diff --git a/tests/memlimit.py b/tests/memlimit.py
new file mode 100644
index 00000000..9f08fc4a
--- /dev/null
+++ b/tests/memlimit.py
@@ -0,0 +1,36 @@
+import subprocess
+
+def test_memlimit_nondockerfile():
+    """
+    Test if memory limited builds are working for non dockerfile builds
+    """
+    try:
+        subprocess.check_call([
+            'repo2docker',
+            '--no-run',
+            '--build-memory-limit', '4M',
+            'tests/memlimit/non-dockerfile'
+        ])
+        # If this doesn't throw an exception, then memory limit was
+        # not enforced!
+        assert False
+    except subprocess.CalledProcessError as e:
+        assert True
+
+
+def test_memlimit_dockerfile():
+    """
+    Test if memory limited builds are working for non dockerfile builds
+    """
+    try:
+        subprocess.check_call([
+            'repo2docker',
+            '--no-run',
+            '--build-memory-limit', '4M',
+            'tests/memlimit/dockerfile'
+        ])
+        # If this doesn't throw an exception, then memory limit was
+        # not enforced!
+        assert False
+    except subprocess.CalledProcessError as e:
+        assert True
diff --git a/tests/memlimit/dockerfile/Dockerfile b/tests/memlimit/dockerfile/Dockerfile
new file mode 100644
index 00000000..484911e6
--- /dev/null
+++ b/tests/memlimit/dockerfile/Dockerfile
@@ -0,0 +1,4 @@
+FROM python:3.6
+
+COPY postBuild /usr/local/bin/postBuild
+RUN ./postBuild
diff --git a/tests/memlimit/dockerfile/postBuild b/tests/memlimit/dockerfile/postBuild
new file mode 100755
index 00000000..1426cb5b
--- /dev/null
+++ b/tests/memlimit/dockerfile/postBuild
@@ -0,0 +1,5 @@
+#!/usr/bin/env python3
+
+array = []
+for i in range(1024 * 1024 * 64):
+    array.append(i)
diff --git a/tests/memlimit/non-dockerfile/postBuild b/tests/memlimit/non-dockerfile/postBuild
new file mode 100755
index 00000000..1426cb5b
--- /dev/null
+++ b/tests/memlimit/non-dockerfile/postBuild
@@ -0,0 +1,5 @@
+#!/usr/bin/env python3
+
+array = []
+for i in range(1024 * 1024 * 64):
+    array.append(i)