diff --git a/test/emu/ovni/CMakeLists.txt b/test/emu/ovni/CMakeLists.txt
index 513173a..a0fbe6b 100644
--- a/test/emu/ovni/CMakeLists.txt
+++ b/test/emu/ovni/CMakeLists.txt
@@ -16,3 +16,4 @@ test_emu(clockgate.c MP SHOULD_FAIL REGEX "detected large clock gate")
 test_emu(no-cpus.c SHOULD_FAIL REGEX "loom .* has no physical CPUs")
 test_emu(sort-cpus-by-loom.c MP)
 test_emu(sort-cpus-by-rank.c MP)
+test_emu(tracedir-subdir.c MP DRIVER "tracedir-subdir.driver.sh")
diff --git a/test/emu/ovni/tracedir-subdir.c b/test/emu/ovni/tracedir-subdir.c
new file mode 100644
index 0000000..ff5ff4c
--- /dev/null
+++ b/test/emu/ovni/tracedir-subdir.c
@@ -0,0 +1,15 @@
+/* Copyright (c) 2023 Barcelona Supercomputing Center (BSC)
+ * SPDX-License-Identifier: GPL-3.0-or-later */
+
+#include <stdlib.h>
+#include "compat.h"
+#include "instr.h"
+
+int
+main(void)
+{
+	instr_start(0, 1);
+	instr_end();
+
+	return 0;
+}
diff --git a/test/emu/ovni/tracedir-subdir.driver.sh b/test/emu/ovni/tracedir-subdir.driver.sh
new file mode 100644
index 0000000..80fb4e9
--- /dev/null
+++ b/test/emu/ovni/tracedir-subdir.driver.sh
@@ -0,0 +1,24 @@
+target=$OVNI_TEST_BIN
+
+# Test referring to a empty nested subdirectory
+(
+  export OVNI_TRACEDIR=a/b/c
+  $target
+  ovniemu $OVNI_TRACEDIR
+)
+
+# Test referring to a parent directory
+(
+  mkdir -p x/y/z
+  cd x/y/z
+  export OVNI_TRACEDIR=../../w
+  $target
+  ovniemu $OVNI_TRACEDIR
+)
+
+# Test with full path
+(
+  export OVNI_TRACEDIR=$(pwd)/fullpath
+  $target
+  ovniemu $OVNI_TRACEDIR
+)