diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/common/Storage.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/common/Storage.java
index 9e9f48c7fd..cfcddb44fd 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/common/Storage.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/common/Storage.java
@@ -110,7 +110,7 @@ public long getCreationTime() {
   public void setClusterId(String clusterId) throws IOException {
     if (state == StorageState.INITIALIZED) {
       throw new IOException(
-          "Storage directory " + storageDir + "already initialized.");
+          "Storage directory " + storageDir + " already initialized.");
     } else {
       storageInfo.setClusterId(clusterId);
     }
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KSMMetadataManagerImpl.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KSMMetadataManagerImpl.java
index e7da79d7c9..df02182d28 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KSMMetadataManagerImpl.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KSMMetadataManagerImpl.java
@@ -76,7 +76,7 @@ public class KSMMetadataManagerImpl implements KSMMetadataManager {
   private final long openKeyExpireThresholdMS;
 
   public KSMMetadataManagerImpl(OzoneConfiguration conf) throws IOException {
-    File metaDir = OzoneUtils.getScmMetadirPath(conf);
+    File metaDir = OzoneUtils.getOzoneMetaDirPath(conf);
     final int cacheSize = conf.getInt(OZONE_KSM_DB_CACHE_SIZE_MB,
         OZONE_KSM_DB_CACHE_SIZE_DEFAULT);
     File ksmDBFile = new File(metaDir.getPath(), KSM_DB_NAME);
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KSMStorage.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KSMStorage.java
new file mode 100644
index 0000000000..82192124ae
--- /dev/null
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KSMStorage.java
@@ -0,0 +1,89 @@
+/**
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.apache.hadoop.ozone.ksm;
+
+import org.apache.hadoop.conf.OzoneConfiguration;
+import org.apache.hadoop.ozone.common.Storage;
+import org.apache.hadoop.ozone.protocol.proto.OzoneProtos.NodeType;
+import org.apache.hadoop.ozone.scm.SCMStorage;
+import org.apache.hadoop.ozone.web.utils.OzoneUtils;
+
+import java.io.IOException;
+import java.util.Properties;
+import java.util.UUID;
+
+/**
+ * KSMStorage is responsible for management of the StorageDirectories used by
+ * the KSM.
+ */
+public class KSMStorage extends Storage {
+
+  public static final String STORAGE_DIR = "ksm";
+  public static final String KSM_ID = "ksmUuid";
+
+  /**
+   * Construct KSMStorage.
+   * @throws IOException if any directories are inaccessible.
+   */
+  public KSMStorage(OzoneConfiguration conf) throws IOException {
+    super(NodeType.KSM, OzoneUtils.getOzoneMetaDirPath(conf), STORAGE_DIR);
+  }
+
+  public void setScmId(String scmId) throws IOException {
+    if (getState() == StorageState.INITIALIZED) {
+      throw new IOException("KSM is already initialized.");
+    } else {
+      getStorageInfo().setProperty(SCMStorage.SCM_ID, scmId);
+    }
+  }
+
+  public void setKsmId(String ksmId) throws IOException {
+    if (getState() == StorageState.INITIALIZED) {
+      throw new IOException("KSM is already initialized.");
+    } else {
+      getStorageInfo().setProperty(KSM_ID, ksmId);
+    }
+  }
+
+  /**
+   * Retrieves the SCM ID from the version file.
+   * @return SCM_ID
+   */
+  public String getScmId() {
+    return getStorageInfo().getProperty(SCMStorage.SCM_ID);
+  }
+
+  /**
+   * Retrieves the KSM ID from the version file.
+   * @return KSM_ID
+   */
+  public String getKsmId() {
+    return getStorageInfo().getProperty(KSM_ID);
+  }
+
+  @Override
+  protected Properties getNodeProperties() {
+    String ksmId = getKsmId();
+    if (ksmId == null) {
+      ksmId = UUID.randomUUID().toString();
+    }
+    Properties ksmProperties = new Properties();
+    ksmProperties.setProperty(KSM_ID, ksmId);
+    return ksmProperties;
+  }
+}
\ No newline at end of file
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KeySpaceManager.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KeySpaceManager.java
index 385d5f6eea..40410a1a22 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KeySpaceManager.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/KeySpaceManager.java
@@ -25,6 +25,8 @@
 import org.apache.hadoop.ipc.ProtobufRpcEngine;
 import org.apache.hadoop.ipc.RPC;
 import org.apache.hadoop.jmx.ServiceRuntimeInfoImpl;
+import org.apache.hadoop.ozone.common.Storage.StorageState;
+import org.apache.hadoop.ozone.ksm.exceptions.KSMException;
 import org.apache.hadoop.ozone.ksm.helpers.KsmBucketArgs;
 import org.apache.hadoop.ozone.ksm.helpers.KsmBucketInfo;
 import org.apache.hadoop.ozone.ksm.helpers.KsmKeyArgs;
@@ -34,6 +36,7 @@
 import org.apache.hadoop.ozone.ksm.helpers.OpenKeySession;
 import org.apache.hadoop.ozone.ksm.protocol.KeySpaceManagerProtocol;
 import org.apache.hadoop.ozone.ksm.protocolPB.KeySpaceManagerProtocolPB;
+import org.apache.hadoop.ozone.ksm.exceptions.KSMException.ResultCodes;
 import org.apache.hadoop.metrics2.lib.DefaultMetricsSystem;
 import org.apache.hadoop.metrics2.util.MBeans;
 import org.apache.hadoop.net.NetUtils;
@@ -55,6 +58,7 @@
 
