"The acceptance test of the indigenous cryogenic engine for the forthcoming GSLV-D5 flight was conducted successfully for 200 seconds at 17:10 hrs...," an Isro statement said.
"The performance of the engine was as predicted," it said.
The maiden flight test of the indigenous cryogenic stage onboard GSLV-D3 failed in May 2010 after it developed a snag and the rocket plunged into the sea minutes after lift-off.
Isro chief K Radhakrishnan had said last month that GSLV would undergo two more tests at the Mahendragiri facility.
He had also said Isro was planning a GSLV launch with Indian cryogenic engine during September-October.
Isro plans to fly two GSLV rockets at an interval of six months with the third one meant for the Chandrayaan-2 moon mission.