diff --git a/src/bin/expect_tests/contract_tests.ml b/src/bin/expect_tests/contract_tests.ml
index 4d2d6b5a9..0ce94f98d 100644
--- a/src/bin/expect_tests/contract_tests.ml
+++ b/src/bin/expect_tests/contract_tests.ml
@@ -931,4 +931,8 @@ let%expect_test _ =
 
 let%expect_test _ =
   run_ligo_bad [ "run-function" ; contract "failwith.ligo" ; "failer" ; "1" ] ;
-  [%expect {| ligo: Execution failed:  {"value":"some_string","type":"string"} |}]
\ No newline at end of file
+  [%expect {| ligo: Execution failed:  {"value":"some_string","type":"string"} |}]
+
+let%expect_test _ =
+  run_ligo_bad [ "compile-contract" ; contract "bad_address_format.religo" ; "main" ] ;
+  [%expect {| ligo: in file "bad_address_format.religo", line 2, characters 25-47. Badly formatted address "KT1badaddr":  {"location":"in file \"bad_address_format.religo\", line 2, characters 25-47"} |}]
diff --git a/src/test/contracts/bad_address_format.religo b/src/test/contracts/bad_address_format.religo
new file mode 100644
index 000000000..c8668bc45
--- /dev/null
+++ b/src/test/contracts/bad_address_format.religo
@@ -0,0 +1,3 @@
+let main = (parameter: int, storage: address) => {     
+    ([]:list(operation), "KT1badaddr" : address);
+};