 import javax.management.ObjectName;
 import java.io.IOException;
+import java.io.PrintStream;
 import java.net.InetSocketAddress;
 import java.util.HashMap;
 import java.util.List;
@@ -81,6 +85,37 @@ public class KeySpaceManager extends ServiceRuntimeInfoImpl
   private static final Logger LOG =
       LoggerFactory.getLogger(KeySpaceManager.class);
 
+  private static final String USAGE =
+      "Usage: \n hdfs ksm [genericOptions] " + "[ "
+          + StartupOption.CREATEOBJECTSTORE.getName() + " ]\n " + "hdfs ksm [ "
+          + StartupOption.HELP.getName() + " ]\n";
+
+  /** Startup options. */
+  public enum StartupOption {
+    CREATEOBJECTSTORE("-createObjectStore"),
+    HELP("-help"),
+    REGULAR("-regular");
+
+    private final String name;
+
+    StartupOption(String arg) {
+      this.name = arg;
+    }
+
+    public String getName() {
+      return name;
+    }
+
+    public static StartupOption parse(String value) {
+      for (StartupOption option : StartupOption.values()) {
+        if (option.name.equalsIgnoreCase(value)) {
+          return option;
+        }
+      }
+      return null;
+    }
+  }
+
   private final RPC.Server ksmRpcServer;
   private final InetSocketAddress ksmRpcAddress;
   private final KSMMetadataManager metadataManager;
@@ -89,10 +124,24 @@ public class KeySpaceManager extends ServiceRuntimeInfoImpl
   private final KeyManager keyManager;
   private final KSMMetrics metrics;
   private final KeySpaceManagerHttpServer httpServer;
+  private final KSMStorage ksmStorage;
   private ObjectName ksmInfoBeanName;
-  private static final String USAGE = "hdfs ksm [genericOptions]";
 
-  public KeySpaceManager(OzoneConfiguration conf) throws IOException {
+  private KeySpaceManager(OzoneConfiguration conf) throws IOException {
+    ksmStorage = new KSMStorage(conf);
+    ScmBlockLocationProtocol scmBlockClient = getScmBlockClient(conf);
+    if (ksmStorage.getState() != StorageState.INITIALIZED) {
+      throw new KSMException("KSM not initialized.",
+          ResultCodes.KSM_NOT_INITIALIZED);
+    }
+
+    // verifies that the SCM info in the KSM Version file is correct.
+    ScmInfo scmInfo = scmBlockClient.getScmInfo();
+    if (!(scmInfo.getClusterId().equals(ksmStorage.getClusterID()) && scmInfo
+        .getScmId().equals(ksmStorage.getScmId()))) {
+      throw new KSMException("SCM version info mismatch.",
+          ResultCodes.SCM_VERSION_MISMATCH_ERROR);
+    }
     final int handlerCount = conf.getInt(OZONE_KSM_HANDLER_COUNT_KEY,
         OZONE_KSM_HANDLER_COUNT_DEFAULT);
 
