diff --git a/src/tests/system/tests/test_authentication.py b/src/tests/system/tests/test_authentication.py
index d7f0114bb4..02d5b97c4c 100644
--- a/src/tests/system/tests/test_authentication.py
+++ b/src/tests/system/tests/test_authentication.py
@@ -9,6 +9,7 @@
 import pytest
 from sssd_test_framework.roles.client import Client
 from sssd_test_framework.roles.generic import GenericProvider
+from sssd_test_framework.roles.ldap import LDAP
 from sssd_test_framework.topology import KnownTopologyGroup
 
 
@@ -96,3 +97,61 @@ def test_authentication__default_settings_when_the_provider_is_offline(
 
     assert client.auth.parametrize(method).password(user, correct), "User failed login!"
     assert not client.auth.parametrize(method).password(user, wrong), "User logged in with an incorrect password!"
+
+
+@pytest.mark.topology(KnownTopologyGroup.AnyProvider)
+@pytest.mark.parametrize(
+    "home_key",
+    ["user", "uid", "fqn", "domain", "first_char", "upn", "default", "lowercase", "substring", "literal%"],
+)
+@pytest.mark.importance("medium")
+def test_authentication__with_overriding_home_directory(client: Client, provider: GenericProvider, home_key: str):
+    """
+    :title: Override the user's home directory
+    :description:
+        For simplicity, the home directory is set to '/home/user1' because some providers homedirs are different.
+    :setup:
+        1. Create user and set home directory to '/home/user1'
+        2. Configure SSSD with 'override_homedir' home_key value and restart SSSD
+        3. Get entry for 'user1'
+    :steps:
+        1. Login as 'user1' and check working directory
+    :expectedresults:
+        1. Login is successful and working directory matches the expected value
+    :customerscenario: False
+    """
+    provider.user("user1").add(password="Secret123", home="/home/user1")
+    client.sssd.common.mkhomedir()
+    client.sssd.start()
+
+    user = client.tools.getent.passwd("user1")
+    assert user is not None
+
+    home_map: dict[str, list[str]] = {
+        "user": ["/home/%u", f"/home/{user.name}"],
+        "uid": ["/home/%U", f"/home/{user.uid}"],
+        "fqn": ["/home/%f", f"/home/{user.name}@{client.sssd.default_domain}"],
+        "domain": ["/home/%d/%u", f"/home/{client.sssd.default_domain}/{user.name}"],
+        "first_char": ["/home/%l", f"/home/{str(user.name)[0]}"],
+        "upn": ["/home/%P", f"/home/{user.name}@{provider.domain.upper()}"],
+        "default": ["%o", f"{user.home}"],
+        "lowercase": ["%h", f"{str(user.home).lower()}"],
+        "substring": ["%H/%u", f"/home/homedir/{user.name}"],
+        "literal%": ["/home/%%/%u", f"/home/%/{user.name}"],
+    }
+
+    if home_key == "upn" and isinstance(provider, LDAP):
+        pytest.skip("Skipping provider, userPrincipal attribute is not set!")
+
+    if home_key == "domain":
+        client.fs.mkdir_p(f"/home/{client.sssd.default_domain}")
+
+    home_fmt, home_exp = home_map[home_key]
+    client.sssd.domain["homedir_substring"] = "/home/homedir"
+    client.sssd.domain["override_homedir"] = home_fmt
+    client.sssd.restart(clean=True)
+
+    with client.ssh("user1", "Secret123") as ssh:
+        result = ssh.run("pwd").stdout
+        assert result is not None, "Getting path failed!"
+        assert result == home_exp, f"Current path {result} is not {home_exp}!"