diff --git a/test/mock-child_process.ts b/test/mock-child_process.ts
index 4588650..c0efc6f 100644
--- a/test/mock-child_process.ts
+++ b/test/mock-child_process.ts
@@ -10,6 +10,7 @@ export interface Invocation {
   cwd?: string;
   exitCode?: number;
   stdout?: string;
+  stderr?: string;
 
   /**
    * Only match a prefix of the command (don't care about the details of the arguments)
@@ -48,6 +49,9 @@ export function mockSpawn(...invocations: Invocation[]): () => void {
         if (invocation.stdout) {
           mockEmit(child.stdout, 'data', Buffer.from(invocation.stdout));
         }
+        if (invocation.stderr) {
+          mockEmit(child.stderr, 'data', Buffer.from(invocation.stderr));
+        }
         mockEmit(child, 'close', invocation.exitCode ?? 0);
 
         return child;
diff --git a/test/shell-logging.test.ts b/test/shell-logging.test.ts
new file mode 100644
index 0000000..5fcff55
--- /dev/null
+++ b/test/shell-logging.test.ts
@@ -0,0 +1,168 @@
+import { mockSpawn } from './mock-child_process';
+import mockfs from './mock-fs';
+import { setLogThreshold } from '../bin/logging';
+import { shell } from '../lib/private/shell';
+jest.mock('child_process');
+
+describe('logging', () => {
+  let consoleSpy: jest.SpyInstance;
+
+  beforeEach(() => {
+    consoleSpy = jest.spyOn(console, 'error').mockImplementation(() => {});
+    mockfs({
+      '/path/package.json': JSON.stringify({ version: '1.2.3' }),
+    });
+  });
+
+  afterEach(() => {
+    consoleSpy.mockRestore();
+    mockfs.restore();
+  });
+
+  test('docker stdout is captured during builds', async () => {
+    // GIVEN
+    setLogThreshold('verbose');
+    const processOut = new Array<string>();
+    const mockStdout = jest.spyOn(process.stdout, 'write').mockImplementation((chunk) => {
+      processOut.push(Buffer.isBuffer(chunk) ? chunk.toString() : (chunk as string));
+      return true;
+    });
+
+    const expectAllSpawns = mockSpawn({
+      commandLine: ['docker', 'build', '.'],
+      stdout: 'Step 1/3 : FROM node:14\nStep 2/3 : WORKDIR /app\nStep 3/3 : COPY . .',
+    });
+
+    // WHEN
+    await shell(['docker', 'build', '.']);
+
+    // THEN
+    expectAllSpawns();
+    await new Promise((resolve) => setImmediate(resolve));
+
+    const hasDockerOutput = processOut.some(
+      (chunk) =>
+        chunk.includes('Step 1/3') && chunk.includes('Step 2/3') && chunk.includes('Step 3/3')
+    );
+
+    expect(hasDockerOutput).toBe(true);
+    mockStdout.mockRestore();
+  });
+
+  test('stderr is captured and written to process.stderr', async () => {
+    // GIVEN
+    const processErr = new Array<string>();
+    const mockStderr = jest.spyOn(process.stderr, 'write').mockImplementation((chunk) => {
+      processErr.push(Buffer.isBuffer(chunk) ? chunk.toString() : (chunk as string));
+      return true;
+    });
+
+    const expectAllSpawns = mockSpawn({
+      commandLine: ['docker', 'build', '.'],
+      stderr: 'Warning: Something went wrong',
+    });
+
+    // WHEN
+    await shell(['docker', 'build', '.']);
+
+    // THEN
+    expectAllSpawns();
+    await new Promise((resolve) => setImmediate(resolve));
+
+    expect(processErr.some((chunk) => chunk.includes('Warning: Something went wrong'))).toBe(true);
+    mockStderr.mockRestore();
+  });
+
+  test('quiet mode suppresses stdout and stderr', async () => {
+    // GIVEN
+    const processOut = new Array<string>();
+    const processErr = new Array<string>();
+
+    const mockStdout = jest.spyOn(process.stdout, 'write').mockImplementation((chunk) => {
+      processOut.push(Buffer.isBuffer(chunk) ? chunk.toString() : (chunk as string));
+      return true;
+    });
+
+    const mockStderr = jest.spyOn(process.stderr, 'write').mockImplementation((chunk) => {
+      processErr.push(Buffer.isBuffer(chunk) ? chunk.toString() : (chunk as string));
+      return true;
+    });
+
+    const expectAllSpawns = mockSpawn({
+      commandLine: ['docker', 'build', '.'],
+      stdout: 'Normal output',
+      stderr: 'Warning output',
+    });
+
+    // WHEN
+    await shell(['docker', 'build', '.'], { quiet: true });
+
+    // THEN
+    expectAllSpawns();
+    await new Promise((resolve) => setImmediate(resolve));
+
+    expect(processOut.length).toBe(0);
+    expect(processErr.length).toBe(0);
+
+    mockStdout.mockRestore();
+    mockStderr.mockRestore();
+  });
+
+  test('custom logger receives command line', async () => {
+    // GIVEN
+    const loggedMessages: string[] = [];
+    const logger = (message: string) => loggedMessages.push(message);
+
+    const expectAllSpawns = mockSpawn({
+      commandLine: ['docker', 'build', '.'],
+    });
+
+    // WHEN
+    await shell(['docker', 'build', '.'], { logger });
+
+    // THEN
+    expectAllSpawns();
+    expect(loggedMessages.length).toBe(1);
+    expect(loggedMessages[0]).toContain('docker build .');
+  });
+
+  test('handles input option correctly', async () => {
+    // GIVEN
+    const expectedInput = 'some input';
+    const processOut = new Array<string>();
+
+    const mockStdout = jest.spyOn(process.stdout, 'write').mockImplementation((chunk) => {
+      processOut.push(Buffer.isBuffer(chunk) ? chunk.toString() : (chunk as string));
+      return true;
+    });
+
+    const expectAllSpawns = mockSpawn({
+      commandLine: ['cat'],
+      stdout: expectedInput, // Echo back the input
+    });
+
+    // WHEN
+    await shell(['cat'], { input: expectedInput });
+
+    // THEN
+    expectAllSpawns();
+    await new Promise((resolve) => setImmediate(resolve));
+
+    expect(processOut.some((chunk) => chunk.includes(expectedInput))).toBe(true);
+    mockStdout.mockRestore();
+  });
+
+  test('throws error on non-zero exit code', async () => {
+    // GIVEN
+    const expectAllSpawns = mockSpawn({
+      commandLine: ['docker', 'build', '.'],
+      exitCode: 1,
+      stderr: 'Command failed',
+    });
+
+    // WHEN/THEN
+    await expect(shell(['docker', 'build', '.'])).rejects.toThrow('Command failed');
+
+    expectAllSpawns();
+  });
+});