@@ -124,8 +173,8 @@ public KeySpaceManager(OzoneConfiguration conf) throws IOException {
    * @return
    * @throws IOException
    */
-  private ScmBlockLocationProtocol getScmBlockClient(OzoneConfiguration conf)
-      throws IOException {
+  private static ScmBlockLocationProtocol getScmBlockClient(
+      OzoneConfiguration conf) throws IOException {
     RPC.setProtocolEngine(conf, ScmBlockLocationProtocolPB.class,
         ProtobufRpcEngine.class);
     long scmVersion =
@@ -145,6 +194,11 @@ private ScmBlockLocationProtocol getScmBlockClient(OzoneConfiguration conf)
   public ScmInfo getScmInfo(OzoneConfiguration conf) throws IOException {
     return getScmBlockClient(conf).getScmInfo();
   }
+
+  @VisibleForTesting
+  public KSMStorage getKsmStorage() {
+    return ksmStorage;
+  }
   /**
    * Starts an RPC server, if configured.
    *
@@ -193,34 +247,124 @@ public KSMMetrics getMetrics() {
    * @throws IOException if startup fails due to I/O error
    */
   public static void main(String[] argv) throws IOException {
-    if (DFSUtil.parseHelpArgument(argv, USAGE,
-        System.out, true)) {
+    if (DFSUtil.parseHelpArgument(argv, USAGE, System.out, true)) {
       System.exit(0);
     }
     try {
       OzoneConfiguration conf = new OzoneConfiguration();
       GenericOptionsParser hParser = new GenericOptionsParser(conf, argv);
-      if (!hParser.isParseSuccessful()
-          || hParser.getRemainingArgs().length > 0) {
+      if (!hParser.isParseSuccessful()) {
         System.err.println("USAGE: " + USAGE + " \n");
         hParser.printGenericCommandUsage(System.err);
         System.exit(1);
       }
-      if (!DFSUtil.isOzoneEnabled(conf)) {
-        System.out.println("KSM cannot be started in secure mode or when " +
-            OZONE_ENABLED + " is set to false");
-        System.exit(1);
-      }
       StringUtils.startupShutdownMessage(KeySpaceManager.class, argv, LOG);
-      KeySpaceManager ksm = new KeySpaceManager(conf);
-      ksm.start();
-      ksm.join();
+      KeySpaceManager ksm = createKSM(hParser.getRemainingArgs(), conf);
+      if (ksm != null) {
+        ksm.start();
+        ksm.join();
+      }
     } catch (Throwable t) {
       LOG.error("Failed to start the KeyspaceManager.", t);
       terminate(1, t);
     }
   }
 
