diff --git a/.github/test_files/config_rasa_demo.yml b/.github/test_files/config_rasa_demo.yml
index 09f976d..89c59d0 100644
--- a/.github/test_files/config_rasa_demo.yml
+++ b/.github/test_files/config_rasa_demo.yml
@@ -14,7 +14,7 @@ pipeline:
   epochs: 5
   ranking_length: 5
 - name: DucklingEntityExtractor
-  url: http://localhost:8000
+  url: http://duckling.rasa.com:8000
   dimensions:
   - email
   - number
diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index fdff094..3a8fd8a 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -37,6 +37,7 @@ jobs:
         rasa_version: ${{ env.RASA_IMAGE_TAG }}
         workspace: ${{ github.workspace }}/rasa-project
         test_type: all
+        fine_tune: 'true'
         github_token: ${{ secrets.GITHUB_TOKEN }}
         configuration_name: 'rasa-init'
         publish_summary: 'false'
@@ -79,6 +80,7 @@ jobs:
         rasa_version: ${{ env.RASA_IMAGE_TAG }}
         workspace: ${{ github.workspace }}/rasa-x-demo
         test_type: all
+        fine_tune: 'true'
         github_token: ${{ secrets.GITHUB_TOKEN }}
         model: github_workspace/test_model.tar.gz
         configuration: github_workspace/test_files/config_rasa_x_demo.yml
@@ -117,16 +119,21 @@ jobs:
       run: |
         cp .github/test_files/config_rasa_demo.yml rasa-demo/config.yml
 
+    - name: Set Rasa Version
+      run: |
+        RASA_VERSION=$(sed -ne 's/^rasa==\(.*\)#.*$/\1/p' rasa-demo/requirements.txt)
+        echo RASA_VERSION=$RASA_VERSION >> $GITHUB_ENV
+
     - id: action
       name: Rasa Test & Train - Rasa Demo
       uses: ./
       with:
-        rasa_version: '2.0.0-full'
+        rasa_version: ${{ env.RASA_VERSION }}-full
         configuration_name: 'Rasa Demo - NLU'
         workspace: ${{ github.workspace }}/rasa-demo
         test_type: nlu
         github_token: ${{ secrets.GITHUB_TOKEN }}
-        test_args: '-f 2'
+        test_nlu_args: '-f 2'
         # Use cross validation
         cross_validation: 'true'
         # Compare results to the test report
@@ -152,11 +159,23 @@ jobs:
       run: |
         cp .github/test_files/config_rasa_demo.yml rasa-demo/config.yml
 
+    - name: Set Rasa Version
+      run: |
+        RASA_VERSION=$(sed -ne 's/^rasa==\(.*\)#.*$/\1/p' rasa-demo/requirements.txt)
+        echo RASA_VERSION=$RASA_VERSION >> $GITHUB_ENV
+
     - id: action
       name: Rasa Test & Train - Rasa Demo
       uses: ./
       with:
-        rasa_version: '2.0.0-full'
-        configuration_name: 'Rasa Demo'
+        rasa_version: ${{ env.RASA_VERSION }}-full
+        configuration_name: 'Rasa Demo - ALL'
         workspace: ${{ github.workspace }}/rasa-demo
+        test_type: all
+        # The arguments algin with the CI in rasa-demo
+        # https://github.com/RasaHQ/rasa-demo/blob/main/.github/workflows/continuous_integration.yml#L199-L207
+        test_core_args: >-
+          --stories tests/test_conversations.yml
+          --fail-on-prediction-errors
         github_token: ${{ secrets.GITHUB_TOKEN }}
+
diff --git a/.github/workflows/ci_summary.yml b/.github/workflows/ci_summary.yml
index 641859f..b91864c 100644
--- a/.github/workflows/ci_summary.yml
+++ b/.github/workflows/ci_summary.yml
@@ -25,13 +25,21 @@ jobs:
       run: |
         cp .github/test_files/config_rasa_demo.yml rasa-demo/config.yml
 
+    - name: Set Rasa Version
+      run: |
+        RASA_VERSION=$(sed -ne 's/^rasa==\(.*\)#.*$/\1/p' rasa-demo/requirements.txt)
+        echo RASA_VERSION=$RASA_VERSION >> $GITHUB_ENV
+
     - id: action
       name: Rasa Test & Train - Rasa Demo
       uses: ./
       with:
-        rasa_version: '2.0.0-full'
+        rasa_version: ${{ env.RASA_VERSION }}-full
         configuration_name: 'Rasa Demo - Configuration 1'
         workspace: ${{ github.workspace }}/rasa-demo
+        test_core_args: >-
+          --stories tests/test_conversations.yml
+          --fail-on-prediction-errors
         publish_summary: 'false'
 
