diff --git a/test/smoke/src/areas/terminal/terminal-stickyScroll.test.ts b/test/smoke/src/areas/terminal/terminal-stickyScroll.test.ts
new file mode 100644
index 00000000000..b4872aed9f5
--- /dev/null
+++ b/test/smoke/src/areas/terminal/terminal-stickyScroll.test.ts
@@ -0,0 +1,38 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Application, Terminal, SettingsEditor } from '../../../../automation';
+import { setTerminalTestSettings } from './terminal-helpers';
+
+export function setup() {
+	describe('Terminal stickyScroll', () => {
+		// Acquire automation API
+		let app: Application;
+		let terminal: Terminal;
+		let settingsEditor: SettingsEditor;
+		before(async function () {
+			app = this.app as Application;
+			terminal = app.workbench.terminal;
+			settingsEditor = app.workbench.settingsEditor;
+			await setTerminalTestSettings(app, [
+				['terminal.integrated.enableStickyScroll', 'true']
+			]);
+		});
+
+		after(async function () {
+			await settingsEditor.clearUserSettings();
+		});
+
+		it('should inherit cwd when split and update the tab description - alt click', async () => {
+			// There should not be a visible sticky scroll element initially
+			await terminal.createTerminal();
+			await app.code.waitForElements('.terminal-sticky-scroll', false, elements => elements.length === 0);
+
+			// Running ls should show the sticky scroll element
+			await terminal.runCommandInTerminal(`ls`);
+			await app.code.waitForElements('.terminal-sticky-scroll', false, elements => elements.length === 1 && elements[0].textContent.indexOf('ls') >= 0);
+		});
+	});
+}
diff --git a/test/smoke/src/areas/terminal/terminal.test.ts b/test/smoke/src/areas/terminal/terminal.test.ts
index 6adab38986a..97dcb060b88 100644
--- a/test/smoke/src/areas/terminal/terminal.test.ts
+++ b/test/smoke/src/areas/terminal/terminal.test.ts
@@ -11,6 +11,7 @@ import { setup as setupTerminalPersistenceTests } from './terminal-persistence.t
 import { setup as setupTerminalProfileTests } from './terminal-profiles.test';
 import { setup as setupTerminalTabsTests } from './terminal-tabs.test';
 import { setup as setupTerminalSplitCwdTests } from './terminal-splitCwd.test';
+import { setup as setupTerminalStickyScrollTests } from './terminal-stickyScroll.test';
 import { setup as setupTerminalShellIntegrationTests } from './terminal-shellIntegration.test';
 
 export function setup(logger: Logger) {
@@ -41,6 +42,7 @@ export function setup(logger: Logger) {
 		setupTerminalProfileTests();
 		setupTerminalTabsTests();
 		setupTerminalShellIntegrationTests();
+		setupTerminalStickyScrollTests();
 		if (!process.platform.startsWith('win')) {
 			setupTerminalSplitCwdTests();
 		}