+  private static void printUsage(PrintStream out) {
+    out.println(USAGE + "\n");
+  }
+
+  /**
+   * Constructs KSM instance based on command line arguments.
+   * @param argv Command line arguments
+   * @param conf OzoneConfiguration
+   * @return KSM instance
+   * @throws IOException in case KSM instance creation fails.
+   */
+
+  public static KeySpaceManager createKSM(String[] argv,
+      OzoneConfiguration conf) throws IOException {
+    if (!DFSUtil.isOzoneEnabled(conf)) {
+      System.err.println("KSM cannot be started in secure mode or when " +
+          OZONE_ENABLED + " is set to false");
+      System.exit(1);
+    }
+    StartupOption startOpt = parseArguments(argv);
+    if (startOpt == null) {
+      printUsage(System.err);
+      terminate(1);
+      return null;
+    }
+    switch (startOpt) {
+    case CREATEOBJECTSTORE:
+      terminate(ksmInit(conf) ? 0 : 1);
+      return null;
+    case HELP:
+      printUsage(System.err);
+      terminate(0);
+      return null;
+    default:
+      return new KeySpaceManager(conf);
+    }
+  }
+
+  /**
+   * Initializes the KSM instance.
+   * @param conf OzoneConfiguration
+   * @return true if KSM initialization succeeds , false otherwise
+   * @throws IOException in case ozone metadata directory path is not accessible
+   */
+
+  private static boolean ksmInit(OzoneConfiguration conf) throws IOException {
+    KSMStorage ksmStorage = new KSMStorage(conf);
+    StorageState state = ksmStorage.getState();
+    if (state != StorageState.INITIALIZED) {
+      try {
+        ScmBlockLocationProtocol scmBlockClient = getScmBlockClient(conf);
+        ScmInfo scmInfo = scmBlockClient.getScmInfo();
+        String clusterId = scmInfo.getClusterId();
+        String scmId = scmInfo.getScmId();
+        if (clusterId == null || clusterId.isEmpty()) {
+          throw new IOException("Invalid Cluster ID");
+        }
+        if (scmId == null || scmId.isEmpty()) {
+          throw new IOException("Invalid SCM ID");
+        }
+        ksmStorage.setClusterId(clusterId);
+        ksmStorage.setScmId(scmId);
+        ksmStorage.initialize();
+        System.out.println(
+            "KSM initialization succeeded.Current cluster id for sd="
+                + ksmStorage.getStorageDir() + ";cid=" + ksmStorage
+                .getClusterID());
+        return true;
+      } catch (IOException ioe) {
+        LOG.error("Could not initialize KSM version file", ioe);
+        return false;
+      }
+    } else {
+      System.out.println(
+          "KSM already initialized.Reusing existing cluster id for sd="
+              + ksmStorage.getStorageDir() + ";cid=" + ksmStorage
+              .getClusterID());
+      return true;
+    }
+  }
+
+  /**
+   * Parses the command line options for KSM initialization.
+   * @param args command line arguments
+   * @return StartupOption if options are valid, null otherwise
+   */
+  private static StartupOption parseArguments(String[] args) {
+    if (args == null || args.length == 0) {
+      return StartupOption.REGULAR;
+    } else if (args.length == 1) {
+      return StartupOption.parse(args[0]);
+    }
+    return null;
+  }
+
   /**
    * Builds a message for logging startup information about an RPC server.
    *
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/exceptions/KSMException.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/exceptions/KSMException.java
index c27104b5ea..e2f35802e1 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/exceptions/KSMException.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/ksm/exceptions/KSMException.java
@@ -109,6 +109,8 @@ public enum ResultCodes {
     FAILED_KEY_ALLOCATION,
     FAILED_KEY_DELETION,
     FAILED_METADATA_ERROR,
-    FAILED_INTERNAL_ERROR
+    FAILED_INTERNAL_ERROR,
+    KSM_NOT_INITIALIZED,
+    SCM_VERSION_MISMATCH_ERROR
   }
 }
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/SCMStorage.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/SCMStorage.java
index b3627bd0d7..e5437c7c1e 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/SCMStorage.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/SCMStorage.java
@@ -41,7 +41,7 @@ public class SCMStorage extends Storage {
    * @throws IOException if any directories are inaccessible.
    */
   public SCMStorage(OzoneConfiguration conf) throws IOException {
-    super(NodeType.SCM, OzoneUtils.getScmMetadirPath(conf), STORAGE_DIR);
+    super(NodeType.SCM, OzoneUtils.getOzoneMetaDirPath(conf), STORAGE_DIR);
   }
 
   public void setScmId(String scmId) throws IOException {
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/block/BlockManagerImpl.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/block/BlockManagerImpl.java
index 29fe3eb3ce..521adf8615 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/block/BlockManagerImpl.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/block/BlockManagerImpl.java
@@ -112,7 +112,7 @@ public BlockManagerImpl(final Configuration conf,
     this.containerSize = OzoneConsts.GB * conf.getInt(
         ScmConfigKeys.OZONE_SCM_CONTAINER_SIZE_GB,
         ScmConfigKeys.OZONE_SCM_CONTAINER_SIZE_DEFAULT);
-    File metaDir = OzoneUtils.getScmMetadirPath(conf);
+    File metaDir = OzoneUtils.getOzoneMetaDirPath(conf);
     String scmMetaDataDir = metaDir.getPath();
 