     - uses: actions/upload-artifact@v2
@@ -62,13 +70,21 @@ jobs:
       run: |
         cp .github/test_files/config_rasa_demo.yml rasa-demo/config.yml
 
+    - name: Set Rasa Version
+      run: |
+        RASA_VERSION=$(sed -ne 's/^rasa==\(.*\)#.*$/\1/p' rasa-demo/requirements.txt)
+        echo RASA_VERSION=$RASA_VERSION >> $GITHUB_ENV
+
     - id: action
       name: Rasa Test & Train - Rasa Demo
       uses: ./
       with:
-        rasa_version: '2.0.0-full'
+        rasa_version: ${{ env.RASA_VERSION }}-full
         configuration_name: 'Rasa Demo - Configuration 2'
         workspace: ${{ github.workspace }}/rasa-demo
+        test_core_args: >-
+          --stories tests/test_conversations.yml
+          --fail-on-prediction-errors
         github_token: ${{ secrets.GITHUB_TOKEN }}
 
     - uses: actions/upload-artifact@v2
diff --git a/README.md b/README.md
index 7fcaf39..c1c4cf3 100644
--- a/README.md
+++ b/README.md
@@ -30,10 +30,13 @@ jobs:
 | `rasa_train`         | Run `rasa train`                                                              | `true`                    |
 | `rasa_test`          | Run `rasa test`                                                               | `true`                    |
 | `data_validate`      | Validates domain and data files to check for possible mistakes                | `true`                    |
+| `fine_tune`          | Fine-tune an existing model with new training dataset                         | `false`                   |
 | `workspace`          | The root directory containing your Rasa Open Source project                   | `${{ github.workspace }}` |
+| `train_type`         | The types of training (available types: `core`/`nlu`/`all`)                   | `all`                     |
 | `train_args`         | Additional arguments passed to the `rasa train` command                       | `none`                    |
-| `test_args`          | Additional arguments passed to the `rasa test` command                        | `none`                    |
 | `test_type`          | The types of tests to run (available types: `core`/`nlu`/`all`)               | `all`                     |
+| `test_nlu_args`      | Additional arguments passed to the `rasa test nlu` command                    | `none`                    |
+| `test_core_args`     | Additional arguments passed to the `rasa test core` command                   | `none`                    |
 | `publish_summary`    | Publish tests summary as a PR comment                                         | `true`                    |
 | `github_token`       | GitHub Token - required to add a comment with summary                         | `none`                    |
 | `configuration`      | Model configuration file                                                      | `config.yml`              |
@@ -169,6 +172,32 @@ jobs:
             # ...
 ```
 
+### Fine-tune the existing model
+
+You can fine-tune an existing model with new training dataset. Please see [incremental training](https://rasa.com/docs/rasa/command-line-interface#incremental-training) for more details.
+
+```yaml
+jobs:
+    train_and_test:
+        # ...
+        steps:
+            # ...
+            - name: Train and Test Rasa Demo
+              uses: RasaHQ/rasa-train-test-gha@main
+              with:
+                # List of available tags: https://hub.docker.com/r/rasa/rasa/tags
+                rasa_version: '2.0.0-full'
+                # In order to add a PR comment with summary
+                # a GH Token has to be pass to the GH action
+                github_token: ${{ secrets.GITHUB_TOKEN }}
+                # By default, the number of epoches is defined in model configuration
+                # You can shorten the epoches by using the --epoch-fraction flag
+                fine_tune: 'true'
+                train_args: >-
+                  --epoch-fraction 0.5
+                # ...
+```
+
 ### Cross-validate NLU model
 
