diff --git a/sdk/cargo-build-bpf/.gitignore b/sdk/cargo-build-bpf/.gitignore
new file mode 100644
index 0000000000..1686a357aa
--- /dev/null
+++ b/sdk/cargo-build-bpf/.gitignore
@@ -0,0 +1,2 @@
+/tests/crates/*/target/
+Cargo.lock
diff --git a/sdk/cargo-build-bpf/src/main.rs b/sdk/cargo-build-bpf/src/main.rs
index ac9e7f7545..66726f57ef 100644
--- a/sdk/cargo-build-bpf/src/main.rs
+++ b/sdk/cargo-build-bpf/src/main.rs
@@ -41,7 +41,8 @@ impl Default for Config<'_> {
                 .parent()
                 .expect("Unable to get parent directory")
                 .to_path_buf()
-                .join("sdk/bpf"),
+                .join("sdk")
+                .join("bpf"),
             bpf_out_dir: None,
             dump: false,
             features: vec![],
@@ -601,6 +602,13 @@ fn main() {
     let matches = App::new(crate_name!())
         .about(crate_description!())
         .version(crate_version!())
+        .arg(
+            Arg::with_name("bpf_out_dir")
+                .long("bpf-out-dir")
+                .value_name("DIRECTORY")
+                .takes_value(true)
+                .help("Place final BPF build artifacts in this directory"),
+        )
         .arg(
             Arg::with_name("bpf_sdk")
                 .long("bpf-sdk")
@@ -609,12 +617,39 @@ fn main() {
                 .default_value(&default_bpf_sdk)
                 .help("Path to the Solana BPF SDK"),
         )
+        .arg(
+            Arg::with_name("cargo_args")
+                .help("Arguments passed directly to `cargo build`")
+                .multiple(true)
+                .last(true),
+        )
         .arg(
             Arg::with_name("dump")
                 .long("dump")
                 .takes_value(false)
                 .help("Dump ELF information to a text file on success"),
         )
+        .arg(
+            Arg::with_name("features")
+                .long("features")
+                .value_name("FEATURES")
+                .takes_value(true)
+                .multiple(true)
+                .help("Space-separated list of features to activate"),
+        )
+        .arg(
+            Arg::with_name("manifest_path")
+                .long("manifest-path")
+                .value_name("PATH")
+                .takes_value(true)
+                .help("Path to Cargo.toml"),
+        )
+        .arg(
+            Arg::with_name("no_default_features")
+                .long("no-default-features")
+                .takes_value(false)
+                .help("Do not activate the `default` feature"),
+        )
         .arg(
             Arg::with_name("offline")
                 .long("offline")
@@ -628,34 +663,6 @@ fn main() {
                 .takes_value(false)
                 .help("Use verbose output"),
         )
-        .arg(
-            Arg::with_name("features")
-                .long("features")
-                .value_name("FEATURES")
-                .takes_value(true)
-                .multiple(true)
-                .help("Space-separated list of features to activate"),
-        )
-        .arg(
-            Arg::with_name("no_default_features")
-                .long("no-default-features")
-                .takes_value(false)
-                .help("Do not activate the `default` feature"),
-        )
-        .arg(
-            Arg::with_name("manifest_path")
-                .long("manifest-path")
-                .value_name("PATH")
-                .takes_value(true)
-                .help("Path to Cargo.toml"),
-        )
-        .arg(
-            Arg::with_name("bpf_out_dir")
-                .long("bpf-out-dir")
-                .value_name("DIRECTORY")
-                .takes_value(true)
-                .help("Place final BPF build artifacts in this directory"),
-        )
         .arg(
             Arg::with_name("workspace")
                 .long("workspace")
@@ -663,7 +670,6 @@ fn main() {
                 .alias("all")
                 .help("Build all BPF packages in the workspace"),
         )
-        .arg(Arg::with_name("cargo_args").multiple(true).last(true))
         .get_matches_from(args);
 
     let bpf_sdk = value_t_or_exit!(matches, "bpf_sdk", PathBuf);
diff --git a/sdk/cargo-build-bpf/tests/crates.rs b/sdk/cargo-build-bpf/tests/crates.rs
new file mode 100644
index 0000000000..2dac22a000
--- /dev/null
+++ b/sdk/cargo-build-bpf/tests/crates.rs
@@ -0,0 +1,70 @@
+use std::{
+    env, fs,
+    io::{self, Write},
+    process::{Command, Output},
+};
+
+fn run_cargo_build(extra_args: &[&str]) -> Output {
+    let cwd = env::current_dir().expect("Unable to get current working directory");
+    let root = cwd
+        .parent()
+        .expect("Unable to get parent directory of current working dir")
+        .parent()
+        .expect("Unable to get ../.. of current working dir");
+    let toml = cwd
+        .join("tests")
+        .join("crates")
+        .join("noop")
+        .join("Cargo.toml");
+    let toml = format!("{}", toml.display());
+    let mut args = vec!["--bpf-sdk", "../bpf", "--manifest-path", &toml];
+    for arg in extra_args {
+        args.push(arg);
+    }
+    let cargo_build_bpf = root.join("target").join("debug").join("cargo-build-bpf");
+    Command::new(cargo_build_bpf)
+        .args(&args)
+        .output()
+        .expect("Error running cargo-build-bpf")
+}
+
+#[test]
+fn test_build() {
+    let output = run_cargo_build(&[]);
+    assert!(output.status.success());
+}
+
+// This test requires rustfilt.
