diff --git a/tfplan2cai/test/cli_test.go b/tfplan2cai/test/cli_test.go
index ee9f078e0..2d684b611 100644
--- a/tfplan2cai/test/cli_test.go
+++ b/tfplan2cai/test/cli_test.go
@@ -15,6 +15,7 @@
 package test
 
 import (
+	"encoding/json"
 	"fmt"
 	"log"
 	"os"
@@ -23,6 +24,7 @@ import (
 
 	"github.com/GoogleCloudPlatform/terraform-google-conversion/v2/caiasset"
 	"github.com/google/go-cmp/cmp"
+	terraformJSON "github.com/hashicorp/terraform-json"
 )
 
 // TestCLI tests the "convert" and "validate" subcommand against a generated .tfplan file.
@@ -32,6 +34,19 @@ func TestCLI(t *testing.T) {
 		return
 	}
 
+	if os.Getenv("CREATE_TEST_PROJECT") != "" && os.Getenv("TEST_ORG_ID") != "" {
+		orgID := os.Getenv("TEST_ORG_ID")
+		dir, err := os.MkdirTemp(t.TempDir(), "terraform")
+		if err != nil {
+			t.Fatalf("os.MkdirTemp = %v", err)
+		}
+		// Do not use defer since it will execute before t.Parallel()
+		t.Cleanup(func() {
+			terraformDestroy(t, "terraform", dir, "")
+		})
+		createTestProject(t, dir, orgID)
+	}
+
 	// Test cases for each type of resource is defined here.
 	cases := []struct {
 		name                 string
@@ -176,3 +191,34 @@ func compareMergedIamBindingOutput(t *testing.T, expected []caiasset.Asset, actu
 		t.Errorf("%v diff(-want, +got):\n%s", t.Name(), diff)
 	}
 }
+
+func createTestProject(t *testing.T, dir string, orgID string) {
+	generateTestFiles(t, "./", dir, "create_test_project.tf")
+	// any terraform execute failure will trigger t.Fatal
+	terraformInit(t, "terraform", dir)
+	terraformPlan(t, "terraform", dir, "create_test_project.tfplan")
+	terraformApply(t, "terraform", dir, "")
+	// terraform show result contains format_version field which is required in unmarshal.
+	b := terraformShow(t, "terraform", dir, "")
+	var state terraformJSON.State
+	err := json.Unmarshal(b, &state)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	var ok bool
+	for _, resource := range state.Values.RootModule.Resources {
+		if resource.Type == "google_project" {
+			data.FolderID, ok = resource.AttributeValues["folder_id"].(string)
+			if !ok {
+				t.Fatalf("Failed to get folder ID from value %v", resource.AttributeValues["folder_id"])
+			}
+			data.Project["project"], ok = resource.AttributeValues["project_id"].(string)
+			if !ok {
+				t.Fatalf("Failed to get project ID from value %v", resource.AttributeValues["project_id"])
+			}
+		}
+	}
+	data.Ancestry = fmt.Sprintf("organizations/%s/folders/%s", orgID, data.FolderID)
+	t.Logf("Successfully created folder_id=%v, project_id=%v", data.FolderID, data.Project["project"])
+}
diff --git a/tfplan2cai/test/create_test_project.tf b/tfplan2cai/test/create_test_project.tf
new file mode 100644
index 000000000..b90703875
--- /dev/null
+++ b/tfplan2cai/test/create_test_project.tf
@@ -0,0 +1,30 @@
+terraform {
+  required_providers {
+    google = {
+      source = "hashicorp/google-beta"
+      version = "~> {{.Provider.version}}"
+    }
+  }
+}
+
+provider "google" {
+  {{if .Provider.credentials }}credentials = "{{.Provider.credentials}}"{{end}}
+}
+
+resource "random_string" "suffix" {
+  length  = 10
+  upper   = false
+  special = false
+}
+
+resource "google_folder" "test-folder" {
+  display_name = "test-folder-${random_string.suffix.result}"
+  parent       = "organizations/{{.OrgID}}"
+}
+
+resource "google_project" "test-project" {
+  folder_id       = google_folder.test-folder.name
+  name       = "My Project ${random_string.suffix.result}"
+  project_id = "test-project-${random_string.suffix.result}"
+}
+
diff --git a/tfplan2cai/test/utils_test.go b/tfplan2cai/test/utils_test.go
index 4cdfa6d88..dea1a9957 100644
--- a/tfplan2cai/test/utils_test.go
+++ b/tfplan2cai/test/utils_test.go
@@ -63,8 +63,28 @@ func terraformPlan(t *testing.T, executable, dir, tfplan string) {
 	terraformExec(t, executable, dir, "plan", "-input=false", "-refresh=false", "-out", tfplan)
 }
 
+func terraformApply(t *testing.T, executable, dir, statePath string) {
+	if statePath != "" {
+		terraformExec(t, executable, dir, "apply", "-auto-approve", "-state="+statePath)
+		return
+	}
+	terraformExec(t, executable, dir, "apply", "-auto-approve")
+}
+
+func terraformDestroy(t *testing.T, executable, dir string, statePath string) {
+	if statePath != "" {
+		terraformExec(t, executable, dir, "destroy", "-state="+statePath, "-auto-approve")
+		return
+	}
+	terraformExec(t, executable, dir, "destroy", "-state="+statePath, "-auto-approve")
+}
+
 func terraformShow(t *testing.T, executable, dir, tfplan string) []byte {
-	return terraformExec(t, executable, dir, "show", "--json", tfplan)
+	if tfplan != "" {
+		return terraformExec(t, executable, dir, "show", "-json", tfplan)
+	}
+	// If no tfplan provided, default to show terraform.tfstate file.
+	return terraformExec(t, executable, dir, "show", "-json")
 }
 
 func terraformExec(t *testing.T, executable, dir string, args ...string) []byte {