diff --git a/test/simulation/106-refclock b/test/simulation/106-refclock
index 0154fdb..c8ccb72 100755
--- a/test/simulation/106-refclock
+++ b/test/simulation/106-refclock
@@ -40,6 +40,7 @@ done
 if check_config_h 'FEAT_PPS 1'; then
 	refclock_offset=0.35
 	refclock_jitter=0.05
+
 	client_conf="
 refclock SHM 0 refid NMEA noselect
 refclock PPS /dev/pps0 lock NMEA
@@ -59,6 +60,50 @@ Root delay      : 0\.000000001 seconds
 	check_file_messages "20.* PPS1.*[0-9] N " 620 740 refclocks.log || test_fail
 	check_file_messages "20.* PPS1.*- N " 60 63 refclocks.log || test_fail
 	rm -f tmp/refclocks.log
+
+	client_conf="
+refclock SHM 0 noselect
+refclock PPS /dev/pps0
+local
+logdir tmp
+log refclocks"
+
+	run_test || test_fail
+	check_chronyd_exit || test_fail
+	check_source_selection || test_fail
+	check_sync || test_fail
+	check_chronyc_output "^Reference ID.*50505331 \(PPS1\)
+Stratum.*: 10
+.*
+Root delay      : 0\.000000001 seconds
+.*$" || test_fail
+
+	check_file_messages "20.* PPS1.*[0-9] N " 997 1001 refclocks.log || test_fail
+	check_file_messages "20.* PPS1.*- N " 60 63 refclocks.log || test_fail
+	rm -f tmp/refclocks.log
+
+	min_sync_time=100
+	max_sync_time=220
+	chronyc_start=220
+	client_conf="
+refclock SHM 0 refid NMEA offset 0.35 delay 0.1
+refclock PPS /dev/pps0
+logdir tmp
+log refclocks"
+
+	run_test || test_fail
+	check_chronyd_exit || test_fail
+	check_source_selection || test_fail
+	check_sync || test_fail
+	check_chronyc_output "^Reference ID.*50505331 \(PPS1\)
+Stratum.*: 1
+.*
+Root delay      : 0\.000000001 seconds
+.*$" || test_fail
+
+	check_file_messages "20.* PPS1.*[0-9] N " 800 940  refclocks.log || test_fail
+	check_file_messages "20.* PPS1.*- N " 50 63 refclocks.log || test_fail
+	rm -f tmp/refclocks.log
 fi
 
 test_pass