diff --git a/tests/e2e/configuration/library-mode/lightspeed-stack-auth-rh-identity.yaml b/tests/e2e/configuration/library-mode/lightspeed-stack-auth-rh-identity.yaml
new file mode 100644
index 00000000..ba2c5036
--- /dev/null
+++ b/tests/e2e/configuration/library-mode/lightspeed-stack-auth-rh-identity.yaml
@@ -0,0 +1,24 @@
+name: Lightspeed Core Service (LCS) - RH Identity Auth
+service:
+  host: 0.0.0.0
+  port: 8080
+  auth_enabled: true
+  workers: 1
+  color_log: true
+  access_log: true
+llama_stack:
+  use_as_library_client: true
+  library_client_config_path: run.yaml
+user_data_collection:
+  feedback_enabled: true
+  feedback_storage: "/tmp/data/feedback"
+  transcripts_enabled: true
+  transcripts_storage: "/tmp/data/transcripts"
+conversation_cache:
+  type: "sqlite"
+  sqlite:
+    db_path: "/tmp/data/conversation-cache.db"
+authentication:
+  module: "rh-identity"
+  rh_identity_config:
+    required_entitlements: ["rhel"]
diff --git a/tests/e2e/configuration/server-mode/lightspeed-stack-auth-rh-identity.yaml b/tests/e2e/configuration/server-mode/lightspeed-stack-auth-rh-identity.yaml
new file mode 100644
index 00000000..1fc83fa4
--- /dev/null
+++ b/tests/e2e/configuration/server-mode/lightspeed-stack-auth-rh-identity.yaml
@@ -0,0 +1,25 @@
+name: Lightspeed Core Service (LCS) - RH Identity Auth
+service:
+  host: 0.0.0.0
+  port: 8080
+  auth_enabled: true
+  workers: 1
+  color_log: true
+  access_log: true
+llama_stack:
+  use_as_library_client: false
+  url: http://llama-stack:8321
+  api_key: xyzzy
+user_data_collection:
+  feedback_enabled: true
+  feedback_storage: "/tmp/data/feedback"
+  transcripts_enabled: true
+  transcripts_storage: "/tmp/data/transcripts"
+conversation_cache:
+  type: "sqlite"
+  sqlite:
+    db_path: "/tmp/data/conversation-cache.db"
+authentication:
+  module: "rh-identity"
+  rh_identity_config:
+    required_entitlements: ["rhel"]
diff --git a/tests/e2e/features/authorized_rh_identity.feature b/tests/e2e/features/authorized_rh_identity.feature
new file mode 100644
index 00000000..2bc97c27
--- /dev/null
+++ b/tests/e2e/features/authorized_rh_identity.feature
@@ -0,0 +1,163 @@
+@RHIdentity
+Feature: Authorized endpoint API tests for the rh-identity authentication module
+
+  Background:
+    Given The service is started locally
+      And REST API service prefix is /v1
+
+  Scenario: Request fails when x-rh-identity header is missing
+    Given The system is in default state
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 401
+      And The body of the response is the following
+          """
+            {"detail": "Missing x-rh-identity header"}
+          """
+
+  Scenario: Request fails when identity field is missing
+    Given The system is in default state
+      And I set the x-rh-identity header with JSON
+      """
+      {"entitlements": {"rhel": {"is_entitled": true}}}
+      """
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 400
+      And The body of the response contains Missing 'identity' field
+
+  Scenario: Request succeeds with valid User identity and required entitlements
+    Given The system is in default state
+      And I set the x-rh-identity header with valid User identity
+          | field        | value               |
+          | user_id      | test-user-123       |
+          | username     | testuser@redhat.com |
+          | org_id       | 321                 |
+          | entitlements | rhel                |
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 200
+      And The body of the response is the following
+          """
+          {"user_id": "test-user-123", "username": "testuser@redhat.com", "skip_userid_check": false}
+          """
+
+  Scenario: Request succeeds with valid System identity and required entitlements
+    Given The system is in default state
+      And I set the x-rh-identity header with valid System identity
+          | field          | value                                |
+          | cn             | c87dcb4c-8af1-40dd-878e-60c744edddd0 |
+          | account_number | 456                                  |
+          | org_id         | 654                                  |
+          | entitlements   | rhel                                 |
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 200
+      And The body of the response is the following
+          """
+          {"user_id": "c87dcb4c-8af1-40dd-878e-60c744edddd0", "username": "456", "skip_userid_check": false}
+          """
+
+  Scenario: Request fails when required entitlement is missing
+    Given The system is in default state
+      And I set the x-rh-identity header with valid User identity
+          | field        | value               |
+          | user_id      | test-user-123       |
+          | username     | testuser@redhat.com |
+          | org_id       | 321                 |
+          | entitlements | ansible             |
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 403
