diff --git a/usr.sbin/pw/tests/pw_useradd_test.sh b/usr.sbin/pw/tests/pw_useradd_test.sh
index b4efa42bada7..6413c063d482 100755
--- a/usr.sbin/pw/tests/pw_useradd_test.sh
+++ b/usr.sbin/pw/tests/pw_useradd_test.sh
@@ -329,6 +329,21 @@ user_add_dir_body() {
 	    stat -f '%p' ${HOME}/home/foo
 }
 
+atf_test_case user_add_existing_dir
+user_add_existing_dir_body() {
+	populate_root_etc_skel
+
+	mkdir -p -m 0777 ${HOME}/home/foo
+	atf_check -o inline:"40777\n" \
+	    stat -f '%p' ${HOME}/home/foo
+
+	atf_check -s exit:0 ${RPW} useradd foo -M 0705 -m
+	atf_check grep -q '^foo:' $HOME/etc/master.passwd
+	atf_check test -d ${HOME}/home/foo
+	atf_check -o inline:"40705\n" \
+	    stat -f '%p' ${HOME}/home/foo
+}
+
 atf_test_case user_add_skel
 user_add_skel_body() {
 	populate_root_etc_skel
@@ -528,6 +543,7 @@ atf_init_test_cases() {
 	atf_add_test_case user_add_R_no_symlink
 	atf_add_test_case user_add_R_intermed
 	atf_add_test_case user_add_dir
+	atf_add_test_case user_add_existing_dir
 	atf_add_test_case user_add_skel
 	atf_add_test_case user_add_uid0
 	atf_add_test_case user_add_uid_too_large