diff --git a/external-crates/move/crates/move-compiler/tests/sui_mode/init/cross_module_init_function.move b/external-crates/move/crates/move-compiler/tests/sui_mode/init/cross_module_init_function.move
new file mode 100644
index 00000000000000..d3247f553ddb9a
--- /dev/null
+++ b/external-crates/move/crates/move-compiler/tests/sui_mode/init/cross_module_init_function.move
@@ -0,0 +1,17 @@
+// check that fun `init` can be used cross module in sui-mode
+module 0x1::M {
+    fun init(_ctx: &mut sui::tx_context::TxContext) { }
+}
+
+module 0x1::Tests {
+    #[test]
+    fun tester() {
+        use 0x1::M;
+        let ctx = sui::tx_context::TxContext {};
+        M::init(&ctx);
+    }
+}
+
+module sui::tx_context {
+    struct TxContext has drop {}
+}