diff --git a/layout/base/tests/marionette/manifest.ini b/layout/base/tests/marionette/manifest.ini
new file mode 100644
index 00000000000..caf0e5943ab
--- /dev/null
+++ b/layout/base/tests/marionette/manifest.ini
@@ -0,0 +1,15 @@
+[DEFAULT]
+; true if the test requires an emulator, otherwise false
+qemu = false
+
+; true if the test is compatible with the browser, otherwise false
+browser = true
+
+; true if the test is compatible with b2g, otherwise false
+b2g = true
+
+; true if the test should be skipped
+skip = false
+
+[test_touchcaret.py]
+b2g = false ; Bug 1020261
diff --git a/layout/base/tests/marionette/test_touchcaret.py b/layout/base/tests/marionette/test_touchcaret.py
new file mode 100644
index 00000000000..2525f8b3e97
--- /dev/null
+++ b/layout/base/tests/marionette/test_touchcaret.py
@@ -0,0 +1,339 @@
+# -*- coding: utf-8 -*-
+# This Source Code Form is subject to the terms of the Mozilla Public
+# License, v. 2.0. If a copy of the MPL was not distributed with this
+# file, You can obtain one at http://mozilla.org/MPL/2.0/.
+
+import string
+
+from by import By
+from marionette import Actions
+from marionette_test import MarionetteTestCase
+
+
+class TouchCaretTest(MarionetteTestCase):
+    _input_selector = (By.ID, 'input')
+    _textarea_selector = (By.ID, 'textarea')
+    _contenteditable_selector = (By.ID, 'contenteditable')
+
+    def setUp(self):
+        # Code to execute before a tests are run.
+        MarionetteTestCase.setUp(self)
+        self.actions = Actions(self.marionette)
+
+    def openTestHtml(self, enabled=True):
+        '''Open html for testing and locate elements, and enable/disable touch
+        caret.'''
+        self.marionette.execute_script(
+            'SpecialPowers.setBoolPref("touchcaret.enabled", %s);' %
+            ('true' if enabled else 'false'))
+
+        test_html = self.marionette.absolute_url('test_touchcaret.html')
+        self.marionette.navigate(test_html)
+
+        self._input = self.marionette.find_element(*self._input_selector)
+        self._textarea = self.marionette.find_element(*self._textarea_selector)
+        self._contenteditable = self.marionette.find_element(*self._contenteditable_selector)
+
+    def is_input_or_textarea(self, element):
+        '''Return True if element is either <input> or <textarea>'''
+        return element.tag_name in ('input', 'textarea')
+
+    def get_js_selection_cmd(self, element):
+        '''Return a command snippet to get selection object.
+
+        If the element is <input> or <textarea>, return the selection object
+        associated with it. Otherwise, return the current selection object.
+
+        Note: "element" must be provided as the first argument to
+        execute_script().
+
+        '''
+        if self.is_input_or_textarea(element):
+            # We must unwrap sel so that DOMRect could be returned to Python
+            # side.
+            return '''var sel = SpecialPowers.wrap(arguments[0]).editor.selection;
+                   sel = SpecialPowers.unwrap(sel);'''
+        else:
+            return '''var sel = window.getSelection();'''
+
+    def caret_rect(self, element):
+        '''Return the caret's DOMRect object.
+
+        If the element is either <input> or <textarea>, return the caret's
+        DOMRect within the element. Otherwise, return the DOMRect of the
+        current selected caret.
+
+        '''
+        cmd = self.get_js_selection_cmd(element) +\
+            '''return sel.getRangeAt(0).getClientRects()[0];'''
+        return self.marionette.execute_script(cmd, script_args=[element])
+
+    def caret_location(self, element):
+        '''Return caret's center location by the number of characters offset
+        within the given element.
+
+        Return (x, y) coordinates of the caret's center by the number of
+        characters offset relative to the top left-hand corner of the given
+        element.
+
+        '''
+        rect = self.caret_rect(element)
+        x = rect['left'] + rect['width'] / 2.0 - element.location['x']
+        y = rect['top'] + rect['height'] / 2.0 - element.location['y']
+        return x, y
+
+    def touch_caret_location(self, element):
+        '''Return touch caret's location (based on current caret location).
