diff --git a/src/wallet/test/wallet_tests.cpp b/src/wallet/test/wallet_tests.cpp
index 294920add9..19c1e9f291 100644
--- a/src/wallet/test/wallet_tests.cpp
+++ b/src/wallet/test/wallet_tests.cpp
@@ -453,4 +453,57 @@ BOOST_FIXTURE_TEST_CASE(coin_mark_dirty_immature_credit, TestChain100Setup)
     BOOST_CHECK_EQUAL(wtx.GetImmatureCredit(), 50*COIN);
 }
 
+static int64_t AddTx(CWallet& wallet, uint32_t lockTime, int64_t mockTime, int64_t blockTime)
+{
+    CMutableTransaction tx;
+    tx.nLockTime = lockTime;
+    SetMockTime(mockTime);
+    CBlockIndex* block = nullptr;
+    if (blockTime > 0) {
+        auto inserted = mapBlockIndex.emplace(GetRandHash(), new CBlockIndex);
+        assert(inserted.second);
+        const uint256& hash = inserted.first->first;
+        block = inserted.first->second;
+        block->nTime = blockTime;
+        block->phashBlock = &hash;
+    }
+
+    CWalletTx wtx(&wallet, MakeTransactionRef(tx));
+    if (block) {
+        wtx.SetMerkleBranch(block, 0);
+    }
+    wallet.AddToWallet(wtx);
+    return wallet.mapWallet.at(wtx.GetHash()).nTimeSmart;
+}
+
+// Simple test to verify assignment of CWalletTx::nSmartTime value. Could be
+// expanded to cover more corner cases of smart time logic.
+BOOST_AUTO_TEST_CASE(ComputeTimeSmart)
+{
+    CWallet wallet;
+
+    // New transaction should use clock time if lower than block time.
+    BOOST_CHECK_EQUAL(AddTx(wallet, 1, 100, 120), 100);
+
+    // Test that updating existing transaction does not change smart time.
+    BOOST_CHECK_EQUAL(AddTx(wallet, 1, 200, 220), 100);
+
+    // New transaction should use clock time if there's no block time.
+    BOOST_CHECK_EQUAL(AddTx(wallet, 2, 300, 0), 300);
+
+    // New transaction should use block time if lower than clock time.
+    BOOST_CHECK_EQUAL(AddTx(wallet, 3, 420, 400), 400);
+
+    // New transaction should use latest entry time if higher than
+    // min(block time, clock time).
+    BOOST_CHECK_EQUAL(AddTx(wallet, 4, 500, 390), 400);
+
+    // If there are future entries, new transaction should use time of the
+    // newest entry that is no more than 300 seconds ahead of the clock time.
+    BOOST_CHECK_EQUAL(AddTx(wallet, 5, 50, 600), 300);
+
+    // Reset mock time for other tests.
+    SetMockTime(0);
+}
+
 BOOST_AUTO_TEST_SUITE_END()