diff --git a/testsuite/tests/misc/env-traceback/test.py b/testsuite/tests/misc/env-traceback/test.py
new file mode 100644
index 000000000..fb2dceaea
--- /dev/null
+++ b/testsuite/tests/misc/env-traceback/test.py
@@ -0,0 +1,36 @@
+"""
+Check ALR_TRACEBACK_ENABLED env var
+"""
+
+import os
+from drivers.alr import run_alr
+from drivers.asserts import assert_eq, assert_match
+
+def check_no_traceback():
+    assert_eq('ERROR: Raising forcibly\n'
+              'ERROR: alr encountered an unexpected error,'
+              ' re-run with -d for details.\n',
+              run_alr("dev", "--raise",
+                      debug=False, complain_on_error=False).out)
+
+
+def check_traceback():
+    assert_match(".*0x", # appears in both symbolic and raw tracebacks
+                 run_alr("dev", "--raise",
+                         debug=False, complain_on_error=False).out)
+
+
+# By default (no `-d` or ALR_TRACEBACK_ENABLED) we don't get a backtrace
+
+check_no_traceback()
+for val in ["", "0", "false", "no"]:
+    os.environ['ALR_TRACEBACK_ENABLED'] = val
+    check_no_traceback()
+
+# With ALR_TRACEBACK_ENABLED we do get a backtrace
+
+for val in ["1", "true", "yes"]:
+    os.environ['ALR_TRACEBACK_ENABLED'] = val
+    check_traceback()
+
+print('SUCCESS')
diff --git a/testsuite/tests/misc/env-traceback/test.yaml b/testsuite/tests/misc/env-traceback/test.yaml
new file mode 100644
index 000000000..32c747b3f
--- /dev/null
+++ b/testsuite/tests/misc/env-traceback/test.yaml
@@ -0,0 +1 @@
+driver: python-script