diff --git a/script/test b/script/test
index 774ab5a5..782beff1 100755
--- a/script/test
+++ b/script/test
@@ -1,5 +1,7 @@
 #!/usr/bin/env bash
 
+set -eo pipefail
+
 if [ "$GRAALVM_HOME" != "" ]
 then
   export JAVA_HOME=$GRAALVM_HOME
@@ -8,7 +10,6 @@ fi
 
 java -version
 
-set -eo pipefail
 unset BABASHKA_PRELOADS
 unset BABASHKA_CLASSPATH
 unset BABASHKA_PRELOADS_TEST
@@ -40,3 +41,12 @@ lein test :only babashka.pod-test
 
 export BABASHKA_SOCKET_REPL_TEST=true
 lein test :only babashka.impl.socket-repl-test
+
+# test invoking script in subdir with bb.edn in parent dir
+unset BABASHKA_PRELOADS
+pushd test-resources/bb_in_root_script_in_other_dir
+if [[ $BABASHKA_TEST_ENV = "native" ]]
+then
+   ../../bb dir/script.clj
+fi
+popd
diff --git a/test-resources/bb_in_root_script_in_other_dir/bb.edn b/test-resources/bb_in_root_script_in_other_dir/bb.edn
new file mode 100644
index 00000000..573466cb
--- /dev/null
+++ b/test-resources/bb_in_root_script_in_other_dir/bb.edn
@@ -0,0 +1,2 @@
+{:deps {medley/medley {:mvn/version "1.3.0"}}}
+
diff --git a/test-resources/bb_in_root_script_in_other_dir/dir/script.clj b/test-resources/bb_in_root_script_in_other_dir/dir/script.clj
new file mode 100755
index 00000000..c28aa58d
--- /dev/null
+++ b/test-resources/bb_in_root_script_in_other_dir/dir/script.clj
@@ -0,0 +1,6 @@
+#!/usr/bin/env bb
+
+(ns script
+  (:require [medley.core :as medley]))
+
+(prn (medley/index-by :id [{:id 1}]))