockerfile
@@ -24,7 +24,6 @@ RUN set -x \
                                                                         lsb-release \
                                                                         procps \
                                                                         nginx
-
 # Setup nginx agent repository
 RUN curl https://nginx.org/keys/nginx_signing.key | gpg --dearmor | tee /usr/share/keyrings/nginx-archive-keyring.gpg >/dev/null \
     && printf "deb [signed-by=/usr/share/keyrings/nginx-archive-keyring.gpg] http://${PACKAGES_REPO}/nginx-agent/${OS_RELEASE}/ `lsb_release -cs` agent\n" > /etc/apt/sources.list.d/nginx-agent.list
diff --git a/test/docker/nginx-oss/rpm/Dockerfile b/test/docker/nginx-oss/rpm/Dockerfile
index fa4ec6b9b..9a32aae02 100644
--- a/test/docker/nginx-oss/rpm/Dockerfile
+++ b/test/docker/nginx-oss/rpm/Dockerfile
@@ -21,11 +21,15 @@ RUN if [ "$OS_VERSION" = "2" ] && [ "$OS_RELEASE" = "amazonlinux" ]; \
     fi
 
 RUN if [ "$OS_RELEASE" = "amazonlinux" ]; \
-        then yum install -y shadow-utils; \
+        then yum install -y shadow-utils && yum install -y findutils; \
     fi
 
 RUN if [ "$OS_RELEASE" = "centos" ] && [ "$OS_VERSION" = "7" ]; \
         then yum install -y epel-release; \
+    fi 
+
+RUN if [ "$OS_RELEASE" = "rockylinux" ] && [ "$OS_VERSION" = "8" ]; \
+        then yum install -y findutils; \
     fi
 
 RUN if [ "$OS_RELEASE" = "redhatenterprise" ] && [ "$OS_VERSION" != "9" ]; \
@@ -87,7 +91,7 @@ FROM install-nginx as install-agent-local
 
 ARG PACKAGE_NAME
 
-RUN yum localinstall -y /agent/build/${PACKAGE_NAME}.rpm
+RUN yum localinstall -y /agent/build/$PACKAGE_NAME.rpm
 