     // Write the block key to container name mapping.
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/block/DeletedBlockLogImpl.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/block/DeletedBlockLogImpl.java
index d14da625cd..c5fd749995 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/block/DeletedBlockLogImpl.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/block/DeletedBlockLogImpl.java
@@ -77,7 +77,7 @@ public DeletedBlockLogImpl(Configuration conf) throws IOException {
     maxRetry = conf.getInt(OZONE_SCM_BLOCK_DELETION_MAX_RETRY,
         OZONE_SCM_BLOCK_DELETION_MAX_RETRY_DEFAULT);
 
-    File metaDir = OzoneUtils.getScmMetadirPath(conf);
+    File metaDir = OzoneUtils.getOzoneMetaDirPath(conf);
     String scmMetaDataDir = metaDir.getPath();
     File deletedLogDbPath = new File(scmMetaDataDir, DELETED_BLOCK_DB);
     int cacheSize = conf.getInt(OZONE_SCM_DB_CACHE_SIZE_MB,
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/container/ContainerMapping.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/container/ContainerMapping.java
index 2882959b19..3bd066cd26 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/container/ContainerMapping.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/container/ContainerMapping.java
@@ -99,7 +99,7 @@ public ContainerMapping(
     this.nodeManager = nodeManager;
     this.cacheSize = cacheSizeMB;
 
-    File metaDir = OzoneUtils.getScmMetadirPath(conf);
+    File metaDir = OzoneUtils.getOzoneMetaDirPath(conf);
 
     // Write the container name to pipeline mapping.
     File containerDBPath = new File(metaDir, CONTAINER_DB);
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/node/SCMNodePoolManager.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/node/SCMNodePoolManager.java
index 232b40c816..55bf1c48cd 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/node/SCMNodePoolManager.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/scm/node/SCMNodePoolManager.java
@@ -81,7 +81,7 @@ public SCMNodePoolManager(final OzoneConfiguration conf)
       throws IOException {
     final int cacheSize = conf.getInt(OZONE_SCM_DB_CACHE_SIZE_MB,
         OZONE_SCM_DB_CACHE_SIZE_DEFAULT);
-    File metaDir = OzoneUtils.getScmMetadirPath(conf);
+    File metaDir = OzoneUtils.getOzoneMetaDirPath(conf);
     String scmMetaDataDir = metaDir.getPath();
     File nodePoolDBPath = new File(scmMetaDataDir, NODEPOOL_DB);
     nodePoolStore = MetadataStoreBuilder.newBuilder()
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/web/utils/OzoneUtils.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/web/utils/OzoneUtils.java
index 08c5d59a96..cfdf025c1d 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/web/utils/OzoneUtils.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/ozone/web/utils/OzoneUtils.java
@@ -250,7 +250,7 @@ public static Response getResponse(UserArgs args, int statusCode,
    *
    * @return File MetaDir
    */
-  public static File getScmMetadirPath(Configuration conf) {
+  public static File getOzoneMetaDirPath(Configuration conf) {
     String metaDirPath = conf.getTrimmed(OzoneConfigKeys
         .OZONE_METADATA_DIRS);
     Preconditions.checkNotNull(metaDirPath);
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/ozone/MiniOzoneClassicCluster.java b/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/ozone/MiniOzoneClassicCluster.java
index e256aa719b..a6acc359fb 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/ozone/MiniOzoneClassicCluster.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/ozone/MiniOzoneClassicCluster.java
@@ -35,6 +35,7 @@
 import org.apache.hadoop.ozone.ksm.KSMConfigKeys;
 import org.apache.hadoop.ozone.ksm.KeySpaceManager;
 import org.apache.hadoop.ozone.scm.SCMStorage;
+import org.apache.hadoop.ozone.ksm.KSMStorage;
 import org.apache.hadoop.ozone.web.client.OzoneRestClient;
 import org.apache.hadoop.scm.ScmConfigKeys;
 import org.apache.hadoop.scm.protocolPB
@@ -86,7 +87,7 @@ public final class MiniOzoneClassicCluster extends MiniDFSCluster
 
   private final OzoneConfiguration conf;
   private final StorageContainerManager scm;
-  private final KeySpaceManager ksm;
+  private KeySpaceManager ksm;
   private final Path tempPath;
 
