diff --git a/fboss/agent/test/agent_hw_tests/AgentTrafficPfcTests.cpp b/fboss/agent/test/agent_hw_tests/AgentTrafficPfcTests.cpp
new file mode 100644
index 0000000000000..37630f235f48d
--- /dev/null
+++ b/fboss/agent/test/agent_hw_tests/AgentTrafficPfcTests.cpp
@@ -0,0 +1,380 @@
+// (c) Meta Platforms, Inc. and affiliates. Confidential and proprietary.
+
+#include <folly/MapUtil.h>
+
+#include "fboss/agent/TxPacket.h"
+#include "fboss/agent/packet/PktFactory.h"
+#include "fboss/agent/test/AgentHwTest.h"
+#include "fboss/agent/test/EcmpSetupHelper.h"
+#include "fboss/agent/test/utils/ConfigUtils.h"
+#include "fboss/agent/test/utils/PfcTestUtils.h"
+#include "fboss/agent/test/utils/QosTestUtils.h"
+#include "fboss/lib/CommonUtils.h"
+
+DEFINE_bool(
+    skip_stop_pfc_test_traffic,
+    false,
+    "Skip stopping traffic after traffic test!");
+
+namespace {
+
+using facebook::fboss::utility::PfcBufferParams;
+using facebook::fboss::utility::setupPfcBuffers;
+
+static constexpr auto kGlobalSharedBytes{20000};
+static constexpr auto kPgLimitBytes{2200};
+static constexpr auto kPgResumeOffsetBytes{1800};
+static constexpr auto kGlobalIngressEgressBufferPoolSize{
+    5064760}; // Keep a high pool size for DNX
+static constexpr auto kLosslessTrafficClass{2};
+static constexpr auto kLosslessPriority{2};
+static const std::vector<int> kLosslessPgIds{2, 3};
+// Hardcoding register value to force PFC generation for port 2,
+// kLosslessPriority for DNX. This needs to be modified if the
+// port used in test or PFC priority changes! Details of how to
+// compute the value to use for a port/priority is captured in
+// CS00012321021. To summarize,
+//    value = 1 << ((port_first_phy - core_first_phy)*8 + priority,
+// with port_first_phy from "port management dump full port=<>",
+// core_first_phy from "dnx data dump nif.phys.nof_phys_per_core".
+static const std::
+    map<std::tuple<facebook::fboss::cfg::AsicType, int, int>, std::string>
+        kRegValToForcePfcTxForPriorityOnPortDnx = {
+            {std::make_tuple(
+                 facebook::fboss::cfg::AsicType::ASIC_TYPE_JERICHO2,
+                 2,
+                 2),
+             "0x40000000000000000"},
+            {std::make_tuple(
+                 facebook::fboss::cfg::AsicType::ASIC_TYPE_JERICHO3,
+                 8,
+                 2),
+             "4"},
+};
+
+struct TrafficTestParams {
+  std::string name;
+  PfcBufferParams buffer = PfcBufferParams{};
+  bool expectDrop = false;
+  bool scale = false;
+};
+
+std::tuple<int, int, int> getPfcTxRxXonHwPortStats(
+    facebook::fboss::AgentEnsemble* ensemble,
+    const facebook::fboss::HwPortStats& portStats,
+    const int pfcPriority) {
+  return {
+      folly::get_default(portStats.get_outPfc_(), pfcPriority, 0),
+      folly::get_default(portStats.get_inPfc_(), pfcPriority, 0),
+      ensemble->getSw()->getHwAsicTable()->isFeatureSupportedOnAllAsic(
+          facebook::fboss::HwAsic::Feature::PFC_XON_TO_XOFF_COUNTER)
+          ? folly::get_default(portStats.get_inPfcXon_(), pfcPriority, 0)
+          : 0};
+}
+
+void waitPfcCounterIncrease(
+    facebook::fboss::AgentEnsemble* ensemble,
+    const facebook::fboss::PortID& portId,
+    const int pfcPriority) {
+  int txPfcCtr = 0, rxPfcCtr = 0, rxPfcXonCtr = 0;
+
+  WITH_RETRIES({
+    auto portStats = ensemble->getLatestPortStats(portId);
+    std::tie(txPfcCtr, rxPfcCtr, rxPfcXonCtr) =
+        getPfcTxRxXonHwPortStats(ensemble, portStats, pfcPriority);
+    XLOG(DBG0) << " Port: " << portId << " PFC TX/RX PFC/RX_PFC_XON "
+               << txPfcCtr << "/" << rxPfcCtr << "/" << rxPfcXonCtr
+               << ", priority: " << pfcPriority;
+
+    EXPECT_EVENTUALLY_GT(txPfcCtr, 0);
+    EXPECT_EVENTUALLY_GT(rxPfcCtr, 0);
