diff --git a/smoke/tests/hot_upgrade_test.go b/smoke/tests/hot_upgrade_test.go
new file mode 100644
index 00000000000..dbfd141fb95
--- /dev/null
+++ b/smoke/tests/hot_upgrade_test.go
@@ -0,0 +1,156 @@
+// Copyright 2024 Nydus Developers. All rights reserved.
+//
+// SPDX-License-Identifier: Apache-2.0
+
+package tests
+
+import (
+	"fmt"
+	"path/filepath"
+	"testing"
+	"time"
+
+	"github.com/containerd/nydus-snapshotter/pkg/converter"
+	"github.com/containerd/nydus-snapshotter/pkg/supervisor"
+	"github.com/dragonflyoss/nydus/smoke/tests/texture"
+	"github.com/dragonflyoss/nydus/smoke/tests/tool"
+	"github.com/dragonflyoss/nydus/smoke/tests/tool/test"
+	"github.com/stretchr/testify/require"
+)
+
+type Snapshotter struct {
+}
+
+type HotUpgradeTestSuite struct {
+	t *testing.T
+}
+
+func (c *HotUpgradeTestSuite) buildLayer(t *testing.T, ctx *tool.Context, rootFs *tool.Layer) string {
+	digest := rootFs.Pack(t,
+		converter.PackOption{
+			BuilderPath: ctx.Binary.Builder,
+			Compressor:  "lz4_block",
+			FsVersion:   "5",
+		},
+		ctx.Env.BlobDir)
+	_, bootstrap := tool.MergeLayers(t, *ctx,
+		converter.MergeOption{
+			BuilderPath: ctx.Binary.Builder,
+		},
+		[]converter.Layer{
+			{Digest: digest},
+		})
+	return bootstrap
+}
+
+func (c *HotUpgradeTestSuite) newNydusd(t *testing.T, ctx *tool.Context, bootstrap, name string, upgrade bool) *tool.Nydusd {
+	config := tool.NydusdConfig{
+		NydusdPath:         ctx.Binary.Nydusd,
+		MountPath:          ctx.Env.MountDir,
+		APISockPath:        filepath.Join(ctx.Env.WorkDir, fmt.Sprintf("nydusd-api-%s.sock", name)),
+		ConfigPath:         filepath.Join(ctx.Env.WorkDir, fmt.Sprintf("nydusd-config.fusedev-%s.json", name)),
+		SupervisorSockPath: filepath.Join(ctx.Env.WorkDir, "nydusd-supervisor.sock"),
+	}
+	if upgrade {
+		config.Upgrade = true
+	}
+
+	nydusd, err := tool.NewNydusd(config)
+	require.NoError(t, err)
+
+	_, err = nydusd.Run()
+	require.NoError(t, err)
+
+	if upgrade {
+		err = nydusd.WaitStatus("INIT")
+	} else {
+		err = nydusd.WaitStatus("RUNNING")
+	}
+	require.NoError(t, err)
+
+	config.BootstrapPath = bootstrap
+	config.MountPath = "/"
+	config.BackendType = "localfs"
+	config.BackendConfig = fmt.Sprintf(`{"dir": "%s"}`, ctx.Env.BlobDir)
+	config.EnablePrefetch = true
+	config.PrefetchFiles = []string{"/"}
+	config.BlobCacheDir = ctx.Env.CacheDir
+	config.CacheType = ctx.Runtime.CacheType
+	config.CacheCompressed = ctx.Runtime.CacheCompressed
+	config.RafsMode = ctx.Runtime.RafsMode
+
+	err = nydusd.MountByAPI(config)
+	require.NoError(t, err)
+
+	return nydusd
+}
+
+func (c *HotUpgradeTestSuite) TestHotUpgrade(t *testing.T) {
+	ctx := tool.DefaultContext(t)
+	ctx.PrepareWorkDir(t)
+	defer ctx.Destroy(t)
+
+	// Build nydus layer
+	layer := texture.MakeLowerLayer(t, filepath.Join(ctx.Env.WorkDir, "root"))
+	bootstrap := c.buildLayer(t, ctx, layer)
+
+	// Start snapshotter simulator
+	ss, err := supervisor.NewSupervisorSet(filepath.Join(ctx.Env.WorkDir))
+	require.NoError(t, err)
+	supervisor := ss.NewSupervisor("nydusd-supervisor")
+	defer ss.DestroySupervisor("nydusd-supervisor")
+
+	// Start old nydusd to mount rootfs
+	oldNydusd := c.newNydusd(t, ctx, bootstrap, "old", false)
+	defer oldNydusd.Umount()
+
+	// Old nydusd's state should be RUNNING
+	err = oldNydusd.WaitStatus("RUNNING")
+	require.NoError(t, err)
+
+	// Verify filesytem on new nydusd
+	oldNydusd.Verify(t, layer.FileTree)
+
+	// Snapshotter receive fuse fd from old nydusd
+	err = supervisor.FetchDaemonStates(oldNydusd.SendFd)
+	require.NoError(t, err)
+
+	// Start new nydusd in upgrade mode (don't mount)
+	newNydusd := c.newNydusd(t, ctx, bootstrap, "new", true)
+	defer newNydusd.Umount()
+
+	// New nydusd's state should be INIT
+	err = newNydusd.WaitStatus("INIT")
+	require.NoError(t, err)
+
+	// Tells old nydusd to exit
+	err = oldNydusd.Exit()
+	require.NoError(t, err)
+
+	// Send fuse fd to new nydusd
+	err = supervisor.SendStatesTimeout(time.Second * 5)
+	require.NoError(t, err)
+	err = newNydusd.Takeover()
+	require.NoError(t, err)
+
+	// New nydusd's state should be RUNNING | READY
+	// Only have RUNNING state for older nydusd version (v1.x)
+	err = newNydusd.WaitStatus("RUNNING", "READY")
+	require.NoError(t, err)
+
+	// Snapshotter receive fuse fd from new nydusd
+	err = supervisor.FetchDaemonStates(newNydusd.SendFd)
+	require.NoError(t, err)
+
+	// Start new nydusd to serve mountpoint
+	// It's unnecessary for older nydusd version (v1.x)
+	err = newNydusd.StartByAPI()
+	require.NoError(t, err)
+
+	// Verify filesytem on new nydusd
+	newNydusd.Verify(t, layer.FileTree)
+}
+
+func TestHotUpgrade(t *testing.T) {
+	test.Run(t, &HotUpgradeTestSuite{t: t})
+}
diff --git a/smoke/tests/tool/nydusd.go b/smoke/tests/tool/nydusd.go
index 9eec99fc812..151154c4fb4 100644
--- a/smoke/tests/tool/nydusd.go
+++ b/smoke/tests/tool/nydusd.go
@@ -403,6 +403,21 @@ func (nydusd *Nydusd) WaitStatus(states ...string) error {
 	}
 }
 
+func (nydusd *Nydusd) StartByAPI() error {
+	req, err := http.NewRequest("PUT", "http://unix/api/v1/daemon/start", nil)
+	if err != nil {
+		return err
+	}
+
+	resp, err := nydusd.client.Do(req)
+	if err != nil {
+		return err
+	}
+	defer resp.Body.Close()
+
+	return nil
+}
+
 func (nydusd *Nydusd) SendFd() error {
 	req, err := http.NewRequest("PUT", "http://unix/api/v1/daemon/fuse/sendfd", nil)
 	if err != nil {