diff --git a/Makefile.am b/Makefile.am
index e7f90474..88838733 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -204,6 +204,7 @@ BATS = \
 	test/functional/update/update-newest-deleted.bats \
 	test/functional/update/update-newest-ghosted.bats \
 	test/functional/update/update-non-responsive.bats \
+	test/functional/update/update-no-disk-space.bats \
 	test/functional/update/update-older-server-version.bats \
 	test/functional/update/update-rename.bats \
 	test/functional/update/update-rename-ghosted.bats \
diff --git a/test/functional/update/update-no-disk-space.bats b/test/functional/update/update-no-disk-space.bats
new file mode 100755
index 00000000..de0369ad
--- /dev/null
+++ b/test/functional/update/update-no-disk-space.bats
@@ -0,0 +1,178 @@
+#!/usr/bin/env bats
+
+# Author: Castulo Martinez
+# Email: castulo.martinez@intel.com
+
+load "../testlib"
+
+test_setup() {
+
+	# create a test environment with 10 MB of space and a
+	# bundle "test-bundle" installed on it
+	create_test_environment -s 10 "$TEST_NAME"
+	create_bundle -L -n test-bundle -f /foo "$TEST_NAME"
+
+	# create a new version 20
+	create_version "$TEST_NAME" 20 10
+
+	# create a file with a size of 20 MB and create an update
+	# for test-bundle that adds that file
+	file1=/test-file:"$(create_file "$WEBDIR"/20/files 20MB)"
+	update_bundle "$TEST_NAME" test-bundle --add "$file1"
+
+	# create the state version dirs ahead of time
+	sudo mkdir "$TEST_NAME"/testfs/state/10
+	sudo mkdir "$TEST_NAME"/testfs/state/20
+
+}
+
+@test "UPD042: Updating a system with no disk space left (downloading the current MoM)" {
+
+	# When updating a system and we run out of disk space while downloading the
+	# MoMs we should not retry the download since it will fail for sure
+
+	# fill up all the space in the disk
+	sudo dd if=/dev/zero of="$TEST_NAME"/testfs/dummy >& /dev/null || print "Using all space left in disk"
+
+	run sudo sh -c "timeout 30 $SWUPD update $SWUPD_OPTS"
+
+	assert_status_is "$EMOM_LOAD"
+	expected_output=$(cat <<-EOM
+		Update started.
+		Preparing to update from 10 to 20
+		Curl: Error downloading to local file - $TEST_DIRNAME/testfs/state/10/Manifest.MoM.tar
+		Check free space for $TEST_DIRNAME/testfs/state?
+		Failed to retrieve 10 MoM manifest
+		Update failed.
+	EOM
+	)
+	assert_is_output "$expected_output"
+
+}
+
+@test "UPD043: Updating a system with no disk space left (downloading the server MoM)" {
+
+	# When updating a system and we run out of disk space while downloading the
+	# MoMs we should not retry the download since it will fail for sure
+
+	# let's replace the bundle Manifest tar with a much larger file that will exceed
+	# the available space on disk
+	sudo rm "$WEBDIR"/20/Manifest.MoM
+	sudo rm "$WEBDIR"/20/Manifest.MoM.tar
+	fake_manifest=$(create_file "$WEBDIR"/20 15MB)
+	manifest_name=$(basename "$fake_manifest")
+	sudo mv "$WEBDIR"/20/"$manifest_name" "$WEBDIR"/20/Manifest.MoM
+	sudo mv "$WEBDIR"/20/"$manifest_name".tar "$WEBDIR"/20/Manifest.MoM.tar
+
+	run sudo sh -c "timeout 30 $SWUPD update $SWUPD_OPTS"
+
+	assert_status_is "$EMOM_LOAD"
+	expected_output=$(cat <<-EOM
+		Update started.
+		Preparing to update from 10 to 20
+		Curl: Error downloading to local file - $TEST_DIRNAME/testfs/state/20/Manifest.MoM.tar
+		Check free space for $TEST_DIRNAME/testfs/state?
+		Failed to retrieve 20 MoM manifest
+		Update failed.