+      And The body of the response contains Missing required entitlement
+
+  Scenario: Request fails when entitlement exists but is_entitled is false
+    Given The system is in default state
+      And I set the x-rh-identity header with JSON
+      """
+      {
+        "identity": {
+          "type": "User",
+          "org_id": "321",
+          "user": {"user_id": "test-user-123", "username": "testuser@redhat.com"}
+        },
+        "entitlements": {"rhel": {"is_entitled": false, "is_trial": true}}
+      }
+      """
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 403
+      And The body of the response contains Missing required entitlement
+
+  Scenario: Request fails when User identity is missing user_id
+    Given The system is in default state
+      And I set the x-rh-identity header with JSON
+      """
+      {
+        "identity": {
+          "type": "User",
+          "org_id": "321",
+          "user": {"username": "testuser@redhat.com"}
+        },
+        "entitlements": {"rhel": {"is_entitled": true}}
+      }
+      """
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 400
+      And The body of the response contains Missing 'user_id' in user data
+
+  Scenario: Request fails when User identity is missing username
+    Given The system is in default state
+      And I set the x-rh-identity header with JSON
+      """
+      {
+        "identity": {
+          "type": "User",
+          "org_id": "321",
+          "user": {"user_id": "test-user-123"}
+        },
+        "entitlements": {"rhel": {"is_entitled": true}}
+      }
+      """
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 400
+      And The body of the response contains Missing 'username' in user data
+
+  Scenario: Request fails when System identity is missing cn
+    Given The system is in default state
+      And I set the x-rh-identity header with JSON
+      """
+      {
+        "identity": {
+          "type": "System",
+          "account_number": "456",
+          "org_id": "654",
+          "system": {}
+        },
+        "entitlements": {"rhel": {"is_entitled": true}}
+      }
+      """
+     When I access endpoint "authorized" using HTTP POST method
+     """
+     {"placeholder":"abc"}
+     """
+     Then The status code of the response is 400
+      And The body of the response contains Missing 'cn' in system data
diff --git a/tests/e2e/features/environment.py b/tests/e2e/features/environment.py
index ce40a395..3df842f6 100644
--- a/tests/e2e/features/environment.py
+++ b/tests/e2e/features/environment.py
@@ -251,6 +251,15 @@ def before_feature(context: Context, feature: Feature) -> None:
         switch_config(context.feature_config)
         restart_container("lightspeed-stack")
 
+    if "RHIdentity" in feature.tags:
+        mode_dir = "library-mode" if context.is_library_mode else "server-mode"
+        context.feature_config = (
+            f"tests/e2e/configuration/{mode_dir}/lightspeed-stack-auth-rh-identity.yaml"
+        )
+        context.default_config_backup = create_config_backup("lightspeed-stack.yaml")
+        switch_config(context.feature_config)
+        restart_container("lightspeed-stack")
+
     if "Feedback" in feature.tags:
         context.hostname = os.getenv("E2E_LSC_HOSTNAME", "localhost")
         context.port = os.getenv("E2E_LSC_PORT", "8080")
@@ -273,6 +282,11 @@ def after_feature(context: Context, feature: Feature) -> None:
         restart_container("lightspeed-stack")
         remove_config_backup(context.default_config_backup)
 
+    if "RHIdentity" in feature.tags:
+        switch_config(context.default_config_backup)
+        restart_container("lightspeed-stack")
+        remove_config_backup(context.default_config_backup)
+
     if "Feedback" in feature.tags:
         for conversation_id in context.feedback_conversations:
             url = f"http://{context.hostname}:{context.port}/v1/conversations/{conversation_id}"
diff --git a/tests/e2e/features/steps/auth.py b/tests/e2e/features/steps/auth.py
index e9360f51..fcd54395 100644
--- a/tests/e2e/features/steps/auth.py
+++ b/tests/e2e/features/steps/auth.py
@@ -1,11 +1,27 @@
 """Implementation of common test steps."""
 
+import base64
+import json
+
 import requests
 from behave import given, when  # pyright: ignore[reportAttributeAccessIssue]
 from behave.runner import Context
 from tests.e2e.utils.utils import normalize_endpoint
 
 
+def _encode_rh_identity(identity_data: dict) -> str:
+    """Encode identity dict to base64 for x-rh-identity header.
+
+    Args:
+        identity_data: JSON-serializable identity payload to encode.
+
+    Returns:
+        Base64-encoded UTF-8 string representation of the JSON payload.
+    """
+    json_str = json.dumps(identity_data)
+    return base64.b64encode(json_str.encode("utf-8")).decode("utf-8")
+
+
 @given("I set the Authorization header to {header_value}")
 def set_authorization_header_custom(context: Context, header_value: str) -> None:
     """Set a custom Authorization header value.
