diff --git a/test/automation/src/sql/managePackagesDialog.ts b/test/automation/src/sql/managePackagesDialog.ts
new file mode 100644
index 0000000000..da54107aba
--- /dev/null
+++ b/test/automation/src/sql/managePackagesDialog.ts
@@ -0,0 +1,53 @@
+/*---------------------------------------------------------------------------------------------
+ *  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 MANAGE_PACKAGES_DIALOG_TITLE = 'Manage Packages';
+
+export class ManagePackagesDialog extends Dialog {
+	private static readonly dialogPage = '.modal .modal-body .dialogModal-pane';
+
+	constructor(code: Code) {
+		super(MANAGE_PACKAGES_DIALOG_TITLE, code);
+	}
+
+	async waitForManagePackagesDialog(): Promise<void> {
+		await this.waitForNewDialog();
+	}
+
+	async addNewPackage(packageName: string): Promise<void> {
+		const addNewTab = `${ManagePackagesDialog.dialogPage} div[class="tab-header"][aria-controls="dialogPane.Manage Packages.1"]`;
+		await this.code.waitAndClick(addNewTab);
+
+		const loadingSpinner = `${ManagePackagesDialog.dialogPage} div.modelview-loadingComponent-spinner`;
+
+		// Wait for "Search Pip packages" placeholder in the input box to know that the tab has finished initializing
+		const searchPipPackagesInput = `${ManagePackagesDialog.dialogPage} input[placeholder="Search Pip packages"]`;
+		await this.code.waitForElement(searchPipPackagesInput);
+		const searchInputBox = `${ManagePackagesDialog.dialogPage} .monaco-inputbox`;
+		await this.code.waitAndClick(searchInputBox);
+
+		const searchInputBoxEditor = `${searchInputBox} input.input`;
+		await this.code.waitForTypeInEditor(searchInputBoxEditor, packageName);
+
+		const searchButton = `${ManagePackagesDialog.dialogPage} a[class="monaco-button monaco-text-button"][aria-label="Search"][aria-disabled="false"]`;
+		await this.code.waitAndClick(searchButton);
+
+		const installButton = `${ManagePackagesDialog.dialogPage} a[class="monaco-button monaco-text-button"][aria-label="Install"][aria-disabled="false"]`;
+		await this.code.waitAndClick(installButton);
+
+		const installedTab = `${ManagePackagesDialog.dialogPage} div[class="tab-header"][aria-controls="dialogPane.Manage Packages.0"]`;
+		await this.code.waitAndClick(installedTab);
+
+		// The installed packages tab will reload once the package has been installed
+		await this.code.waitForElement(loadingSpinner);
+		await this.code.waitForElementGone(loadingSpinner);
+
+		const closeButton = '.modal .modal-footer a[class="monaco-button monaco-text-button"][aria-label="Close"][aria-disabled="false"]';
+		await this.code.waitAndClick(closeButton);
+	}
+}
diff --git a/test/automation/src/sql/notebook.ts b/test/automation/src/sql/notebook.ts
index da4ff07b59..39e3380775 100644
--- a/test/automation/src/sql/notebook.ts
+++ b/test/automation/src/sql/notebook.ts
@@ -162,6 +162,11 @@ export class Notebook {
 
 	// Cell Output Actions
 
+	async waitForJupyterErrorOutput(): Promise<void> {
+		const jupyterErrorOutput = `.notebook-cell.active .notebook-output mime-output[data-mime-type="application/vnd.jupyter.stderr"]`;
+		await this.code.waitForElement(jupyterErrorOutput);
+	}
+
 	async waitForActiveCellResults(): Promise<void> {
 		const outputComponent = '.notebook-cell.active .notebook-output';
 		await this.code.waitForElement(outputComponent);
@@ -281,6 +286,7 @@ export class NotebookToolbar {
 	private static readonly collapseCellsButtonSelector = `${NotebookToolbar.toolbarButtonSelector}.icon-collapse-cells`;
 	private static readonly expandCellsButtonSelector = `${NotebookToolbar.toolbarButtonSelector}.icon-expand-cells`;
 	private static readonly clearResultsButtonSelector = `${NotebookToolbar.toolbarButtonSelector}.icon-clear-results`;
+	private static readonly managePackagesButtonSelector = `${NotebookToolbar.toolbarButtonSelector}[title="Manage Packages"]`;
 