+    if (ensemble->getSw()->getHwAsicTable()->isFeatureSupportedOnAllAsic(
+            facebook::fboss::HwAsic::Feature::PFC_XON_TO_XOFF_COUNTER)) {
+      EXPECT_EVENTUALLY_GT(rxPfcXonCtr, 0);
+    }
+  });
+}
+
+void validatePfcCountersIncreased(
+    facebook::fboss::AgentEnsemble* ensemble,
+    const int pri,
+    const std::vector<facebook::fboss::PortID>& portIds) {
+  for (const auto& portId : portIds) {
+    waitPfcCounterIncrease(ensemble, portId, pri);
+  }
+}
+
+} // namespace
+
+namespace facebook::fboss {
+
+class AgentTrafficPfcTest : public AgentHwTest {
+ public:
+  void setCmdLineFlagOverrides() const override {
+    AgentHwTest::setCmdLineFlagOverrides();
+    // TODO: do the equivalent of FLAGS_mmu_lossless_mode = true;
+    /*
+     * Makes this flag available so that it can be used in early
+     * stages of init to setup common buffer pool for specific
+     * asics like Jericho2.
+     */
+    FLAGS_ingress_egress_buffer_pool_size = kGlobalIngressEgressBufferPoolSize;
+  }
+
+  cfg::SwitchConfig initialConfig(
+      const AgentEnsemble& ensemble) const override {
+    auto config = utility::onePortPerInterfaceConfig(
+        ensemble.getSw(),
+        ensemble.masterLogicalPortIds(),
+        true /*interfaceHasSubnet*/);
+    return config;
+  }
+
+  std::vector<production_features::ProductionFeature>
+  getProductionFeaturesVerified() const override {
+    return {production_features::ProductionFeature::PFC};
+  }
+
+  std::vector<PortID> portIdsForTest() {
+    return {
+        masterLogicalInterfacePortIds()[0], masterLogicalInterfacePortIds()[1]};
+  }
+
+  std::vector<folly::IPAddressV6> kDestIps() const {
+    return {
+        folly::IPAddressV6("2620:0:1cfe:face:b00c::4"),
+        folly::IPAddressV6("2620:0:1cfe:face:b00c::5")};
+  }
+
+  folly::MacAddress getIntfMac() const {
+    return utility::getFirstInterfaceMac(getProgrammedState());
+  }
+
+ protected:
+  void setupEcmpTraffic(const std::vector<PortID>& portIds) {
+    utility::EcmpSetupTargetedPorts6 ecmpHelper{
+        getProgrammedState(), getIntfMac()};
+
+    CHECK_EQ(portIds.size(), kDestIps().size());
+    for (int i = 0; i < portIds.size(); ++i) {
+      const PortDescriptor port(portIds[i]);
+      RoutePrefixV6 route{kDestIps()[i], 128};
+
+      applyNewState([&](const std::shared_ptr<SwitchState>& state) {
+        return ecmpHelper.resolveNextHops(state, {port});
+      });
+
+      auto routeUpdater = getSw()->getRouteUpdater();
+      ecmpHelper.programRoutes(&routeUpdater, {port}, {route});
+
+      utility::ttlDecrementHandlingForLoopbackTraffic(
+          getAgentEnsemble(), ecmpHelper.getRouterId(), ecmpHelper.nhop(port));
+    }
+  }
+
+  void validateInitPfcCounters(
+      const std::vector<PortID>& portIds,
+      const int pfcPriority) {
+    int txPfcCtr = 0, rxPfcCtr = 0, rxPfcXonCtr = 0;
+    // no need to retry if looking for baseline counter
+    for (const auto& portId : portIds) {
+      auto portStats = getLatestPortStats(portId);
+      auto ingressDropRaw = *portStats.inDiscardsRaw_();
+      XLOG(DBG0) << " validateInitPfcCounters: Port: " << portId
+                 << " IngressDropRaw: " << ingressDropRaw;
+      EXPECT_TRUE(ingressDropRaw == 0);
+      std::tie(txPfcCtr, rxPfcCtr, rxPfcXonCtr) =
+          getPfcTxRxXonHwPortStats(getAgentEnsemble(), portStats, pfcPriority);
+      EXPECT_TRUE((txPfcCtr == 0) && (rxPfcCtr == 0) && (rxPfcXonCtr == 0));
+    }
+  }
+
+  void validateIngressDropCounters(const std::vector<PortID>& portIds) {
+    WITH_RETRIES({
+      for (const auto& portId : portIds) {
+        auto portStats = getLatestPortStats(portId);
+        auto ingressDropRaw = *portStats.inDiscardsRaw_();
+        uint64_t ingressCongestionDiscards = 0;
