diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index de93f459b..323cbb8c2 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -649,6 +649,22 @@ ubi-wsl.sh:
       RUNNER: aws/rhel-8.8-ga-x86_64
       INTERNAL_NETWORK: "true"
 
+weldr-distro-dot-notation+aliases:
+  stage: test
+  extends: .terraform
+  rules:
+    - !reference [.upstream_rules_all, rules]
+    - !reference [.nightly_rules_all, rules]
+  script:
+    - schutzbot/deploy.sh
+    - /usr/libexec/tests/osbuild-composer/weldr-distro-dot-notation-and-aliases.sh
+  parallel:
+    matrix:
+      - RUNNER:
+          - aws/rhel-8.10-nightly-x86_64
+          - aws/rhel-9.4-nightly-x86_64
+        INTERNAL_NETWORK: ["true"]
+
 .generic_s3:
   extends: .libvirt_integration
   rules:
diff --git a/test/cases/weldr-distro-dot-notation-and-aliases.sh b/test/cases/weldr-distro-dot-notation-and-aliases.sh
new file mode 100644
index 000000000..6097d62ef
--- /dev/null
+++ b/test/cases/weldr-distro-dot-notation-and-aliases.sh
@@ -0,0 +1,360 @@
+#!/bin/bash
+
+# Test case for Weldr API (on-premise) distro dot notation and aliases.
+#
+# This test case verifies that distributions can be specified with and without
+# the dot to sepratae the major and minor version (true for RHEL-8 and RHEL-9).
+# It also verifies the behavior of distro name aliases
+# (e.g. "rhel-8" -> "rhel-8.10"). This is done by building a SAP image and
+# inspecting it using guestfish. Specifically, the SAP image contains DNF VAR
+# config /etc/dnf/vars/releasever, which contains value "X.Y", which should be
+# the same as the distro release that the alias points to.
+
+set -xeuo pipefail
+
+source /usr/libexec/osbuild-composer-test/set-env-variables.sh
+source /usr/libexec/tests/osbuild-composer/shared_lib.sh
+
+# Don't run in nightly pipeline until we have the version with dot-notation in nightly compose
+if ! nvrGreaterOrEqual "osbuild-composer" "100"; then
+    echo "osbuild-composer version is too old, skipping the test"
+    exit 0
+fi
+
+TMPDIR=$(mktemp -d)
+greenprint "Registering clean ups"
+function cleanup() {
+    greenprint "== Script execution stopped or finished - Cleaning up =="
+    set +eu
+    rm -rf "${TMPDIR}"
+    set -eu
+}
+trap cleanup EXIT
+
+# Remove any restrictions on the image types for weldr API, since
+# testing the distro alias requires building the SAP image.
+EXTRA_COMPOSER_CONF="$(mktemp -p "$TMPDIR")"
+cat <<EOF | tee "${EXTRA_COMPOSER_CONF}"
+# overrides the default rhel-* configuration
+[weldr_api.distros."rhel-*"]
+EOF
+
+# Provision the software under test.
+/usr/libexec/osbuild-composer-test/provision.sh none "${EXTRA_COMPOSER_CONF}"
+
+# install test dependencies
+sudo dnf install -y '/usr/bin/guestfish'
+
+# path for repository overrides with higher priority
+REPO_OVERRIDES_DIR=/etc/osbuild-composer/repositories
+# path for repositories shipped with osbuild-composer (lower priority)
+REPO_SHIPPED_DIR="/usr/share/osbuild-composer/repositories"
+# path for repositories shipped with osbuild-composer tests, intended for
+# use as part of tests.