 	constructor(private code: Code) { }
 
@@ -344,6 +350,10 @@ export class NotebookToolbar {
 	async clearResults(): Promise<void> {
 		await this.code.waitAndClick(NotebookToolbar.clearResultsButtonSelector);
 	}
+
+	async managePackages(): Promise<void> {
+		await this.code.waitAndClick(NotebookToolbar.managePackagesButtonSelector);
+	}
 }
 
 export class NotebookTreeView {
diff --git a/test/automation/src/workbench.ts b/test/automation/src/workbench.ts
index 42bcad285c..3fc7e6e215 100644
--- a/test/automation/src/workbench.ts
+++ b/test/automation/src/workbench.ts
@@ -29,6 +29,7 @@ import { QueryEditors } from './sql/queryEditors';
 import { QueryEditor } from './sql/queryEditor';
 import { Notebook as SqlNotebook } from './sql/notebook';
 import { ConfigurePythonDialog } from './sql/configurePythonDialog';
+import { ManagePackagesDialog } from './sql/managePackagesDialog';
 import { CreateBookDialog } from './sql/createBookDialog';
 import { NotificationToast } from './sql/notificationToast';
 import { AddRemoteBookDialog } from './sql/addRemoteBookDialog';
@@ -66,6 +67,7 @@ export class Workbench {
 	readonly sqlNotebook: SqlNotebook;
 	readonly createBookDialog: CreateBookDialog;
 	readonly configurePythonDialog: ConfigurePythonDialog;
+	readonly managePackagesDialog: ManagePackagesDialog;
 	readonly notificationToast: NotificationToast;
 	readonly addRemoteBookDialog: AddRemoteBookDialog;
 	// {{END}}
@@ -95,6 +97,7 @@ export class Workbench {
 		this.sqlNotebook = new SqlNotebook(code, this.quickaccess, this.quickinput, this.editors);
 		this.createBookDialog = new CreateBookDialog(code);
 		this.configurePythonDialog = new ConfigurePythonDialog(code);
+		this.managePackagesDialog = new ManagePackagesDialog(code);
 		this.addRemoteBookDialog = new AddRemoteBookDialog(code);
 		// {{END}}
 		this.notebook = new Notebook(this.quickaccess, code);
diff --git a/test/smoke/src/sql/areas/notebook/notebook.test.ts b/test/smoke/src/sql/areas/notebook/notebook.test.ts
index b5e5fd66e0..85efc1407c 100644
--- a/test/smoke/src/sql/areas/notebook/notebook.test.ts
+++ b/test/smoke/src/sql/areas/notebook/notebook.test.ts
@@ -81,6 +81,27 @@ export function setup(opts: minimist.ParsedArgs) {
 			await app.workbench.sqlNotebook.waitForActiveCellResults();
 		});
 
+		it('can add a new package from the Manage Packages wizard', async function () {
+			const app = this.app as Application;
+			await app.workbench.sqlNotebook.newUntitledNotebook();
+			await app.workbench.sqlNotebook.notebookToolbar.waitForKernel('SQL');
+			await app.workbench.sqlNotebook.notebookToolbar.changeKernel('Python 3');
+			await app.workbench.sqlNotebook.notebookToolbar.waitForKernel('Python 3');
+
+			await app.workbench.sqlNotebook.addCell('code');
+			await app.workbench.sqlNotebook.waitForTypeInEditor('import pyarrow');
+			await app.workbench.sqlNotebook.runActiveCell();
+			await app.workbench.sqlNotebook.waitForJupyterErrorOutput();
+
+			await app.workbench.sqlNotebook.notebookToolbar.managePackages();
+			await app.workbench.managePackagesDialog.waitForManagePackagesDialog();
+			await app.workbench.managePackagesDialog.addNewPackage('pyarrow');
+
+			// There should be no error output when running the cell after pyarrow has been installed
+			await app.workbench.sqlNotebook.runActiveCell();
+			await app.workbench.sqlNotebook.waitForActiveCellResultsGone();
+		});
+
 		it('can open ipynb file, run all, and save notebook with outputs', async function () {
 			const app = this.app as Application;
 			await openAndRunNotebook(app, 'hello.ipynb');