diff --git a/package.json b/package.json
index 3612562aaa..521bd4bfde 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
   "name": "azuredatastudio",
   "version": "1.30.0",
-  "distro": "ab16639070613df1c9772fe028786f44ff9096f3",
+  "distro": "da9346f4dbf9e6069dd59f3d5b2ee4dcc1a19b2a",
   "author": {
     "name": "Microsoft Corporation"
   },
diff --git a/test/automation/src/sql/createBookDialog.ts b/test/automation/src/sql/createBookDialog.ts
new file mode 100644
index 0000000000..9655c2cc7d
--- /dev/null
+++ b/test/automation/src/sql/createBookDialog.ts
@@ -0,0 +1,43 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the Source EULA. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Code } from '../code';
+import { Dialog } from './dialog';
+
+const CREATE_BOOK_DIALOG_TITLE = 'New Jupyter Book (Preview)';
+
+const NAME_INPUT_SELECTOR = '.modal .modal-body input[aria-label="Name. Please fill out this field."]';
+const LOCATION_INPUT_SELECTOR = '.modal .modal-body input[title="Browse locations..."]';
+const CONTENT_FOLDER_INPUT_SELECTOR = '.modal .modal-body input[title="Select content folder"]';
+const CREATE_BUTTON_SELECTOR = '.modal .modal-footer a[aria-label="Create"]:not(.disabled)';
+
+export class CreateBookDialog extends Dialog {
+
+	constructor(code: Code) {
+		super(CREATE_BOOK_DIALOG_TITLE, code);
+	}
+
+	async waitForDialog(): Promise<void> {
+		await this.waitForNewDialog();
+	}
+
+	public async setName(name: string): Promise<void> {
+		await this.code.waitForSetValue(NAME_INPUT_SELECTOR, name);
+	}
+
+	public async setLocation(location: string): Promise<void> {
+		await this.code.waitForSetValue(LOCATION_INPUT_SELECTOR, location);
+	}
+
+	public async setContentFolder(contentFolder: string): Promise<void> {
+		await this.code.waitForSetValue(CONTENT_FOLDER_INPUT_SELECTOR, contentFolder);
+	}
+
+	async create(): Promise<void> {
+		await this.code.waitAndClick(CREATE_BUTTON_SELECTOR);
+
+		await this.waitForDialogGone();
+	}
+}
diff --git a/test/automation/src/workbench.ts b/test/automation/src/workbench.ts
index e05c44509c..8cdc77555a 100644
--- a/test/automation/src/workbench.ts
+++ b/test/automation/src/workbench.ts
@@ -28,6 +28,7 @@ import { QueryEditors } from './sql/queryEditors';
 import { QueryEditor } from './sql/queryEditor';
 import { Notebook as SqlNotebook } from './sql/notebook';
 import { ConfigurePythonDialog } from './sql/configurePythonDialog';
+import { CreateBookDialog } from './sql/createBookDialog';
 import { NotificationToast } from './sql/notificationToast';
 // {{END}}
 
@@ -60,6 +61,7 @@ export class Workbench {
 	readonly queryEditors: QueryEditors;
 	readonly queryEditor: QueryEditor;
 	readonly sqlNotebook: SqlNotebook;
+	readonly createBookDialog: CreateBookDialog;
 	readonly configurePythonDialog: ConfigurePythonDialog;
 	readonly notificationToast: NotificationToast;
 	// {{END}}
@@ -87,6 +89,7 @@ export class Workbench {
 		this.queryEditors = new QueryEditors(code, this.editors);
 		this.queryEditor = new QueryEditor(code);
 		this.sqlNotebook = new SqlNotebook(code, this.quickaccess, this.quickinput, this.editors);
+		this.createBookDialog = new CreateBookDialog(code);
 		this.configurePythonDialog = new ConfigurePythonDialog(code);
 		// {{END}}
 		this.notebook = new Notebook(this.quickaccess, code);
diff --git a/test/smoke/package.json b/test/smoke/package.json
index cb37f8db32..ae235a0bac 100644
--- a/test/smoke/package.json
+++ b/test/smoke/package.json
@@ -17,6 +17,7 @@
     "@types/ncp": "2.0.1",
     "@types/node": "^12.19.9",
     "@types/rimraf": "^2.0.4",
+    "@types/tmp": "0.0.33",
     "cpx": "^1.5.0",
     "htmlparser2": "^3.9.2",
     "mkdirp": "^0.5.1",
diff --git a/test/smoke/src/sql/areas/notebook/createBook.test.ts b/test/smoke/src/sql/areas/notebook/createBook.test.ts
new file mode 100644
index 0000000000..78b2ac91aa
--- /dev/null
+++ b/test/smoke/src/sql/areas/notebook/createBook.test.ts
@@ -0,0 +1,45 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the Source EULA. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Application } from '../../../../../automation';
+import { promises as fs } from 'fs';
+import * as rimraf from 'rimraf';
+import * as path from 'path';
+import { assert } from 'console';
+import * as tmp from 'tmp';
+
+export function setup() {
+
+	const bookName = 'my-book';
+
+	describe('CreateBookDialog', () => {
+
+		let tmpDir = '';
+		it('can create new book with default 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;
+			await app.workbench.quickaccess.runCommand('Jupyter Books: Create Jupyter Book');
+			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'));
+			assert(!!bookExists, 'Book was not created');
+		});
+
+		afterEach(async function () {
+			if (tmpDir) {
+				try {
+					rimraf.sync(tmpDir);
+				} catch (err) {
+					// Try our best to clean up but don't fail the test if we can't
+				}
+			}
+		});
+	});
+}
diff --git a/test/smoke/src/sql/main.ts b/test/smoke/src/sql/main.ts
index 51397cb6e6..3640e9ed4f 100644
--- a/test/smoke/src/sql/main.ts
+++ b/test/smoke/src/sql/main.ts
@@ -7,6 +7,7 @@ import { setup as setupQueryEditorTests, setupWeb as setupQueryEditorWebTests }
 import { setup as setupNotebookTests } from './areas/notebook/notebook.test';
 import { setup as setupNotebookViewTests } from './areas/notebook/notebookView.test';
 import { setup as setupImportTests } from './areas/import/import.test';
+import { setup as setupCreateBookDialogTests } from './areas/notebook/createBook.test';
 import { ApplicationOptions } from '../../../automation';
 import * as yazl from 'yauzl';
 import * as fs from 'fs';
@@ -22,6 +23,7 @@ export function main(isWeb: boolean = false): void {
 	}
 	setupNotebookTests();
 	setupNotebookViewTests();
+	setupCreateBookDialogTests();
 	setupImportTests();
 }
 
diff --git a/test/smoke/yarn.lock b/test/smoke/yarn.lock
index aad5a2e729..3ab32f4b5b 100644
--- a/test/smoke/yarn.lock
+++ b/test/smoke/yarn.lock
@@ -63,6 +63,11 @@
     "@types/glob" "*"
     "@types/node" "*"
 
+"@types/tmp@0.0.33":
+  version "0.0.33"
+  resolved "https://registry.yarnpkg.com/@types/tmp/-/tmp-0.0.33.tgz#1073c4bc824754ae3d10cfab88ab0237ba964e4d"
+  integrity sha1-EHPEvIJHVK49EM+riKsCN7qWTk0=
+
 ansi-styles@^3.2.1:
   version "3.2.1"
   resolved "https://registry.yarnpkg.com/ansi-styles/-/ansi-styles-3.2.1.tgz#41fbb20243e50b12be0f04b8dedbf07520ce841d"