+REPO_TEST_DIR="/usr/share/tests/osbuild-composer/repositories/"
+
+DISTRO="${ID}-${VERSION_ID}"
+DISTRO_WITHOUT_DOT="${ID}-${VERSION_ID//./}"
+DISTRO_WITHOUT_MINOR="${ID}-${VERSION_ID%.*}"
+
+DISTRO_TEST_REPO="${REPO_TEST_DIR}/${DISTRO}.json"
+
+# Clean up the repository directories
+function clean_repo_dirs() {
+    sudo rm -rf "${REPO_OVERRIDES_DIR}"
+    sudo mkdir -p "${REPO_OVERRIDES_DIR}"
+    sudo rm -rf "${REPO_SHIPPED_DIR}"
+    sudo mkdir -p "${REPO_SHIPPED_DIR}"
+}
+
+# Stop osbuild-composer, worker and all sockets
+function stop_osbuild_composer() {
+    sudo systemctl stop 'osbuild*'
+}
+
+# Start osbuild-composer with clean cache and store
+function start_osbuild_composer_clean() {
+    stop_osbuild_composer
+    sudo rm -rf /var/cache/osbuild-composer
+    sudo rm -rf /var/lib/osbuild-composer
+    sudo systemctl start osbuild-composer.socket
+
+    # check that the API is running
+    sudo composer-cli status show
+}
+
+# Common test case for verifying that depsolving the provided blueprint works.
+function _test_depsolving_bp() {
+    if [[ $# -ne 2 ]]; then
+        echo "Usage: _test_depsolving_bp <blueprint> <blueprint_name>"
+        exit 1
+    fi
+
+    local blueprint="$1"
+    local blueprint_name="$2"
+
+    sudo composer-cli blueprints push "${blueprint}"
+    sudo composer-cli blueprints depsolve "${blueprint_name}"
+    sudo composer-cli blueprints delete "${blueprint_name}"
+}
+
+# Common test case for verifying that the provided blueprint can produce an image.
+function _test_compose_bp() {
+    if [[ $# -lt 3 || $# -gt 5 ]]; then
+        echo "Usage: _test_compose_bp <blueprint> <blueprint_name> <tmpdir> [<image_type>] [<test_distro_alias>]"
+        exit 1
+    fi
+
+    local blueprint="$1"
+    local blueprint_name="$2"
+    local tmpdir="$3"
+    local image_type="${4:-qcow2}"
+    local test_distro_alias="${5:-0}"
+
+    local composestart="${tmpdir}/compose-start.json"
+    local composeinfo="${tmpdir}/compose-info.json"
+
+    sudo composer-cli blueprints push "${blueprint}"
+    sudo composer-cli --json compose start "${blueprint_name}" "${image_type}" | tee "${composestart}"
+
+    local composeid
+    composeid=$(get_build_info '.build_id' "${composestart}")
+
+    # Wait for the compose to finish.
+    local composestatus
+    echo "⏱ Waiting for compose to finish: ${composeid}"
+    while true; do
+        sudo composer-cli --json compose info "${composeid}" | tee "${composeinfo}" > /dev/null
+        composestatus=$(get_build_info '.queue_status' "${composeinfo}")
+
+        # Is the compose finished?
+        if [[ ${composestatus} != RUNNING ]] && [[ ${composestatus} != WAITING ]]; then
+            break
+        fi
+
+        # Wait 30 seconds and try again.
+        sleep 30
+    done
+
+    jq . "${composeinfo}"
+
+    # Did the compose finish with success?
+    if [[ $composestatus != FINISHED ]]; then
+        echo "Something went wrong with the compose. 😢"
+        exit 1
+    fi
+
+    if [[ "${test_distro_alias}" == "1" ]]; then
+        pushd "${tmpdir}"
+        _verify_distro_alias_img "${composeid}"
+        popd
+    fi
+
+    sudo composer-cli compose delete "${composeid}" >/dev/null
+}
+
+# Verify that the image contains /etc/dnf/vars/releasever with the expected content.
+# Specifically, verify that the the content of /etc/dnf/vars/releasever is the same
+# as the VERSION_ID of the distro that the distro alias point to.
