diff --git a/tests/hwsim/auth_serv/eap_user.conf b/tests/hwsim/auth_serv/eap_user.conf
index 6ef5470a1..4debe48b4 100644
--- a/tests/hwsim/auth_serv/eap_user.conf
+++ b/tests/hwsim/auth_serv/eap_user.conf
@@ -89,6 +89,7 @@ radius_accept_attr=89:s:macacl-cui-test
 
 "user"	MSCHAPV2,MD5,GTC	"password"	[2]
 "user2"	MSCHAPV2,MD5,GTC	"password"	[2]
+"DOMAIN\user3"	MSCHAPV2	"password"	[2]
 "user-no-passwd"	MSCHAPV2,MD5,GTC	[2]
 "cert user"	TLS	[2]
 
diff --git a/tests/hwsim/test_ap_eap.py b/tests/hwsim/test_ap_eap.py
index 7ce9a2610..dd4255c0a 100644
--- a/tests/hwsim/test_ap_eap.py
+++ b/tests/hwsim/test_ap_eap.py
@@ -1139,6 +1139,16 @@ def test_ap_wpa2_eap_peap_eap_mschapv2(dev, apdev):
                 ca_cert="auth_serv/ca.pem", phase2="auth=MSCHAPV2",
                 expect_failure=True)
 
+def test_ap_wpa2_eap_peap_eap_mschapv2_domain(dev, apdev):
+    """WPA2-Enterprise connection using EAP-PEAP/EAP-MSCHAPv2 with domain"""
+    params = hostapd.wpa2_eap_params(ssid="test-wpa2-eap")
+    hapd = hostapd.add_ap(apdev[0]['ifname'], params)
+    eap_connect(dev[0], apdev[0], "PEAP", "DOMAIN\user3",
+                anonymous_identity="peap", password="password",
+                ca_cert="auth_serv/ca.pem", phase2="auth=MSCHAPV2")
+    hwsim_utils.test_connectivity(dev[0], hapd)
+    eap_reauth(dev[0], "PEAP")
+
 def test_ap_wpa2_eap_peap_eap_mschapv2_incorrect_password(dev, apdev):
     """WPA2-Enterprise connection using EAP-PEAP/EAP-MSCHAPv2 - incorrect password"""
     params = hostapd.wpa2_eap_params(ssid="test-wpa2-eap")