diff --git a/tests/functional/syntax/test_method_id.py b/tests/functional/syntax/test_method_id.py
new file mode 100644
index 0000000000..dc7b44dff9
--- /dev/null
+++ b/tests/functional/syntax/test_method_id.py
@@ -0,0 +1,19 @@
+import pytest
+
+from vyper import compiler
+
+valid_list = [
+    """
+FOO: constant(String[5]) = "foo()"
+BAR: constant(Bytes[4]) = method_id(FOO)
+
+@external
+def foo(a: Bytes[4] = BAR):
+    pass
+    """
+]
+
+
+@pytest.mark.parametrize("code", valid_list)
+def test_addmulmod_pass(code):
+    assert compiler.compile_code(code) is not None