diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index be0a074..b8a7941 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -33,6 +33,9 @@ jobs:
       - name: Publish bootstrap artifacts
         run: ./gradlew -p paranoid publishToMavenLocal -Ppablo.shadow.enabled=true ${{ env.PABLO_OPTS }}
 
+      - name: Run functional test
+        run: ./gradlew -p paranoid -Ppablo.shadow.enabled=true functionalTest
+
       - name: Run unit tests
         run: ./gradlew check -x lint -Pdevelopment=false -Dorg.gradle.unsafe.configuration-cache=true
 
diff --git a/paranoid/build.gradle b/paranoid/build.gradle
index aec09d6..ae2c329 100644
--- a/paranoid/build.gradle
+++ b/paranoid/build.gradle
@@ -1,26 +1,49 @@
 buildscript {
   apply from: '../versions.gradle'
-}
 
-allprojects {
-  group = PARANOID_GROUP
-  version = PARANOID_VERSION
+  allprojects {
+    group = PARANOID_GROUP
+    version = PARANOID_VERSION
+
+    buildscript {
+      repositories {
+        google()
+        mavenCentral()
+      }
+
+      dependencies {
+        classpath "com.android.tools.build:gradle:$androidToolsVersion"
+        classpath "org.jetbrains.kotlin:kotlin-gradle-plugin:$kotlinVersion"
+        classpath "io.michaelrocks.pablo:pablo:$pabloVersion"
+      }
+    }
 
-  buildscript {
     repositories {
       google()
       mavenCentral()
     }
-
-    dependencies {
-      classpath "com.android.tools.build:gradle:$androidToolsVersion"
-      classpath "org.jetbrains.kotlin:kotlin-gradle-plugin:$kotlinVersion"
-      classpath "io.michaelrocks.pablo:pablo:$pabloVersion"
-    }
   }
+}
 
