diff --git a/test/integration/tests/3396-package-indices/Main.hs b/test/integration/tests/3396-package-indices/Main.hs
new file mode 100644
index 0000000000..c66949955d
--- /dev/null
+++ b/test/integration/tests/3396-package-indices/Main.hs
@@ -0,0 +1,11 @@
+import           StackTest
+import           System.Directory   (createDirectory)
+import           System.Environment (getEnv)
+import           System.FilePath    ((</>))
+
+main :: IO ()
+main = do
+  home <- getEnv "HOME"
+  createDirectory (home </> ".stack" </> "indices" </> "CustomIndex")
+  copy "CustomIndex/01-index.tar" (home </> ".stack"  </> "indices" </> "CustomIndex" </> "01-index.tar")
+  stack ["build"]
diff --git a/test/integration/tests/3396-package-indices/files/CustomIndex/01-index.tar b/test/integration/tests/3396-package-indices/files/CustomIndex/01-index.tar
new file mode 100644
index 0000000000..2f159bef12
Binary files /dev/null and b/test/integration/tests/3396-package-indices/files/CustomIndex/01-index.tar differ
diff --git a/test/integration/tests/3396-package-indices/files/files.cabal b/test/integration/tests/3396-package-indices/files/files.cabal
new file mode 100644
index 0000000000..eea1f1cf35
--- /dev/null
+++ b/test/integration/tests/3396-package-indices/files/files.cabal
@@ -0,0 +1,19 @@
+name:                files
+version:             0.1.0.0
+-- synopsis:
+-- description:
+homepage:            https://github.com/githubuser/files#readme
+license:             BSD3
+author:              Author name here
+maintainer:          example@example.com
+copyright:           2017 Author name here
+category:            Web
+build-type:          Simple
+cabal-version:       >=1.10
+
+library
+  hs-source-dirs:      src
+  exposed-modules:     Lib
+  build-depends:       base >= 4.7 && < 5
+  default-language:    Haskell2010
+
diff --git a/test/integration/tests/3396-package-indices/files/my-snapshot.yaml b/test/integration/tests/3396-package-indices/files/my-snapshot.yaml
new file mode 100644
index 0000000000..05afd9406d
--- /dev/null
+++ b/test/integration/tests/3396-package-indices/files/my-snapshot.yaml
@@ -0,0 +1,11 @@
+compiler: ghc-8.0.2
+name: my-snapshot
+
+packages:
+  - base-4.10.0.0
+  - dinamo-0.1.0.0
+
+flags:
+  dinamo:
+    debug: true
+
diff --git a/test/integration/tests/3396-package-indices/files/src/Lib.hs b/test/integration/tests/3396-package-indices/files/src/Lib.hs
new file mode 100644
index 0000000000..f323c86f10
--- /dev/null
+++ b/test/integration/tests/3396-package-indices/files/src/Lib.hs
@@ -0,0 +1,8 @@
+module Lib
+    ( someFunc
+    ) where
+
+
+someFunc :: IO ()
+someFunc = print "some func"
+
diff --git a/test/integration/tests/3396-package-indices/files/stack.yaml b/test/integration/tests/3396-package-indices/files/stack.yaml
new file mode 100644
index 0000000000..4b0fc7bcb4
--- /dev/null
+++ b/test/integration/tests/3396-package-indices/files/stack.yaml
@@ -0,0 +1,18 @@
+resolver: my-snapshot.yaml
+
+packages:
+- .
+
+extra-deps: []
+
+# Override default flag values for local packages and extra-deps
+flags: {}
+
+# Extra package databases containing global packages
+extra-package-dbs: []
+
+package-indices:
+  - name: CustomIndex
+    download-prefix: http://0.0.0.0:8080/
+    http: http://0.0.0.0:8080/custom.index.tar.gz
+