diff --git a/test/smoke/src/sql/areas/notebook/createBook.test.ts b/test/smoke/src/sql/areas/notebook/createBook.test.ts
index 78b2ac91aa..336e51a5d0 100644
--- a/test/smoke/src/sql/areas/notebook/createBook.test.ts
+++ b/test/smoke/src/sql/areas/notebook/createBook.test.ts
@@ -10,9 +10,10 @@ import * as path from 'path';
 import { assert } from 'console';
 import * as tmp from 'tmp';
 
-export function setup() {
+const CreateBookCommand = 'Jupyter Books: Create Jupyter Book';
+const bookName = 'my-book';
 
-	const bookName = 'my-book';
+export function setup() {
 
 	describe('CreateBookDialog', () => {
 
@@ -24,12 +25,34 @@ export function setup() {
 			await new Promise(r => setTimeout(r, 10000));
 			// eslint-disable-next-line no-sync
 			tmpDir = tmp.dirSync().name;
-			await app.workbench.quickaccess.runCommand('Jupyter Books: Create Jupyter Book');
+			await app.workbench.quickaccess.runCommand(CreateBookCommand);
 			await app.workbench.createBookDialog.setName(bookName);
 			await app.workbench.createBookDialog.setLocation(tmpDir);
 			await app.workbench.createBookDialog.create();
-			const bookExists = await fs.stat(path.join(tmpDir, 'my-book'));
+			const bookExists = await fs.stat(path.join(tmpDir, bookName));
 			assert(!!bookExists, 'Book was not created');
+			await new Promise(r => setTimeout(r, 2500));
+		});
+
+		it('can create new book with specified content folder', async function () {
+			const app = this.app as Application;
+			// Add timeout for giving time for the SQL Tools Service to start (it'll error if it's not started yet)
+			// TODO @chgagnon - Figure out better way to have tests wait for STS
+			await new Promise(r => setTimeout(r, 10000));
+			// eslint-disable-next-line no-sync
+			tmpDir = tmp.dirSync().name;
+			// Our content folder is just the workspace folder containing the test notebooks
+			const contentFolder = path.join(app.workspacePathOrFolder, 'Notebooks');
+			await app.workbench.quickaccess.runCommand(CreateBookCommand);
+			await app.workbench.createBookDialog.setName(bookName);
+			await app.workbench.createBookDialog.setLocation(tmpDir);
+			await app.workbench.createBookDialog.setContentFolder(contentFolder);
+			await app.workbench.createBookDialog.create();
+			const bookExists = await fs.stat(path.join(tmpDir, bookName));
+			assert(!!bookExists, 'Book was not created');
+			const contentNotebookExists = await fs.stat(path.join(tmpDir, bookName, 'hello.ipynb'));
+			assert(!!contentNotebookExists, 'Notebook from content folder wasn\'t copied over');
+			await new Promise(r => setTimeout(r, 2500));
 		});
 
 		afterEach(async function () {