   /**
@@ -338,6 +339,7 @@ public static class Builder
     private Optional<String> scmMetadataDir = Optional.empty();
     private Optional<String> clusterId = Optional.empty();
     private Optional<String> scmId = Optional.empty();
+    private Optional<String> ksmId = Optional.empty();
     private Boolean ozoneEnabled = true;
     private Boolean waitForChillModeFinish = true;
     private Boolean randomContainerPort = true;
@@ -436,6 +438,11 @@ public Builder setScmId(String sId) {
       return this;
     }
 
+    public Builder setKsmId(String kId) {
+      ksmId = Optional.of(kId);
+      return this;
+    }
+
     public String getPath() {
       return path;
     }
@@ -453,6 +460,7 @@ public MiniOzoneClassicCluster build() throws IOException {
       configureSCMheartbeat();
       configScmMetadata();
       initializeScm();
+      initializeKSM();
 
       conf.set(ScmConfigKeys.OZONE_SCM_CLIENT_ADDRESS_KEY, "127.0.0.1:0");
       conf.set(ScmConfigKeys.OZONE_SCM_BLOCK_CLIENT_ADDRESS_KEY, "127.0.0.1:0");
@@ -474,7 +482,7 @@ public MiniOzoneClassicCluster build() throws IOException {
           null, conf);
       scm.start();
 
-      KeySpaceManager ksm = new KeySpaceManager(conf);
+      KeySpaceManager ksm = KeySpaceManager.createKSM(null, conf);
       ksm.start();
 
       String addressString =  scm.getDatanodeRpcAddress().getHostString() +
@@ -527,11 +535,25 @@ private void configScmMetadata() throws IOException {
 
     private void initializeScm() throws IOException {
       SCMStorage scmStore = new SCMStorage(conf);
-      scmStore.setClusterId(clusterId.orElse(runID.toString()));
-      scmStore.setScmId(scmId.orElse(UUID.randomUUID().toString()));
+      if (!clusterId.isPresent()) {
+        clusterId = Optional.of(runID.toString());
+      }
+      scmStore.setClusterId(clusterId.get());
+      if (!scmId.isPresent()) {
+        scmId = Optional.of(UUID.randomUUID().toString());
+      }
+      scmStore.setScmId(scmId.get());
       scmStore.initialize();
     }
 
+    private void initializeKSM() throws IOException {
+      KSMStorage ksmStore = new KSMStorage(conf);
+      ksmStore.setClusterId(clusterId.get());
+      ksmStore.setScmId(scmId.get());
+      ksmStore.setKsmId(ksmId.orElse(UUID.randomUUID().toString()));
+      ksmStore.initialize();
+    }
+
     private void configureHandler() {
       conf.setBoolean(OzoneConfigKeys.OZONE_ENABLED, this.ozoneEnabled);
       if (!ozoneHandlerType.isPresent()) {
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/ozone/ksm/TestKeySpaceManager.java b/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/ozone/ksm/TestKeySpaceManager.java
index 3ff753cf93..e99b809338 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/ozone/ksm/TestKeySpaceManager.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/ozone/ksm/TestKeySpaceManager.java
@@ -28,6 +28,8 @@
 import org.apache.hadoop.ozone.OzoneConsts;
 import org.apache.hadoop.ozone.common.BlockGroup;
 import org.apache.hadoop.ozone.client.rest.OzoneException;
+import org.apache.hadoop.ozone.ksm.exceptions.KSMException;
+import org.apache.hadoop.ozone.scm.SCMStorage;
 import org.apache.hadoop.ozone.web.handlers.BucketArgs;
 import org.apache.hadoop.ozone.web.handlers.KeyArgs;
 import org.apache.hadoop.ozone.web.handlers.UserArgs;
@@ -39,6 +41,7 @@
 import org.apache.hadoop.ozone.web.response.KeyInfo;
 import org.apache.hadoop.ozone.web.response.VolumeInfo;
 import org.apache.hadoop.ozone.web.utils.OzoneUtils;
+import org.apache.hadoop.scm.ScmConfigKeys;
 import org.apache.hadoop.scm.ScmInfo;
 import org.apache.hadoop.test.GenericTestUtils;
 import org.apache.hadoop.ozone.protocol.proto
@@ -61,6 +64,8 @@
 import java.io.IOException;
 import java.io.InputStream;
 import java.io.OutputStream;
+import java.nio.file.Path;
+import java.nio.file.Paths;
 import java.text.ParseException;
 import java.util.HashSet;
 import java.util.LinkedList;
@@ -86,6 +91,7 @@ public class TestKeySpaceManager {
   private static OzoneConfiguration conf;
   private static String clusterId;
   private static String scmId;
+  private static String ksmId;
 