+// TODO: Add a check for rustfilt, and install it if not available.
+#[ignore]
+#[test]
+fn test_dump() {
+    let output = run_cargo_build(&["--dump"]);
+    if !output.status.success() {
+        eprintln!("--- stdout ---");
+        io::stderr().write_all(&output.stdout).unwrap();
+        eprintln!("--- stderr ---");
+        io::stderr().write_all(&output.stderr).unwrap();
+        eprintln!("--------------");
+    }
+    assert!(output.status.success());
+    let cwd = env::current_dir().expect("Unable to get current working directory");
+    let dump = cwd
+        .join("tests")
+        .join("crates")
+        .join("noop")
+        .join("target")
+        .join("deploy")
+        .join("noop-dump.txt");
+    assert!(dump.exists());
+}
+
+#[test]
+fn test_out_dir() {
+    let output = run_cargo_build(&["--bpf-out-dir", "tmp_out"]);
+    assert!(output.status.success());
+    let cwd = env::current_dir().expect("Unable to get current working directory");
+    let dir = cwd.join("tmp_out");
+    assert!(dir.exists());
+    fs::remove_dir_all("tmp_out").expect("Failed to remove tmp_out dir");
+}
diff --git a/sdk/cargo-build-bpf/tests/crates/noop/Cargo.toml b/sdk/cargo-build-bpf/tests/crates/noop/Cargo.toml
new file mode 100644
index 0000000000..35abfd9c37
--- /dev/null
+++ b/sdk/cargo-build-bpf/tests/crates/noop/Cargo.toml
@@ -0,0 +1,18 @@
+[package]
+name = "noop"
+version = "1.8.0"
+description = "Solana BPF test program written in Rust"
+authors = ["Solana Maintainers <maintainers@solana.foundation>"]
+repository = "https://github.com/solana-labs/solana"
+license = "Apache-2.0"
+homepage = "https://solana.com/"
+edition = "2018"
+publish = false
+
+[dependencies]
+solana-program = { path = "../../../../program", version = "=1.8.0" }
+
+[lib]
+crate-type = ["cdylib"]
+
+[workspace]
diff --git a/sdk/cargo-build-bpf/tests/crates/noop/src/lib.rs b/sdk/cargo-build-bpf/tests/crates/noop/src/lib.rs
new file mode 100644
index 0000000000..ac6c3d6c84
--- /dev/null
+++ b/sdk/cargo-build-bpf/tests/crates/noop/src/lib.rs
@@ -0,0 +1,15 @@
+//! @brief Example Rust-based BPF noop program
+
+extern crate solana_program;
+use solana_program::{
+    account_info::AccountInfo, entrypoint, entrypoint::ProgramResult, pubkey::Pubkey,
+};
+
+entrypoint!(process_instruction);
+fn process_instruction(
+    _program_id: &Pubkey,
+    _accounts: &[AccountInfo],
+    _instruction_data: &[u8],
+) -> ProgramResult {
+    Ok(())
+}