diff --git a/crates/projection-irc/tests/lib.rs b/crates/projection-irc/tests/lib.rs
index 5becdae..f2517bf 100644
--- a/crates/projection-irc/tests/lib.rs
+++ b/crates/projection-irc/tests/lib.rs
@@ -220,6 +220,55 @@ async fn scenario_cap_short_negotiation() -> Result<()> {
     Ok(())
 }
 
+#[tokio::test]
+async fn scenario_cap_sasl_fail() -> std::result::Result<()> {
+    let mut server = TestServer::start().await?;
+
+    // test scenario
+
+    server.storage.create_user("tester").await?;
+    server.storage.set_password("tester", "password").await?;
+
+    let mut stream = TcpStream::connect(server.server.addr).await?;
+    let mut s = TestScope::new(&mut stream);
+
+    s.send("CAP LS 302").await?;
+    s.send("NICK tester").await?;
+    s.send("USER UserName 0 * :Real Name").await?;
+    s.expect(":testserver CAP * LS :sasl=PLAIN").await?;
+    s.send("CAP REQ :sasl").await?;
+    s.expect(":testserver CAP tester ACK :sasl").await?;
+    s.send("AUTHENTICATE SHA256").await?;
+    s.expect(":testserver 904 tester :Unsupported mechanism").await?;
+    s.send("AUTHENTICATE PLAIN").await?;
+    s.expect(":testserver AUTHENTICATE +").await?;
+    s.send("AUTHENTICATE dGVzdGVyAHRlc3RlcgBwYXNzd29yZDE=").await?;
+    s.expect(":testserver 904 tester :Bad credentials").await?;
+    s.send("AUTHENTICATE dGVzdGVyAHRlc3RlcgBwYXNzd29yZA==").await?; // base64-encoded 'tester\x00tester\x00password'
+    s.expect(":testserver 900 tester tester tester :You are now logged in as tester").await?;
+    s.expect(":testserver 903 tester :SASL authentication successful").await?;
+
+    s.send("CAP END").await?;
+
+    s.expect(":testserver 001 tester :Welcome to Kek Server").await?;
+    s.expect(":testserver 002 tester :Welcome to Kek Server").await?;
+    s.expect(":testserver 003 tester :Welcome to Kek Server").await?;
+    s.expect(":testserver 004 tester testserver kek-0.1.alpha.3 r CFILPQbcefgijklmnopqrstvz").await?;
+    s.expect(":testserver 005 tester CHANTYPES=# :are supported by this server").await?;
+    s.expect_nothing().await?;
+    s.send("QUIT :Leaving").await?;
+    s.expect(":testserver ERROR :Leaving the server").await?;
+    s.expect_eof().await?;
+
+    stream.shutdown().await?;
+
+    // wrap up
+
+    server.server.terminate().await?;
+    Ok(())
+}
+
+
 #[tokio::test]
 async fn terminate_socket_scenario() -> Result<()> {
     let mut server = TestServer::start().await?;