+	EOM
+	)
+	assert_is_output "$expected_output"
+
+}
+
+@test "UPD044: Updating a system with no disk space left (downloading the current bundle manifests)" {
+
+	# When updating a system and we run out of disk space while downloading the
+	# bundle manifest we should not retry the download since it will fail for sure
+
+	# let's replace the bundle Manifest tar with a much larger file that will exceed
+	# the available space on disk
+	sudo rm "$WEBDIR"/10/Manifest.test-bundle
+	sudo rm "$WEBDIR"/10/Manifest.test-bundle.tar
+	fake_manifest=$(create_file "$WEBDIR"/10 15MB)
+	manifest_name=$(basename "$fake_manifest")
+	sudo mv "$WEBDIR"/10/"$manifest_name" "$WEBDIR"/10/Manifest.test-bundle
+	sudo mv "$WEBDIR"/10/"$manifest_name".tar "$WEBDIR"/10/Manifest.test-bundle.tar
+
+	run sudo sh -c "timeout 30 $SWUPD update $SWUPD_OPTS"
+
+	assert_status_is "$ERECURSE_MANIFEST"
+	expected_output=$(cat <<-EOM
+		Update started.
+		Preparing to update from 10 to 20
+		Curl: Error downloading to local file - $TEST_DIRNAME/testfs/state/10/Manifest.test-bundle.tar
+		Check free space for $TEST_DIRNAME/testfs/state?
+		Failed to retrieve 10 test-bundle manifest
+		Cannot load current MoM sub-manifests, exiting
+		Update failed.
+	EOM
+	)
+	assert_is_output "$expected_output"
+
+}
+
+@test "UPD045: Updating a system with no disk space left (downloading the server bundle manifests)" {
+
+	# When updating a system and we run out of disk space while downloading the
+	# bundle manifest we should not retry the download since it will fail for sure
+
+	# let's replace the bundle Manifest tar with a much larger file that will exceed
+	# the available space on disk
+	sudo rm "$WEBDIR"/20/Manifest.test-bundle
+	sudo rm "$WEBDIR"/20/Manifest.test-bundle.tar
+	fake_manifest=$(create_file "$WEBDIR"/20 15MB)
+	manifest_name=$(basename "$fake_manifest")
+	sudo mv "$WEBDIR"/20/"$manifest_name" "$WEBDIR"/20/Manifest.test-bundle
+	sudo mv "$WEBDIR"/20/"$manifest_name".tar "$WEBDIR"/20/Manifest.test-bundle.tar
+
+	run sudo sh -c "timeout 30 $SWUPD update $SWUPD_OPTS"
+
+	assert_status_is "$ERECURSE_MANIFEST"
+	expected_output=$(cat <<-EOM
+		Update started.
+		Preparing to update from 10 to 20
+		Curl: Error downloading to local file - $TEST_DIRNAME/testfs/state/20/Manifest.test-bundle.tar
+		Check free space for $TEST_DIRNAME/testfs/state?
+		Failed to retrieve 20 test-bundle manifest
+		Unable to download manifest test-bundle version 20, exiting now
+		Update failed.
+	EOM
+	)
+	assert_is_output "$expected_output"
+
+}
+
+@test "UPD046: Updating a system with no disk space left (downloading the bundle files)" {
+
+	# When updating a system and we run out of disk space while downloading the
+	# bundle files we should not retry the download since it will fail for sure
+
+	file_hash=$(get_hash_from_manifest "$WEBDIR"/20/Manifest.test-bundle /test-file)
+
+	run sudo sh -c "timeout 30 $SWUPD update $SWUPD_OPTS"
+
+	assert_status_is "$EFILEDOWNLOAD"
+	expected_output=$(cat <<-EOM
+		Update started.
+		Preparing to update from 10 to 20
+		Downloading packs...
+		Error for $TEST_DIRNAME/testfs/state/pack-test-bundle-from-10-to-20.tar download: Response 0 - Failed writing received data to disk/application
+		Check free space for $TEST_DIRNAME/testfs/state?
+		Statistics for going from version 10 to version 20:
+		    changed bundles   : 1
+		    new bundles       : 0
+		    deleted bundles   : 0
+		    changed files     : 0
+		    new files         : 1
+		    deleted files     : 0
+		Starting download of remaining update content. This may take a while...
+		Finishing download of update content...
+		Error for $TEST_DIRNAME/testfs/state/download/.$file_hash.tar download: Response 0 - Failed writing received data to disk/application
+		Check free space for $TEST_DIRNAME/testfs/state?
+		ERROR: Could not download all files, aborting update
+		Update failed.
+	EOM
+	)
+	assert_is_output "$expected_output"
+
+}