+function _verify_distro_alias_img() {
+    if [[ $# -ne 1 ]]; then
+        echo "Usage: _verify_distro_alias_img <compose_id>"
+        exit 1
+    fi
+
+    local compose_id="$1"
+
+    local image_file
+    image_file=$(sudo composer-cli compose image "${compose_id}")
+
+    if [[ ! -f "${image_file}" ]]; then
+        echo "Image file ${image_file} does not exist."
+        exit 1
+    fi
+
+    # uncompress the file if compressed
+    if [[ "${image_file}" == *.xz ]]; then
+        sudo unxz "${image_file}"
+        image_file="${image_file%.xz}"
+    fi
+
+    local dnf_vars_releasever="/etc/dnf/vars/releasever"
+    greenprint "Check ${dnf_vars_releasever} in the image"
+
+    local dnf_vars_releasever_content
+    dnf_vars_releasever_content=$(LIBGUESTFS_BACKEND=direct sudo --preserve-env=LIBGUESTFS_BACKEND guestfish --ro -a "${image_file}" -i cat "${dnf_vars_releasever}")
+
+    if [[ "${dnf_vars_releasever_content}" != "${VERSION_ID}" ]]; then
+        echo "Unexpected content of ${dnf_vars_releasever}: ${dnf_vars_releasever_content}"
+        echo "Expected: ${VERSION_ID}"
+        exit 1
+    fi
+}
+
+# Create a testing blueprint with wget package.
+function _create_blueprint() {
+    if [[ $# -lt 2 ]] || [[ $# -gt 3 ]]; then
+        echo "Usage: _create_blueprint <directory> <blueprint_name> [<distro>]"
+        exit 1
+    fi
+
+    local directory="$1"
+    local blueprint_name="$2"
+    local distro="${3:-}"
+
+    cat <<EOF > "${directory}/${blueprint_name}.toml"
+name = "${blueprint_name}"
+description = "A testing blueprint"
+version = "0.0.1"
+EOF
+    
+        if [[ -n "${distro}" ]]; then
+            cat <<EOF >> "${directory}/${blueprint_name}.toml"
+distro = "${distro}"
+EOF
+        fi
+
+    cat <<EOF >> "${directory}/${blueprint_name}.toml"
+
+[[packages]]
+name = "wget"
+EOF
+
+    echo "${directory}/${blueprint_name}.toml"
+}
+
+# Common test case for repo configurations.
+function _test_repo() {
+    local test_name="$1"
+    local distro="$2"
+
+    greenprint "TEST: ${test_name}"
+    
+    local directory="${TMPDIR}/${test_name}"
+    mkdir -p "${directory}"
+
+    stop_osbuild_composer
+    clean_repo_dirs
+    sudo cp "${DISTRO_TEST_REPO}" "${REPO_SHIPPED_DIR}/${distro}.json"
+    start_osbuild_composer_clean
+    local test_bp
+    test_bp=$(_create_blueprint "${directory}" "${test_name}")
+    _test_depsolving_bp "${test_bp}" "${test_name}"
+}
+
+# Test that the repository definitions can contain a dot in its filename,
+# separating the major and minor version.
+function test_repo_with_dot() {
+    _test_repo "repo_with_dot" "${DISTRO}"
+}
+
+# Test that the repository definitions can be used without a dot in its filename,
+# even though the distro version may contain a dot.
+function test_repo_without_dot() {
+    _test_repo "repo_without_dot" "${DISTRO_WITHOUT_DOT}"
+}
+
+# Test that the repository definitions with andwithout a dot in its filename
+# are equivalent and can override each other. Test uses empty file in the shipped
+# directory and the test repository in the overrides directory to verify that
+# the override happens.
