diff --git a/cairo_programs/cairo-1-contracts/felt_252_dict.cairo b/cairo_programs/cairo-1-contracts/felt_252_dict.cairo
new file mode 100644
index 0000000000..8dabb27bb2
--- /dev/null
+++ b/cairo_programs/cairo-1-contracts/felt_252_dict.cairo
@@ -0,0 +1,12 @@
+#[contract]
+mod Felt252Dict {
+
+use dict::{felt252_dict_entry_finalize, Felt252DictTrait};
+    /// An external method that requires the `segment_arena` builtin.
+    #[external]
+    fn squash_empty_dict() -> bool {
+        let x = felt252_dict_new::<felt252>();
+        x.squash();
+        return true;
+    }
+}
diff --git a/src/tests/cairo_1_run_from_entrypoint_tests.rs b/src/tests/cairo_1_run_from_entrypoint_tests.rs
index 286fd045a8..35ad3dc2ad 100644
--- a/src/tests/cairo_1_run_from_entrypoint_tests.rs
+++ b/src/tests/cairo_1_run_from_entrypoint_tests.rs
@@ -467,6 +467,13 @@ fn linear_split() {
     );
 }
 
+#[test]
+#[cfg_attr(target_arch = "wasm32", wasm_bindgen_test)]
+fn alloc_felt_252_dict() {
+    let program_data = include_bytes!("../../cairo_programs/cairo-1-contracts/felt_252_dict.casm");
+    run_cairo_1_entrypoint(program_data.as_slice(), 0, &[], &[1.into()]);
+}
+
 #[test]
 #[cfg_attr(target_arch = "wasm32", wasm_bindgen_test)]
 fn random_ec_point() {