diff --git a/cue/embed_test.go b/cue/embed_test.go
new file mode 100644
index 00000000000..e5b5f96fdea
--- /dev/null
+++ b/cue/embed_test.go
@@ -0,0 +1,21 @@
+package cue_test
+
+import (
+	"testing"
+
+	"cuelang.org/go/cue/cuecontext"
+	"cuelang.org/go/cue/interpreter/embed"
+	"github.com/go-quicktest/qt"
+)
+
+func TestEmbedFailsWhenNotInModule(t *testing.T) {
+	ctx := cuecontext.New(cuecontext.Interpreter(embed.New()))
+	v := ctx.CompileString(`
+@extern(embed)
+
+package foo
+x: _ 	@embed(file="testdata/readme.md",type=text)
+`)
+	qt.Assert(t, qt.IsNil(v.Err()))
+	// TODO qt.Assert(t, qt.ErrorMatches(v.Err(), `xxx`))
+}