+
+        Return (x, y) coordinates of the touch caret's tip relative to the top
+        left-hand corner of the given element.
+
+        '''
+        rect = self.caret_rect(element)
+        x = rect['left'] - element.location['x']
+
+        # Touch caret's tip is below the bottom of the caret. Add 5px to y
+        # should be sufficient to locate it.
+        y = rect['bottom'] + 5 - element.location['y']
+
+        return x, y
+
+    def move_caret_by_offset(self, element, offset, backward=False):
+        '''Move caret in the element by offset.'''
+        cmd = self.get_js_selection_cmd(element) +\
+            '''sel.modify("move", arguments[1], "character");'''
+        direction = 'backward' if backward else 'forward'
+
+        for i in range(offset):
+            self.marionette.execute_script(
+                cmd, script_args=[element, direction])
+
+    def move_caret_to_front(self, element):
+        if self.is_input_or_textarea(element):
+            cmd = '''arguments[0].setSelectionRange(0, 0);'''
+        else:
+            cmd = '''var sel = window.getSelection();
+                  sel.collapse(arguments[0].firstChild, 0);'''
+
+        self.marionette.execute_script(cmd, script_args=[element])
+
+    def move_caret_to_end(self, element):
+        if self.is_input_or_textarea(element):
+            cmd = '''var len = arguments[0].value.length;
+                  arguments[0].setSelectionRange(len, len);'''
+        else:
+            cmd = '''var sel = window.getSelection();
+                  sel.collapse(arguments[0].lastChild, arguments[0].lastChild.length);'''
+
+        self.marionette.execute_script(cmd, script_args=[element])
+
+    def get_content(self, element):
+        '''Return the content of the element.'''
+        if self.is_input_or_textarea(element):
+            return element.get_attribute('value')
+        else:
+            return element.text
+
+    def _test_move_caret_to_the_right_by_one_character(self, el, assertFunc):
+        content_to_add = '!'
+        target_content = self.get_content(el)
+        target_content = target_content[:1] + content_to_add + target_content[1:]
+
+        # Get touch caret (x, y) at position 1 and 2.
+        self.move_caret_to_front(el)
+        caret0_x, caret0_y = self.caret_location(el)
+        touch_caret0_x, touch_caret0_y = self.touch_caret_location(el)
+        self.move_caret_by_offset(el, 1)
+        touch_caret1_x, touch_caret1_y = self.touch_caret_location(el)
+
+        # Tap the front of the input to make touch caret appear.
+        el.tap(caret0_x, caret0_y)
+
+        # Move touch caret
+        self.actions.flick(el, touch_caret0_x, touch_caret0_y,
+                           touch_caret1_x, touch_caret1_y).perform()
+
+        el.send_keys(content_to_add)
+        assertFunc(target_content, self.get_content(el))
+
+    def _test_move_caret_to_end_by_dragging_touch_caret_to_bottom_right_corner(self, el, assertFunc):
+        content_to_add = '!'
+        target_content = self.get_content(el) + content_to_add
+
+        # Tap the front of the input to make touch caret appear.
+        self.move_caret_to_front(el)
+        el.tap(*self.caret_location(el))
+
+        # Move touch caret to the bottom-right corner of the element.
+        src_x, src_y = self.touch_caret_location(el)
+        dest_x, dest_y = el.size['width'], el.size['height']
+        self.actions.flick(el, src_x, src_y, dest_x, dest_y).perform()
+
+        el.send_keys(content_to_add)
+        assertFunc(target_content, self.get_content(el))
+
+    def _test_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self, el, assertFunc):
+        content_to_add = '!'
+        target_content = content_to_add + self.get_content(el)
+
+        # Tap to make touch caret appear. Note: it's strange that when the caret
+        # is at the end, the rect of the caret in <textarea> cannot be obtained.
+        # A bug perhaps.
+        self.move_caret_to_end(el)
+        self.move_caret_by_offset(el, 1, backward=True)
+        el.tap(*self.caret_location(el))
+
+        # Move touch caret to the top-left corner of the input box.
