diff --git a/tests/modules/programs/zsh/smart-formatting-expected.zshrc b/tests/modules/programs/zsh/smart-formatting-expected.zshrc
new file mode 100644
index 000000000..3f5b1e334
--- /dev/null
+++ b/tests/modules/programs/zsh/smart-formatting-expected.zshrc
@@ -0,0 +1,40 @@
+typeset -U path cdpath fpath manpath
+for profile in ${(z)NIX_PROFILES}; do
+  fpath+=($profile/share/zsh/site-functions $profile/share/zsh/$ZSH_VERSION/functions $profile/share/zsh/vendor-completions)
+done
+
+HELPDIR="@zsh@/share/zsh/$ZSH_VERSION/help"
+
+autoload -U compinit && compinit
+# History options should be set in .zshrc and after oh-my-zsh sourcing.
+# See https://github.com/nix-community/home-manager/issues/177.
+HISTSIZE="50000"
+SAVEHIST="50000"
+
+HISTFILE="/home/hm-user/.zsh_history"
+mkdir -p "$(dirname "$HISTFILE")"
+
+setopt HIST_FCNTL_LOCK
+
+# Disabled history options
+disabled_opts=(
+  APPEND_HISTORY EXTENDED_HISTORY HIST_EXPIRE_DUPS_FIRST HIST_FIND_NO_DUPS
+  HIST_IGNORE_ALL_DUPS HIST_IGNORE_DUPS HIST_IGNORE_SPACE HIST_SAVE_NO_DUPS
+  SHARE_HISTORY
+)
+for opt in "${disabled_opts[@]}"; do
+  unsetopt "$opt"
+done
+unset opt disabled_opts
+
+# Set shell options
+set_opts=(
+  AUTO_LIST AUTO_PARAM_SLASH AUTO_PUSHD ALWAYS_TO_END CORRECT HIST_FCNTL_LOCK
+  HIST_VERIFY INTERACTIVE_COMMENTS MENU_COMPLETE PUSHD_IGNORE_DUPS PUSHD_TO_HOME
+  PUSHD_SILENT NOTIFY PROMPT_SUBST MULTIOS NOFLOWCONTROL NO_CORRECT_ALL
+  NO_HIST_BEEP NO_NOMATCH
+)
+for opt in "${set_opts[@]}"; do
+  setopt "$opt"
+done
+unset opt set_opts
diff --git a/tests/modules/programs/zsh/smart-formatting.nix b/tests/modules/programs/zsh/smart-formatting.nix
new file mode 100644
index 000000000..4853f8044
--- /dev/null
+++ b/tests/modules/programs/zsh/smart-formatting.nix
@@ -0,0 +1,47 @@
+{
+  programs.zsh = {
+    enable = true;
+    # Add many setOptions to trigger multi-line formatting
+    setOptions = [
+      "AUTO_LIST"
+      "AUTO_PARAM_SLASH"
+      "AUTO_PUSHD"
+      "ALWAYS_TO_END"
+      "CORRECT"
+      "HIST_FCNTL_LOCK"
+      "HIST_VERIFY"
+      "INTERACTIVE_COMMENTS"
+      "MENU_COMPLETE"
+      "PUSHD_IGNORE_DUPS"
+      "PUSHD_TO_HOME"
+      "PUSHD_SILENT"
+      "NOTIFY"
+      "PROMPT_SUBST"
+      "MULTIOS"
+      "NOFLOWCONTROL"
+      "NO_CORRECT_ALL"
+      "NO_HIST_BEEP"
+      "NO_NOMATCH"
+    ];
+    # This should also show intelligent formatting for history options
+    history = {
+      size = 50000;
+      save = 50000;
+      # These will create many disabled options
+      append = false;
+      ignoreDups = false;
+      ignoreAllDups = false;
+      saveNoDups = false;
+      findNoDups = false;
+      ignoreSpace = false;
+      expireDuplicatesFirst = false;
+      extended = false;
+      share = false;
+    };
+  };
+
+  nmt.script = ''
+    assertFileExists home-files/.zshrc
+    assertFileContent home-files/.zshrc ${./smart-formatting-expected.zshrc}
+  '';
+}