diff --git a/pbm-functional/pytest/conf/nginx.conf b/pbm-functional/pytest/conf/nginx.conf
index 299f9414..db14920e 100644
--- a/pbm-functional/pytest/conf/nginx.conf
+++ b/pbm-functional/pytest/conf/nginx.conf
@@ -145,4 +145,43 @@ http {
         }
     }
 
+    server {
+        listen       15380;
+        server_name  nginx-minio;
+
+        ignore_invalid_headers off;
+        client_max_body_size 0;
+        proxy_buffering off;
+        proxy_request_buffering off;
+
+        location / {
+            proxy_set_header Host $http_host;
+            proxy_set_header X-Real-IP $remote_addr;
+            proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
+            proxy_set_header X-Forwarded-Proto $scheme;
+
+            proxy_connect_timeout 300;
+            proxy_http_version 1.1;
+            proxy_set_header Connection "";
+            chunked_transfer_encoding off;
+
+            proxy_pass http://minio:9000/;
+        }
+       location ~* /bcp/pbme2etest/.*oplog/ {
+            if ($arg_partNumber = "2") {
+                return 403 "Multipart upload for oplog is not allowed";
+            }
+            proxy_set_header Host $http_host;
+            proxy_set_header X-Real-IP $remote_addr;
+            proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
+            proxy_set_header X-Forwarded-Proto $scheme;
+
+            proxy_connect_timeout 300;
+            proxy_http_version 1.1;
+            proxy_set_header Connection "";
+            chunked_transfer_encoding off;
+
+            proxy_pass http://minio:9000$request_uri;
+        }
+    }
 }
diff --git a/pbm-functional/pytest/test_PBM-1538.py b/pbm-functional/pytest/test_PBM-1538.py
new file mode 100644
index 00000000..2422f235
--- /dev/null
+++ b/pbm-functional/pytest/test_PBM-1538.py
@@ -0,0 +1,87 @@
+import pytest
+import pymongo
+import os
+import docker
+import threading
+import time
+import json
+
+from cluster import Cluster
+
+@pytest.fixture(scope="package")
+def docker_client():
+    return docker.from_env()
+
+@pytest.fixture(scope="package")
+def config():
+    return {"_id": "rs1", "members": [{"host":"rs101"}]}
+
+@pytest.fixture(scope="package")
+def cluster(config):
+    return Cluster(config)
+
+@pytest.fixture(scope="function")
+def start_cluster(cluster,request):
+    try:
+        cluster.destroy()
+        cluster.create()
+        cluster.setup_pbm()
+        os.chmod("/backups",0o777)
+        os.system("rm -rf /backups/*")
+        yield True
+    finally:
+        if request.config.getoption("--verbose"):
+            cluster.get_logs()
+        cluster.destroy(cleanup_backups=True)
+
+@pytest.mark.timeout(300, func_only=True)
+def test_logical_PBM_T298(start_cluster, cluster):
+    """
+    Test case to check that backup is NOT marked as successful if oplog wasn't uploaded
+    """
+    result = cluster.exec_pbm_cli("config --set storage.s3.endpointUrl=http://nginx-minio:15380")
+    time.sleep(5)
+    client = pymongo.MongoClient(cluster.connection)
+    collection = client["test"]["bigdata"]
+    doc_size_kb = 10
+    total_size_mb = 200
+    total_docs = (total_size_mb * 1024) // doc_size_kb
+    batch_size = 1000
+    def insert_random_data(count):
+        Cluster.log(f"Inserting {count} documents")
+        for i in range(0, count, batch_size):
+            batch = []
+            for j in range(min(batch_size, count - i)):
+                random_data = os.urandom(doc_size_kb * 1024).hex()
+                batch.append({"_id": i + j, "payload": random_data})
+            collection.insert_many(batch)
+            time.sleep(0.2)
+        Cluster.log(f"Inserted {count} documents")
+    insert_thread = threading.Thread(target=insert_random_data, args=(total_docs,))
+    insert_thread.start()
+    result = cluster.exec_pbm_cli("backup --out json")
+    try:
+        backup_info = json.loads(result.stdout)
+    except json.JSONDecodeError:
+        raise AssertionError(f"Failed to get backup name: {result.stdout}")
+    backup_name = backup_info.get("name")
+    insert_thread.join()
+    result = cluster.exec_pbm_cli("status -s backups --out json")
+    try:
+        backup_info = json.loads(result.stdout)
+    except json.JSONDecodeError:
+        raise AssertionError(f"Failed to parse backup info: {result.stdout}")
+    for snapshot in backup_info.get("backups", {}).get("snapshot", []):
+        if snapshot.get("name") == backup_name:
+            backup_status = snapshot.get("status")
+            break
+    logs = cluster.exec_pbm_cli("logs -sD -t0 -e backup")
+    upload_errors = [line for line in logs.stdout.splitlines() if "failed to upload oplog" in line]
+    if backup_status == "done":
+        if upload_errors:
+            error_summary = "\n".join(upload_errors)
+            raise AssertionError(f"Backup succeeded, but errors found in PBM logs: {error_summary}")
+        else:
+            Cluster.log("Backup completed successfully without oplog upload errors")
+    elif backup_status == "error":
+        Cluster.log("Backup failed as expected")
\ No newline at end of file