diff --git a/test/ledger/ledger_test.go b/test/ledger/ledger_test.go
new file mode 100644
index 0000000000..eeda5314d9
--- /dev/null
+++ b/test/ledger/ledger_test.go
@@ -0,0 +1,62 @@
+package ledger
+
+import (
+	"bytes"
+	"os"
+	"os/exec"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+func TestLedgerSupport(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping ledger support test in short mode.")
+	}
+
+	type testCase struct {
+		name   string
+		ledger bool
+		want   string
+	}
+
+	testCases := []testCase{
+		{
+			name:   "ledger support enabled",
+			ledger: true,
+			want:   "Error: failed to generate ledger key: failed to retrieve device: ledger nano S: LedgerHID device (idx 0) not found. Ledger LOCKED OR Other Program/Web Browser may have control of device.\n",
+		},
+		{
+			name:   "ledger support disabled",
+			ledger: false,
+			want:   "Error: failed to generate ledger key: failed to retrieve device: ledger nano S: support for ledger devices is not available in this executable\n",
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			var cmd *exec.Cmd
+			if tc.ledger {
+				// Generate the binary with Ledger support
+				cmd = exec.Command("go", "build", "-tags", "ledger", "-o", "celestia-appd", "../../cmd/celestia-appd")
+			} else {
+				// Generate the binary without Ledger support
+				cmd = exec.Command("go", "build", "-o", "celestia-appd", "../../cmd/celestia-appd")
+			}
+			err := cmd.Run()
+			require.NoError(t, err)
+
+			// Clean up the binary
+			defer os.Remove("celestia-appd")
+
+			// Run the binary
+			cmd = exec.Command("./celestia-appd", "keys", "add", "test-key-name", "--ledger")
+			var out bytes.Buffer
+			cmd.Stderr = &out
+			err = cmd.Run()
+			require.Error(t, err)
+			assert.Equal(t, tc.want, out.String())
+		})
+	}
+}