-  repositories {
-    google()
-    mavenCentral()
+apply plugin: 'kotlin'
+
+dependencies {
+  testImplementation gradleTestKit()
+  testImplementation "junit:junit:$junitVersion"
+}
+
+tasks.register("functionalTest", Test.class) {
+  description = "Runs the functional tests."
+  group = "verification"
+
+  testClassesDirs = sourceSets.test.output.classesDirs
+  classpath = sourceSets.test.runtimeClasspath
+}
+
+afterEvaluate {
+  tasks.named("functionalTest") {
+    subprojects.each {
+      dependsOn(it.tasks.named("publishToMavenLocal"))
+    }
   }
 }
diff --git a/paranoid/pablo.gradle b/paranoid/pablo.gradle
index 95d6539..e543f83 100644
--- a/paranoid/pablo.gradle
+++ b/paranoid/pablo.gradle
@@ -39,4 +39,8 @@ pablo {
       url = 'https://github.com/joomcode/paranoid'
     }
   }
+
+  signing {
+    enabled.set(providers.gradleProperty("development").map { !it.toBoolean() })
+  }
 }
diff --git a/paranoid/src/test/java/com/joom/paranoid/plugin/ParanoidPluginTest.kt b/paranoid/src/test/java/com/joom/paranoid/plugin/ParanoidPluginTest.kt
new file mode 100644
index 0000000..74d9a02
--- /dev/null
+++ b/paranoid/src/test/java/com/joom/paranoid/plugin/ParanoidPluginTest.kt
@@ -0,0 +1,142 @@
+package com.joom.paranoid.plugin
+
+import org.gradle.testkit.runner.BuildResult
+import org.gradle.testkit.runner.BuildTask
+import org.gradle.testkit.runner.GradleRunner
+import org.gradle.testkit.runner.TaskOutcome
+import org.intellij.lang.annotations.Language
+import org.junit.Assert
+import org.junit.Rule
+import org.junit.Test
+import org.junit.rules.TemporaryFolder
+import java.io.File
+
+class ParanoidPluginTest {
+
+  @get:Rule
+  val temporaryFolder = TemporaryFolder()
+
+  @Test
+  fun `agp version with legacy transform`() {
+    val projectRoot = createProjectDirectory(agpVersion = "7.1.0")
+
+    val result = createGradleRunner(projectRoot).build()
+
+    val tasks = result.parseDryRunExecution()
+    Assert.assertTrue(tasks.any { it.path == ":transformClassesWithParanoidForDebug" })
+  }
+
+  @Test
+  fun `agp version with all classes transform`() {
+    val projectRoot = createProjectDirectory(agpVersion = "7.2.0")
+
+    val result = createGradleRunner(projectRoot).build()
+
+    val tasks = result.parseDryRunExecution()
+    Assert.assertTrue(tasks.any { it.path == ":paranoidTransformClassesDebug" })
+  }
+
+  @Test
+  fun `actual agp version`() {
+    val projectRoot = createProjectDirectory(agpVersion = "7.4.2")
+
+    val result = createGradleRunner(projectRoot).build()
+
+    val tasks = result.parseDryRunExecution()
+    Assert.assertTrue(tasks.any { it.path == ":paranoidTransformClassesDebug" })
+  }
+
+  private fun createProjectDirectory(agpVersion: String): File {
+    val projectRoot = temporaryFolder.newFolder()
+    writeText(createBuildGradle(agpVersion), File(projectRoot, "build.gradle"))
+    writeText(ANDROID_MANIFEST, File(projectRoot, "src/main/AndroidManifest.xml"))
+    return projectRoot
+  }
+
+  private fun createGradleRunner(projectDir: File): GradleRunner {
+    return GradleRunner.create()
+      .forwardOutput()
+      .withProjectDir(projectDir)
+      .withArguments("assembleDebug", "--dry-run", "--stacktrace")
+  }
+
+  private fun BuildResult.parseDryRunExecution(): List<BuildTask> {
+    val split = output.split('\n')
+    return split.mapNotNull {
+      if (it.startsWith(":")) {
+        val (path, _) = it.split(" ")
+        TestBuildTask(path = path, outcome = TaskOutcome.SKIPPED)
+      } else {
+        null
+      }
+    }
+  }
+
+  private fun writeText(content: String, destination: File) {
+    if (!destination.parentFile.exists() && !destination.parentFile.mkdirs()) {
+      error("Failed to create parent directory ${destination.parentFile}")
+    }
+
+    destination.writeText(content)
+  }
+
+  @Language("gradle")
+  private fun createBuildGradle(agpVersion: String, compileSdk: Int = 31, buildToolsVersion: String = "30.0.3"): String {
+    return """
+      buildscript {
+        repositories {
+          google()
+          mavenLocal()
+          mavenCentral()
+        }
+
+        dependencies {
+          classpath "com.android.tools.build:gradle:$agpVersion"
+          classpath "com.joom.paranoid:paranoid-gradle-plugin:+"
+        }
+      }
+
+      apply plugin: "com.android.application"
+      apply plugin: "com.joom.paranoid"
+
+      repositories {
+        google()
+        mavenCentral()
+      }
+
+      android {
+        compileSdk $compileSdk
+        buildToolsVersion "$buildToolsVersion"
+
+        defaultConfig {
+          applicationId "com.joom.paranoid.test"
+          namespace "com.joom.paranoid.test"
+          versionCode 1
+          versionName "1"
+        }
+      }
+    """.trimIndent()
+  }
+
+  private companion object {
+    @Language("xml")
+    private const val ANDROID_MANIFEST = """
+<?xml version="1.0" encoding="utf-8"?>
+<manifest />
+"""
+  }
+
+  private data class TestBuildTask(
+    private val path: String,
+    private val outcome: TaskOutcome,
+  ) : BuildTask {
+    override fun getPath(): String {
+      return path
+    }
+
+    override fun getOutcome(): TaskOutcome {
+      return outcome
+    }
+
+  }
+}