diff --git a/test/test_utils.hh b/test/test_utils.hh
index 150f70b60..e52599dad 100644
--- a/test/test_utils.hh
+++ b/test/test_utils.hh
@@ -18,7 +18,9 @@
 #define SDF_TEST_UTILS_HH_
 
 #include <ostream>
+#include <string>
 #include "sdf/Console.hh"
+#include "sdf/Root.hh"
 
 namespace sdf
 {
@@ -104,6 +106,25 @@ class RedirectConsoleStream
   private: sdf::Console::ConsoleStream oldStream;
 };
 
+/// \brief Load an SDF file into a sdf::Root object
+/// \param[in] _fileName The name of the file to load
+/// \param[in] _root The sdf::Root object to load the file into
+/// \return True if a file named _fileName was successfully loaded into
+/// _root. False otherwise
+bool LoadSdfFile(const std::string &_fileName, sdf::Root &_root)
+{
+  auto errors = _root.Load(_fileName);
+  if (!errors.empty())
+  {
+    std::cerr << "Errors encountered:\n";
+    for (const auto &e : errors)
+      std::cerr << e << "\n";
+    return false;
+  }
+
+  return true;
+}
+
 } // namespace testing
 } // namespace sdf
 
diff --git a/usd/src/CMakeLists.txt b/usd/src/CMakeLists.txt
index b447ccd8a..4b8de3a34 100644
--- a/usd/src/CMakeLists.txt
+++ b/usd/src/CMakeLists.txt
@@ -17,6 +17,11 @@ target_link_libraries(${usd_target}
 )
 
 # Build the unit tests
-ign_build_tests(TYPE UNIT SOURCES ${gtest_sources} LIB_DEPS ${usd_target})
+ign_build_tests(
+  TYPE UNIT
+  SOURCES ${gtest_sources}
+  LIB_DEPS ${usd_target}
+  INCLUDE_DIRS ${PROJECT_SOURCE_DIR}/test
+)
 
 add_subdirectory(cmd)
diff --git a/usd/src/World.cc b/usd/src/World.cc
index 6dd03ee71..e8ae2b2bf 100644
--- a/usd/src/World.cc
+++ b/usd/src/World.cc
@@ -53,7 +53,9 @@ namespace usd
         static_cast<float>(sdfWorldGravity.Length()));
 
     // TODO(ahcorde) Add parser
-    std::cerr << "Parser for a sdf world is not yet implemented\n";
+    std::cerr << "Parser for a sdf world only parses physics information at "
+              << "the moment. Models and lights that are children of the world "
+              << "are currently being ignored.\n";
 
     return true;
   }
diff --git a/usd/src/World_Sdf2Usd_TEST.cc b/usd/src/World_Sdf2Usd_TEST.cc
new file mode 100644
index 000000000..2c52c26ad
--- /dev/null
+++ b/usd/src/World_Sdf2Usd_TEST.cc
@@ -0,0 +1,87 @@
+/*
+ * Copyright 2022 Open Source Robotics Foundation
+ *
+ * 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.
+ *
+ */
+
+#include <string>
+
+#include <gtest/gtest.h>
+#include <pxr/base/gf/vec3f.h>
+#include <pxr/base/tf/token.h>
+#include <pxr/usd/usd/prim.h>
+#include <pxr/usd/usd/primRange.h>
+#include <pxr/usd/usd/stage.h>
+#include <pxr/usd/usdGeom/tokens.h>
+#include <pxr/usd/usdPhysics/scene.h>
+
+#include "sdf/usd/World.hh"
+#include "sdf/Root.hh"
+#include "test_config.h"
+#include "test_utils.hh"
+
+/////////////////////////////////////////////////
+// Fixture that creates a USD stage for each test case.
+class UsdStageFixture : public::testing::Test
+{
+  public: UsdStageFixture() = default;
+
+  protected: void SetUp() override
+  {
+    this->stage = pxr::UsdStage::CreateInMemory();
+    ASSERT_TRUE(this->stage);
+  }
+
+  public: pxr::UsdStageRefPtr stage;
+};
+
+/////////////////////////////////////////////////
+TEST_F(UsdStageFixture, World)
+{
+  const auto path = sdf::testing::TestFile("sdf", "empty.sdf");
+  sdf::Root root;
+
+  ASSERT_TRUE(sdf::testing::LoadSdfFile(path, root));
+  ASSERT_EQ(1u, root.WorldCount());
+  auto world = root.WorldByIndex(0u);
+
+  const auto worldPath = std::string("/" + world->Name());
+  EXPECT_TRUE(usd::ParseSdfWorld(*world, this->stage, worldPath));
+
+  // check top-level stage information
+  EXPECT_DOUBLE_EQ(100.0, this->stage->GetEndTimeCode());
+  EXPECT_DOUBLE_EQ(0.0, this->stage->GetStartTimeCode());
+  EXPECT_DOUBLE_EQ(24.0, this->stage->GetTimeCodesPerSecond());
+  pxr::TfToken upAxisVal;
+  EXPECT_TRUE(this->stage->GetMetadata(pxr::UsdGeomTokens->upAxis, &upAxisVal));
+  EXPECT_EQ(pxr::UsdGeomTokens->z, upAxisVal);
+  double metersPerUnitVal;
+  EXPECT_TRUE(this->stage->GetMetadata(pxr::TfToken("metersPerUnit"),
+        &metersPerUnitVal));
+  EXPECT_DOUBLE_EQ(1.0, metersPerUnitVal);
+
+  // Check that world prim exists, and that things like physics information
+  // were parsed correctly
+  auto worldPrim = this->stage->GetPrimAtPath(pxr::SdfPath(worldPath));
+  ASSERT_TRUE(worldPrim);
+  auto physicsScene = pxr::UsdPhysicsScene::Get(this->stage,
+      pxr::SdfPath(worldPath + "/physics"));
+  ASSERT_TRUE(physicsScene);
+  pxr::GfVec3f gravityDirectionVal;
+  EXPECT_TRUE(physicsScene.GetGravityDirectionAttr().Get(&gravityDirectionVal));
+  EXPECT_EQ(gravityDirectionVal, pxr::GfVec3f(0, 0, -1));
+  float gravityMagnitudeVal;
+  EXPECT_TRUE(physicsScene.GetGravityMagnitudeAttr().Get(&gravityMagnitudeVal));
+  EXPECT_FLOAT_EQ(gravityMagnitudeVal, 9.8f);
+}