diff --git a/crates/xy/tests/reload.rs b/crates/xy/tests/reload.rs
new file mode 100644
index 0000000..13c8f61
--- /dev/null
+++ b/crates/xy/tests/reload.rs
@@ -0,0 +1,37 @@
+mod common;
+use common::*;
+
+#[tokio::test]
+async fn reload_adds_removes_and_changes() {
+    let xy = xy_bin();
+    let sleeper = sleep_server_bin();
+    let mut h = Harness::new();
+    h.write_server("a", sleeper.to_str().unwrap(), 19_020, "always");
+    h.start_daemon(&xy).await;
+
+    for _ in 0..40 {
+        let (_c, out, _e) = h.run_cli(&xy, &["list"]).await;
+        if out.contains("a") && out.contains("running") {
+            break;
+        }
+        tokio::time::sleep(std::time::Duration::from_millis(100)).await;
+    }
+
+    h.write_server("a", sleeper.to_str().unwrap(), 19_021, "always");
+    h.write_server("b", sleeper.to_str().unwrap(), 19_022, "always");
+    let (code, out, _e) = h.run_cli(&xy, &["reload"]).await;
+    assert_eq!(code, 0);
+    assert!(out.contains("added:") && out.contains("b"), "stdout: {out}");
+    assert!(
+        out.contains("changed:") && out.contains("a"),
+        "stdout: {out}"
+    );
+
+    std::fs::remove_file(h.config_dir.join("a.kdl")).unwrap();
+    let (code, out, _e) = h.run_cli(&xy, &["reload"]).await;
+    assert_eq!(code, 0);
+    assert!(
+        out.contains("removed:") && out.contains("a"),
+        "stdout: {out}"
+    );
+}