diff --git a/mod/folder/tests/generator/lib.php b/mod/folder/tests/generator/lib.php
new file mode 100644
index 00000000000..00c93b5d046
--- /dev/null
+++ b/mod/folder/tests/generator/lib.php
@@ -0,0 +1,49 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+/**
+ * mod_folder data generator.
+ *
+ * @package    mod_folder
+ * @category   test
+ * @copyright  2013 Marina Glancy
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+
+defined('MOODLE_INTERNAL') || die();
+
+/**
+ * mod_folder data generator class.
+ *
+ * @package    mod_folder
+ * @category   test
+ * @copyright  2013 Marina Glancy
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+class mod_folder_generator extends testing_module_generator {
+
+    public function create_instance($record = null, array $options = null) {
+        // Add default values for folder.
+        $record = (array)$record + array('display' => 0);
+        if (!isset($record['showexpanded'])) {
+            $record['showexpanded'] = get_config('folder', 'showexpanded');
+        }
+        if (!isset($record['files'])) {
+            $record['files'] = file_get_unused_draft_itemid();
+        }
+        return parent::create_instance($record, (array)$options);
+    }
+}
diff --git a/mod/folder/tests/generator_test.php b/mod/folder/tests/generator_test.php
new file mode 100644
index 00000000000..f97af26cf32
--- /dev/null
+++ b/mod/folder/tests/generator_test.php
@@ -0,0 +1,68 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+/**
+ * mod_folder generator tests
+ *
+ * @package    mod_folder
+ * @category   test
+ * @copyright  2013 Marina Glancy
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+
+/**
+ * Genarator tests class for mod_folder.
+ *
+ * @package    mod_folder
+ * @category   test
+ * @copyright  2013 Marina Glancy
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+class mod_folder_generator_testcase extends advanced_testcase {
+
+    public function test_create_instance() {
+        global $DB, $USER;
+        $this->resetAfterTest();
+        $this->setAdminUser();
+
+        $course = $this->getDataGenerator()->create_course();
+
+        $this->assertFalse($DB->record_exists('folder', array('course' => $course->id)));
+        $folder = $this->getDataGenerator()->create_module('folder', array('course' => $course));
+        $records = $DB->get_records('folder', array('course' => $course->id), 'id');
+        $this->assertEquals(1, count($records));
+        $this->assertTrue(array_key_exists($folder->id, $records));
+
+        $params = array('course' => $course->id, 'name' => 'Another folder');
+        $folder = $this->getDataGenerator()->create_module('folder', $params);
+        $records = $DB->get_records('folder', array('course' => $course->id), 'id');
+        $this->assertEquals(2, count($records));
+        $this->assertEquals('Another folder', $records[$folder->id]->name);
+
+        // Examples of adding a folder with files (do not validate anything, just check for exceptions).
+        $params = array(
+            'course' => $course->id,
+            'files' => file_get_unused_draft_itemid()
+        );
+        $usercontext = context_user::instance($USER->id);
+        $filerecord = array('component' => 'user', 'filearea' => 'draft',
+                'contextid' => $usercontext->id, 'itemid' => $params['files'],
+                'filename' => 'file1.txt', 'filepath' => '/');
+        $fs = get_file_storage();
+        $fs->create_file_from_string($filerecord, 'Test file contents');
+        $folder = $this->getDataGenerator()->create_module('folder', $params);
+    }
+}