diff --git a/test/e2e/network/service.go b/test/e2e/network/service.go
index 11ba96d4aa5..541569a030c 100644
--- a/test/e2e/network/service.go
+++ b/test/e2e/network/service.go
@@ -1865,6 +1865,68 @@ var _ = SIGDescribe("Services", func() {
 		framework.ExpectNoError(e2eservice.VerifyServeHostnameServiceDown(cs, host, svcDisabledIP, servicePort))
 	})
 
+	ginkgo.It("should implement service.kubernetes.io/headless", func() {
+		// this test uses e2essh.NodeSSHHosts that does not work if a Node only reports LegacyHostIP
+		framework.SkipUnlessProviderIs(framework.ProvidersWithSSH...)
+		// this test does not work if the Node does not support SSH Key
+		framework.SkipUnlessSSHKeyPresent()
+
+		ns := f.Namespace.Name
+		numPods, servicePort := 3, defaultServeHostnameServicePort
+		serviceHeadlessLabels := map[string]string{v1.IsHeadlessService: ""}
+
+		// We will create 2 services to test creating services in both states and also dynamic updates
+		// svcHeadless: Created with the label, will always be disabled. We create this early and
+		//              test again late to make sure it never becomes available.
+		// svcHeadlessToggled: Created without the label then the label is toggled verifying reachability at each step.
+
+		ginkgo.By("creating service-headless in namespace " + ns)
+		svcHeadless := getServeHostnameService("service-headless")
+		svcHeadless.ObjectMeta.Labels = serviceHeadlessLabels
+		// This should be improved, as we do not want a Headlesss Service to contain an IP...
+		_, svcHeadlessIP, err := e2eservice.StartServeHostnameService(cs, svcHeadless, ns, numPods)
+		framework.ExpectNoError(err, "failed to create replication controller with headless service: %s in the namespace: %s", svcHeadlessIP, ns)
+
+		ginkgo.By("creating service in namespace " + ns)
+		svcHeadlessToggled := getServeHostnameService("service-headless-toggled")
+		podHeadlessToggledNames, svcHeadlessToggledIP, err := e2eservice.StartServeHostnameService(cs, svcHeadlessToggled, ns, numPods)
+		framework.ExpectNoError(err, "failed to create replication controller with service: %s in the namespace: %s", svcHeadlessToggledIP, ns)
+
+		jig := e2eservice.NewTestJig(cs, svcHeadlessToggled.ObjectMeta.Name)
+
+		hosts, err := e2essh.NodeSSHHosts(cs)
+		framework.ExpectNoError(err, "failed to find external/internal IPs for every node")
+		if len(hosts) == 0 {
+			e2elog.Failf("No ssh-able nodes")
+		}
+		host := hosts[0]
+
+		ginkgo.By("verifying service is up")
+		framework.ExpectNoError(e2eservice.VerifyServeHostnameServiceUp(cs, ns, host, podHeadlessToggledNames, svcHeadlessToggledIP, servicePort))
+
+		ginkgo.By("verifying service-headless is not up")
+		framework.ExpectNoError(e2eservice.VerifyServeHostnameServiceDown(cs, host, svcHeadlessIP, servicePort))
+
+		ginkgo.By("adding service.kubernetes.io/headless label")
+		jig.UpdateServiceOrFail(ns, svcHeadlessToggled.ObjectMeta.Name, func(svc *v1.Service) {
+			svc.ObjectMeta.Labels = serviceHeadlessLabels
+		})
+
+		ginkgo.By("verifying service is not up")
+		framework.ExpectNoError(e2eservice.VerifyServeHostnameServiceDown(cs, host, svcHeadlessToggledIP, servicePort))
+
+		ginkgo.By("removing service.kubernetes.io/headless annotation")
+		jig.UpdateServiceOrFail(ns, svcHeadlessToggled.ObjectMeta.Name, func(svc *v1.Service) {
+			svc.ObjectMeta.Labels = nil
+		})
+
+		ginkgo.By("verifying service is up")
+		framework.ExpectNoError(e2eservice.VerifyServeHostnameServiceUp(cs, ns, host, podHeadlessToggledNames, svcHeadlessToggledIP, servicePort))
+
+		ginkgo.By("verifying service-headless is still not up")
+		framework.ExpectNoError(e2eservice.VerifyServeHostnameServiceDown(cs, host, svcHeadlessIP, servicePort))
+	})
+
 	ginkgo.It("should be rejected when no endpoints exist", func() {
 		namespace := f.Namespace.Name
 		serviceName := "no-pods"