diff --git a/command/e2etest/init_test.go b/command/e2etest/init_test.go
new file mode 100644
index 0000000000..7a5ec2ab23
--- /dev/null
+++ b/command/e2etest/init_test.go
@@ -0,0 +1,43 @@
+package e2etest
+
+import (
+	"strings"
+	"testing"
+)
+
+func TestInitProviders(t *testing.T) {
+	t.Parallel()
+
+	// This test reaches out to releases.hashicorp.com to download the
+	// template provider, so it can only run if network access is allowed.
+	// We intentionally don't try to stub this here, because there's already
+	// a stubbed version of this in the "command" package and so the goal here
+	// is to test the interaction with the real repository.
+	skipIfCannotAccessNetwork(t)
+
+	tf := newTerraform("template-provider")
+	defer tf.Close()
+
+	stdout, stderr, err := tf.Run("init")
+	if err != nil {
+		t.Errorf("unexpected error: %s", err)
+	}
+
+	if stderr != "" {
+		t.Errorf("unexpected stderr output:\n%s", stderr)
+	}
+
+	if !strings.Contains(stdout, "Terraform has been successfully initialized!") {
+		t.Errorf("success message is missing from output:\n%s", stdout)
+	}
+
+	if !strings.Contains(stdout, "- Downloading plugin for provider \"template\"") {
+		t.Errorf("provider download message is missing from output:\n%s", stdout)
+		t.Logf("(this can happen if you have a copy of the plugin in one of the global plugin search dirs)")
+	}
+
+	if !strings.Contains(stdout, "* provider.template: version = ") {
+		t.Errorf("provider pinning recommendation is missing from output:\n%s", stdout)
+	}
+
+}
diff --git a/command/e2etest/test-fixtures/template-provider/main.tf b/command/e2etest/test-fixtures/template-provider/main.tf
new file mode 100644
index 0000000000..31af45150a
--- /dev/null
+++ b/command/e2etest/test-fixtures/template-provider/main.tf
@@ -0,0 +1,7 @@
+provider "template" {
+
+}
+
+data "template_file" "test" {
+  template = "Hello World"
+}