@@ -73,3 +89,103 @@ def access_rest_api_endpoint_post_without_param(
     context.response = requests.post(
         url, json="", headers=context.auth_headers, timeout=10
     )
+
+
+@given('I set the x-rh-identity header to raw value "{header_value}"')
+def set_rh_identity_header_raw(context: Context, header_value: str) -> None:
+    """Set x-rh-identity header with a raw string value for testing invalid base64."""
+    if not hasattr(context, "auth_headers"):
+        context.auth_headers = {}
+    context.auth_headers["x-rh-identity"] = header_value
+    print(f"Set x-rh-identity header to raw value: {header_value[:50]}...")
+
+
+@given('I set the x-rh-identity header with base64 encoded value "{raw_value}"')
+def set_rh_identity_header_base64_raw(context: Context, raw_value: str) -> None:
+    """Set x-rh-identity header with base64-encoded raw string for testing invalid JSON."""
+    if not hasattr(context, "auth_headers"):
+        context.auth_headers = {}
+    encoded = base64.b64encode(raw_value.encode("utf-8")).decode("utf-8")
+    context.auth_headers["x-rh-identity"] = encoded
+    print(f"Set x-rh-identity header with base64-encoded: {raw_value}")
+
+
+@given("I set the x-rh-identity header with JSON")
+def set_rh_identity_header_json(context: Context) -> None:
+    """Set x-rh-identity header with base64-encoded JSON from context.text."""
+    if not hasattr(context, "auth_headers"):
+        context.auth_headers = {}
+    assert context.text is not None, "JSON payload required"
+    identity_data = json.loads(context.text)
+    context.auth_headers["x-rh-identity"] = _encode_rh_identity(identity_data)
+    print(f"Set x-rh-identity header with JSON: {identity_data}")
+
+
+@given("I set the x-rh-identity header with valid User identity")
+def set_rh_identity_user(context: Context) -> None:
+    """Set x-rh-identity header with User identity from table."""
+    if not hasattr(context, "auth_headers"):
+        context.auth_headers = {}
+
+    assert context.table is not None, "Table with identity fields required"
+
+    fields = {row["field"]: row["value"] for row in context.table}
+
+    entitlements = {}
+    if "entitlements" in fields:
+        for ent in fields["entitlements"].split(","):
+            ent = ent.strip()
+            if not ent:
+                continue
+            entitlements[ent] = {"is_entitled": True, "is_trial": False}
+
+    identity_data = {
+        "identity": {
+            "account_number": fields.get("account_number", "123"),
+            "org_id": fields.get("org_id", "321"),
+            "type": "User",
+            "user": {
+                "user_id": fields.get("user_id", "test-user"),
+                "username": fields.get("username", "test@redhat.com"),
+                "is_org_admin": fields.get("is_org_admin", "false").lower() == "true",
+            },
+        },
+        "entitlements": entitlements,
+    }
+
+    context.auth_headers["x-rh-identity"] = _encode_rh_identity(identity_data)
+    print(f"Set x-rh-identity header with User identity: {fields.get('user_id')}")
+
+
+@given("I set the x-rh-identity header with valid System identity")
+def set_rh_identity_system(context: Context) -> None:
+    """Set x-rh-identity header with System identity from table."""
+    if not hasattr(context, "auth_headers"):
+        context.auth_headers = {}
+
+    assert context.table is not None, "Table with identity fields required"
+
+    fields = {row["field"]: row["value"] for row in context.table}
+
+    entitlements = {}
+    if "entitlements" in fields:
+        for ent in fields["entitlements"].split(","):
+            ent = ent.strip()
+            if not ent:
+                continue
+            entitlements[ent] = {"is_entitled": True, "is_trial": False}
+
+    identity_data = {
+        "identity": {
+            "account_number": fields.get("account_number", "123"),
+            "org_id": fields.get("org_id", "321"),
+            "type": "System",
+            "system": {
+                "cn": fields.get("cn", "default-cn-uuid"),
+            },
+        },
+        "entitlements": entitlements,
+    }
+
+    context.auth_headers["x-rh-identity"] = _encode_rh_identity(identity_data)
+    print(f"Set x-rh-identity header with System identity: {fields.get('cn')}")
diff --git a/tests/e2e/test_list.txt b/tests/e2e/test_list.txt
index ebd39760..804e180c 100644
--- a/tests/e2e/test_list.txt
+++ b/tests/e2e/test_list.txt
@@ -2,6 +2,7 @@ features/faiss.feature
 features/smoketests.feature
 features/authorized_noop.feature
 features/authorized_noop_token.feature
+features/authorized_rh_identity.feature
 features/rbac.feature
 features/conversations.feature
 features/conversation_cache_v2.feature