 
 FROM install-nginx as install-agent-repo
diff --git a/test/integration/upgrade/nginx-oss.conf b/test/integration/upgrade/nginx-oss.conf
new file mode 100644
index 000000000..576c0591e
--- /dev/null
+++ b/test/integration/upgrade/nginx-oss.conf
@@ -0,0 +1,49 @@
+worker_processes  1;
+
+events {
+    worker_connections  1024;
+}
+
+http {
+    include       mime.types;
+    default_type  application/octet-stream;
+
+    log_format  main  '$remote_addr - $remote_user [$time_local] "$request" '
+                  '$status $body_bytes_sent "$http_referer" '
+                  '"$http_user_agent" "$http_x_forwarded_for" '
+                  '"$bytes_sent" "$request_length" "$request_time" '
+                  '"$gzip_ratio" $server_protocol ';
+
+    access_log  /var/log/nginx/access.log  main;
+
+    sendfile        on;
+    keepalive_timeout  65;
+
+    server {
+        listen       8080;
+        server_name  localhost;
+
+        location / {
+            root   /usr/share/nginx/html;
+            index  index.html index.htm;
+        }
+
+        ##
+        # Enable Metrics
+        ##
+        location /api {
+            stub_status;
+            allow 127.0.0.1;
+            deny all;
+        }
+
+        #error_page  404              /404.html;
+
+        # redirect server error pages to the static page /50x.html
+        #
+        error_page   500 502 503 504  /50x.html;
+        location = /50x.html {
+            root   /usr/share/nginx/html;
+        }
+    }
+}
diff --git a/test/integration/upgrade/nginx-plus.conf b/test/integration/upgrade/nginx-plus.conf
new file mode 100644
index 000000000..48ae54ecd
--- /dev/null
+++ b/test/integration/upgrade/nginx-plus.conf
@@ -0,0 +1,49 @@
+worker_processes  1;
+
+events {
+    worker_connections  1024;
+}
+
+http {
+    include       mime.types;
+    default_type  application/octet-stream;
+
+    log_format  main  '$remote_addr - $remote_user [$time_local] "$request" '
+                  '$status $body_bytes_sent "$http_referer" '
+                  '"$http_user_agent" "$http_x_forwarded_for" '
+                  '"$bytes_sent" "$request_length" "$request_time" '
+                  '"$gzip_ratio" $server_protocol ';
+
+    access_log  /var/log/nginx/access.log  main;
+
+    sendfile        on;
+    keepalive_timeout  65;
+
+    server {
+        listen       8080;
+        server_name  localhost;
+
+        location / {
+            root   /usr/share/nginx/html;
+            index  index.html index.htm;
+        }
+
+        ##
+        # Enable Metrics
+        ##
+        location /api/ {
+            api write=on;
+            allow 127.0.0.1;
+            deny all;
+        }
+
+        #error_page  404              /404.html;
+
+        # redirect server error pages to the static page /50x.html
+        #
+        error_page   500 502 503 504  /50x.html;
+        location = /50x.html {
+            root   /usr/share/nginx/html;
+        }
+    }
+}
diff --git a/test/integration/upgrade/test_configs/nginx-agent.conf b/test/integration/upgrade/test_configs/nginx-agent.conf
new file mode 100644
index 000000000..e5571b229
--- /dev/null
+++ b/test/integration/upgrade/test_configs/nginx-agent.conf
@@ -0,0 +1,57 @@
+#
+# /etc/nginx-agent/nginx-agent.conf
+#
+# Configuration file for NGINX Agent.
+#
+# This file is to track NGINX Agent configuration values that are meant to be statically set. There  
+# are additional NGINX Agent configuration values that are set via the API and NGINX Agent install script
+# which can be found in /var/lib/nginx-agent/agent-dynamic.conf. 
+
+log:
+  # set log level (panic, fatal, error, info, debug, trace; default "info")
+  level: info
+  # set log path. if empty, don't log to file.
+  path: /var/log/nginx-agent/
+# data plane status message / 'heartbeat'
+nginx:
+  # path of NGINX logs to exclude
+  exclude_logs: ""
+  socket: "unix:/var/run/nginx-agent/nginx.sock"
+
+server:
+  host: 127.0.0.1
+  grpcPort: 9091
+  token: ""
+tls:
+  enable: true
+  skip_verify: true
+
+dataplane:
+  status:
+    # poll interval for data plane status - the frequency the NGINX Agent will query the dataplane for changes
+    poll_interval: 30s
