diff --git a/test/issue208-generate-cwd-root.sh b/test/issue208-generate-cwd-root.sh
new file mode 100755
index 000000000..08ae8c6aa
--- /dev/null
+++ b/test/issue208-generate-cwd-root.sh
@@ -0,0 +1,36 @@
+#!/usr/bin/env bash
+set -e
+
+. $(dirname "${BASH_SOURCE[0]}")/common.sh
+
+if [ -f issue208-generate-cwd-root.sln ] || [ -f .dub/issue208-generate-cwd-root.visualdproj]; then
+	die $LINENO 'Did not expect VisualD files for this test to exist in the working directory'
+fi
+
+function cleanup {
+    rm -rf "$CURR_DIR/issue208-generate-cwd-root"
+}
+
+mkdir "$CURR_DIR/issue208-generate-cwd-root"
+
+trap cleanup EXIT
+
+pushd "$CURR_DIR/issue208-generate-cwd-root"
+
+$DUB init -n
+
+popd
+
+$DUB generate visuald --root="$CURR_DIR/issue208-generate-cwd-root"
+
+if [ -f issue208-generate-cwd-root.sln ] || [ -f .dub/issue208-generate-cwd-root.visualdproj ]; then
+	rm -f issue208-generate-cwd-root.sln .dub/issue208-generate-cwd-root.visualdproj
+	die $LINENO 'VisualD files were generated in CWD instead of inside package directory'
+fi
+
+if [ ! -f "$CURR_DIR/issue208-generate-cwd-root/issue208-generate-cwd-root.sln" ] then
+	die $LINENO 'no VisualD files were generated in target package directory'
+fi
+
+# TODO: when the tests above work, make sure the paths in the generated
+# .visualdproj file are all relative to the package, and not relative to $CURR_DIR