diff --git a/monkey/tests/conftest.py b/monkey/tests/conftest.py
index 81806ef69..328cb109c 100644
--- a/monkey/tests/conftest.py
+++ b/monkey/tests/conftest.py
@@ -46,3 +46,20 @@ def with_data_dir(environment_resources_dir):
 @pytest.fixture(scope="session")
 def with_data_dir_home(environment_resources_dir):
     return os.path.join(environment_resources_dir, "server_config_with_data_dir_home.json")
+
+
+@pytest.fixture(scope="session")
+def server_config_resources_dir(resources_dir):
+    return os.path.join(resources_dir, "server_configs")
+
+
+@pytest.fixture(scope="session")
+def test_server_config(server_config_resources_dir):
+    return os.path.join(server_config_resources_dir, "test_server_config.json")
+
+
+@pytest.fixture
+def mock_home_env(monkeypatch, tmpdir):
+    monkeypatch.setenv("HOME", str(tmpdir))
+
+    return tmpdir
diff --git a/monkey/tests/monkey_island/test_config_loader.py b/monkey/tests/monkey_island/test_config_loader.py
new file mode 100644
index 000000000..ac2e35377
--- /dev/null
+++ b/monkey/tests/monkey_island/test_config_loader.py
@@ -0,0 +1,10 @@
+import os
+
+from monkey_island import config_loader
+
+
+def test_load_server_config_from_file(test_server_config, mock_home_env):
+    (data_dir, log_level) = config_loader.load_server_config(test_server_config)
+
+    assert data_dir == os.path.join(mock_home_env, ".monkey_island")
+    assert log_level == "NOTICE"
diff --git a/monkey/tests/resources/server_configs/test_server_config.json b/monkey/tests/resources/server_configs/test_server_config.json
new file mode 100644
index 000000000..25082b0b3
--- /dev/null
+++ b/monkey/tests/resources/server_configs/test_server_config.json
@@ -0,0 +1,4 @@
+{
+    "data_dir": "~/.monkey_island",
+    "log_level": "NOTICE"
+}