diff --git a/test/functional/wallet_basic.py b/test/functional/wallet_basic.py
index 86cfd4a230b..52022a2eee4 100755
--- a/test/functional/wallet_basic.py
+++ b/test/functional/wallet_basic.py
@@ -731,6 +731,45 @@ class WalletTest(BitcoinTestFramework):
             assert_equal(coin_b["parent_descs"][0], multi_b)
             self.nodes[0].unloadwallet("wo")
 
+        self.log.info("Test -spendzeroconfchange")
+        self.restart_node(0, ["-spendzeroconfchange=0"])
+
+        # create new wallet and fund it with a confirmed UTXO
+        self.nodes[0].createwallet(wallet_name="zeroconf", load_on_startup=True)
+        zeroconf_wallet = self.nodes[0].get_wallet_rpc("zeroconf")
+        default_wallet = self.nodes[0].get_wallet_rpc(self.default_wallet_name)
+        default_wallet.sendtoaddress(zeroconf_wallet.getnewaddress(), Decimal('1.0'))
+        self.generate(self.nodes[0], 1, sync_fun=self.no_op)
+        utxos = zeroconf_wallet.listunspent(minconf=0)
+        assert_equal(len(utxos), 1)
+        assert_equal(utxos[0]['confirmations'], 1)
+
+        # spend confirmed UTXO to ourselves
+        zeroconf_wallet.sendall(recipients=[zeroconf_wallet.getnewaddress()])
+        utxos = zeroconf_wallet.listunspent(minconf=0)
+        assert_equal(len(utxos), 1)
+        assert_equal(utxos[0]['confirmations'], 0)
+        # accounts for untrusted pending balance
+        bal = zeroconf_wallet.getbalances()
+        assert_equal(bal['mine']['trusted'], 0)
+        assert_equal(bal['mine']['untrusted_pending'], utxos[0]['amount'])
+
+        # spending an unconfirmed UTXO sent to ourselves should fail
+        assert_raises_rpc_error(-6, "Insufficient funds", zeroconf_wallet.sendtoaddress, zeroconf_wallet.getnewaddress(), Decimal('0.5'))
+
+        # check that it works again with -spendzeroconfchange set (=default)
+        self.restart_node(0, ["-spendzeroconfchange=1"])
+        zeroconf_wallet = self.nodes[0].get_wallet_rpc("zeroconf")
+        utxos = zeroconf_wallet.listunspent(minconf=0)
+        assert_equal(len(utxos), 1)
+        assert_equal(utxos[0]['confirmations'], 0)
+        # accounts for trusted balance
+        bal = zeroconf_wallet.getbalances()
+        assert_equal(bal['mine']['trusted'], utxos[0]['amount'])
+        assert_equal(bal['mine']['untrusted_pending'], 0)
+
+        zeroconf_wallet.sendtoaddress(zeroconf_wallet.getnewaddress(), Decimal('0.5'))
+
 
 if __name__ == '__main__':
     WalletTest().main()