diff --git a/t/t0001-init.sh b/t/t0001-init.sh
index 07e011d9ef..5386504790 100755
--- a/t/t0001-init.sh
+++ b/t/t0001-init.sh
@@ -243,6 +243,12 @@ test_expect_success 'init recreates a new bare directory' '
 '
 
 test_expect_success 'init creates a new deep directory' '
+	rm -fr newdir &&
+	git init newdir/a/b/c &&
+	test -d newdir/a/b/c/.git/refs
+'
+
+test_expect_success POSIXPERM 'init creates a new deep directory (umask vs. shared)' '
 	rm -fr newdir &&
 	(
 		# Leading directories should honor umask while