diff --git a/test/integration/consul-container/test/gateways/terminating_gateway_test.go b/test/integration/consul-container/test/gateways/terminating_gateway_test.go
new file mode 100644
index 0000000000..ef8f95ab82
--- /dev/null
+++ b/test/integration/consul-container/test/gateways/terminating_gateway_test.go
@@ -0,0 +1,187 @@
+// Copyright (c) HashiCorp, Inc.
+// SPDX-License-Identifier: MPL-2.0
+
+package gateways
+
+import (
+	"context"
+	"fmt"
+	"testing"
+	"time"
+
+	"github.com/hashicorp/consul/api"
+	"github.com/hashicorp/consul/sdk/testutil/retry"
+	"github.com/stretchr/testify/require"
+
+	libassert "github.com/hashicorp/consul/test/integration/consul-container/libs/assert"
+	libcluster "github.com/hashicorp/consul/test/integration/consul-container/libs/cluster"
+	libservice "github.com/hashicorp/consul/test/integration/consul-container/libs/service"
+	libtopology "github.com/hashicorp/consul/test/integration/consul-container/libs/topology"
+	"github.com/hashicorp/consul/test/integration/consul-container/libs/utils"
+)
+
+const externalServerName = libservice.StaticServerServiceName
+
+var requestRetryTimer = &retry.Timer{Timeout: 120 * time.Second, Wait: 500 * time.Millisecond}
+
+// TestTerminatingGateway Summary
+// This test makes sure an external service can be reached via and terminating gateway. External server
+// refers to being outside of the consul service mesh but it runs under the same docker network.
+//
+// Steps:
+//   - Create a cluster (1 server and 1 client).
+//   - Create the external service static-server (a single container, no proxy).
+//   - Register an external node and the external service on that node in Consul.
+//   - Create a terminating gateway config entry that includes an entry for the "external" static-server.
+//   - Create the terminating gateway and register it with Consul.
+//   - Create a static-client proxy (no need for a service container).
+//   - Verify that the static-client can communicate with the external static-server through the terminating gateway
+func TestTerminatingGatewayBasic(t *testing.T) {
+	t.Parallel()
+	var deferClean utils.ResettableDefer
+	defer deferClean.Execute()
+
+	t.Logf("creating consul cluster")
+	cluster, _, client := libtopology.NewCluster(t, &libtopology.ClusterConfig{
+		NumServers: 1,
+		NumClients: 1,
+		BuildOpts: &libcluster.BuildOptions{
+			Datacenter: "dc1",
+		},
+		ApplyDefaultProxySettings: true,
+	})
+	node := cluster.Clients()[0]
+
+	// Creates an external server that is not part of consul (no proxy)
+	t.Logf("creating external server: %s", externalServerName)
+	externalServerPort := 8083
+	externalServerGRPCPort := 8079
+	externalServer, err := libservice.NewExampleService(context.Background(), externalServerName, externalServerPort, externalServerGRPCPort, node)
+	require.NoError(t, err)
+	deferClean.Add(func() {
+		_ = externalServer.Terminate()
+	})
+
+	// Register the external service in the default namespace. Tell consul it is located on an 'external node' and
+	// not part of the service mesh. Because of the way that containers are created, the terminating gateway can
+	// make a call to the address `localhost:<externalServerPort` and reach the external service.
+	registerExternalService(t, client, externalServerName, "", "", "localhost", externalServerPort)
+
+	// Create the config entry for the external service that associates it with the terminating gateway
+	createTerminatingGatewayConfigEntry(t, client, "", "", externalServerName)
+
+	// Create the terminating gateway in the default namespace.
+	gwCfg := libservice.GatewayConfig{
+		Name: api.TerminatingGateway,
+		Kind: "terminating",
+	}
+	gatewayService, err := libservice.NewGatewayService(context.Background(), gwCfg, node)
+	require.NoError(t, err)
+	libassert.AssertContainerState(t, gatewayService, "running")
+	libassert.CatalogServiceExists(t, client, gwCfg.Name, nil)
+
+	// Creates a static client that is part of the mesh
+	t.Logf("creating static client proxy")
+	staticClient, err := libservice.CreateAndRegisterStaticClientSidecar(node, "", false, false, nil)
+	require.NoError(t, err)
+	libassert.CatalogServiceExists(t, client, "static-client-sidecar-proxy", nil)
+
+	// Verify that the static client can reach the external service by going through the terminating gateway
+	// The `static-server` upstream is listening on port 5000 by default.
