diff --git a/tests/virt/node/hyperv_support/test_windows_crash_detection.py b/tests/virt/node/hyperv_support/test_windows_crash_detection.py
new file mode 100644
index 0000000000..23a547b407
--- /dev/null
+++ b/tests/virt/node/hyperv_support/test_windows_crash_detection.py
@@ -0,0 +1,120 @@
+"""
+Windows crash detection with hyperv panic device
+
+Reference:
+https://redhat.atlassian.net/browse/VIRTSTRAT-557
+"""
+
+import logging
+
+import pytest
+from pyhelper_utils.shell import run_ssh_commands
+from timeout_sampler import TimeoutExpiredError
+
+from tests.os_params import WINDOWS_LATEST, WINDOWS_LATEST_LABELS
+from utilities.constants import TIMEOUT_10SEC
+from utilities.data_collector import collect_vnc_screenshot_for_vms
+from utilities.virt import running_vm, vm_instance_from_template
+
+pytestmark = [
+    pytest.mark.special_infra,
+    pytest.mark.high_resource_vm,
+]
+
+LOGGER = logging.getLogger(__name__)
+
+BSOD_COMMAND = (
+    "$e=$false; $r=0; "
+    "Add-Type -TypeDefinition 'using System; using System.Runtime.InteropServices; "
+    'public class C { [DllImport("ntdll.dll")] public static extern uint NtRaiseHardError'
+    "(uint a,uint b,uint c,IntPtr d,uint e,out uint f); "
+    '[DllImport("ntdll.dll")] public static extern uint RtlAdjustPrivilege'
+    "(int a,bool b,bool c,out bool d);}'; "
+    "[C]::RtlAdjustPrivilege(19,$true,$false,[ref]$e) | Out-Null; "
+    "[C]::NtRaiseHardError([uint32]3221226528,0,0,[IntPtr]::Zero,6,[ref]$r)"
+)
+
+
+@pytest.fixture()
+def windows_crashed(windows_vm_with_panic_device):
+    LOGGER.info(f"Triggering BSOD on VM {windows_vm_with_panic_device.name} via NtRaiseHardError")
+    try:
+        run_ssh_commands(
+            host=windows_vm_with_panic_device.ssh_exec,
+            commands=["powershell", "-c", BSOD_COMMAND],
+            timeout=TIMEOUT_10SEC,
+        )
+    except TimeoutError:
+        LOGGER.info("SSH timeout as expected - VM has crashed")
+
+
+def wait_for_guest_panicked_event(vm):
+    LOGGER.info(f"Waiting for GuestPanicked event for VM {vm.name}")
+    for event in vm.vmi.events(field_selector="reason==GuestPanicked"):
+        LOGGER.info(f"GuestPanicked event found: {event}")
+        return
+    LOGGER.error(f"GuestPanicked event not found for VM {vm.name}")
+    collect_vnc_screenshot_for_vms(vm=vm)
+    raise TimeoutExpiredError("GuestPanicked event not received")
+
+
+@pytest.fixture()
+def windows_vm_with_panic_device(
+    request,
+    unprivileged_client,
+    namespace,
+    golden_image_data_volume_template_for_test_scope_function,
+):
+    vm_dict = {"spec": {"template": {"spec": {"domain": {"devices": {"panicDevices": [{"model": "hyperv"}]}}}}}}
+    request.param["vm_dict"] = vm_dict
+
+    with vm_instance_from_template(
+        request=request,
+        unprivileged_client=unprivileged_client,
+        namespace=namespace,
+        data_volume_template=golden_image_data_volume_template_for_test_scope_function,
+    ) as vm:
+        running_vm(vm=vm)
+        yield vm
+
+
+@pytest.mark.parametrize(
+    (
+        "enabled_featuregate_scope_function, "
+        "golden_image_data_source_for_test_scope_function, "
+        "windows_vm_with_panic_device"
+    ),
+    [
+        pytest.param(
+            "PanicDevices",
+            {"os_dict": WINDOWS_LATEST},
+            {
+                "vm_name": "windows-crash-detection-vm",
+                "template_labels": WINDOWS_LATEST_LABELS,
+            },
+            marks=pytest.mark.polarion("CNV-15265"),
+        ),
+    ],
+    indirect=True,
+)
+@pytest.mark.special_infra
+@pytest.mark.high_resource_vm
+def test_windows_crash_detection_with_hyperv_panic(
+    enabled_featuregate_scope_function,
+    windows_vm_with_panic_device,
+    windows_crashed,
+):
+    """Test that KubeVirt detects Windows guest crash via Hyper-V panic device.
+
+    Preconditions:
+        - PanicDevices feature gate enabled
+        - Windows VM created with hyperv panic device configured
+
+    Steps:
+        1. Trigger BSOD on Windows VM using NtRaiseHardError
+        2. Wait for GuestPanicked event on VMI
+
+    Expected:
+        - VMI emits GuestPanicked event when Windows crashes
+    """
+    wait_for_guest_panicked_event(vm=windows_vm_with_panic_device)