diff --git a/test/functional/wallet_multiwallet.py b/test/functional/wallet_multiwallet.py
index 5671773528..53638615f6 100755
--- a/test/functional/wallet_multiwallet.py
+++ b/test/functional/wallet_multiwallet.py
@@ -211,5 +211,28 @@ class MultiWalletTest(BitcoinTestFramework):
         # Fail to load if wallet file is a symlink
         assert_raises_rpc_error(-4, "Wallet file verification failed: Invalid -wallet path 'w8_symlink'", self.nodes[0].loadwallet, 'w8_symlink')
 
+        self.log.info("Test dynamic wallet creation.")
+
+        # Fail to create a wallet if it already exists.
+        assert_raises_rpc_error(-4, "Wallet w2 already exists.", self.nodes[0].createwallet, 'w2')
+
+        # Successfully create a wallet with a new name
+        loadwallet_name = self.nodes[0].createwallet('w9')
+        assert_equal(loadwallet_name['name'], 'w9')
+        w9 = node.get_wallet_rpc('w9')
+        assert_equal(w9.getwalletinfo()['walletname'], 'w9')
+
+        assert 'w9' in self.nodes[0].listwallets()
+
+        # Successfully create a wallet using a full path
+        new_wallet_dir = os.path.join(self.options.tmpdir, 'new_walletdir')
+        new_wallet_name = os.path.join(new_wallet_dir, 'w10')
+        loadwallet_name = self.nodes[0].createwallet(new_wallet_name)
+        assert_equal(loadwallet_name['name'], new_wallet_name)
+        w10 = node.get_wallet_rpc(new_wallet_name)
+        assert_equal(w10.getwalletinfo()['walletname'], new_wallet_name)
+
+        assert new_wallet_name in self.nodes[0].listwallets()
+
 if __name__ == '__main__':
     MultiWalletTest().main()