diff --git a/test/functional/forknotify.py b/test/functional/forknotify.py
deleted file mode 100755
--- a/test/functional/forknotify.py
+++ /dev/null
@@ -1,67 +0,0 @@
-#!/usr/bin/env python3
-# Copyright (c) 2014-2016 The Bitcoin Core developers
-# Distributed under the MIT software license, see the accompanying
-# file COPYING or http://www.opensource.org/licenses/mit-license.php.
-
-#
-# Test -alertnotify
-#
-"""Test the -alertnotify option."""
-
-import os
-import time
-
-from test_framework.test_framework import BitcoinTestFramework
-
-
-class ForkNotifyTest(BitcoinTestFramework):
-    def set_test_params(self):
-        self.num_nodes = 2
-
-    def setup_network(self):
-        self.alert_filename = os.path.join(self.options.tmpdir, "alert.txt")
-        with open(self.alert_filename, 'w', encoding='utf8'):
-            pass  # Just open then close to create zero-length file
-        self.extra_args = [["-blockversion=2", "-alertnotify=echo %s >> \"" + self.alert_filename + "\""],
-                           ["-blockversion=211"]]
-        super().setup_network()
-
-    def run_test(self):
-        # Mine 51 up-version blocks
-        self.nodes[1].generate(51)
-        self.sync_all()
-        # -alertnotify should trigger on the 51'st,
-        # but mine and sync another to give
-        # -alertnotify time to write
-        self.nodes[1].generate(1)
-        self.sync_all()
-
-        # Give bitcoind 10 seconds to write the alert notification
-        timeout = 10.0
-        while timeout > 0:
-            if os.path.exists(self.alert_filename) and os.path.getsize(self.alert_filename):
-                break
-            time.sleep(0.1)
-            timeout -= 0.1
-        else:
-            assert False, "-alertnotify did not warn of up-version blocks"
-
-        with open(self.alert_filename, 'r', encoding='utf8') as f:
-            alert_text = f.read()
-
-        # Mine more up-version blocks, should not get more alerts:
-        self.nodes[1].generate(1)
-        self.sync_all()
-        self.nodes[1].generate(1)
-        self.sync_all()
-
-        with open(self.alert_filename, 'r', encoding='utf8') as f:
-            alert_text2 = f.read()
-
-        if alert_text != alert_text2:
-            raise AssertionError(
-                "-alertnotify excessive warning of up-version blocks")
-
-
-if __name__ == '__main__':
-    ForkNotifyTest().main()
diff --git a/test/functional/notifications.py b/test/functional/notifications.py
new file mode 100755
--- /dev/null
+++ b/test/functional/notifications.py
@@ -0,0 +1,96 @@
+#!/usr/bin/env python3
+# Copyright (c) 2014-2016 The Bitcoin Core developers
+# Distributed under the MIT software license, see the accompanying
+# file COPYING or http://www.opensource.org/licenses/mit-license.php.
+"""Test the -alertnotify, -blocknotify and -walletnotify options."""
+import os
+
+from test_framework.test_framework import BitcoinTestFramework
+from test_framework.util import assert_equal, wait_until, connect_nodes_bi
+
+
+class NotificationsTest(BitcoinTestFramework):
+    def set_test_params(self):
+        self.num_nodes = 2
+        self.setup_clean_chain = True
+
+    def setup_network(self):
+        self.alert_filename = os.path.join(self.options.tmpdir, "alert.txt")
+        self.block_filename = os.path.join(self.options.tmpdir, "blocks.txt")
+        self.tx_filename = os.path.join(
+            self.options.tmpdir, "transactions.txt")
+
+        # -alertnotify and -blocknotify on node0, walletnotify on node1
+        self.extra_args = [["-blockversion=2",
+                            "-alertnotify=echo %%s >> %s" % self.alert_filename,
+                            "-blocknotify=echo %%s >> %s" % self.block_filename],
+                           ["-blockversion=211",
+                            "-rescan",
+                            "-walletnotify=echo %%s >> %s" % self.tx_filename]]
+        super().setup_network()
+
+    def run_test(self):
+        self.log.info("test -blocknotify")
+        block_count = 10
+        blocks = self.nodes[1].generate(block_count)
+
+        # wait at most 10 seconds for expected file size before reading the content
+        wait_until(lambda: os.path.isfile(self.block_filename) and os.stat(
+            self.block_filename).st_size >= (block_count * 65), timeout=10)
+
+        # file content should equal the generated blocks hashes
+        with open(self.block_filename, 'r') as f:
+            assert_equal(sorted(blocks), sorted(f.read().splitlines()))
+
+        self.log.info("test -walletnotify")
+        # wait at most 10 seconds for expected file size before reading the content
+        wait_until(lambda: os.path.isfile(self.tx_filename) and os.stat(
+            self.tx_filename).st_size >= (block_count * 65), timeout=10)
+
+        # file content should equal the generated transaction hashes
+        txids_rpc = list(
+            map(lambda t: t['txid'], self.nodes[1].listtransactions("*", block_count)))
+        with open(self.tx_filename, 'r') as f:
+            assert_equal(sorted(txids_rpc), sorted(f.read().splitlines()))
+        os.remove(self.tx_filename)
+
+        self.log.info("test -walletnotify after rescan")
+        # restart node to rescan to force wallet notifications
+        self.restart_node(1)
+        connect_nodes_bi(self.nodes, 0, 1)
+
+        wait_until(lambda: os.path.isfile(self.tx_filename) and os.stat(
+            self.tx_filename).st_size >= (block_count * 65), timeout=10)
+
+        # file content should equal the generated transaction hashes
+        txids_rpc = list(
+            map(lambda t: t['txid'], self.nodes[1].listtransactions("*", block_count)))
+        with open(self.tx_filename, 'r') as f:
+            assert_equal(sorted(txids_rpc), sorted(f.read().splitlines()))
+
+        # Mine another 41 up-version blocks. -alertnotify should trigger on the 51st.