+function test_repo_dot_overrides() {
+    local test_name="repo_dot_overrides"
+    greenprint "TEST: ${test_name}"
+    
+    local directory="${TMPDIR}/${test_name}"
+    mkdir -p "${directory}"
+
+    # Case 1: repo without dot in shipped dir, repo with dot in overrides dir
+    stop_osbuild_composer
+    clean_repo_dirs
+    echo "{}" | sudo tee "${REPO_SHIPPED_DIR}/${DISTRO_WITHOUT_DOT}.json"
+    sudo cp "${DISTRO_TEST_REPO}" "${REPO_OVERRIDES_DIR}/${DISTRO}.json"
+    start_osbuild_composer_clean
+    local test_bp
+    test_bp=$(_create_blueprint "${directory}" "${test_name}")
+    _test_depsolving_bp "${test_bp}" "${test_name}"
+
+    # Case 2: repo with dot in shipped dir, repo without dot in overrides dir
+    stop_osbuild_composer
+    clean_repo_dirs
+    echo "{}" | sudo tee "${REPO_SHIPPED_DIR}/${DISTRO}.json"
+    sudo cp "${DISTRO_TEST_REPO}" "${REPO_OVERRIDES_DIR}/${DISTRO_WITHOUT_DOT}.json"
+    start_osbuild_composer_clean
+    test_bp=$(_create_blueprint "${directory}" "${test_name}")
+    _test_depsolving_bp "${test_bp}" "${test_name}"
+}
+
+# Common test case for distro names in BP.
+function _test_distro() {
+    local test_name="$1"
+    local distro="$2"
+
+    greenprint "TEST: ${test_name}"
+
+    local directory="${TMPDIR}/${test_name}"
+    mkdir -p "${directory}"
+
+    stop_osbuild_composer
+    clean_repo_dirs
+    sudo cp "${DISTRO_TEST_REPO}" "${REPO_SHIPPED_DIR}"
+    start_osbuild_composer_clean
+    local test_bp
+    test_bp=$(_create_blueprint "${directory}" "${test_name}" "${distro}")
+    _test_depsolving_bp "${test_bp}" "${test_name}"
+    _test_compose_bp "${test_bp}" "${test_name}" "${directory}"
+}
+
+# Test that the distro name in the blueprint can contain a dot in its name.
+function test_distro_with_dot() {
+    _test_distro "distro_with_dot" "${DISTRO}"
+}
+
+# Test that the distro name in the blueprint can be used without a dot in its name.
+function test_distro_without_dot() {
+    _test_distro "distro_without_dot" "${DISTRO_WITHOUT_DOT}"
+}
+
+# Test that the distro alias without the minor version can be used in the blueprint.
+# This test case requires that the test case is run on RHEL version which is
+# set as the target distro without minor version in the default composer configuration.
+function test_distro_alias() {
+    local test_name="distro_alias"
+    greenprint "TEST: ${test_name}"
+
+    if [[ "${ID}" != "rhel" ]]; then
+        echo "Testing distro alias requires RHEL distro."
+        exit 1
+    fi
+
+    local directory="${TMPDIR}/${test_name}"
+    mkdir -p "${directory}"
+
+    stop_osbuild_composer
+    clean_repo_dirs
+    sudo cp "${DISTRO_TEST_REPO}" "${REPO_SHIPPED_DIR}/${DISTRO_WITHOUT_MINOR}.json"
+    start_osbuild_composer_clean
+    local test_bp
+    test_bp=$(_create_blueprint "${directory}" "${test_name}" "${DISTRO_WITHOUT_MINOR}")
+    _test_depsolving_bp "${test_bp}" "${test_name}"
+    _test_compose_bp "${test_bp}" "${test_name}" "${directory}" "ec2-sap" "1"
+}
+
+# Skip all tests if the DISTRO does not contain a dot.
+if [[ "${DISTRO}" == "${DISTRO_WITHOUT_DOT}" ]]; then
+    echo "The distro does not contain dot to separate major and minor version."
+    echo "Skipping the test, since testing the dot notation or aliases does not make sense."
+    exit 0
+fi
+
+# Run the tests.
+test_repo_with_dot
+test_repo_without_dot
+test_repo_dot_overrides
+test_distro_with_dot
+test_distro_without_dot
+test_distro_alias
+
+# If we got here, all tests passed.
+echo "All tests passed! 🥳"
+exit 0