diff --git a/test/init.bats b/test/init.bats
new file mode 100644
index 00000000..95781e33
--- /dev/null
+++ b/test/init.bats
@@ -0,0 +1,46 @@
+#!/usr/bin/env bats
+
+load test_helper
+
+@test "creates shims and versions directories" {
+  assert [ ! -d "${RBENV_ROOT}/shims" ]
+  assert [ ! -d "${RBENV_ROOT}/versions" ]
+  run rbenv-init -
+  assert_success
+  assert [ -d "${RBENV_ROOT}/shims" ]
+  assert [ -d "${RBENV_ROOT}/versions" ]
+}
+
+@test "auto rehash" {
+  run rbenv-init -
+  assert_success
+  assert_line "rbenv rehash 2>/dev/null"
+}
+
+@test "setup shell completions" {
+  export SHELL=/bin/bash
+  root="$(cd $BATS_TEST_DIRNAME/.. && pwd)"
+  run rbenv-init -
+  assert_success
+  assert_line 'source "'${root}'/libexec/../completions/rbenv.bash"'
+}
+
+@test "option to skip rehash" {
+  run rbenv-init - --no-rehash
+  assert_success
+  refute_line "rbenv rehash 2>/dev/null"
+}
+
+@test "adds shims to PATH" {
+  export PATH="${BATS_TEST_DIRNAME}/../libexec:/usr/bin:/bin"
+  run rbenv-init -
+  assert_success
+  assert_line 0 'export PATH="'${RBENV_ROOT}'/shims:${PATH}"'
+}
+
+@test "doesn't add shims to PATH more than once" {
+  export PATH="${RBENV_ROOT}/shims:$PATH"
+  run rbenv-init -
+  assert_success
+  refute_line 'export PATH="'${RBENV_ROOT}'/shims:${PATH}"'
+}