+        self.log.info("test -alertnotify")
+        self.nodes[1].generate(41)
+        self.sync_all()
+
+        # Give bitcoind 10 seconds to write the alert notification
+        wait_until(lambda: os.path.isfile(self.alert_filename)
+                   and os.path.getsize(self.alert_filename), timeout=10)
+
+        with open(self.alert_filename, 'r', encoding='utf8') as f:
+            alert_text = f.read()
+
+        # Mine more up-version blocks, should not get more alerts:
+        self.nodes[1].generate(2)
+        self.sync_all()
+
+        with open(self.alert_filename, 'r', encoding='utf8') as f:
+            alert_text2 = f.read()
+
+        self.log.info(
+            "-alertnotify should not continue notifying for more unknown version blocks")
+        assert_equal(alert_text, alert_text2)
+
+
+if __name__ == '__main__':
+    NotificationsTest().main()
diff --git a/test/functional/timing.json b/test/functional/timing.json
--- a/test/functional/timing.json
+++ b/test/functional/timing.json
@@ -1,7 +1,7 @@
 [
  {
   "name": "abandonconflict.py",
-  "time": 14
+  "time": 25
  },
  {
   "name": "abc-checkdatasig-activation.py",
@@ -9,15 +9,15 @@
  },
  {
   "name": "abc-cmdline.py",
-  "time": 9
+  "time": 11
  },
  {
   "name": "abc-high_priority_transaction.py",
-  "time": 11
+  "time": 10
  },
  {
   "name": "abc-magnetic-anomaly-activation.py",
-  "time": 8
+  "time": 14
  },
  {
   "name": "abc-mempool-accept-txn.py",
@@ -25,55 +25,55 @@
  },
  {
   "name": "abc-p2p-compactblocks.py",
-  "time": 165
+  "time": 170
  },
  {
   "name": "abc-p2p-fullblocktest.py",
-  "time": 52
+  "time": 65
  },
  {
   "name": "abc-replay-protection.py",
-  "time": 13
+  "time": 5
  },
  {
   "name": "abc-rpc.py",
-  "time": 4
+  "time": 2
  },
  {
   "name": "abc-transaction-ordering.py",
-  "time": 8
+  "time": 13
  },
  {
   "name": "assumevalid.py",
-  "time": 29
+  "time": 12
  },
  {
   "name": "bip65-cltv-p2p.py",
-  "time": 16
+  "time": 6
  },
  {
   "name": "bip68-112-113-p2p.py",
-  "time": 26
+  "time": 24
  },
  {
   "name": "bip68-sequence.py",
-  "time": 29
+  "time": 28
  },
  {
   "name": "bipdersig-p2p.py",
-  "time": 15
+  "time": 5
  },
  {
   "name": "bitcoin_cli.py",
-  "time": 3
+  "time": 16
  },
  {
   "name": "blockchain.py",
-  "time": 8
+  "time": 30
  },
  {
   "name": "dbcrash.py",
-  "time": 1320
+  "time": 1109
  },
  {
   "name": "decodescript.py",
@@ -89,63 +89,59 @@
  },
  {
   "name": "disconnect_ban.py",
-  "time": 20
+  "time": 10
  },
  {
   "name": "example_test.py",
-  "time": 4
- },
- {
-  "name": "forknotify.py",
-  "time": 17
+  "time": 16
  },
  {
   "name": "fundrawtransaction.py",
-  "time": 43
+  "time": 56
  },
  {
   "name": "getblocktemplate_longpoll.py",
-  "time": 73
+  "time": 69
  },
  {
   "name": "getchaintips.py",
-  "time": 6
+  "time": 19
  },
  {
   "name": "httpbasics.py",
-  "time": 16
+  "time": 25
  },
  {
   "name": "import-rescan.py",
-  "time": 18
+  "time": 43
  },
  {
   "name": "importmulti.py",
-  "time": 14
+  "time": 23
  },
  {
   "name": "importprunedfunds.py",
-  "time": 4
+  "time": 31
  },
  {
   "name": "invalidateblock.py",
-  "time": 13
+  "time": 9
  },
  {
   "name": "invalidblockrequest.py",
-  "time": 4
+  "time": 14
  },
  {
   "name": "invalidtxrequest.py",
-  "time": 4
+  "time": 16
  },
  {
   "name": "keypool-topup.py",
-  "time": 31
+  "time": 17
