diff --git a/tests/tests/tier0/proxy-service-fails-on-non-existent-node/main.fmf b/tests/tests/tier0/proxy-service-fails-on-non-existent-node/main.fmf
new file mode 100644
index 0000000000..4885b0bc1f
--- /dev/null
+++ b/tests/tests/tier0/proxy-service-fails-on-non-existent-node/main.fmf
@@ -0,0 +1,3 @@
+summary: Test if proxy service fails on requesting dependency service on non-existent
+    node
+id: 6cb0f785-92f3-4aab-9632-b9a0d8c1aa23
diff --git a/tests/tests/tier0/proxy-service-fails-on-non-existent-node/systemd/requesting.service b/tests/tests/tier0/proxy-service-fails-on-non-existent-node/systemd/requesting.service
new file mode 100644
index 0000000000..02a006997c
--- /dev/null
+++ b/tests/tests/tier0/proxy-service-fails-on-non-existent-node/systemd/requesting.service
@@ -0,0 +1,7 @@
+[Unit]
+Wants=bluechi-proxy@node-bar_simple.service
+After=bluechi-proxy@node-bar_simple.service
+
+[Service]
+ExecStart=/bin/true
+RemainAfterExit=yes
diff --git a/tests/tests/tier0/proxy-service-fails-on-non-existent-node/test_proxy_fails_on_non_existent_node.py b/tests/tests/tier0/proxy-service-fails-on-non-existent-node/test_proxy_fails_on_non_existent_node.py
new file mode 100644
index 0000000000..081babb36c
--- /dev/null
+++ b/tests/tests/tier0/proxy-service-fails-on-non-existent-node/test_proxy_fails_on_non_existent_node.py
@@ -0,0 +1,45 @@
+# SPDX-License-Identifier: LGPL-2.1-or-later
+
+import os
+from typing import Dict
+
+from bluechi_test.config import BluechiControllerConfig, BluechiAgentConfig
+from bluechi_test.machine import BluechiControllerMachine, BluechiAgentMachine
+from bluechi_test.test import BluechiTest
+
+node_foo_name = "node-foo"
+requesting_service = "requesting.service"
+
+
+def exec(ctrl: BluechiControllerMachine, nodes: Dict[str, BluechiAgentMachine]):
+    foo = nodes[node_foo_name]
+
+    source_dir = os.path.join(".", "systemd")
+    target_dir = os.path.join("/", "etc", "systemd", "system")
+
+    foo.copy_systemd_service(requesting_service, source_dir, target_dir)
+    assert foo.wait_for_unit_state_to_be(requesting_service, "inactive")
+
+    ctrl.bluechictl.start_unit(node_foo_name, requesting_service)
+
+    # Proxy fails to start since node-bar is offline, but since
+    # requesting.service defines the dependency via Wants= its still
+    # active - only the template service of the proxy is in failed state
+    assert foo.wait_for_unit_state_to_be(requesting_service, "active")
+    assert foo.wait_for_unit_state_to_be("bluechi-proxy@node-bar_simple.service", "failed")
+
+
+def test_proxy_fails_on_non_existent_node(
+        bluechi_test: BluechiTest,
+        bluechi_ctrl_default_config: BluechiControllerConfig,
+        bluechi_node_default_config: BluechiAgentConfig):
+
+    node_foo_cfg = bluechi_node_default_config.deep_copy()
+    node_foo_cfg.node_name = node_foo_name
+
+    bluechi_ctrl_default_config.allowed_node_names = [node_foo_name]
+
+    bluechi_test.set_bluechi_controller_config(bluechi_ctrl_default_config)
+    bluechi_test.add_bluechi_agent_config(node_foo_cfg)
+
+    bluechi_test.run(exec)