+        std::string ingressCongestionDiscardLog{};
+        if (isSupportedOnAllAsics(
+                HwAsic::Feature::INGRESS_PRIORITY_GROUP_DROPPED_PACKETS)) {
+          ingressCongestionDiscards = *portStats.inCongestionDiscards_();
+          ingressCongestionDiscardLog = " IngressCongestionDiscards: " +
+              std::to_string(ingressCongestionDiscards);
+        }
+        XLOG(DBG0) << " validateIngressDropCounters: Port: " << portId
+                   << " IngressDropRaw: " << ingressDropRaw
+                   << ingressCongestionDiscardLog;
+        EXPECT_EVENTUALLY_GT(ingressDropRaw, 0);
+        if (isSupportedOnAllAsics(
+                HwAsic::Feature::INGRESS_PRIORITY_GROUP_DROPPED_PACKETS)) {
+          EXPECT_EVENTUALLY_GT(ingressCongestionDiscards, 0);
+        }
+      }
+      for (auto [switchId, asic] : getAsics()) {
+        if (asic->getAsicType() == cfg::AsicType::ASIC_TYPE_JERICHO3) {
+          // Jericho3 has additional VSQ drops counters which accounts for
+          // ingress buffer drops.
+          getSw()->updateStats();
+          fb303::ThreadCachedServiceData::get()->publishStats();
+          auto switchIndex =
+              getSw()->getSwitchInfoTable().getSwitchIndexFromSwitchId(
+                  switchId);
+          auto vsqResourcesExhautionDrops =
+              *getSw()
+                   ->getHwSwitchStatsExpensive()[switchIndex]
+                   .fb303GlobalStats()
+                   ->vsq_resource_exhaustion_drops();
+          XLOG(DBG0)
+              << " validateIngressDropCounters: vsqResourceExhaustionDrops: "
+              << vsqResourcesExhautionDrops;
+          EXPECT_EVENTUALLY_GT(vsqResourcesExhautionDrops, 0);
+        }
+      }
+    });
+  }
+
+  void pumpTraffic(const int priority) {
+    auto vlanId = utility::firstVlanID(getProgrammedState());
+    auto intfMac = getIntfMac();
+    auto srcMac = utility::MacAddressGenerator().get(intfMac.u64NBO() + 1);
+    // pri = 7 => dscp 56
+    int dscp = priority * 8;
+    // Tomahawk4 need 5 packets per flow to trigger PFC
+    int numPacketsPerFlow = getAgentEnsemble()->getMinPktsForLineRate(
+        masterLogicalInterfacePortIds()[0]);
+    for (int i = 0; i < numPacketsPerFlow; i++) {
+      for (const auto& dstIp : kDestIps()) {
+        auto txPacket = utility::makeUDPTxPacket(
+            getSw(),
+            vlanId,
+            srcMac,
+            intfMac,
+            folly::IPAddressV6("2620:0:1cfe:face:b00c::3"),
+            dstIp,
+            8000,
+            8001,
+            dscp << 2, // dscp is last 6 bits in TC
+            255,
+            std::vector<uint8_t>(2000, 0xff));
+
+        getAgentEnsemble()->sendPacketAsync(
+            std::move(txPacket), std::nullopt, std::nullopt);
+      }
+    }
+  }
+
+  void stopTraffic(const std::vector<PortID>& portIds) {
+    // Toggle the link to break looping traffic
+    for (auto portId : portIds) {
+      bringDownPort(portId);
+      bringUpPort(portId);
+    }
+  }
+
+  void runTestWithCfg(
+      const int trafficClass,
+      const int pfcPriority,
+      TrafficTestParams testParams = TrafficTestParams{},
+      std::function<void(
+          AgentEnsemble* ensemble,
+          const int pri,
+          const std::vector<PortID>& portIdsToValidate)> validateCounterFn =
+          validatePfcCountersIncreased) {
+    std::vector<PortID> portIds = portIdsForTest();
+
+    auto setup = [&]() {
+      for (auto [switchId, asic] : this->getAsics()) {
+        if ((asic->getAsicType() == cfg::AsicType::ASIC_TYPE_JERICHO2) ||
+            (asic->getAsicType() == cfg::AsicType::ASIC_TYPE_JERICHO3)) {
+          // Keep low scaling factor so that headroom usage is attempted
+          // for Jericho family of ASICs.