 ```yaml
@@ -189,7 +218,7 @@ jobs:
                 cross_validation: 'true'
                 # Number of cross validation folds (cross validation only)
                 # All available arguments: rasa test nlu --help
-                test_args: '--folds 3'
+                test_nlu_args: '--folds 3'
                 test_type: 'nlu'
             # ...
 ```
diff --git a/action.yml b/action.yml
index 24eceaa..b36e6e5 100644
--- a/action.yml
+++ b/action.yml
@@ -17,6 +17,10 @@ inputs:
     description: 'Run rasa test'
     required: true
     default: 'true'
+  fine_tune:
+    description: 'Fine-tune model'
+    required: false
+    default: 'false'
   data_validate:
     description: 'Validates domain and data files to check for possible mistakes'
     required: true
@@ -25,12 +29,20 @@ inputs:
     description: 'The root directory'
     required: false
     default: '${{ github.workspace }}'
+  train_type:
+    description: 'The types of training (available types: core/nlu/all)'
+    required: false
+    default: 'all'
   train_args:
     description: 'Additional arguments passed to the rasa train command'
     required: false
     default: ''
-  test_args:
-    description: 'Additional arguments passed to the rasa test command'
+  test_nlu_args:
+    description: 'Additional arguments passed to the rasa test nlu command'
+    required: false
+    default: ''
+  test_core_args:
+    description: 'Additional arguments passed to the rasa test core command'
     required: false
     default: ''
   test_type:
@@ -97,16 +109,33 @@ runs:
         mkdir -p ${{ inputs.workspace }}/${{ inputs.result_directory }}
         chmod 777 ${{ inputs.workspace }}/${{ inputs.result_directory }}
 
+        case "${{ inputs.train_type }}" in
+          all)
+            echo TRAIN_TYPE="" >> $GITHUB_ENV
+            ;;
+          nlu)
+            echo TRAIN_TYPE=nlu >> $GITHUB_ENV
+            echo DEFAULT_ARGS="--config /app/${{ inputs.configuration }}" >> $GITHUB_ENV
+            ;;
+          core)
+            echo TRAIN_TYPE=core >> $GITHUB_ENV
+            ;;
+          *)
+            echo "::error::Unknown training type: ${{ inputs.train_type }} (use: core/nlu/all)"
+            exit 1
+        esac
+
         case "${{ inputs.test_type }}" in
           all)
-            echo TEST_TYPE="" >> $GITHUB_ENV
+            echo TEST_NLU="true" >> $GITHUB_ENV
+            echo TEST_CORE="true" >> $GITHUB_ENV
             ;;
           nlu)
-            echo TEST_TYPE=nlu >> $GITHUB_ENV
+            echo TEST_NLU="true" >> $GITHUB_ENV
             echo DEFAULT_ARGS="--config /app/${{ inputs.configuration }}" >> $GITHUB_ENV
             ;;
           core)
-            echo TEST_TYPE=core >> $GITHUB_ENV
+            echo TEST_CORE="true" >> $GITHUB_ENV
             ;;
           *)
             echo "::error::Unknown test type: ${{ inputs.test_type }} (use: core/nlu/all)"
@@ -179,6 +208,16 @@ runs:
           echo "::warning::Data validation is disabled. To turn on data validation set the data_validate parameter to 'true'."
         fi
 
+    - name: Fine Tune
+      shell: bash
+      run: |
+        if [[ "${{ inputs.fine_tune }}" == "true" ]]; then
+          echo "Fine tuning model is enabled."
+          echo FINE_TUNE="--finetune" >> $GITHUB_ENV
+        else
+          echo "::warning::Fine tune is disabled. To turn on fine-tune, set the fine_tune parameter to 'true'."
+        fi
+
     - name: Run the rasa train command
       shell: bash
       run: |
@@ -189,7 +228,7 @@ runs:
         elif [[ "${{ inputs.rasa_train }}" == "true" ]]; then
           echo "Run the rasa train"
           echo ""
-          docker run ${{ env.DOCKER_ARGS }} ${{ env.RASA_IMAGE }} train ${{ env.TEST_TYPE }} ${{ env.DEFAULT_ARGS }} ${{ inputs.train_args }}
+          docker run ${{ env.DOCKER_ARGS }} ${{ env.RASA_IMAGE }} train ${{ env.TRAIN_TYPE }} ${{ env.DEFAULT_ARGS }} ${{ env.FINE_TUNE }} ${{ inputs.train_args }}
         else
           echo "::warning::rasa train is disabled. To turn on the rasa train set the rasa_train parameter to 'true'."
         fi
@@ -200,7 +239,12 @@ runs:
         if [[ "${{ inputs.rasa_test }}" == "true" ]]; then
           echo "Run the rasa test"
           echo ""
-          docker run ${{ env.DOCKER_ARGS }} ${{ env.RASA_IMAGE }} test ${{ env.TEST_TYPE }} ${{ env.MODEL_ARGS }} ${{ env.CROSS_VALIDATION_ARGS }} ${{ env.DEFAULT_ARGS }} ${{ inputs.test_args }}
+          if [[ "${{ env.TEST_NLU }}" == "true" ]]; then
+            docker run ${{ env.DOCKER_ARGS }} ${{ env.RASA_IMAGE }} test nlu ${{ env.MODEL_ARGS }} ${{ env.CROSS_VALIDATION_ARGS }} ${{ env.DEFAULT_ARGS }} ${{ inputs.test_nlu_args }}
+          fi
+          if [[ "${{ env.TEST_CORE }}" == "true" ]]; then
+            docker run ${{ env.DOCKER_ARGS }} ${{ env.RASA_IMAGE }} test core ${{ env.MODEL_ARGS }} ${{ env.DEFAULT_ARGS }} ${{ inputs.test_core_args }}
+          fi
         else
           echo "::warning::rasa test is disabled. To turn on the rasa train set the rasa_test parameter to 'true'."
         fi