diff --git a/tests/php/includes/class-wc-discounts-tests.php b/tests/php/includes/class-wc-discounts-tests.php
new file mode 100644
index 00000000000..8afe9c40bb3
--- /dev/null
+++ b/tests/php/includes/class-wc-discounts-tests.php
@@ -0,0 +1,96 @@
+<?php
+/**
+ * Unit tests for WC_Discounts class.
+ *
+ * @package WooCommerce\Tests.
+ */
+
+ /**
+  * Class WC_Discounts_Tests.
+  */
+class WC_Discounts_Tests extends WC_Unit_Test_Case {
+
+	/**
+	 * Helper method to create limited coupon.
+	 */
+	private function create_limited_coupon() {
+		update_option( 'woocommerce_hold_stock_minutes', 60 );
+		return WC_Helper_Coupon::create_coupon(
+			'coupon4one' . microtime( true ) . wp_generate_password( 6, false, false ),
+			array(
+				'usage_limit'          => 1,
+				'usage_limit_per_user' => 1,
+			)
+		);
+	}
+
+	/**
+	 * Helper method to create customer.
+	 */
+	public function create_customer() {
+		$username = 'testusername-' . microtime( true ) . wp_generate_password( 6, false, false );
+		$customer = new WC_Customer();
+		$customer->set_username( $username );
+		$customer->set_password( 'test123' );
+		$customer->set_email( "$username@woo.local" );
+		$customer->save();
+		return $customer;
+	}
+
+	/**
+	 * Test if coupon is valid when usage limit is reached for guest
+	 */
+	public function test_is_coupon_valid_when_limit_reached_for_guest() {
+		$coupon     = $this->create_limited_coupon();
+		$data_store = WC_Data_Store::load( 'coupon' );
+
+		$result = $data_store->check_and_hold_coupon( $coupon );
+		$this->assertNotNull( $result );
+
+		wp_set_current_user( 0 );
+		$valid = ( new WC_Discounts() )->is_coupon_valid( $coupon );
+		$this->assertWPError( $valid );
+		$this->assertEquals( $coupon->get_coupon_error( WC_Coupon::E_WC_COUPON_USAGE_LIMIT_COUPON_STUCK_GUEST ), $valid->get_error_message() );
+	}
+
+	/**
+	 * Test if coupon is valid when usage limit is reached for logged in user.
+	 */
+	public function test_is_coupon_valid_when_limit_reached_for_user() {
+		$coupon     = $this->create_limited_coupon();
+		$customer   = $this->create_customer();
+		$data_store = WC_Data_Store::load( 'coupon' );
+		$order      = wc_create_order(
+			array(
+				'status'      => 'pending',
+				'customer_id' => $customer->get_id(),
+			)
+		);
+		$order->save();
+
+		$result = $data_store->check_and_hold_coupon( $coupon );
+		$this->assertNotNull( $result );
+
+		wp_set_current_user( $customer->get_id() );
+		$valid = ( new WC_Discounts() )->is_coupon_valid( $coupon );
+		$this->assertWPError( $valid );
+		$this->assertEquals( $coupon->get_coupon_error( WC_Coupon::E_WC_COUPON_USAGE_LIMIT_COUPON_STUCK ), $valid->get_error_message() );
+	}
+
+	/**
+	 * Test if coupon is valid when usage limit per user is reached for logged in user.
+	 */
+	public function test_is_coupon_valid_per_user_when_limit_reached_for_user() {
+		$coupon     = $this->create_limited_coupon();
+		$data_store = WC_Data_Store::load( 'coupon' );
+		$customer   = $this->create_customer();
+
+		$result = $data_store->check_and_hold_coupon_for_user( $coupon, array( $customer->get_id() ), $customer->get_id() );
+		$this->assertNotNull( $result );
+
+		wp_set_current_user( $customer->get_id() );
+		$valid = ( new WC_Discounts() )->is_coupon_valid( $coupon );
+		$this->assertWPError( $valid );
+		$this->assertEquals( $coupon->get_coupon_error( WC_Coupon::E_WC_COUPON_USAGE_LIMIT_COUPON_STUCK ), $valid->get_error_message() );
+	}
+}