+          testParams.buffer.scalingFactor = cfg::MMUScalingFactor::ONE_32768TH;
+        }
+      }
+
+      // Setup PFC
+      auto cfg = getAgentEnsemble()->getCurrentConfig();
+      std::vector<PortID> portIdsToConfigure = portIds;
+      if (testParams.scale) {
+        // Apply PFC config to all ports
+        portIdsToConfigure = masterLogicalInterfacePortIds();
+      }
+      setupPfcBuffers(
+          cfg, portIdsToConfigure, kLosslessPgIds, testParams.buffer);
+      applyNewConfig(cfg);
+
+      setupEcmpTraffic(portIds);
+
+      // ensure counter is 0 before we start traffic
+      validateInitPfcCounters(portIds, pfcPriority);
+    };
+    auto verifyCommon = [&](bool postWb) {
+      pumpTraffic(trafficClass);
+      // check counters are as expected
+      validateCounterFn(getAgentEnsemble(), pfcPriority, portIds);
+      if (testParams.expectDrop) {
+        validateIngressDropCounters(portIds);
+      }
+      if (!FLAGS_skip_stop_pfc_test_traffic && postWb) {
+        // stop traffic so that unconfiguration can happen without issues
+        stopTraffic(portIds);
+      }
+    };
+    auto verify = [&]() { verifyCommon(false /* postWb */); };
+    auto verifyPostWb = [&]() { verifyCommon(true /* postWb */); };
+    verifyAcrossWarmBoots(setup, verify, []() {}, verifyPostWb);
+  }
+};
+
+class AgentTrafficPfcGenTest
+    : public AgentTrafficPfcTest,
+      public testing::WithParamInterface<TrafficTestParams> {
+  void setCmdLineFlagOverrides() const override {
+    AgentTrafficPfcTest::setCmdLineFlagOverrides();
+    if (GetParam().buffer.pgHeadroom == 0) {
+      // Force headroom 0 for lossless PG
+      FLAGS_allow_zero_headroom_for_lossless_pg = true;
+    }
+  }
+};
+
+INSTANTIATE_TEST_SUITE_P(
+    AgentTrafficPfcTest,
+    AgentTrafficPfcGenTest,
+    testing::Values(
+        TrafficTestParams{
+            .name = "WithDefaultCfg",
+        },
+        TrafficTestParams{
+            .name = "WithScaleCfg",
+            .buffer =
+                PfcBufferParams{
+                    .globalShared = kGlobalSharedBytes * 5,
+                    .pgLimit = kPgLimitBytes / 3,
+                    .resumeOffset = kPgResumeOffsetBytes / 3},
+            .scale = true},
+        TrafficTestParams{
+            .name = "WithZeroPgHeadRoomCfg",
+            .buffer =
+                PfcBufferParams{.pgHeadroom = 0, .scalingFactor = std::nullopt},
+            .expectDrop = true},
+        TrafficTestParams{
+            .name = "WithZeroGlobalHeadRoomCfg",
+            .buffer =
+                PfcBufferParams{
+                    .globalHeadroom = 0,
+                    .scalingFactor = std::nullopt},
+            .expectDrop = true}),
+    [](const ::testing::TestParamInfo<TrafficTestParams>& info) {
+      return info.param.name;
+    });
+
+TEST_P(AgentTrafficPfcGenTest, verifyPfc) {
+  const int trafficClass = kLosslessTrafficClass;
+  const int pfcPriority = kLosslessPriority;
+  TrafficTestParams trafficParams = GetParam();
+  runTestWithCfg(trafficClass, pfcPriority, trafficParams);
+}
+
+} // namespace facebook::fboss
diff --git a/fboss/agent/test/agent_hw_tests/BUCK b/fboss/agent/test/agent_hw_tests/BUCK
index 0aae23e8e028e..0b60d0f466d77 100644
--- a/fboss/agent/test/agent_hw_tests/BUCK
+++ b/fboss/agent/test/agent_hw_tests/BUCK
@@ -57,6 +57,7 @@ cpp_library(
         "AgentStateReconstructionTests.cpp",
         "AgentSwitchStateReplayTest.cpp",
         "AgentSwitchStatsTxCounterTests.cpp",
+        "AgentTrafficPfcTests.cpp",
         "AgentTrunkLoadBalancerTests.cpp",
         "AgentVoqSwitchInterruptsTests.cpp",
         "AgentVoqSwitchTests.cpp",