diff --git a/tests/test_commands.py b/tests/test_commands.py
index 2d615b3..03f0b67 100644
--- a/tests/test_commands.py
+++ b/tests/test_commands.py
@@ -58,3 +58,11 @@ def test_checkout(changedir, tmpdir):
     assert(not glob.glob('build/tmp*'))
     assert(not os.path.exists('build/downloads'))
     assert(not os.path.exists('build/sstate-cache'))
+
+
+def test_repo_includes(changedir, tmpdir):
+    tdir = str(tmpdir.mkdir('test_commands'))
+    shutil.rmtree(tdir, ignore_errors=True)
+    shutil.copytree('tests/test_repo_includes', tdir)
+    os.chdir(tdir)
+    kas.kas(['checkout', 'test.yml'])
diff --git a/tests/test_repo_includes/oe-init-build-env b/tests/test_repo_includes/oe-init-build-env
new file mode 100755
index 0000000..296ef78
--- /dev/null
+++ b/tests/test_repo_includes/oe-init-build-env
@@ -0,0 +1,3 @@
+#!/bin/sh
+
+true
diff --git a/tests/test_repo_includes/subrepo/test.yml b/tests/test_repo_includes/subrepo/test.yml
new file mode 100644
index 0000000..92b8020
--- /dev/null
+++ b/tests/test_repo_includes/subrepo/test.yml
@@ -0,0 +1,10 @@
+header:
+  version: 11
+  includes:
+    - repo: externalrepo
+      file: tests/test_layers/test.yml
+
+repos:
+  externalrepo:
+    url: https://github.com/siemens/kas.git
+    path: externalrepo
diff --git a/tests/test_repo_includes/test.yml b/tests/test_repo_includes/test.yml
new file mode 100644
index 0000000..7f9200c
--- /dev/null
+++ b/tests/test_repo_includes/test.yml
@@ -0,0 +1,14 @@
+header:
+  version: 11
+  includes:
+    - repo: subrepo
+      file: test.yml
+
+repos:
+  this:
+
+  subrepo:
+    path: subrepo
+
+  externalrepo:
+    refspec: master