   @Rule
   public ExpectedException exception = ExpectedException.none();
@@ -103,6 +109,7 @@ public static void init() throws Exception {
     conf = new OzoneConfiguration();
     clusterId = UUID.randomUUID().toString();
     scmId = UUID.randomUUID().toString();
+    ksmId = UUID.randomUUID().toString();
     conf.set(OzoneConfigKeys.OZONE_HANDLER_TYPE_KEY,
         OzoneConsts.OZONE_HANDLER_DISTRIBUTED);
     conf.setInt(OZONE_OPEN_KEY_CLEANUP_SERVICE_INTERVAL_SECONDS, 2);
@@ -111,6 +118,7 @@ public static void init() throws Exception {
         .setHandlerType(OzoneConsts.OZONE_HANDLER_DISTRIBUTED)
         .setClusterId(clusterId)
         .setScmId(scmId)
+        .setKsmId(ksmId)
         .build();
     storageHandler = new ObjectStoreHandler(conf).getStorageHandler();
     userArgs = new UserArgs(null, OzoneUtils.getRequestID(),
@@ -1130,4 +1138,51 @@ public void testExpiredOpenKey() throws Exception {
     String keyName = subs[subs.length - 1];
     Assert.assertEquals("testKey5", keyName);
   }
+
+  /**
+   * Tests the KSM Initialization.
+   * @throws IOException
+   */
+  @Test
+  public void testKSMInitialization() throws IOException {
+    // Read the version file info from KSM version file
+    KSMStorage ksmStorage = cluster.getKeySpaceManager().getKsmStorage();
+    SCMStorage scmStorage = new SCMStorage(conf);
+    // asserts whether cluster Id and SCM ID are properly set in SCM Version
+    // file.
+    Assert.assertEquals(clusterId, scmStorage.getClusterID());
+    Assert.assertEquals(scmId, scmStorage.getScmId());
+    // asserts whether KSM Id is properly set in KSM Version file.
+    Assert.assertEquals(ksmId, ksmStorage.getKsmId());
+    // asserts whether the SCM info is correct in KSM Version file.
+    Assert.assertEquals(clusterId, ksmStorage.getClusterID());
+    Assert.assertEquals(scmId, ksmStorage.getScmId());
+  }
+
+  /**
+   * Tests the KSM Initialization Failure.
+   * @throws IOException
+   */
+  @Test
+  public void testKSMInitializationFailure() throws Exception {
+    OzoneConfiguration config = new OzoneConfiguration();
+    final String path =
+        GenericTestUtils.getTempPath(UUID.randomUUID().toString());
+    Path metaDirPath = Paths.get(path, "ksm-meta");
+    config.set(OzoneConfigKeys.OZONE_METADATA_DIRS, metaDirPath.toString());
+    config.setBoolean(OzoneConfigKeys.OZONE_ENABLED, true);
+    config.set(ScmConfigKeys.OZONE_SCM_BLOCK_CLIENT_ADDRESS_KEY,
+        conf.get(ScmConfigKeys.OZONE_SCM_BLOCK_CLIENT_ADDRESS_KEY));
+    exception.expect(KSMException.class);
+    exception.expectMessage("KSM not initialized.");
+    KeySpaceManager.createKSM(null, config);
+    KSMStorage ksmStore = new KSMStorage(config);
+    ksmStore.setClusterId("testClusterId");
+    ksmStore.setScmId("testScmId");
+    // writes the version file properties
+    ksmStore.initialize();
+    exception.expect(KSMException.class);
+    exception.expectMessage("SCM version info mismatch.");
+    KeySpaceManager.createKSM(null, conf);
+  }
 }