diff --git a/src/cloudai/parser/system_parser/slurm_system_parser.py b/src/cloudai/parser/system_parser/slurm_system_parser.py
index acf9c539..158e2cb6 100644
--- a/src/cloudai/parser/system_parser/slurm_system_parser.py
+++ b/src/cloudai/parser/system_parser/slurm_system_parser.py
@@ -43,6 +43,9 @@ def safe_int(value):
             except ValueError:
                 return None
 
+        def str_to_bool(value: str) -> bool:
+            return value.lower() in ("true", "1", "yes")
+
         name = data.get("name")
         if not name:
             raise ValueError("Missing mandatory field: 'name'")
@@ -78,7 +81,7 @@ def safe_int(value):
         gpus_per_node = safe_int(data.get("gpus_per_node"))
         ntasks_per_node = safe_int(data.get("ntasks_per_node"))
 
-        cache_docker_images_locally = data.get("cache_docker_images_locally", False)
+        cache_docker_images_locally = str_to_bool(data.get("cache_docker_images_locally", "False"))
 
         nodes_dict: Dict[str, SlurmNode] = {}
         updated_partitions: Dict[str, List[SlurmNode]] = {}
diff --git a/tests/test_slurm_system_parser.py b/tests/test_slurm_system_parser.py
new file mode 100644
index 00000000..f2ee1cb4
--- /dev/null
+++ b/tests/test_slurm_system_parser.py
@@ -0,0 +1,84 @@
+from typing import Any, Dict
+
+import pytest
+from cloudai.parser.system_parser.slurm_system_parser import SlurmSystemParser
+from cloudai.systems.slurm import SlurmSystem
+
+
+@pytest.fixture
+def example_data() -> Dict[str, Any]:
+    return {
+        "name": "test_system",
+        "install_path": "/fake/path",
+        "output_path": "/fake/output",
+        "default_partition": "main",
+        "partitions": {
+            "main": {
+                "name": "main",
+                "nodes": ["node-[033-034]"],
+                "groups": {"group1": {"name": "group1", "nodes": ["node-033"]}},
+            },
+            "backup": {
+                "name": "backup",
+                "nodes": ["node-[01-02]"],
+                "groups": {"group2": {"name": "group2", "nodes": ["node-01"]}},
+            },
+        },
+        "cache_docker_images_locally": "True",
+    }
+
+
+def test_parse_slurm_system_parser(example_data):
+    parser = SlurmSystemParser()
+    slurm_system = parser.parse(example_data)
+
+    assert isinstance(slurm_system, SlurmSystem)
+    assert slurm_system.name == "test_system"
+    assert slurm_system.install_path == "/fake/path"
+    assert slurm_system.output_path == "/fake/output"
+    assert slurm_system.default_partition == "main"
+    assert slurm_system.cache_docker_images_locally is True
+    assert "main" in slurm_system.partitions
+    assert "backup" in slurm_system.partitions
+    assert "group1" in slurm_system.groups["main"]
+    assert "group2" in slurm_system.groups["backup"]
+
+
+@pytest.mark.parametrize(
+    "input_value, expected_result",
+    [
+        ("True", True),
+        ("False", False),
+        ("true", True),
+        ("false", False),
+        ("1", True),
+        ("0", False),
+        ("yes", True),
+        ("no", False),
+    ],
+)
+def test_str_to_bool_conversion(input_value, expected_result):
+    parser = SlurmSystemParser()
+    result = parser.parse(
+        {
+            "name": "test_system",
+            "install_path": "/fake/path",
+            "output_path": "/fake/output",
+            "default_partition": "main",
+            "partitions": {
+                "main": {
+                    "name": "main",
+                    "nodes": ["node-[033-034]"],
+                    "groups": {"group1": {"name": "group1", "nodes": ["node-033"]}},
+                },
+                "backup": {
+                    "name": "backup",
+                    "nodes": ["node-[01-02]"],
+                    "groups": {"group2": {"name": "group2", "nodes": ["node-01"]}},
+                },
+            },
+            "cache_docker_images_locally": input_value,
+        }
+    )
+
+    assert result.cache_docker_images_locally == expected_result