diff --git a/pom.xml b/pom.xml
index b079231..58c4f0f 100644
--- a/pom.xml
+++ b/pom.xml
@@ -193,6 +193,12 @@
             <version>${aws.sdkv2.version}</version>
             <scope>provided</scope>
         </dependency>
+        <dependency>
+            <groupId>software.amazon.awssdk</groupId>
+            <artifactId>iam</artifactId>
+            <version>${aws.sdkv2.version}</version>
+            <scope>provided</scope>
+        </dependency>
         <dependency>
             <groupId>software.amazon.awssdk</groupId>
             <artifactId>netty-nio-client</artifactId>
diff --git a/src/main/java/cloud/localstack/awssdkv2/TestUtils.java b/src/main/java/cloud/localstack/awssdkv2/TestUtils.java
index a5d1c36..ae9d3d6 100644
--- a/src/main/java/cloud/localstack/awssdkv2/TestUtils.java
+++ b/src/main/java/cloud/localstack/awssdkv2/TestUtils.java
@@ -12,6 +12,7 @@
 import software.amazon.awssdk.services.s3.*;
 import software.amazon.awssdk.services.secretsmanager.SecretsManagerAsyncClient;
 import software.amazon.awssdk.services.ssm.*;
+import software.amazon.awssdk.services.iam.*;
 import software.amazon.awssdk.auth.credentials.*;
 import software.amazon.awssdk.http.nio.netty.NettyNioAsyncHttpClient;
 import software.amazon.awssdk.core.client.builder.SdkAsyncClientBuilder;
@@ -62,7 +63,11 @@ public static CloudWatchAsyncClient getClientCloudWatchAsyncV2() {
     public static LambdaAsyncClient getClientLambdaAsyncV2() {
         return wrapApiClientV2(LambdaAsyncClient.builder(), Localstack.INSTANCE.getEndpointCloudWatch()).build();
     }
-
+    
+    public static IamAsyncClient getClientIamAsyncV2() {
+        return wrapApiClientV2(IamAsyncClient.builder(), Localstack.INSTANCE.getEndpointIAM()).build();
+    }
+    
     public static <T extends SdkAsyncClientBuilder> T wrapApiClientV2(T builder, String endpointURL) {
         try {
             return (T) ((AwsClientBuilder)builder
diff --git a/src/test/java/cloud/localstack/IAMTest.java b/src/test/java/cloud/localstack/IAMTest.java
new file mode 100644
index 0000000..0ea5e83
--- /dev/null
+++ b/src/test/java/cloud/localstack/IAMTest.java
@@ -0,0 +1,67 @@
+package cloud.localstack;
+
+import static org.junit.Assert.assertEquals;
+import static org.junit.jupiter.api.Assertions.assertTrue;
+
+import cloud.localstack.docker.annotation.LocalstackDockerProperties;
+import cloud.localstack.awssdkv1.TestUtils;
+
+import java.util.*;
+import java.util.concurrent.atomic.AtomicBoolean;
+
+import com.amazonaws.services.identitymanagement.AmazonIdentityManagement;
+import com.amazonaws.services.identitymanagement.model.*;
+
+import org.junit.Test;
+import org.junit.runner.RunWith;
+
+
+@RunWith(LocalstackTestRunner.class)
+@LocalstackDockerProperties(services = {"iam"}, ignoreDockerRunErrors=true)
+public class IAMTest {
+
+	/**
+	 * Test the creation of a IAM user.
+	 */
+	@Test
+	public void testUserCreation() throws Exception {
+		AmazonIdentityManagement iamClient = TestUtils.getClientIAM();
+
+		String username =  UUID.randomUUID().toString();
+		CreateUserRequest createUserRequest = new CreateUserRequest(username);
+		iamClient.createUser(createUserRequest);
+
+		ListUsersRequest listUsersRequest = new ListUsersRequest();
+		ListUsersResult response = iamClient.listUsers(listUsersRequest);
+
+		boolean userFound = false;
+		for (User user : response.getUsers()) {
+
+			if(user.getUserName().equals(username)){
+				userFound = true;
+				break;
+			}
+		}
+
+		assertEquals(true, userFound);
+
+	}
+    
+	@Test
+	public void testIAMListUserPagination() throws Exception {
+		AmazonIdentityManagement iamClient = TestUtils.getClientIAM();
+
+		String username = UUID.randomUUID().toString();
+		CreateUserRequest createUserRequest = new CreateUserRequest(username);
+		iamClient.createUser(createUserRequest);
+
+		AtomicBoolean userFound = new AtomicBoolean(false);
+		iamClient.listUsers().getUsers().forEach(user->{
+			if(user.getUserName().equals(username)){
+				userFound.set(true);;
+			}
+		});
+		
+		assertTrue(userFound.get());
+	}
+}
diff --git a/src/test/java/cloud/localstack/awssdkv2/BasicFeaturesSDKV2Test.java b/src/test/java/cloud/localstack/awssdkv2/BasicFeaturesSDKV2Test.java
index d2d8657..ff297e3 100644
--- a/src/test/java/cloud/localstack/awssdkv2/BasicFeaturesSDKV2Test.java
+++ b/src/test/java/cloud/localstack/awssdkv2/BasicFeaturesSDKV2Test.java
@@ -2,6 +2,7 @@
 
