A communication device and method therein for loopback testing. The device comprises a transmitter and a receiver and applies FDD for communication over one or more lines. The method comprises degrading a linearity of the transmitter, as compared to the linearity during normal operation. The method further comprises transmitting at least one test signal in a transmit frequency band, such that at least one signal is created in a receive frequency band, wherein the created at least one signal is a distortion product of the at least one test signal; and further, receiving a response to the at least one created signal in the receive frequency band.