diff --git a/tests/xdc/activity_api_test.go b/tests/xdc/activity_api_test.go
new file mode 100644
index 00000000000..1967cbb4a0f
--- /dev/null
+++ b/tests/xdc/activity_api_test.go
@@ -0,0 +1,246 @@
+// The MIT License
+//
+// Copyright (c) 2024 Temporal Technologies Inc.  All rights reserved.
+//
+// Permission is hereby granted, free of charge, to any person obtaining a copy
+// of this software and associated documentation files (the "Software"), to deal
+// in the Software without restriction, including without limitation the rights
+// to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+// copies of the Software, and to permit persons to whom the Software is
+// furnished to do so, subject to the following conditions:
+//
+// The above copyright notice and this permission notice shall be included in
+// all copies or substantial portions of the Software.
+//
+// THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+// IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+// FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+// AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+// LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+// OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN
+// THE SOFTWARE.
+
+package xdc
+
+import (
+	"context"
+	"errors"
+	"sync/atomic"
+	"testing"
+	"time"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/suite"
+	"go.temporal.io/api/workflowservice/v1"
+	sdkclient "go.temporal.io/sdk/client"
+	"go.temporal.io/sdk/temporal"
+	sdkworker "go.temporal.io/sdk/worker"
+	"go.temporal.io/sdk/workflow"
+	"go.temporal.io/server/api/historyservice/v1"
+	"go.temporal.io/server/common/dynamicconfig"
+	"go.temporal.io/server/common/log"
+	"go.temporal.io/server/tests/testcore"
+)
+
+type (
+	ActivityFunctions func() (string, error)
+	WorkflowFunction  func(context2 workflow.Context) error
+
+	ActivityApiStateReplicationSuite struct {
+		xdcBaseSuite
+	}
+)
+
+func TestActivityApiStateReplicationSuite(t *testing.T) {
+	s := new(ActivityApiStateReplicationSuite)
+	suite.Run(t, s)
+}
+
+func (s *ActivityApiStateReplicationSuite) SetupSuite() {
+	if s.dynamicConfigOverrides == nil {
+		s.dynamicConfigOverrides = make(map[dynamicconfig.Key]interface{})
+	}
+	s.dynamicConfigOverrides[dynamicconfig.ActivityAPIsEnabled.Key()] = true
+
+	s.setupSuite([]string{"active", "standby"})
+}
+
+func (s *ActivityApiStateReplicationSuite) SetupTest() {
+	s.setupTest()
+}
+
+func (s *ActivityApiStateReplicationSuite) TearDownSuite() {
+	s.tearDownSuite()
+}
+
+func (s *ActivityApiStateReplicationSuite) TestPauseActivityFailover() {
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	activityPausedCn := make(chan struct{})
+	var activityWasPaused atomic.Bool
+	var startedActivityCount atomic.Int32
+
+	activityFunction := func() (string, error) {
+		startedActivityCount.Add(1)
+		if activityWasPaused.Load() == false {
+			activityErr := errors.New("bad-luck-please-retry")
+			return "", activityErr
+		}
+		s.waitForChannel(ctx, activityPausedCn)
+		return "done!", nil
+	}
+
+	workflowFn := s.makeWorkflowFunc(activityFunction)
+
+	ns := s.createGlobalNamespace()
+	activeSDKClient, err := sdkclient.Dial(sdkclient.Options{
+		HostPort:  s.cluster1.Host().FrontendGRPCAddress(),
+		Namespace: ns,
+		Logger:    log.NewSdkLogger(s.logger),
+	})
+	s.NoError(err)
+
+	taskQueue := testcore.RandomizeStr("tq")
+	worker1 := sdkworker.New(activeSDKClient, taskQueue, sdkworker.Options{})
+
+	worker1.RegisterWorkflow(workflowFn)
+	worker1.RegisterActivity(activityFunction)
+
+	s.NoError(worker1.Start())
+	defer worker1.Stop()
+
+	workflowOptions := sdkclient.StartWorkflowOptions{
+		ID:        testcore.RandomizeStr("wfid-" + s.T().Name()),
+		TaskQueue: taskQueue,
+	}
+
+	startTime := time.Now()
+	workflowRun, err := activeSDKClient.ExecuteWorkflow(ctx, workflowOptions, workflowFn)
+	s.NoError(err)
+
+	// wait for activity to start/fail few times
+	s.EventuallyWithT(func(t *assert.CollectT) {
+		description, err := activeSDKClient.DescribeWorkflowExecution(ctx, workflowRun.GetID(), workflowRun.GetRunID())
+		assert.NoError(t, err)
+		assert.Len(t, description.GetPendingActivities(), 1)