 import cloud.localstack.Constants;
 import cloud.localstack.LocalstackTestRunner;
+import cloud.localstack.docker.annotation.LocalstackDockerProperties;
 import cloud.localstack.sample.LambdaHandler;
 import cloud.localstack.utils.LocalTestUtil;
 
@@ -12,6 +13,9 @@
 import software.amazon.awssdk.services.cloudwatch.model.*;
 import software.amazon.awssdk.services.dynamodb.DynamoDbAsyncClient;
 import software.amazon.awssdk.services.dynamodb.model.*;
+import software.amazon.awssdk.services.iam.*;
+import software.amazon.awssdk.services.iam.model.*;
+import software.amazon.awssdk.services.iam.paginators.ListUsersPublisher;
 import software.amazon.awssdk.services.kinesis.*;
 import software.amazon.awssdk.services.kinesis.model.*;
 import software.amazon.awssdk.services.lambda.model.CreateFunctionRequest;
@@ -42,8 +46,11 @@
 
 import software.amazon.awssdk.core.SdkBytes;
 import java.util.concurrent.CompletableFuture;
+import java.util.concurrent.TimeUnit;
+import java.util.concurrent.atomic.AtomicBoolean;
 
 @RunWith(LocalstackTestRunner.class)
+@LocalstackDockerProperties(ignoreDockerRunErrors=true)
 public class BasicFeaturesSDKV2Test {
 
     static {
@@ -258,4 +265,47 @@ public void testLambdaCreateListFunctions() throws Exception {
         val function = functions.functions().stream().filter(f -> f.functionName().equals(functionName)).findFirst().get();
         Assert.assertNotNull(function);
     }
+	
+    @Test
+	public void testIAMUserCreation() throws Exception {
+		IamAsyncClient iamClient = TestUtils.getClientIamAsyncV2();
+
+		String username =  UUID.randomUUID().toString();
+		CreateUserRequest createUserRequest = CreateUserRequest.builder().userName(username).build();
+		iamClient.createUser(createUserRequest);
+		
+        boolean userFound = false;
+        List<User> users = iamClient.listUsers().get().users();
+
+
+        for (int i = 0; i < users.size(); i++) {
+            System.out.println(users.get(i).userName());
+            if(users.get(i).userName().equals(username)){
+                userFound = true;
+                break;
+            }
+        }
+
+		Assert.assertTrue(userFound);
+	}
+	
+    @Test
+    public void testIAMListUserPagination() throws Exception {
+		IamAsyncClient iamClient = TestUtils.getClientIamAsyncV2();
+
+		String username = UUID.randomUUID().toString();
+		CreateUserRequest createUserRequest = CreateUserRequest.builder().userName(username).build();
+		iamClient.createUser(createUserRequest);
+		
+
+       AtomicBoolean userFound = new AtomicBoolean(false);
+       iamClient.listUsersPaginator().users().subscribe(user -> {
+           if(user.userName().equals(username)){
+               userFound.set(true);
+           }
+       });
+        
+       TimeUnit.SECONDS.sleep(2);
+       Assert.assertTrue(userFound.get());
+	}
 }