+        src_x, src_y = self.touch_caret_location(el)
+        dest_x, dest_y = 0, 0
+        self.actions.flick(el, src_x, src_y, dest_x, dest_y).perform()
+
+        el.send_keys(content_to_add)
+        assertFunc(target_content, self.get_content(el))
+
+    def _test_touch_caret_timeout_by_dragging_it_to_top_left_corner_after_timout(self, el, assertFunc):
+        content_to_add = '!'
+        non_target_content = content_to_add + self.get_content(el)
+
+        # Get touch caret timeout in millisecond, and convert it to second.
+        timeout = self.marionette.execute_script(
+            'return SpecialPowers.getIntPref("touchcaret.expiration.time");')
+        timeout /= 1000.0
+
+        # Tap to make touch caret appear. Note: it's strange that when the caret
+        # is at the end, the rect of the caret in <textarea> cannot be obtained.
+        # A bug perhaps.
+        self.move_caret_to_end(el)
+        self.move_caret_by_offset(el, 1, backward=True)
+        el.tap(*self.caret_location(el))
+
+        # Wait until touch caret disappears, then pretend to move it to the
+        # top-left corner of the input box.
+        src_x, src_y = self.touch_caret_location(el)
+        dest_x, dest_y = 0, 0
+        self.actions.wait(timeout).flick(el, src_x, src_y, dest_x, dest_y).perform()
+
+        el.send_keys(content_to_add)
+        assertFunc(non_target_content, self.get_content(el))
+
+    def _test_scroll_by_dragging_touch_caret_to_bottom_right_corner(self, el, assertFunc):
+        content_to_add = '!'
+        target_content = string.ascii_letters + content_to_add
+
+        # Insert a long string to test horizontal scrolling.
+        el.clear()
+        el.send_keys(string.ascii_letters)
+
+        # Tap to make touch caret appear.
+        el.tap()
+
+        # Move touch caret to 100px right to the bottom-right corner of the input
+        # box so that it could scroll faster.
+        src_x, src_y = self.touch_caret_location(el)
+        dest_x, dest_y = el.size['width'] + 100, el.size['height']
+        self.actions.flick(el, src_x, src_y, dest_x, dest_y).perform()
+
+        el.send_keys(content_to_add)
+        assertFunc(target_content, self.get_content(el))
+
+    ########################################################################
+    # <input> test cases with touch caret enabled
+    ########################################################################
+    def test_input_move_caret_to_the_right_by_one_character(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_the_right_by_one_character(self._input, self.assertEqual)
+
+    def test_input_move_caret_to_end_by_dragging_touch_caret_to_bottom_right_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_end_by_dragging_touch_caret_to_bottom_right_corner(self._input, self.assertEqual)
+
+    def test_input_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self._input, self.assertEqual)
+
+    def test_input_touch_caret_timeout(self):
+        self.openTestHtml(enabled=True)
+        self._test_touch_caret_timeout_by_dragging_it_to_top_left_corner_after_timout(self._input, self.assertNotEqual)
+
+    def test_input_scroll_by_dragging_touch_caret_to_bottom_right_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_scroll_by_dragging_touch_caret_to_bottom_right_corner(self._input, self.assertEqual)
+
+    ########################################################################
+    # <input> test cases with touch caret disabled
+    ########################################################################
+    def test_input_move_caret_to_the_right_by_one_character_disabled(self):
+        self.openTestHtml(enabled=False)
+        self._test_move_caret_to_the_right_by_one_character(self._input, self.assertNotEqual)
+
+    def test_input_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner_disabled(self):
+        self.openTestHtml(enabled=False)
+        self._test_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self._input, self.assertNotEqual)
+
+    ########################################################################
+    # <textarea> test cases with touch caret enabled
+    ########################################################################
+    def test_textarea_move_caret_to_the_right_by_one_character(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_the_right_by_one_character(self._textarea, self.assertEqual)
+
+    def test_textarea_move_caret_to_end_by_dragging_touch_caret_to_bottom_right_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_end_by_dragging_touch_caret_to_bottom_right_corner(self._textarea, self.assertEqual)
+
+    def test_textarea_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self._textarea, self.assertEqual)
