diff --git a/test/system/ssh_keys_test.go b/test/system/ssh_keys_test.go
new file mode 100644
index 000000000..13aa7b2f9
--- /dev/null
+++ b/test/system/ssh_keys_test.go
@@ -0,0 +1,128 @@
+// Copyright 2020 The Lokomotive Authors
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+// +build aws aws_edge baremetal packet
+// +build e2e
+
+package system_test
+
+import (
+	"crypto/sha512"
+	"fmt"
+	"os"
+	"strings"
+	"testing"
+
+	appsv1 "k8s.io/api/apps/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"sigs.k8s.io/yaml"
+
+	testutil "github.com/kinvolk/lokomotive/test/components/util"
+)
+
+const (
+	// sshKeyEnv is an environment variable from which we take the SSH key
+	// to be used in testing.
+	sshKeyEnv = "PUB_KEY"
+)
+
+// authorizedKeysSHA512 takes a list of public SSH keys as an argument and calculates their
+// SHA512, thus mimicking the behavior of the following command: `sha512sum /home/core/.ssh/authorized_keys`.
+// The format of authorized_keys should match what the 'update-ssh-keys' command generates on Flatcar.
+func authorizedKeysSHA512(keys []string) string {
+	plain := ""
+
+	for _, key := range keys {
+		// Trim the key before appending to make sure it does not contain
+		// a newline.
+		plain += fmt.Sprintf("%s\n", strings.TrimSpace(key))
+	}
+
+	// Add one more extra line to the file, this is what Ignition does.
+	plain += "\n"
+
+	return fmt.Sprintf("%x", sha512.Sum512([]byte(plain)))
+}
+
+// Define manifest as YAML and then unmarshal it to a Go struct so that it is easier to
+// write and debug, as it can be copy-pasted to a file and applied manually.
+const noExtraSSHKeysOnNodesDSManifest = `apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  generateName: test-ssh-keys-
+spec:
+  selector:
+    matchLabels:
+      name: test-ssh-keys
+  template:
+    metadata:
+      labels:
+        name: test-ssh-keys
+    spec:
+      tolerations:
+      - key: node-role.kubernetes.io/master
+        effect: NoSchedule
+      terminationGracePeriodSeconds: 1
+      containers:
+      - name: test-ssh-keys
+        image: ubuntu
+        command: ["bash"]
+        volumeMounts:
+        - name: ssh
+          mountPath: /home/core/.ssh
+          readOnly: true
+      volumes:
+      - name: ssh
+        hostPath:
+          path: /home/core/.ssh
+`
+
+func TestNoExtraSSHKeysOnNodes(t *testing.T) {
+	t.Parallel()
+
+	key := os.Getenv(sshKeyEnv)
+	if key == "" {
+		t.Skipf("%q environment variable not set", sshKeyEnv)
+	}
+
+	namespace := "kube-system"
+
+	client := testutil.CreateKubeClient(t)
+
+	sum := authorizedKeysSHA512([]string{key})
+
+	ds := &appsv1.DaemonSet{}
+	if err := yaml.Unmarshal([]byte(noExtraSSHKeysOnNodesDSManifest), ds); err != nil {
+		t.Fatalf("failed unmarshaling manifest: %v", err)
+	}
+
+	// Set the right arguments from the manifest with the desired SHA512 sum.
+	ds.Spec.Template.Spec.Containers[0].Args = []string{
+		"-c",
+		fmt.Sprintf("sha512sum --status -c <(echo %s /home/core/.ssh/authorized_keys) && exec tail -f /dev/null", sum), //nolint:lll
+	}
+
+	ds, err := client.AppsV1().DaemonSets(namespace).Create(ds)
+	if err != nil {
+		t.Fatalf("failed to create DaemonSet: %v", err)
+	}
+
+	testutil.WaitForDaemonSet(t, client, namespace, ds.ObjectMeta.Name, testutil.RetryInterval, testutil.Timeout)
+
+	t.Cleanup(func() {
+		if err := client.AppsV1().DaemonSets(namespace).Delete(ds.ObjectMeta.Name, &metav1.DeleteOptions{}); err != nil {
+			t.Logf("failed to remove DaemonSet: %v", err)
+		}
+	})
+}