diff --git a/tests/data/packages/README.txt b/tests/data/packages/README.txt
index 9e89e9114..9867e043d 100644
--- a/tests/data/packages/README.txt
+++ b/tests/data/packages/README.txt
@@ -104,4 +104,9 @@ requires_simple_extra-0.1-py2.py3-none-any.whl
 ----------------------------------------------
 requires_simple_extra[extra] requires simple==1.0
 
+setuppyargs-0.1.tar.gz
+----------------------
 
+An empty package that will output the arguments with which its 'setup.py' was
+called when installed. If the PIPTEST_SETUPPYARGS_FILE environment variable is
+set, the argument list will be written to that file in json format.
diff --git a/tests/data/packages/setuppyargs-1.0.tar.gz b/tests/data/packages/setuppyargs-1.0.tar.gz
new file mode 100644
index 000000000..6612ea00e
Binary files /dev/null and b/tests/data/packages/setuppyargs-1.0.tar.gz differ
diff --git a/tests/functional/test_install_reqs.py b/tests/functional/test_install_reqs.py
index 0fe2af414..16772da17 100644
--- a/tests/functional/test_install_reqs.py
+++ b/tests/functional/test_install_reqs.py
@@ -1,3 +1,4 @@
+import json
 import os.path
 import textwrap
 
@@ -106,6 +107,37 @@ def test_multiple_requirements_files(script, tmpdir):
     assert script.venv / 'src' / 'initools' in result.files_created
 
 
+def test_requirement_file_options(script, data, tmpdir):
+    """
+    Test setting --install-option and --global-option in requirements files.
+    """
+
+    # When the setuppyargs package is installed, it will write the
+    # arguments with which its setup.py file was called in
+    # PIPTEST_SETUPPYARGS_FILE.
+    setuppyargs_file = tmpdir / 'setup-py-args'
+    script.environ['PIPTEST_SETUPPYARGS_FILE'] = str(setuppyargs_file)
+
+    def getsetuppyargs(contents):
+        contents = textwrap.dedent(contents)
+        script.scratch_path.join('reqfileopts.txt').write(contents)
+        script.pip('install', '--no-index', '-f', data.find_links,
+                   '-r', script.scratch_path / 'reqfileopts.txt',
+                   expect_error=True)
+        return json.load(open(setuppyargs_file))
+
+    reqfile = '''
+    setuppyargs==1.0 --global-option="--one --two" \\
+                     --global-option="--three" \\
+                     --install-option "--four -5" \\
+                     --install-option="-6"
+    '''
+
+    args = getsetuppyargs(reqfile)
+    expected = set(['--one', '--two', '--three', '--four', '-5', '-6'])
+    assert expected.issubset(set(args))
+
+
 def test_respect_order_in_requirements_file(script, data):
     script.scratch_path.join("frameworks-req.txt").write(textwrap.dedent("""\
         parent