diff --git a/integration/test_sftp.py b/integration/test_sftp.py
index f308ddf5a..eeeb8b0b7 100644
--- a/integration/test_sftp.py
+++ b/integration/test_sftp.py
@@ -12,20 +12,53 @@ from future.utils import PY2
 if PY2:
     from future.builtins import filter, map, zip, ascii, chr, hex, input, next, oct, open, pow, round, super, bytes, dict, list, object, range, str, max, min  # noqa: F401
 
+from posixpath import join
+from stat import S_ISDIR
+
 from paramiko import SSHClient
 from paramiko.client import AutoAddPolicy
 from paramiko.sftp_client import SFTPClient
+from paramiko.ssh_exception import AuthenticationException
+
+import pytest
+
+
+def connect_sftp(alice, username="alice", password="password"):
+    """Create an SFTP client."""
+    client = SSHClient()
+    client.set_missing_host_key_policy(AutoAddPolicy)
+    client.connect(
+        "localhost", username=username, password=password, port=8022,
+        look_for_keys=False
+    )
+    sftp = SFTPClient.from_transport(client.get_transport())
+
+    def rmdir(path, delete_root=True):
+        for f in sftp.listdir_attr(path=path):
+            childpath = join(path, f.filename)
+            if S_ISDIR(f.st_mode):
+                rmdir(childpath)
+            else:
+                sftp.remove(childpath)
+        if delete_root:
+            sftp.rmdir(path)
+
+    # Delete any files left over from previous tests :(
+    rmdir("/", delete_root=False)
+
+    return sftp
+
+
+def test_bad_account_password(alice):
+    """Can't login with unknown username or wrong password."""
+    for u, p in [("alice", "wrong"), ("someuser", "password")]:
+        with pytest.raises(AuthenticationException):
+            connect_sftp(alice, u, p)
 
 
 def test_read_write_files(alice):
     """It's possible to upload and download files."""
-    client = SSHClient()
-    client.set_missing_host_key_policy(AutoAddPolicy)
-    client.connect(
-        "localhost", username="alice", password="password", port=8022,
-        look_for_keys=False
-    )
-    sftp = SFTPClient.from_transport(client.get_transport())
+    sftp = connect_sftp(alice)
     f = sftp.file("myfile", "wb")
     f.write(b"abc")
     f.write(b"def")
@@ -35,3 +68,36 @@ def test_read_write_files(alice):
     assert f.read(2) == b"ef"
     assert f.read(1) == b""
     f.close()
+
+
+def test_directories(alice):
+    """
+    It's possible to create, list directories, and create and remove files in
+    them.
+    """
+    sftp = connect_sftp(alice)
+    assert sftp.listdir() == []
+
+    sftp.mkdir("childdir")
+    assert sftp.listdir() == ["childdir"]
+
+    with sftp.file("myfile", "wb") as f:
+        f.write(b"abc")
+    assert sorted(sftp.listdir()) == ["childdir", "myfile"]
+
+    sftp.chdir("childdir")
+    assert sftp.listdir() == []
+
+    with sftp.file("myfile2", "wb") as f:
+        f.write(b"def")
+    assert sftp.listdir() == ["myfile2"]
+
+    sftp.chdir(None)  # root
+    with sftp.file("childdir/myfile2", "rb") as f:
+        assert f.read() == b"def"
+
+    sftp.remove("myfile")
+    assert sftp.listdir() == ["childdir"]
+
+    sftp.rmdir("childdir")
+    assert sftp.listdir() == []