+	assertHTTPRequestToServiceAddress(t, staticClient, externalServerName, libcluster.ServiceUpstreamLocalBindPort, true)
+}
+
+// registerExternalService registers a service on an external node so that Consul knows
+// that the service is not being managed by an agent.
+func registerExternalService(t *testing.T, consulClient *api.Client, name, namespace, partition, address string, port int) {
+	t.Helper()
+
+	service := &api.AgentService{
+		ID:      name,
+		Service: name,
+		Port:    port,
+	}
+
+	part := "default"
+	if partition != "" {
+		part = partition
+	}
+
+	if namespace != "" {
+		service.Namespace = namespace
+
+		t.Logf("creating the %s namespace in Consul", namespace)
+		_, _, err := consulClient.Namespaces().Create(&api.Namespace{
+			Name:      namespace,
+			Partition: part,
+		}, nil)
+		require.NoError(t, err)
+	}
+
+	t.Logf("registering the external service")
+	_, err := consulClient.Catalog().Register(&api.CatalogRegistration{
+		Node:     "legacy_node",
+		Address:  address,
+		NodeMeta: map[string]string{"external-node": "true", "external-probe": "true"},
+		Service:  service,
+	}, nil)
+	require.NoError(t, err)
+}
+
+// createTerminatingGatewayConfigEntry creates and sets a config entry that binds the
+// services to the gateway.
+func createTerminatingGatewayConfigEntry(t *testing.T, consulClient *api.Client, gwNamespace, serviceNamespace string, serviceNames ...string) {
+	t.Helper()
+
+	t.Logf("creating terminating gateway config entry")
+
+	if serviceNamespace != "" {
+		t.Logf("creating the %s namespace in Consul", serviceNamespace)
+		_, _, err := consulClient.Namespaces().Create(&api.Namespace{
+			Name: serviceNamespace,
+		}, nil)
+		require.NoError(t, err)
+	}
+
+	var gatewayServices []api.LinkedService
+	for _, serviceName := range serviceNames {
+		linkedService := api.LinkedService{Name: serviceName, Namespace: serviceNamespace}
+		gatewayServices = append(gatewayServices, linkedService)
+	}
+
+	configEntry := &api.TerminatingGatewayConfigEntry{
+		Kind:      api.TerminatingGateway,
+		Name:      "terminating-gateway",
+		Namespace: gwNamespace,
+		Services:  gatewayServices,
+	}
+
+	created, _, err := consulClient.ConfigEntries().Set(configEntry, nil)
+	require.NoError(t, err)
+	require.True(t, created, "failed to create terminating gateway config entry")
+}
+
+// assertHTTPRequestToServiceAddress checks the result of a request from the
+// given `client` container to the given `server` container. If expSuccess is
+// true, this checks for a successful request and otherwise it checks for the
+// error we expect when traffic is rejected by mTLS.
+//
+// This assumes the destination service is running Fortio. It makes the request
+// to `<serverIP>:8080/debug?env=dump` and checks for `FORTIO_NAME=<expServiceName>`
+// in the response.
+func assertHTTPRequestToServiceAddress(t *testing.T, client *libservice.ConnectContainer, serviceName string, port int, expSuccess bool) {
+	upstreamURL := fmt.Sprintf("http://localhost:%d/debug?env=dump", port)
+	retry.RunWith(requestRetryTimer, t, func(r *retry.R) {
+		out, err := client.Exec(context.Background(), []string{"curl", "-s", upstreamURL})
+		t.Logf("curl request to upstream service address: url=%s\nerr = %v\nout = %s", upstreamURL, err, out)
+
+		if expSuccess {
+			require.NoError(r, err)
+			require.Contains(r, out, fmt.Sprintf("FORTIO_NAME=%s", serviceName))
+			t.Logf("successfuly messaged %s", serviceName)
+		} else {
+			require.Error(r, err)
+			require.Contains(r, err.Error(), "exit code 52")
+		}
+	})
+}