+    # report interval for data plane status - the maximum duration to wait before syncing dataplane information if no updates have being observed
+    report_interval: 24h
+
+metrics:
+  # specify the size of a buffer to build before sending metrics
+  bulk_size: 20
+  # specify metrics poll interval
+  report_interval: 1m
+  collection_interval: 15s
+  mode: aggregated
+
+# OSS NGINX default config path
+# path to aux file dirs can also be added
+config_dirs: "/etc/nginx:/usr/local/etc/nginx:/usr/share/nginx/modules:/etc/nms"
+
+  # api:
+  # The port at which NGINX Agent accepts remote connections
+  # The API address and port allow for remote management of NGINX and NGINX Agent
+  #
+  # ~~~ WARNING ~~~ 
+  # Set API address to allow remote management
+  # host: 127.0.0.1
+  # 
+  # Set this value to a secure port number to prevent information leaks. 
+  # port: 8038
diff --git a/test/integration/upgrade/test_configs/valid-v3-nginx-agent.conf b/test/integration/upgrade/test_configs/valid-v3-nginx-agent.conf
new file mode 100644
index 000000000..c4ccd0b76
--- /dev/null
+++ b/test/integration/upgrade/test_configs/valid-v3-nginx-agent.conf
@@ -0,0 +1,22 @@
+# /etc/nginx-agent/nginx-agent.conf
+
+log:
+  level: info
+  path: /var/log/nginx-agent/
+
+allowed_directories: 
+  - /etc/nginx
+  - /usr/local/etc/nginx
+  - /usr/share/nginx/modules
+  - /etc/nms
+  - /var/log/nginx
+  - /etc/app_protect
+
+command:
+    server:
+        host: 127.0.0.1
+        port: 443
+    auth:
+        token: 
+    tls:
+        skip_verify: false
diff --git a/test/integration/upgrade/upgrade_test.go b/test/integration/upgrade/upgrade_test.go
new file mode 100644
index 000000000..c6dc04153
--- /dev/null
+++ b/test/integration/upgrade/upgrade_test.go
@@ -0,0 +1,184 @@
+package upgrade
+
+import (
+	"bytes"
+	"context"
+	"io"
+	"os"
+	"regexp"
+	"strconv"
+	"strings"
+	"testing"
+	"time"
+
+	"github.com/nginx/agent/test/integration/utils"
+	log "github.com/sirupsen/logrus"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	"github.com/testcontainers/testcontainers-go"
+)
+
+const (
+	maxFileSize    = 70000000 // Max Size: 70 MB
+	maxUpgradeTime = 30 * time.Second
+)
+
+var (
+	osRelease  = os.Getenv("OS_RELEASE")
+	serverHost = map[string]string{
+		"NGINX_AGENT_SERVER_HOST": "127.0.0.1",
+	}
+
+	expectedUpgradeLogMsgs = map[string]string{
+		"UpgradeFoundNginxAgent": "Found nginx-agent /usr/bin/nginx-agent",
+		"UpgradeAgentSuccess":    "NGINX Agent package has been successfully installed.",
+		"UpgradeAgentStartCmd":   "sudo systemctl start nginx-agent",
+	}
+)
+
+func TestUpgradeV2ToV3(t *testing.T) {
+	// skip alpine due to upgrade script issues until bug is resolved
+	if strings.Contains(osRelease, "alpine") {
+		t.Skip("Skipping test because of alpine upgrade issues")
+	}
+
+	log.Info("testing agent upgrade to v3")
+	ctx := context.Background()
+	containerNetwork := utils.CreateContainerNetwork(ctx, t)
+
+	nginxConf := "./nginx-oss.conf"
+	if os.Getenv("IMAGE_PATH") == "/nginx-plus/agent" {
+		nginxConf = "./nginx-plus.conf"
+	}
+
+	params := &utils.Parameters{
+		NginxAgentConfigPath: "./test_configs/nginx-agent.conf",
+		NginxConfigPath:      nginxConf,
+		LogMessage:           "NGINX Agent v",
+		ServerHost:           serverHost,
+	}
+
+	testContainer := utils.StartContainer(
+		ctx,
+		t,
+		containerNetwork,
+		params,
+	)
+
+	// upgrade the agent to v3, check the upgrade time and verify the logs
+	verifyAgentUpgrade(ctx, t, testContainer)
+
+	// check the output of nginx-agent --version
+	verifyAgentVersion(ctx, t, testContainer)
+
+	// check the size of the upgraded agent package
+	verifyAgentPackageSize(ctx, t, testContainer)
+
+	// validate the nginx-agent config is upgraded and correct
+	verifyAgentConfigFile(ctx, t, testContainer)
+
+	log.Info("finished testing agent upgrade to v3")
+}
+
+func verifyAgentUpgrade(ctx context.Context, t *testing.T, testContainer testcontainers.Container) {
+	upgradeTime, cmdOut := upgradeAgent(ctx, t, testContainer)
+
+	assert.LessOrEqual(t, upgradeTime, maxUpgradeTime)
+	t.Log("upgrade time:", upgradeTime)
+
+	upgradeLog, err := io.ReadAll(cmdOut)
+	require.NoError(t, err)
+	t.Log("upgrade log:", string(upgradeLog))
