diff --git a/cmd/helm/init_test.go b/cmd/helm/init_test.go
index fd6ef97c4..7c9deb044 100644
--- a/cmd/helm/init_test.go
+++ b/cmd/helm/init_test.go
@@ -39,6 +39,7 @@ import (
 
 	"k8s.io/helm/cmd/helm/installer"
 	"k8s.io/helm/pkg/helm/helmpath"
+	"k8s.io/helm/pkg/repo"
 )
 
 func TestInitCmd(t *testing.T) {
@@ -202,6 +203,35 @@ func TestEnsureHome(t *testing.T) {
 		t.Error(err)
 	}
 
+	rr, err := repo.LoadRepositoriesFile(hh.RepositoryFile())
+	if err != nil {
+		t.Error(err)
+	}
+
+	foundStable := false
+	for _, rr := range rr.Repositories {
+		if rr.Name == stableRepository {
+			foundStable = true
+			if err != nil {
+				t.Error(err)
+			}
+			if !filepath.IsAbs(rr.Cache) {
+				t.Errorf("%s stable repo cache path is an absolute path", rr.Cache)
+			}
+			absCache, err := filepath.Abs(filepath.Join(hh.Cache(), rr.Cache))
+			if err != nil {
+				t.Error(err)
+			}
+			if absCache != hh.CacheIndex(stableRepository) {
+				t.Errorf("%s stable repo cache path doesn't resolve to absolute cache index path", rr.Cache)
+			}
+			break
+		}
+	}
+	if !foundStable {
+		t.Errorf("stable repo not found")
+	}
+
 	expectedDirs := []string{hh.String(), hh.Repository(), hh.Cache(), hh.LocalRepository()}
 	for _, dir := range expectedDirs {
 		if fi, err := os.Stat(dir); err != nil {