diff --git a/external-crates/move/crates/move-compiler/src/typing/core.rs b/external-crates/move/crates/move-compiler/src/typing/core.rs
index c4a40b5f5e3bc..5e591db5bd8fc 100644
--- a/external-crates/move/crates/move-compiler/src/typing/core.rs
+++ b/external-crates/move/crates/move-compiler/src/typing/core.rs
@@ -1727,15 +1727,14 @@ fn check_function_visibility(
 pub enum PublicForTesting {
     /// The function is entry, so it can be called in unit tests
     Entry(Loc),
-    // TODO we should allow calling init in unit tests, but this would need Sui bytecode verifier
-    // support. Or we would need to name dodge init in unit tests
-    // SuiInit(Loc),
+    /// We allow calling init in unit tests in Sui mode
+    SuiInit,
 }
 
 pub fn public_testing_visibility(
     env: &CompilationEnv,
-    _package: Option<Symbol>,
-    _callee_name: &FunctionName,
+    package: Option<Symbol>,
+    callee_name: &FunctionName,
     callee_entry: Option<Loc>,
 ) -> Option<PublicForTesting> {
     // is_testing && (is_entry || is_sui_init)
@@ -1743,9 +1742,10 @@ pub fn public_testing_visibility(
         return None;
     }
 
-    // TODO support sui init functions
-    // let flavor = env.package_config(package).flavor;
-    // flavor == Flavor::Sui && callee_name.value() == INIT_FUNCTION_NAME
+    let is_sui_mode = env.package_config(package).flavor == crate::editions::Flavor::Sui;
+    if is_sui_mode && callee_name.value() == crate::sui_mode::INIT_FUNCTION_NAME {
+        return Some(PublicForTesting::SuiInit);
+    }
     callee_entry.map(PublicForTesting::Entry)
 }
 
@@ -1781,6 +1781,16 @@ fn report_visibility_error_(
                     );
                     (entry_loc, entry_msg)
                 }
+                PublicForTesting::SuiInit => {
+                    let entry_msg = format!(
+                        "'{}' functions can be called in tests, \
+                    but only from testing contexts, e.g. '#[{}]' or '#[{}]'",
+                        crate::sui_mode::INIT_FUNCTION_NAME,
+                        TestingAttribute::TEST,
+                        TestingAttribute::TEST_ONLY,
+                    );
+                    (Loc::invalid(), entry_msg)
+                }
             };
             diag.add_secondary_label((test_loc, test_msg))
         }
diff --git a/external-crates/move/crates/move-compiler/src/typing/translate.rs b/external-crates/move/crates/move-compiler/src/typing/translate.rs
index eae837f12f774..8eaf77a864d13 100644
--- a/external-crates/move/crates/move-compiler/src/typing/translate.rs
+++ b/external-crates/move/crates/move-compiler/src/typing/translate.rs
@@ -303,6 +303,7 @@ fn function(context: &mut Context, name: FunctionName, f: N::Function) -> T::Fun
     let compiled_visibility =
         match public_testing_visibility(context.env, context.current_package, &name, entry) {
             Some(PublicForTesting::Entry(loc)) => Visibility::Public(loc),
+            Some(PublicForTesting::SuiInit) => Visibility::Public(Loc::invalid()),
             None => visibility,
         };
     function_signature(context, macro_, &signature);
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 0000000000000..d3247f553ddb9
--- /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 {}
+}