+		assert.Greater(t, startedActivityCount.Load(), int32(1))
+	}, 5*time.Second, 200*time.Millisecond)
+
+	// pause the activity in cluster 1
+	pauseRequest := &workflowservice.PauseActivityByIdRequest{
+		Namespace:  ns,
+		WorkflowId: workflowRun.GetID(),
+		ActivityId: "activity-id",
+	}
+	pauseResp, err := s.cluster1.Host().FrontendClient().PauseActivityById(ctx, pauseRequest)
+	s.NoError(err)
+	s.NotNil(pauseResp)
+
+	//verify activity is paused
+	description, err := activeSDKClient.DescribeWorkflowExecution(ctx, workflowRun.GetID(), workflowRun.GetRunID())
+	s.NoError(err)
+	s.Equal(1, len(description.PendingActivities))
+	s.True(description.PendingActivities[0].Paused)
+
+	worker1.Stop() // stop worker1 so cluster 1 won't make any progress
+
+	s.failover(ns, s.clusterNames[1], int64(2), s.cluster1.FrontendClient())
+
+	// verify things are replicated over
+	resp, err := s.cluster1.HistoryClient().GetReplicationStatus(context.Background(), &historyservice.GetReplicationStatusRequest{})
+	s.NoError(err)
+	s.Equal(1, len(resp.Shards)) // test cluster has only one history shard
+	shard := resp.Shards[0]
+	s.True(shard.MaxReplicationTaskId > 0)
+	s.NotNil(shard.ShardLocalTime)
+	s.True(shard.ShardLocalTime.AsTime().Before(time.Now()))
+	s.True(shard.ShardLocalTime.AsTime().After(startTime))
+	s.NotNil(shard.RemoteClusters)
+	standbyAckInfo, ok := shard.RemoteClusters[s.clusterNames[1]]
+	s.True(ok)
+	s.LessOrEqual(shard.MaxReplicationTaskId, standbyAckInfo.AckedTaskId)
+	s.NotNil(standbyAckInfo.AckedTaskVisibilityTime)
+	s.True(standbyAckInfo.AckedTaskVisibilityTime.AsTime().Before(time.Now()))
+	s.True(standbyAckInfo.AckedTaskVisibilityTime.AsTime().After(startTime))
+
+	standbyClient, err := sdkclient.Dial(sdkclient.Options{
+		HostPort:  s.cluster2.Host().FrontendGRPCAddress(),
+		Namespace: ns,
+	})
+	s.NoError(err)
+	s.NotNil(standbyClient)
+
+	//verify activity is still paused
+	description, err = standbyClient.DescribeWorkflowExecution(ctx, workflowRun.GetID(), workflowRun.GetRunID())
+	s.NoError(err)
+	s.Equal(1, len(description.PendingActivities))
+	s.True(description.PendingActivities[0].Paused)
+
+	// start worker2 in standby cluster
+	worker2 := sdkworker.New(standbyClient, taskQueue, sdkworker.Options{})
+	worker2.RegisterWorkflow(workflowFn)
+	worker2.RegisterActivity(activityFunction)
+	s.NoError(worker2.Start())
+	defer worker2.Stop()
+
+	// let the activity make progress and finish
+	activityWasPaused.Store(true)
+
+	// unpause the activity in cluster 2
+	unpauseRequest := &workflowservice.UnpauseActivityByIdRequest{
+		Namespace:  ns,
+		WorkflowId: workflowRun.GetID(),
+		ActivityId: "activity-id",
+		Operation: &workflowservice.UnpauseActivityByIdRequest_Resume{
+			Resume: &workflowservice.UnpauseActivityByIdRequest_ResumeOperation{
+				NoWait: true,
+			},
+		},
+	}
+	unpauseResp, err := s.cluster2.Host().FrontendClient().UnpauseActivityById(ctx, unpauseRequest)
+	s.NoError(err)
+	s.NotNil(unpauseResp)
+
+	// unblock the activity
+	activityPausedCn <- struct{}{}
+
+	// let activity finish
+	var out string
+	err = workflowRun.Get(ctx, &out)
+
+	s.NoError(err)
+}
+
+func (s *ActivityApiStateReplicationSuite) makeWorkflowFunc(activityFunction ActivityFunctions) WorkflowFunction {
+	initialRetryInterval := 1 * time.Second
+	scheduleToCloseTimeout := 30 * time.Minute
+	startToCloseTimeout := 15 * time.Minute
+
+	activityRetryPolicy := &temporal.RetryPolicy{
+		InitialInterval:    initialRetryInterval,
+		BackoffCoefficient: 1,
+	}
+
+	return func(ctx workflow.Context) error {
+
+		var ret string
+		err := workflow.ExecuteActivity(workflow.WithActivityOptions(ctx, workflow.ActivityOptions{
+			ActivityID:             "activity-id",
+			DisableEagerExecution:  true,
+			StartToCloseTimeout:    startToCloseTimeout,
+			ScheduleToCloseTimeout: scheduleToCloseTimeout,
+			RetryPolicy:            activityRetryPolicy,
+		}), activityFunction).Get(ctx, &ret)
+		return err
+	}
+}
+
+func (s *ActivityApiStateReplicationSuite) waitForChannel(ctx context.Context, ch chan struct{}) {
+	s.T().Helper()
+	select {
+	case <-ch:
+	case <-ctx.Done():
+		s.FailNow("context timeout while waiting for channel")
+	}
+}