diff --git a/tests/test_create.py b/tests/test_create.py
new file mode 100644
index 0000000..7ea1ab6
--- /dev/null
+++ b/tests/test_create.py
@@ -0,0 +1,58 @@
+import os
+import stat
+
+import pytest
+
+
+@pytest.mark.parametrize("directory", ("~/a", "~/b/c"))
+def test_directory_creation(home, directory, dotfiles, run_dotbot):
+    """Test creating directories, including nested directories."""
+
+    dotfiles.write_config([{"create": [directory]}])
+    run_dotbot()
+
+    expanded_directory = os.path.abspath(os.path.expanduser(directory))
+    assert os.path.isdir(expanded_directory)
+    assert os.stat(expanded_directory).st_mode & 0o777 == 0o777
+
+
+def test_default_mode(home, dotfiles, run_dotbot):
+    """Test creating a directory with an explicit default mode.
+
+    Note: `os.chmod()` on Windows only supports changing write permissions.
+    Therefore, this test is restricted to testing read-only access.
+    """
+
+    read_only = 0o777 - stat.S_IWUSR - stat.S_IWGRP - stat.S_IWOTH
+    config = [
+        {"defaults": {"create": {"mode": read_only}}},
+        {"create": ["~/a"]}
+    ]
+    dotfiles.write_config(config)
+    run_dotbot()
+
+    directory = os.path.abspath(os.path.expanduser("~/a"))
+    assert os.stat(directory).st_mode & stat.S_IWUSR == 0
+    assert os.stat(directory).st_mode & stat.S_IWGRP == 0
+    assert os.stat(directory).st_mode & stat.S_IWOTH == 0
+
+
+def test_default_mode_override(home, dotfiles, run_dotbot):
+    """Test creating a directory that overrides an explicit default mode.
+
+    Note: `os.chmod()` on Windows only supports changing write permissions.
+    Therefore, this test is restricted to testing read-only access.
+    """
+
+    read_only = 0o777 - stat.S_IWUSR - stat.S_IWGRP - stat.S_IWOTH
+    config = [
+        {"defaults": {"create": {"mode": read_only}}},
+        {"create": {"~/a": {"mode": 0o777}}},
+    ]
+    dotfiles.write_config(config)
+    run_dotbot()
+
+    directory = os.path.abspath(os.path.expanduser("~/a"))
+    assert os.stat(directory).st_mode & stat.S_IWUSR == stat.S_IWUSR
+    assert os.stat(directory).st_mode & stat.S_IWGRP == stat.S_IWGRP
+    assert os.stat(directory).st_mode & stat.S_IWOTH == stat.S_IWOTH