diff --git a/monkey/monkey_island/cc/services/telemetry/processing/system_info_collectors/test_environment.py b/monkey/monkey_island/cc/services/telemetry/processing/system_info_collectors/test_environment.py
new file mode 100644
index 000000000..f85b2b88c
--- /dev/null
+++ b/monkey/monkey_island/cc/services/telemetry/processing/system_info_collectors/test_environment.py
@@ -0,0 +1,31 @@
+import uuid
+
+from monkey_island.cc.models import Monkey
+from monkey_island.cc.services.telemetry.processing.system_info_collectors.system_info_telemetry_dispatcher import \
+    SystemInfoTelemetryDispatcher
+from monkey_island.cc.testing.IslandTestCase import IslandTestCase
+
+
+class TestEnvironmentTelemetryProcessing(IslandTestCase):
+    def test_process_environment_telemetry(self):
+        self.fail_if_not_testing_env()
+        self.clean_monkey_db()
+
+        # Arrange
+        monkey_guid = str(uuid.uuid4())
+        a_monkey = Monkey(guid=monkey_guid)
+        a_monkey.save()
+        dispatcher = SystemInfoTelemetryDispatcher()
+
+        on_premise = "On Premise"
+        telem_json = {
+            "data": {
+                "collectors": {
+                    "EnvironmentCollector": {"environment": on_premise},
+                }
+            },
+            "monkey_guid": monkey_guid
+        }
+        dispatcher.dispatch_collector_results_to_relevant_processors(telem_json)
+
+        self.assertEqual(Monkey.get_single_monkey_by_guid(monkey_guid).environment, on_premise)