diff --git a/test/functional/options/autochdir_spec.lua b/test/functional/options/autochdir_spec.lua
new file mode 100644
index 0000000000..0e293761ad
--- /dev/null
+++ b/test/functional/options/autochdir_spec.lua
@@ -0,0 +1,18 @@
+local helpers = require('test.functional.helpers')(after_each)
+local clear = helpers.clear
+local eq = helpers.eq
+local getcwd = helpers.funcs.getcwd
+
+describe("'autochdir'", function()
+  it('given on the shell gets processed properly', function()
+    local targetdir = 'test/functional/fixtures'
+
+    -- By default 'autochdir' is off, thus getcwd() returns the repo root.
+    clear(targetdir..'/tty-test.c')
+    local rootdir = getcwd()
+
+    -- With 'autochdir' on, we should get the directory of tty-test.c.
+    clear('--cmd', 'set autochdir', targetdir..'/tty-test.c')
+    eq(rootdir..'/'..targetdir, getcwd())
+  end)
+end)