  },
  {
   "name": "keypool.py",
-  "time": 20
+  "time": 10
  },
  {
   "name": "listsinceblock.py",
@@ -153,79 +149,83 @@
  },
  {
   "name": "listtransactions.py",
-  "time": 26
+  "time": 11
  },
  {
   "name": "maxuploadtarget.py",
-  "time": 55
+  "time": 58
  },
  {
   "name": "mempool_limit.py",
-  "time": 22
+  "time": 18
  },
  {
   "name": "mempool_packages.py",
-  "time": 29
+  "time": 36
  },
  {
   "name": "mempool_persist.py",
-  "time": 20
+  "time": 40
  },
  {
   "name": "mempool_reorg.py",
-  "time": 8
+  "time": 17
  },
  {
   "name": "mempool_resurrect_test.py",
-  "time": 30
+  "time": 3
  },
  {
   "name": "mempool_spendcoinbase.py",
-  "time": 16
+  "time": 3
  },
  {
   "name": "merkle_blocks.py",
-  "time": 5
+  "time": 4
  },
  {
   "name": "minchainwork.py",
-  "time": 7
+  "time": 6
  },
  {
   "name": "mining.py",
-  "time": 17
+  "time": 6
  },
  {
   "name": "multi_rpc.py",
-  "time": 5
+  "time": 6
  },
  {
   "name": "multiwallet.py",
-  "time": 8
+  "time": 20
  },
  {
   "name": "net.py",
   "time": 3
  },
+ {
+  "name": "notifications.py",
+  "time": 12
+ },
  {
   "name": "nulldummy.py",
   "time": 3
  },
  {
   "name": "p2p-acceptblock.py",
-  "time": 15
+  "time": 6
  },
  {
   "name": "p2p-compactblocks.py",
-  "time": 29
+  "time": 24
  },
  {
   "name": "p2p-feefilter.py",
-  "time": 41
+  "time": 65
  },
  {
   "name": "p2p-fullblocktest.py",
-  "time": 182
+  "time": 155
  },
  {
   "name": "p2p-leaktests.py",
@@ -237,7 +237,7 @@
  },
  {
   "name": "p2p-timeouts.py",
-  "time": 65
+  "time": 64
  },
  {
   "name": "preciousblock.py",
@@ -245,39 +245,39 @@
  },
  {
   "name": "prioritise_transaction.py",
-  "time": 40
+  "time": 12
  },
  {
   "name": "proxy_test.py",
-  "time": 5
+  "time": 6
  },
  {
   "name": "pruning.py",
-  "time": 1515
+  "time": 1248
  },
  {
   "name": "rawtransactions.py",
-  "time": 14
+  "time": 10
  },
  {
   "name": "receivedby.py",
-  "time": 16
+  "time": 8
  },
  {
   "name": "reindex.py",
-  "time": 14
+  "time": 15
  },
  {
   "name": "resendwallettransactions.py",
-  "time": 5
+  "time": 7
  },
  {
   "name": "rest.py",
-  "time": 22
+  "time": 20
  },
  {
   "name": "rpcbind_test.py",
-  "time": 25
+  "time": 39
  },
  {
   "name": "rpcnamedargs.py",
@@ -285,7 +285,7 @@
  },
  {
   "name": "sendheaders.py",
-  "time": 27
+  "time": 26
  },
  {
   "name": "signmessages.py",
@@ -293,58 +293,58 @@
  },
  {
   "name": "signrawtransactions.py",
-  "time": 3
+  "time": 2
  },
  {
   "name": "txn_clone.py",
-  "time": 7
+  "time": 6
  },
  {
   "name": "txn_clone.py --mineblock",
-  "time": 7
+  "time": 22
  },
  {
   "name": "txn_doublespend.py",
-  "time": 7
+  "time": 21
  },
  {
   "name": "txn_doublespend.py --mineblock",
-  "time": 6
+  "time": 7
  },
  {
   "name": "uptime.py",
-  "time": 3
+  "time": 2
  },
  {
   "name": "wallet-accounts.py",
-  "time": 11
+  "time": 10
  },
  {
   "name": "wallet-dump.py",
-  "time": 37
+  "time": 8
  },
  {
   "name": "wallet-encryption.py",
-  "time": 15
+  "time": 18
  },
  {
   "name": "wallet-hd.py",
-  "time": 132
+  "time": 66
  },
  {
   "name": "wallet.py",
-  "time": 57
+  "time": 41
  },
  {
   "name": "walletbackup.py",
-  "time": 154
+  "time": 84
  },
  {
   "name": "zapwallettxes.py",
-  "time": 12
+  "time": 13
  },
  {
   "name": "zmq_test.py",
   "time": 6
  }
 ]
\ No newline at end of file