diff --git a/pkg/commands/add_test.go b/pkg/commands/add_test.go
new file mode 100644
index 0000000000..22f4ef9498
--- /dev/null
+++ b/pkg/commands/add_test.go
@@ -0,0 +1,176 @@
+/*
+Copyright 2018 Google LLC
+
+Licensed 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 commands
+
+import (
+	"compress/gzip"
+	"os"
+	"path/filepath"
+	"sort"
+	"testing"
+
+	"github.com/GoogleContainerTools/kaniko/pkg/dockerfile"
+	"github.com/GoogleContainerTools/kaniko/pkg/util"
+	"github.com/GoogleContainerTools/kaniko/testutil"
+	v1 "github.com/google/go-containerregistry/pkg/v1"
+	"github.com/moby/buildkit/frontend/dockerfile/instructions"
+)
+
+type TarList struct {
+	tarName    string
+	directory  string
+	compressed bool
+}
+
+func createFile(tempDir string) error {
+	fileName := filepath.Join(tempDir, "text.txt")
+	file, err := os.Create(fileName)
+	if err != nil {
+		return err
+	}
+	defer file.Close()
+
+	err = os.WriteFile(fileName, []byte("This is a test!\n"), 0644)
+	if err != nil {
+		return err
+	}
+	return nil
+}
+
+func createTar(tempDir string, toCreate TarList) error {
+	if toCreate.compressed {
+		file, err := os.OpenFile(filepath.Join(tempDir, toCreate.tarName), os.O_RDWR|os.O_CREATE|os.O_TRUNC, 0644)
+		if err != nil {
+			return err
+		}
+
+		gzipWriter := gzip.NewWriter(file)
+		defer gzipWriter.Close()
+
+		err = util.CreateTarballOfDirectory(filepath.Join(tempDir, toCreate.directory), gzipWriter)
+		if err != nil {
+			return err
+		}
+		return nil
+	}
+
+	tarFile, err := os.Create(filepath.Join(tempDir, toCreate.tarName))
+	if err != nil {
+		return err
+	}
+	err = util.CreateTarballOfDirectory(filepath.Join(tempDir, toCreate.directory), tarFile)
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
+
+func setupAddTest(t *testing.T) string {
+	tempDir := t.TempDir()
+
+	err := createFile(tempDir)
+	if err != nil {
+		t.Errorf("couldn't create the file %v", err)
+	}
+
+	var tarFiles = []TarList{
+		{
+			tarName:    "a.tar",
+			directory:  "a",
+			compressed: false,
+		},
+		{
+			tarName:    "b.tar.gz",
+			directory:  "b",
+			compressed: true,
+		},
+	}
+
+	// Create directories with files and then create tar
+	for _, toCreate := range tarFiles {
+
+		err = os.Mkdir(filepath.Join(tempDir, toCreate.directory), 0755)
+		if err != nil {
+			t.Errorf("couldn't create directory %v", err)
+		}
+
+		err = createFile(filepath.Join(tempDir, toCreate.directory))
+		if err != nil {
+			t.Errorf("couldn't create file inside directory %v", err)
+		}
+		err = createTar(tempDir, toCreate)
+
+		if err != nil {
+			t.Errorf("couldn't create the tar %v", err)
+		}
+	}
+
+	return tempDir
+}
+
+func Test_AddCommand(t *testing.T) {
+	tempDir := setupAddTest(t)
+
+	fileContext := util.FileContext{Root: tempDir}
+	cfg := &v1.Config{
+		Cmd:        nil,
+		Env:        []string{},
+		WorkingDir: tempDir,
+	}
+	buildArgs := dockerfile.NewBuildArgs([]string{})
+
+	var addTests = []struct {
+		name           string
+		sourcesAndDest []string
+		expectedDest   []string
+	}{
+		{
+			name:           "add files into tempAddExecuteTest/",
+			sourcesAndDest: []string{"text.txt", "a.tar", "b.tar.gz", "tempAddExecuteTest/"},
+			expectedDest: []string{
+				"text.txt",
+				filepath.Join(tempDir, "a/"),
+				filepath.Join(tempDir, "a/text.txt"),
+				filepath.Join(tempDir, "b/"),
+				filepath.Join(tempDir, "b/text.txt"),
+			},
+		},
+	}
+
+	for _, testCase := range addTests {
+		t.Run(testCase.name, func(t *testing.T) {
+			c := AddCommand{
+				cmd: &instructions.AddCommand{
+					SourcesAndDest: instructions.SourcesAndDest{SourcePaths: testCase.sourcesAndDest[0 : len(testCase.sourcesAndDest)-1],
+						DestPath: testCase.sourcesAndDest[len(testCase.sourcesAndDest)-1]},
+				},
+				fileContext: fileContext,
+			}
+			c.ExecuteCommand(cfg, buildArgs)
+
+			expected := []string{}
+			resultDir := filepath.Join(tempDir, "tempAddExecuteTest/")
+			for _, file := range testCase.expectedDest {
+				expected = append(expected, filepath.Join(resultDir, file))
+			}
+			sort.Strings(expected)
+			sort.Strings(c.snapshotFiles)
+			testutil.CheckDeepEqual(t, expected, c.snapshotFiles)
+		})
+	}
+}
diff --git a/pkg/util/tar_util.go b/pkg/util/tar_util.go
index 11a4707ba6..467e215149 100644
--- a/pkg/util/tar_util.go
+++ b/pkg/util/tar_util.go
@@ -235,7 +235,12 @@ func UnpackLocalTarArchive(path, dest string) ([]string, error) {
 		}
 		defer file.Close()
 		if compressionLevel == archive.Gzip {
-			return nil, UnpackCompressedTar(path, dest)
+			gzr, err := gzip.NewReader(file)
+			if err != nil {
+				return nil, err
+			}
+			defer gzr.Close()
+			return UnTar(gzr, dest)
 		} else if compressionLevel == archive.Bzip2 {
 			bzr := bzip2.NewReader(file)
 			return UnTar(bzr, dest)