diff --git a/tests/local.mk b/tests/local.mk
index 187f96ea2..affdc3cc3 100644
--- a/tests/local.mk
+++ b/tests/local.mk
@@ -30,7 +30,8 @@ nix_tests = \
   search.sh \
   nix-copy-ssh.sh \
   post-hook.sh \
-  function-trace.sh
+  function-trace.sh \
+  recursive.sh
   # parallel.sh
 
 install-tests += $(foreach x, $(nix_tests), tests/$(x))
diff --git a/tests/recursive.sh b/tests/recursive.sh
new file mode 100644
index 000000000..25204caf1
--- /dev/null
+++ b/tests/recursive.sh
@@ -0,0 +1,67 @@
+source common.sh
+
+clearStore
+
+export unreachable=$(nix add-to-store ./recursive.sh)
+
+nix build -o $TEST_ROOT/result -L '(
+  with import ./config.nix;
+  with import <nix/config.nix>;
+  mkDerivation {
+    name = "recursive";
+    dummy = builtins.toFile "dummy" "bla bla";
+    SHELL = shell;
+
+    # Note: this is a string without context.
+    unreachable = builtins.getEnv "unreachable";
+
+    buildCommand = '\'\''
+      mkdir $out
+      PATH=${nixBinDir}:$PATH
+      opts="--experimental-features nix-command"
+
+      # Check that we can query/build paths in our input closure.
+      nix $opts path-info $dummy
+      nix $opts build $dummy
+
+      # Make sure we cannot query/build paths not in out input closure.
+      [[ -e $unreachable ]]
+      (! nix $opts path-info $unreachable)
+      (! nix $opts build $unreachable)
+
+      # Add something to the store.
+      echo foobar > foobar
+      foobar=$(nix $opts add-to-store ./foobar)
+
+      nix $opts path-info $foobar
+      nix $opts build $foobar
+
+      # Add it to our closure.
+      ln -s $foobar $out/foobar
+
+      [[ $(nix $opts path-info --all | wc -l) -eq 3 ]]
+
+      # Build a derivation.
+      nix $opts build -L '\''(
+        derivation {
+          name = "inner1";
+          builder = builtins.getEnv "SHELL";
+          system = builtins.getEnv "system";
+          fnord = builtins.toFile "fnord" "fnord";
+          args = [ "-c" "echo $fnord blaat > $out" ];
+        }
+      )'\''
+
+      [[ $(nix $opts path-info --json ./result) =~ fnord ]]
+
+      ln -s $(nix $opts path-info ./result) $out/inner1
+    '\'\'';
+  })
+'
+
+[[ $(cat $TEST_ROOT/result/inner1) =~ blaat ]]
+
+# Make sure the recursively created paths are in the closure.
+nix path-info -r $TEST_ROOT/result | grep foobar
+nix path-info -r $TEST_ROOT/result | grep fnord
+nix path-info -r $TEST_ROOT/result | grep inner1