diff --git a/tests/include.test b/tests/include.test
new file mode 100644
index 000000000..6e9ebca76
--- /dev/null
+++ b/tests/include.test
@@ -0,0 +1,12 @@
+# nested includes in subdirectories
+mkdir -p b/c ; printf '2010/1/1\n (C)  1\n' >b/c/c.journal ; printf '2010/1/1\n (B)  1\n!include c/c.journal\n' >b/b.journal ; printf '2010/1/1\n (A)  1\n!include b/b.journal\n' >a.journal ; hledger -f a.journal print; rm -rf b
+>>>
+2010/01/01 
+    (A)             1
+
+2010/01/01 
+    (B)             1
+
+2010/01/01 
+    (C)             1
+