diff --git a/pkg/cmd/pr/shared/templates_test.go b/pkg/cmd/pr/shared/templates_test.go
new file mode 100644
index 000000000..903f52c75
--- /dev/null
+++ b/pkg/cmd/pr/shared/templates_test.go
@@ -0,0 +1,74 @@
+package shared
+
+import (
+	"io/ioutil"
+	"net/http"
+	"os"
+	"path/filepath"
+	"testing"
+
+	"github.com/cli/cli/internal/ghrepo"
+	"github.com/cli/cli/pkg/httpmock"
+	"github.com/cli/cli/pkg/prompt"
+	"github.com/stretchr/testify/assert"
+)
+
+func TestTemplateManager_hasAPI(t *testing.T) {
+	rootDir := t.TempDir()
+	legacyTemplateFile := filepath.Join(rootDir, ".github", "ISSUE_TEMPLATE.md")
+	_ = os.MkdirAll(filepath.Dir(legacyTemplateFile), 0755)
+	_ = ioutil.WriteFile(legacyTemplateFile, []byte("LEGACY"), 0644)
+
+	tr := httpmock.Registry{}
+	httpClient := &http.Client{Transport: &tr}
+	defer tr.Verify(t)
+
+	tr.Register(
+		httpmock.GraphQL(`query IssueTemplates_fields\b`),
+		httpmock.StringResponse(`{"data":{
+			"Repository": {
+				"fields": [
+					{"name": "foo"},
+					{"name": "issueTemplates"}
+				]
+			},
+			"CreateIssueInput": {
+				"inputFields": [
+					{"name": "foo"},
+					{"name": "issueTemplate"}
+				]
+			}
+		}}`))
+	tr.Register(
+		httpmock.GraphQL(`query IssueTemplates\b`),
+		httpmock.StringResponse(`{"data":{"repository":{
+			"issueTemplates": [
+				{"name": "Bug report", "body": "I found a problem"},
+				{"name": "Feature request", "body": "I need a feature"}
+			]
+		}}}`))
+
+	m := templateManager{
+		repo:         ghrepo.NewWithHost("OWNER", "REPO", "example.com"),
+		rootDir:      rootDir,
+		allowFS:      true,
+		isPR:         false,
+		httpClient:   httpClient,
+		cachedClient: httpClient,
+	}
+
+	hasTemplates, err := m.HasTemplates()
+	assert.NoError(t, err)
+	assert.True(t, hasTemplates)
+
+	assert.Equal(t, "LEGACY", string(m.LegacyBody()))
+
+	as, askRestore := prompt.InitAskStubber()
+	defer askRestore()
+
+	as.StubOne(1) // choose "Feature Request"
+	tpl, err := m.Choose()
+	assert.NoError(t, err)
+	assert.Equal(t, "Feature request", tpl.NameForSubmit())
+	assert.Equal(t, "I need a feature", string(tpl.Body()))
+}