diff --git a/test/issue777-bogus-path-dependency/b/a.d b/test/issue777-bogus-path-dependency/b/a.d
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/b/a.d
diff --git a/test/issue777-bogus-path-dependency/b/dub.sdl b/test/issue777-bogus-path-dependency/b/dub.sdl
new file mode 100644
index 0000000..7aff103
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/b/dub.sdl
@@ -0,0 +1,10 @@
+name "b"
+targetType "none"
+
+configuration "a" {
+	dependency "c" version="*"
+}
+
+configuration "b" {
+	dependency "c" path="../c-err"
+}
diff --git a/test/issue777-bogus-path-dependency/c-err/dub.sdl b/test/issue777-bogus-path-dependency/c-err/dub.sdl
new file mode 100644
index 0000000..1ed791a
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/c-err/dub.sdl
@@ -0,0 +1 @@
+name "c"
diff --git a/test/issue777-bogus-path-dependency/c-err/source/lib.d b/test/issue777-bogus-path-dependency/c-err/source/lib.d
new file mode 100644
index 0000000..065f38b
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/c-err/source/lib.d
@@ -0,0 +1,6 @@
+module lib;
+
+void c()
+{
+	error
+}
diff --git a/test/issue777-bogus-path-dependency/c/dub.sdl b/test/issue777-bogus-path-dependency/c/dub.sdl
new file mode 100644
index 0000000..1ed791a
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/c/dub.sdl
@@ -0,0 +1 @@
+name "c"
diff --git a/test/issue777-bogus-path-dependency/c/source/lib.d b/test/issue777-bogus-path-dependency/c/source/lib.d
new file mode 100644
index 0000000..6729fad
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/c/source/lib.d
@@ -0,0 +1,5 @@
+module lib;
+
+void c()
+{
+}
diff --git a/test/issue777-bogus-path-dependency/dub.sdl b/test/issue777-bogus-path-dependency/dub.sdl
new file mode 100644
index 0000000..441587c
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/dub.sdl
@@ -0,0 +1,2 @@
+name "test"
+dependency "b" path="b"
diff --git a/test/issue777-bogus-path-dependency/dub.selections.json b/test/issue777-bogus-path-dependency/dub.selections.json
new file mode 100644
index 0000000..2614e19
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/dub.selections.json
@@ -0,0 +1,7 @@
+{
+	"fileVersion": 1,
+	"versions": {
+		"b": {"path":"/home/sludwig/develop/dub/test/issue777-bogus-path-dependency/b"},
+		"c": {"path":"/home/sludwig/develop/dub/test/issue777-bogus-path-dependency/c"}
+	}
+}
diff --git a/test/issue777-bogus-path-dependency/source/app.d b/test/issue777-bogus-path-dependency/source/app.d
new file mode 100644
index 0000000..806dcdc
--- /dev/null
+++ b/test/issue777-bogus-path-dependency/source/app.d
@@ -0,0 +1,6 @@
+import lib;
+
+void main()
+{
+	c();
+}