diff --git a/testsuite/integration/web/src/test/java/org/jboss/as/test/integration/web/websocket/WebSocketTestCase.java b/testsuite/integration/web/src/test/java/org/jboss/as/test/integration/web/websocket/WebSocketTestCase.java
index 00735cb43895..a599b0974bc0 100644
--- a/testsuite/integration/web/src/test/java/org/jboss/as/test/integration/web/websocket/WebSocketTestCase.java
+++ b/testsuite/integration/web/src/test/java/org/jboss/as/test/integration/web/websocket/WebSocketTestCase.java
@@ -2,59 +2,100 @@
 
 import static org.jboss.as.test.shared.integration.ejb.security.PermissionUtils.createPermissionsXmlAsset;
 
+import java.io.IOException;
 import java.net.SocketPermission;
 import java.net.URI;
+import java.net.URISyntaxException;
+import java.net.URL;
 import java.util.PropertyPermission;
 
 import javax.websocket.ContainerProvider;
+import javax.websocket.DeploymentException;
 import javax.websocket.Session;
 import javax.websocket.WebSocketContainer;
 
 import org.jboss.arquillian.container.test.api.Deployment;
+import org.jboss.arquillian.container.test.api.OperateOnDeployment;
+import org.jboss.arquillian.container.test.api.RunAsClient;
 import org.jboss.arquillian.junit.Arquillian;
+import org.jboss.arquillian.test.api.ArquillianResource;
 import org.jboss.as.test.shared.TestSuiteEnvironment;
 import org.jboss.shrinkwrap.api.ShrinkWrap;
 import org.jboss.shrinkwrap.api.asset.StringAsset;
 import org.jboss.shrinkwrap.api.spec.WebArchive;
 import org.junit.Assert;
-import org.junit.Assume;
 import org.junit.Test;
 import org.junit.runner.RunWith;
 
 /**
+ * Simple smoke test for WebSockets. It tests both basic use-cases - WebSocket client either as a standalone application
+ * or as a part of a WAR-deployment.
+ *
  * @author Stuart Douglas
  */
 @RunWith(Arquillian.class)
 public class WebSocketTestCase {
 
-    @Deployment
-    public static WebArchive deploy() {
-        final String jbossHome = System.getenv("JBOSS_HOME");
-        return ShrinkWrap.create(WebArchive.class, "websocket.war")
-                .addPackage(WebSocketTestCase.class.getPackage())
-                .addClass(TestSuiteEnvironment.class)
+    private static final String CLIENT_STANDALONE = "standalone";
+    private static final String CLIENT_IN_DEPLOYMENT = "indeployment";
+
+    @Deployment(testable = false, name = CLIENT_STANDALONE)
+    public static WebArchive createThinDeployment() {
+        return createBasicDeployment(CLIENT_STANDALONE);
+    }
+
+    @Deployment(name = CLIENT_IN_DEPLOYMENT)
+    public static WebArchive createRichDeployment() {
+        return createBasicDeployment(CLIENT_IN_DEPLOYMENT)
+                .addClasses(WebSocketTestCase.class, AnnotatedClient.class, TestSuiteEnvironment.class)
                 .addAsManifestResource(
                         createPermissionsXmlAsset(
                                 // Needed for the TestSuiteEnvironment.getServerAddress()
-                                new PropertyPermission("management.address", "read"),
-                                new PropertyPermission("node0", "read"),
+                                new PropertyPermission("management.address", "read"), new PropertyPermission("node0", "read"),
                                 new PropertyPermission("jboss.http.port", "read"),
                                 // Needed for the serverContainer.connectToServer()
-                                new SocketPermission("*:" + TestSuiteEnvironment.getHttpPort(), "connect,resolve")
-                        ), "permissions.xml")
-                .addAsManifestResource(new StringAsset("io.undertow.websockets.jsr.UndertowContainerProvider"),
-                        "services/javax.websocket.ContainerProvider");
+                                new SocketPermission(
+                                        TestSuiteEnvironment.getServerAddress() + ":" + TestSuiteEnvironment.getHttpPort(),
+                                        "connect,resolve"),
+                                // Needed for xnio's WorkerThread which binds to Xnio.ANY_INET_ADDRESS, see WFLY-7538
+                                new SocketPermission(TestSuiteEnvironment.getServerAddress() + ":0", "listen,resolve")),
+                        "permissions.xml");
     }
 
     @Test
-    public void testWebSocket() throws Exception {
-        //TODO WFLY-7538 - This needs to be reenabled
-        Assume.assumeTrue(System.getSecurityManager() == null);
+    @OperateOnDeployment(CLIENT_STANDALONE)
+    @RunAsClient
+    public void testClientStandalone(@ArquillianResource URL webapp) throws Exception {
+        assertWebSocket(webapp);
+    }
 
+    @Test
+    @OperateOnDeployment(CLIENT_IN_DEPLOYMENT)
+    public void testClientInDeployment(@ArquillianResource URL webapp) throws Exception {
+        assertWebSocket(webapp);
+    }
+
+    private void assertWebSocket(URL webapp) throws InterruptedException, IOException, DeploymentException, URISyntaxException {
         AnnotatedClient endpoint = new AnnotatedClient();
         WebSocketContainer serverContainer = ContainerProvider.getWebSocketContainer();
-        Session session = serverContainer.connectToServer(endpoint, new URI("ws", "", TestSuiteEnvironment.getServerAddress(), TestSuiteEnvironment.getHttpPort(), "/websocket/websocket/Stuart", "", ""));
-        Assert.assertEquals("Hello Stuart", endpoint.getMessage());
+        try (Session session = serverContainer.connectToServer(endpoint,
+                new URI("ws", "", TestSuiteEnvironment.getServerAddress(), TestSuiteEnvironment.getHttpPort(),
+                        webapp.getPath() + "websocket/Stuart", "", ""))) {
+            Assert.assertEquals("Hello Stuart", endpoint.getMessage());
+        }
+    }
 
+    /**
+     * Creates basic deployment with given name for WebSocket endpoint.
+     *
+     * @param name deployment name
+     * @return Shrinkwrap WebArchive instance
+     */
+    private static WebArchive createBasicDeployment(String name) {
+        return ShrinkWrap.create(WebArchive.class, name + ".war")
+                .addClasses(AnnotatedEndpoint.class)
+                .addAsManifestResource(new StringAsset("io.undertow.websockets.jsr.UndertowContainerProvider"),
+                        "services/javax.websocket.ContainerProvider");
     }
+
 }