diff --git a/crates/moon/tests/test_cases/mod.rs b/crates/moon/tests/test_cases/mod.rs
index 192d29a8b..9114ef236 100644
--- a/crates/moon/tests/test_cases/mod.rs
+++ b/crates/moon/tests/test_cases/mod.rs
@@ -5906,3 +5906,18 @@ fn test_snapshot_test_target_js() {
         expect!["Hello, world!"],
     );
 }
+
+#[test]
+fn moon_test_with_failure_json() {
+    let dir = TestDir::new("test_with_failure_json");
+
+    let output = get_err_stdout_with_args_and_replace_dir(&dir, ["test", "--test-failure-json"]);
+    check(
+        &output,
+        // should keep in this format, it's used in ide test explorer
+        expect![[r#"
+            {"package":"username/hello/lib1","filename":"hello.mbt","index":"0","test_name":"test_1","message":"FAILED: $ROOT/src/lib1/hello.mbt:7:3-7:25 test_1 failed"}
+            Total tests: 2, passed: 1, failed: 1.
+        "#]],
+    );
+}
diff --git a/crates/moon/tests/test_cases/test_with_failure_json/.gitignore b/crates/moon/tests/test_cases/test_with_failure_json/.gitignore
new file mode 100644
index 000000000..b1283a746
--- /dev/null
+++ b/crates/moon/tests/test_cases/test_with_failure_json/.gitignore
@@ -0,0 +1,2 @@
+target/
+.mooncakes/
diff --git a/crates/moon/tests/test_cases/test_with_failure_json/README.md b/crates/moon/tests/test_cases/test_with_failure_json/README.md
new file mode 100644
index 000000000..ae00983f7
--- /dev/null
+++ b/crates/moon/tests/test_cases/test_with_failure_json/README.md
@@ -0,0 +1 @@
+# username/hello
\ No newline at end of file
diff --git a/crates/moon/tests/test_cases/test_with_failure_json/moon.mod.json b/crates/moon/tests/test_cases/test_with_failure_json/moon.mod.json
new file mode 100644
index 000000000..6c31689d6
--- /dev/null
+++ b/crates/moon/tests/test_cases/test_with_failure_json/moon.mod.json
@@ -0,0 +1,10 @@
+{
+  "name": "username/hello",
+  "version": "0.1.0",
+  "readme": "README.md",
+  "repository": "",
+  "license": "Apache-2.0",
+  "keywords": [],
+  "description": "",
+  "source": "src"
+}
\ No newline at end of file
diff --git a/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/hello.mbt b/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/hello.mbt
new file mode 100644
index 000000000..25f37ff2f
--- /dev/null
+++ b/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/hello.mbt
@@ -0,0 +1,8 @@
+pub fn hello() -> String {
+  "Hello, world!"
+}
+
+
+test "test_1" {
+  fail!("test_1 failed")
+}
\ No newline at end of file
diff --git a/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/hello_test.mbt b/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/hello_test.mbt
new file mode 100644
index 000000000..b1d0ee90d
--- /dev/null
+++ b/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/hello_test.mbt
@@ -0,0 +1,5 @@
+test "hello" {
+  if @lib1.hello() != "Hello, world!" {
+    fail!("@lib.hello() != \"Hello, world!\"")
+  }
+}
diff --git a/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/moon.pkg.json b/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/moon.pkg.json
new file mode 100644
index 000000000..9e26dfeeb
--- /dev/null
+++ b/crates/moon/tests/test_cases/test_with_failure_json/src/lib1/moon.pkg.json
@@ -0,0 +1 @@
+{}
\ No newline at end of file
diff --git a/crates/moon/tests/test_cases/test_with_failure_json/src/main/main.mbt b/crates/moon/tests/test_cases/test_with_failure_json/src/main/main.mbt
new file mode 100644
index 000000000..00fdb7ca7
--- /dev/null
+++ b/crates/moon/tests/test_cases/test_with_failure_json/src/main/main.mbt
@@ -0,0 +1,3 @@
+fn main {
+  println(@lib1.hello())
+}
diff --git a/crates/moon/tests/test_cases/test_with_failure_json/src/main/moon.pkg.json b/crates/moon/tests/test_cases/test_with_failure_json/src/main/moon.pkg.json
new file mode 100644
index 000000000..1c7a42141
--- /dev/null
+++ b/crates/moon/tests/test_cases/test_with_failure_json/src/main/moon.pkg.json
@@ -0,0 +1,6 @@
+{
+  "is-main": true,
+  "import": [
+    "username/hello/lib1"
+  ]
+}
\ No newline at end of file