diff --git a/theia-extensions/.gitignore b/theia-extensions/.gitignore
new file mode 100644
index 000000000..918c86b59
--- /dev/null
+++ b/theia-extensions/.gitignore
@@ -0,0 +1 @@
+/test-package-*/
\ No newline at end of file
diff --git a/theia-extensions/test-theia-package.sh b/theia-extensions/test-theia-package.sh
new file mode 100755
index 000000000..2b7aa6107
--- /dev/null
+++ b/theia-extensions/test-theia-package.sh
@@ -0,0 +1,65 @@
+package_tarball=$1
+if [ -z "${package_tarball}" ]; then
+    echo "Supply package tarball path as a parameter!"
+    exit 1
+fi
+
+parent_dir=$2
+if [ -z "${parent_dir}" ]; then
+    parent_dir=`pwd`
+fi
+
+filename=$(basename $package_tarball)
+
+test_dir="${parent_dir}/test-package-${filename}"
+echo "Testing Theia tarball package '${filename}' in folder '${test_dir}'"
+if [ -d "$test_dir" ]; then
+    echo "Clearing test directory..."
+    rm -rf $test_dir
+fi
+
+mkdir $test_dir
+cd $test_dir
+
+echo "Generating 'pacjage.json' file..."
+
+cat > package.json << EOF
+{
+  "private": true,
+  "name": "browser-app",
+  "version": "0.0.0",
+  "dependencies": {
+    "@theia/core": "latest",
+    "@theia/filesystem": "latest",
+    "@theia/workspace": "latest",
+    "@theia/preferences": "latest",
+    "@theia/navigator": "latest",
+    "@theia/process": "latest",
+    "@theia/terminal": "latest",
+    "@theia/editor": "latest",
+    "@theia/languages": "latest",
+    "@theia/markers": "latest",
+    "@theia/monaco": "latest",
+    "@theia/typescript": "latest",
+    "@theia/messages": "latest"
+  },
+  "devDependencies": {
+    "@theia/cli": "latest"
+  },
+  "scripts": {
+    "prepare": "theia build",
+    "start": "theia start",
+    "watch": "theia build --watch"
+  },
+  "theia": {
+    "target": "browser"
+  }
+}
+EOF
+
+echo "Installing NPM packages..."
+yarn
+yarn add $package_tarball
+
+echo "Launching Theia browser app..."
+yarn start
\ No newline at end of file