+
+    def test_textarea_touch_caret_timeout(self):
+        self.openTestHtml(enabled=True)
+        self._test_touch_caret_timeout_by_dragging_it_to_top_left_corner_after_timout(self._textarea, self.assertNotEqual)
+
+    def test_textarea_scroll_by_dragging_touch_caret_to_bottom_right_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_scroll_by_dragging_touch_caret_to_bottom_right_corner(self._textarea, self.assertEqual)
+
+    ########################################################################
+    # <textarea> test cases with touch caret disabled
+    ########################################################################
+    def test_textarea_move_caret_to_the_right_by_one_character_disabled(self):
+        self.openTestHtml(enabled=False)
+        self._test_move_caret_to_the_right_by_one_character(self._textarea, self.assertNotEqual)
+
+    def test_textarea_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner_disabled(self):
+        self.openTestHtml(enabled=False)
+        self._test_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self._textarea, self.assertNotEqual)
+
+    ########################################################################
+    # <div> contenteditable test cases with touch caret enabled
+    ########################################################################
+    def test_contenteditable_move_caret_to_the_right_by_one_character(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_the_right_by_one_character(self._contenteditable, self.assertEqual)
+
+    def test_contenteditable_move_caret_to_end_by_dragging_touch_caret_to_bottom_right_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_end_by_dragging_touch_caret_to_bottom_right_corner(self._contenteditable, self.assertEqual)
+
+    def test_contenteditable_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self._contenteditable, self.assertEqual)
+
+    def test_contenteditable_touch_caret_timeout(self):
+        self.openTestHtml(enabled=True)
+        self._test_touch_caret_timeout_by_dragging_it_to_top_left_corner_after_timout(self._contenteditable, self.assertNotEqual)
+
+    def test_contenteditable_scroll_by_dragging_touch_caret_to_bottom_right_corner(self):
+        self.openTestHtml(enabled=True)
+        self._test_scroll_by_dragging_touch_caret_to_bottom_right_corner(self._contenteditable, self.assertEqual)
+
+    ########################################################################
+    # <div> contenteditable test cases with touch caret disabled
+    ########################################################################
+    def test_contenteditable_move_caret_to_the_right_by_one_character_disabled(self):
+        self.openTestHtml(enabled=False)
+        self._test_move_caret_to_the_right_by_one_character(self._contenteditable, self.assertNotEqual)
+
+    def test_contenteditable_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner_disabled(self):
+        self.openTestHtml(enabled=False)
+        self._test_move_caret_to_front_by_dragging_touch_caret_to_top_left_corner(self._contenteditable, self.assertNotEqual)
diff --git a/testing/marionette/client/marionette/tests/unit-tests.ini b/testing/marionette/client/marionette/tests/unit-tests.ini
index 9174d6c47fd..5f0768bfc27 100644
--- a/testing/marionette/client/marionette/tests/unit-tests.ini
+++ b/testing/marionette/client/marionette/tests/unit-tests.ini
@@ -27,3 +27,6 @@ skip = false
 [include:../../../../../dom/nfc/tests/marionette/manifest.ini]
 [include:../../../../../dom/events/test/marionette/manifest.ini]
 [include:../../../../../dom/wifi/test/marionette/manifest.ini]
+
+; layout tests
+[include:../../../../../layout/base/tests/marionette/manifest.ini]
diff --git a/testing/marionette/client/marionette/www/test_touchcaret.html b/testing/marionette/client/marionette/www/test_touchcaret.html
new file mode 100644
index 00000000000..24887704ecd
--- /dev/null
+++ b/testing/marionette/client/marionette/www/test_touchcaret.html
@@ -0,0 +1,17 @@
+<!-- This Source Code Form is subject to the terms of the Mozilla Public
+   - License, v. 2.0. If a copy of the MPL was not distributed with this
+   - file, You can obtain one at http://mozilla.org/MPL/2.0/. -->
+
+<!DOCTYPE html>
+<html id="html">
+  <head>
+    <title>Bug 960897: Marionette tests for touch caret</title>
+  </head>
+  <body>
+    <div><input id="input" value="ABCDEFGHI"></input></div>
+    <br />
+    <div><textarea name="textarea" id="textarea" rows="4" cols="6">ABCDEFGHI</textarea></div>
+    <br />
+    <div style="width: 10em; height: 2em; word-wrap: break-word; overflow: auto;" contenteditable="true" id="contenteditable">ABCDEFGHI</div>
+  </body>
+</html>