diff --git a/husky b/husky
index 8d2aa3f85..86bd0ba5f 100644
--- a/husky
+++ b/husky
@@ -1,6 +1,5 @@
 #!/usr/bin/env sh
-H="$HUSKY"
-[ "$H" = "2" ] && set -x
+[ "$HUSKY" = "2" ] && set -x
 h="${0##*/}"
 s="${0%/*/*}/$h"
 
@@ -11,7 +10,7 @@ for f in "${XDG_CONFIG_HOME:-$HOME/.config}/husky/init.sh" "$HOME/.huskyrc"; do
 	[ -f "$f" ] && . "$f"
 done
 
-[ "$H" = "0" ] && exit 0
+[ "${HUSKY-}" = "0" ] && exit 0
 
 sh -e "$s" "$@"
 c=$?
diff --git a/test.sh b/test.sh
index 6f6d9d406..334b428f9 100755
--- a/test.sh
+++ b/test.sh
@@ -8,5 +8,7 @@ sh test/3_from-sub-dir.sh
 sh test/4_not-git-dir.sh
 sh test/5_git_command_not_found.sh
 sh test/6_command_not_found.sh
-sh test/7_init.sh
-# sh test/8_time.sh
+sh test/7_set_u.sh
+sh test/8_husky_0.sh
+sh test/9_init.sh
+sh test/10_time.sh
diff --git a/test/8_time.sh b/test/10_time.sh
similarity index 100%
rename from test/8_time.sh
rename to test/10_time.sh
diff --git a/test/7_set_u.sh b/test/7_set_u.sh
new file mode 100644
index 000000000..6767e7a1a
--- /dev/null
+++ b/test/7_set_u.sh
@@ -0,0 +1,15 @@
+#!/bin/sh
+. test/functions.sh
+setup
+install
+
+npx --no-install husky
+expect_hooksPath_to_be ".husky/_"
+
+git add package.json
+echo "echo \"pre-commit\"" >.husky/pre-commit
+
+# Should not fail if set -u is used
+mkdir -p config/husky
+echo "set -u" > config/husky/init.sh
+XDG_CONFIG_HOME="$(pwd)/config" expect 0 "git commit -m foo"
\ No newline at end of file
diff --git a/test/8_husky_0.sh b/test/8_husky_0.sh
new file mode 100644
index 000000000..03c9fde1c
--- /dev/null
+++ b/test/8_husky_0.sh
@@ -0,0 +1,22 @@
+#!/bin/sh
+. test/functions.sh
+setup
+install
+
+# Should not setup hooks when HUSKY=0
+HUSKY=0 npx --no-install husky
+expect_hooksPath_to_be ""
+
+# Should setup hooks
+npx --no-install husky
+expect_hooksPath_to_be ".husky/_"
+
+# Should not commit
+git add package.json
+echo "echo \"pre-commit\" && exit 1" >.husky/pre-commit
+expect 1 "git commit -m foo"
+
+# Should commit when HUSKY=0
+mkdir -p config/husky
+echo "export HUSKY=0" > config/husky/init.sh
+XDG_CONFIG_HOME="$(pwd)/config" expect 0 "git commit -m foo"
\ No newline at end of file
diff --git a/test/7_init.sh b/test/9_init.sh
similarity index 80%
rename from test/7_init.sh
rename to test/9_init.sh
index b01908ca3..8079e733a 100644
--- a/test/7_init.sh
+++ b/test/9_init.sh
@@ -3,4 +3,5 @@
 setup
 install
 
+# Test init command
 expect 0 "npx --no-install husky init"
diff --git a/test/functions.sh b/test/functions.sh
index 41dccb5dc..93e5467de 100755
--- a/test/functions.sh
+++ b/test/functions.sh
@@ -39,6 +39,7 @@ expect() {
 }
 
 expect_hooksPath_to_be() {
+	set +e
   hooksPath=$(git config core.hooksPath)
   if [ "$hooksPath" != "$1" ]; then
     error "core.hooksPath should be $1, was $hooksPath"