diff --git a/notebook/tests/test_notebookapp.py b/notebook/tests/test_notebookapp.py
index 22a9cfc12..a7f38e2cd 100644
--- a/notebook/tests/test_notebookapp.py
+++ b/notebook/tests/test_notebookapp.py
@@ -1,11 +1,18 @@
 """Test NotebookApp"""
 
-
+import getpass
 import logging
 import os
 import re
+from subprocess import Popen, PIPE, STDOUT
+import sys
 from tempfile import NamedTemporaryFile
 
+try:
+    from unittest.mock import patch
+except ImportError:
+    from mock import patch # py2
+
 import nose.tools as nt
 
 from traitlets.tests.utils import check_help_all_output
@@ -14,7 +21,7 @@ from jupyter_core.application import NoStart
 from ipython_genutils.tempdir import TemporaryDirectory
 from traitlets import TraitError
 from notebook import notebookapp, __version__
-from notebook import notebookapp
+from notebook.auth.security import passwd_check
 NotebookApp = notebookapp.NotebookApp
 
 
@@ -117,3 +124,17 @@ def raise_on_bad_version(version):
 
 def test_current_version():
     raise_on_bad_version(__version__)
+
+def test_notebook_password():
+    password = 'secret'
+    with TemporaryDirectory() as td:
+        with patch.dict('os.environ', {
+            'JUPYTER_CONFIG_DIR': td,
+        }), patch.object(getpass, 'getpass', return_value=password):
+            app = notebookapp.NotebookPasswordApp(log_level=logging.ERROR)
+            app.initialize([])
+            app.start()
+            nb = NotebookApp()
+            nb.load_config_file()
+            nt.assert_not_equal(nb.password, '')
+            passwd_check(nb.password, password)