+
+	for _, logMsg := range expectedUpgradeLogMsgs {
+		assert.Contains(t, string(upgradeLog), logMsg)
+	}
+}
+
+func verifyAgentVersion(ctx context.Context, t *testing.T, testContainer testcontainers.Container) {
+	exitCode, agentVersionString, err := testContainer.Exec(ctx, []string{"nginx-agent", "--version"})
+	require.NoError(t, err)
+	assert.Equal(t, 0, exitCode)
+
+	agentVersion, err := io.ReadAll(agentVersionString)
+	require.NoError(t, err)
+	assert.Contains(t, string(agentVersion), "nginx-agent version v3.")
+	t.Log("agent version:", string(agentVersion))
+}
+
+func verifyAgentPackageSize(ctx context.Context, t *testing.T, testContainer testcontainers.Container) {
+	var packageSizeCmd []string
+
+	if strings.Contains(osRelease, "ubuntu") || strings.Contains(osRelease, "debian") {
+		packageSizeCmd = []string{"dpkg-query", "-W", "--showformat=${Installed-Size}", "nginx-agent"}
+	} else if strings.Contains(osRelease, "alpine") {
+		packageSizeCmd = []string{"apk", "info", "-f", "nginx-agent", "--size"}
+	} else {
+		packageSizeCmd = []string{"rpm", "-q", "--queryformat", "%{SIZE}", "nginx-agent"}
+	}
+
+	exitCode, packageSizeContent, err := testContainer.Exec(ctx, packageSizeCmd)
+	require.NoError(t, err)
+	assert.Equal(t, 0, exitCode)
+
+	packageSizeBytes, err := io.ReadAll(packageSizeContent)
+	require.NoError(t, err)
+
+	re := regexp.MustCompile(`\d+`)
+	packageSizeStr := re.Find(packageSizeBytes)
+	packageSize, err := strconv.Atoi(string(packageSizeStr))
+	require.NoError(t, err)
+
+	// convert apt package size from KB to bytes
+	if strings.Contains(osRelease, "ubuntu") || strings.Contains(osRelease, "debian") {
+		packageSize *= 1024
+	}
+
+	assert.LessOrEqual(t, packageSize, maxFileSize)
+	t.Log("package size:", packageSize)
+}
+
+func verifyAgentConfigFile(ctx context.Context, t *testing.T, testContainer testcontainers.Container) {
+	agentConfigContent, err := testContainer.CopyFileFromContainer(ctx, "/etc/nginx-agent/nginx-agent.conf")
+	require.NoError(t, err)
+
+	agentConfig, err := io.ReadAll(agentConfigContent)
+	require.NoError(t, err)
+
+	expectedConfig, err := os.ReadFile("./test_configs/valid-v3-nginx-agent.conf")
+	require.NoError(t, err)
+
+	expectedConfig = bytes.TrimSpace(expectedConfig)
+	agentConfig = bytes.TrimSpace(agentConfig)
+
+	assert.Equal(t, string(expectedConfig), string(agentConfig))
+	t.Log("agent config:", string(agentConfig))
+}
+
+func upgradeAgent(ctx context.Context, t *testing.T, testContainer testcontainers.Container) (time.Duration, io.Reader) {
+	var updatePkgCmd []string
+	var upgradeAgentCmd []string
+
+	if strings.Contains(osRelease, "ubuntu") || strings.Contains(osRelease, "debian") {
+		updatePkgCmd = []string{"apt-get", "update"}
+		upgradeAgentCmd = []string{"apt-get", "install", "-y", "--only-upgrade", "nginx-agent", "-o", "Dpkg::Options::=--force-confold"}
+	} else if strings.Contains(osRelease, "alpine") {
+		updatePkgCmd = []string{"apk", "update"}
+		upgradeAgentCmd = []string{"apk", "add", "nginx-agent=3.2.1"}
+	} else {
+		updatePkgCmd = []string{"yum", "-y", "makecache"}
+		upgradeAgentCmd = []string{"yum", "update", "-y", "nginx-agent"}
+	}
+
+	exitCode, _, err := testContainer.Exec(ctx, updatePkgCmd)
+	require.NoError(t, err)
+	assert.Equal(t, 0, exitCode)
+
+	start := time.Now()
+
+	exitCode, cmdOut, err := testContainer.Exec(ctx, upgradeAgentCmd)
+	require.NoError(t, err)
+	assert.Equal(t, 0, exitCode)
+
+	return time.Since(start), cmdOut
+}
diff --git a/test/integration/utils/test_container_utils.go b/test/integration/utils/test_container_utils.go
index 77031b3ac..8310ef5b0 100644
--- a/test/integration/utils/test_container_utils.go
+++ b/test/integration/utils/test_container_utils.go
@@ -29,6 +29,7 @@ type Parameters struct {
 	NginxConfigPath      string
 	NginxAgentConfigPath string
 	LogMessage           string
+	ServerHost           map[string]string
 }
 
 func StartContainer(
@@ -73,6 +74,7 @@ func StartContainer(
 				buildOptions.Target = buildTarget
 			},
 		},
+		Env:          parameters.ServerHost,
 		ExposedPorts: []string{"9091/tcp"},
 		WaitingFor:   wait.ForLog(parameters.LogMessage),
 		HostConfigModifier: func(hostConfig *container.HostConfig) {