diff --git a/test/blackbox-tests/dune.inc b/test/blackbox-tests/dune.inc
index af7c5ab8..7295b221 100644
--- a/test/blackbox-tests/dune.inc
+++ b/test/blackbox-tests/dune.inc
@@ -103,6 +103,14 @@
    test-cases/dev-flag-1103
    (progn (run %{exe:cram.exe} -test run.t) (diff? run.t run.t.corrected)))))
 
+(alias
+ (name dune-build-dir-exec-1101)
+ (deps (package dune) (source_tree test-cases/dune-build-dir-exec-1101))
+ (action
+  (chdir
+   test-cases/dune-build-dir-exec-1101
+   (progn (run %{exe:cram.exe} -test run.t) (diff? run.t run.t.corrected)))))
+
 (alias
  (name dune-jbuild-var-case)
  (deps (package dune) (source_tree test-cases/dune-jbuild-var-case))
@@ -764,6 +772,7 @@
   (alias dep-vars)
   (alias depend-on-the-universe)
   (alias dev-flag-1103)
+  (alias dune-build-dir-exec-1101)
   (alias dune-jbuild-var-case)
   (alias dune-ppx-driver-system)
   (alias dune-project-edition)
@@ -858,6 +867,7 @@
   (alias dep-vars)
   (alias depend-on-the-universe)
   (alias dev-flag-1103)
+  (alias dune-build-dir-exec-1101)
   (alias dune-jbuild-var-case)
   (alias dune-ppx-driver-system)
   (alias dune-project-edition)
diff --git a/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/dune b/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/dune
new file mode 100644
index 00000000..8ac60cee
--- /dev/null
+++ b/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/dune
@@ -0,0 +1 @@
+(executable (name main))
\ No newline at end of file
diff --git a/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/dune-project b/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/dune-project
new file mode 100644
index 00000000..6687faf2
--- /dev/null
+++ b/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/dune-project
@@ -0,0 +1 @@
+(lang dune 1.1)
\ No newline at end of file
diff --git a/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/main.ml b/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/main.ml
new file mode 100644
index 00000000..6bf92d61
--- /dev/null
+++ b/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/main.ml
@@ -0,0 +1 @@
+print_endline "foobar";;
diff --git a/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/run.t b/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/run.t
new file mode 100644
index 00000000..18306e39
--- /dev/null
+++ b/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/run.t
@@ -0,0 +1,3 @@
+  $ DUNE_BUILD_DIR="$PWD/_custom" dune exec ./main.exe
+  File unavailable: /Users/rgrinberg/reps/dune/_build/default/test/blackbox-tests/test-cases/dune-build-dir-exec-1101/_custom/default/main.exe
+  [1]