diff --git a/test/distrib/ruby/Gemfile b/test/distrib/ruby/Gemfile
new file mode 100644
index 00000000000..96e68e9c34a
--- /dev/null
+++ b/test/distrib/ruby/Gemfile
@@ -0,0 +1,11 @@
+# -*- ruby -*-
+# encoding: utf-8
+
+source 'https://rubygems.org/'
+
+# TODO(jtattermusch): don't hardcode the absolute path the local gem source
+source "file:///var/local/git/grpc/gem_source" do
+  gem 'grpc'
+end
+
+gemspec
diff --git a/test/distrib/ruby/distribtest.gemspec b/test/distrib/ruby/distribtest.gemspec
new file mode 100644
index 00000000000..d72892f46c3
--- /dev/null
+++ b/test/distrib/ruby/distribtest.gemspec
@@ -0,0 +1,19 @@
+# -*- ruby -*-
+# encoding: utf-8
+
+Gem::Specification.new do |s|
+  s.name          = 'distribtest'
+  s.version       = '0.0.1'
+  s.authors       = ['gRPC Authors']
+  s.email         = 'jtattermusch@google.com'
+  s.homepage      = 'https://github.com/grpc/grpc'
+  s.summary       = 'gRPC Distribution test'
+
+  s.files         = ['distribtest.rb']
+  s.executables   = ['distribtest.rb']
+  s.platform      = Gem::Platform::RUBY
+
+  s.add_dependency 'grpc', '>=0'
+
+  s.add_development_dependency 'bundler', '~> 1.7'
+end
diff --git a/test/distrib/ruby/distribtest.rb b/test/distrib/ruby/distribtest.rb
new file mode 100755
index 00000000000..3f656a89f3a
--- /dev/null
+++ b/test/distrib/ruby/distribtest.rb
@@ -0,0 +1,39 @@
+#!/usr/bin/env ruby
+
+# Copyright 2016, Google Inc.
+# All rights reserved.
+#
+# Redistribution and use in source and binary forms, with or without
+# modification, are permitted provided that the following conditions are
+# met:
+#
+#     * Redistributions of source code must retain the above copyright
+# notice, this list of conditions and the following disclaimer.
+#     * Redistributions in binary form must reproduce the above
+# copyright notice, this list of conditions and the following disclaimer
+# in the documentation and/or other materials provided with the
+# distribution.
+#     * Neither the name of Google Inc. nor the names of its
+# contributors may be used to endorse or promote products derived from
+# this software without specific prior written permission.
+#
+# THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS
+# "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT
+# LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+# A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT
+# OWNER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+# SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT
+# LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE,
+# DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY
+# THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+# (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE
+# OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
+require 'grpc'
+
+# This code doesn't do much but makes sure the native extension is loaded
+# which is what we are testing here.
+ch = GRPC::Core::Channel.new('localhost:1000', nil, :this_channel_is_insecure)
+ch.destroy
+
+puts "Success!"
diff --git a/test/distrib/ruby/run_distrib_test.sh b/test/distrib/ruby/run_distrib_test.sh
index ae409f8dc5e..be60e44b639 100755
--- a/test/distrib/ruby/run_distrib_test.sh
+++ b/test/distrib/ruby/run_distrib_test.sh
@@ -32,5 +32,13 @@ set -ex
 
 cd $(dirname $0)
 
-# do something ruby-ish
+# Create an indexed local gem source with gRPC gems to test
+GEM_SOURCE=../../../gem_source
+mkdir -p ${GEM_SOURCE}/gems
+cp -r $EXTERNAL_GIT_ROOT/input_artifacts/*.gem ${GEM_SOURCE}/gems
+gem install builder
+gem generate_index --directory ${GEM_SOURCE}
 
+bundle install
+
+bundle exec ./distribtest.rb