diff --git a/test/functional/feature_blocksdir.py b/test/functional/feature_blocksdir.py
new file mode 100755
index 0000000000..e9d7b9de5b
--- /dev/null
+++ b/test/functional/feature_blocksdir.py
@@ -0,0 +1,34 @@
+#!/usr/bin/env python3
+# Copyright (c) 2018 The Bitcoin Core developers
+# Distributed under the MIT software license, see the accompanying
+# file COPYING or http://www.opensource.org/licenses/mit-license.php.
+"""Test the blocksdir option.
+"""
+
+from test_framework.test_framework import BitcoinTestFramework, initialize_datadir
+
+import shutil
+import os
+
+class BlocksdirTest(BitcoinTestFramework):
+    def set_test_params(self):
+        self.setup_clean_chain = True
+        self.num_nodes = 1
+
+    def run_test(self):
+        self.stop_node(0)
+        node0path = os.path.join(self.options.tmpdir, "node0")
+        shutil.rmtree(node0path)
+        initialize_datadir(self.options.tmpdir, 0)
+        self.log.info("Starting with non exiting blocksdir ...")
+        self.assert_start_raises_init_error(0, ["-blocksdir="+self.options.tmpdir+ "/blocksdir"], "Specified blocks director")
+        os.mkdir(self.options.tmpdir+ "/blocksdir")
+        self.log.info("Starting with exiting blocksdir ...")
+        self.start_node(0, ["-blocksdir="+self.options.tmpdir+ "/blocksdir"])
+        self.log.info("mining blocks..")
+        self.nodes[0].generate(10)
+        assert(os.path.isfile(self.options.tmpdir+ "/blocksdir/regtest/blocks/blk00000.dat"))
+        assert(os.path.isdir(self.options.tmpdir+ "/blocksdir/regtest/blocks/index"))
+
+if __name__ == '__main__':
+    BlocksdirTest().main()
diff --git a/test/functional/test_runner.py b/test/functional/test_runner.py
index 082191098e..14211cd402 100755
--- a/test/functional/test_runner.py
+++ b/test/functional/test_runner.py
@@ -133,6 +133,7 @@ BASE_SCRIPTS= [
     'p2p_unrequested_blocks.py',
     'feature_logging.py',
     'p2p_node_network_limited.py',
+    'feature_blocksdir.py',
     'feature_config_args.py',
     # Don't append tests at the end to avoid merge conflicts
     # Put them in a random line within the section that fits their approximate run-time