diff --git a/spark-cobol/src/test/scala/za/co/absa/cobrix/spark/cobol/source/regression/Test25VarLengthIndicators.scala b/spark-cobol/src/test/scala/za/co/absa/cobrix/spark/cobol/source/regression/Test25VarLengthIndicators.scala
new file mode 100644
index 00000000..618e6123
--- /dev/null
+++ b/spark-cobol/src/test/scala/za/co/absa/cobrix/spark/cobol/source/regression/Test25VarLengthIndicators.scala
@@ -0,0 +1,219 @@
+/*
+ * Copyright 2018 ABSA Group Limited
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package za.co.absa.cobrix.spark.cobol.source.regression
+
+import org.scalatest.wordspec.AnyWordSpec
+import org.slf4j.{Logger, LoggerFactory}
+import za.co.absa.cobrix.spark.cobol.source.base.{SimpleComparisonBase, SparkTestBase}
+import za.co.absa.cobrix.spark.cobol.source.fixtures.BinaryFileFixture
+import za.co.absa.cobrix.spark.cobol.utils.SparkUtils
+
+import java.nio.charset.StandardCharsets
+
+class Test25VarLengthIndicators extends AnyWordSpec with SparkTestBase with BinaryFileFixture with SimpleComparisonBase {
+
+  private implicit val logger: Logger = LoggerFactory.getLogger(this.getClass)
+
+  private val copybook =
+    """
+      01 R.
+           10 IND.
+               15  D1-PRESENT                   PIC 9(1).
+               15  D2-PRESENT                   PIC 9(1).
+               15  D3-PRESENT                   PIC 9(1).
+        05 D1.
+           10 P1 OCCURS 0 TO 1 TIMES
+                   DEPENDING ON D1-PRESENT.
+               15  COL1                         PIC X(3).
+        05 D2.
+           10 P2 OCCURS 0 TO 1 TIMES
+                   DEPENDING ON D2-PRESENT.
+               15  COL2                         PIC X(5).
+        05 D3.
+           10 P3 OCCURS 0 TO 1 TIMES
+                   DEPENDING ON D3-PRESENT.
+               15 COL3                         PIC X(7).
+    """
+
+  val binFileContents: Array[Byte] = Array(
+    // D1
+    0xF1, 0xF0, 0xF0, 0xF1, 0xF2, 0xF3,
+    // D2
+    0xF0, 0xF1, 0xF0, 0xF1, 0xF2, 0xF3, 0xF4, 0xF5,
+    // D3
+    0xF0, 0xF0, 0xF1, 0xF1, 0xF2, 0xF3, 0xF4, 0xF5, 0xF6, 0xF7,
+    // D1+D2
+    0xF1, 0xF1, 0xF0, 0xF1, 0xF2, 0xF3, 0xF4, 0xF5, 0xF6, 0xF7, 0xF8,
+    // D1+D3
+    0xF1, 0xF0, 0xF1, 0xF1, 0xF2, 0xF3, 0xF4, 0xF5, 0xF6, 0xF7, 0xF8, 0xF9, 0xF0,
+    // D2+D3
+    0xF0, 0xF1, 0xF1, 0xF1, 0xF2, 0xF3, 0xF4, 0xF5, 0xF6, 0xF7, 0xF8, 0xF9, 0xF0, 0xF1, 0xF2,
+    // D1+D2+D3
+    0xF1, 0xF1, 0xF1, 0xF1, 0xF2, 0xF3, 0xF4, 0xF5, 0xF6, 0xF7, 0xF8, 0xF9, 0xF0, 0xF1, 0xF2, 0xF3, 0xF4, 0xF5
+  ).map(_.toByte)
+
+  val expected: String =
+    """[ {
+      |  "IND" : {
+      |    "D1_PRESENT" : 1,
+      |    "D2_PRESENT" : 0,
+      |    "D3_PRESENT" : 0
+      |  },
+      |  "D1" : {
+      |    "P1" : [ {
+      |      "COL1" : "123"
+      |    } ]
+      |  },
+      |  "D2" : {
+      |    "P2" : [ ]
+      |  },
+      |  "D3" : {
+      |    "P3" : [ ]
+      |  }
+      |}, {
+      |  "IND" : {
+      |    "D1_PRESENT" : 0,
+      |    "D2_PRESENT" : 1,
+      |    "D3_PRESENT" : 0
+      |  },
+      |  "D1" : {
+      |    "P1" : [ ]
+      |  },
+      |  "D2" : {
+      |    "P2" : [ {
+      |      "COL2" : "12345"
+      |    } ]
+      |  },
+      |  "D3" : {
+      |    "P3" : [ ]
+      |  }
+      |}, {
+      |  "IND" : {
+      |    "D1_PRESENT" : 0,
+      |    "D2_PRESENT" : 0,
+      |    "D3_PRESENT" : 1
+      |  },
+      |  "D1" : {
+      |    "P1" : [ ]
+      |  },
+      |  "D2" : {
+      |    "P2" : [ ]
+      |  },
+      |  "D3" : {
+      |    "P3" : [ {
+      |      "COL3" : "1234567"
+      |    } ]
+      |  }
+      |}, {
+      |  "IND" : {
+      |    "D1_PRESENT" : 1,
+      |    "D2_PRESENT" : 1,
+      |    "D3_PRESENT" : 0
+      |  },
+      |  "D1" : {
+      |    "P1" : [ {
+      |      "COL1" : "123"
+      |    } ]
+      |  },
+      |  "D2" : {
+      |    "P2" : [ {
+      |      "COL2" : "45678"
+      |    } ]
+      |  },
+      |  "D3" : {
+      |    "P3" : [ ]
+      |  }
+      |}, {
+      |  "IND" : {
+      |    "D1_PRESENT" : 1,
+      |    "D2_PRESENT" : 0,
+      |    "D3_PRESENT" : 1
+      |  },
+      |  "D1" : {
+      |    "P1" : [ {
+      |      "COL1" : "123"
+      |    } ]
+      |  },
+      |  "D2" : {
+      |    "P2" : [ ]
+      |  },
+      |  "D3" : {
+      |    "P3" : [ {
+      |      "COL3" : "4567890"
+      |    } ]
+      |  }
+      |}, {
+      |  "IND" : {
+      |    "D1_PRESENT" : 0,
+      |    "D2_PRESENT" : 1,
+      |    "D3_PRESENT" : 1
+      |  },
+      |  "D1" : {
+      |    "P1" : [ ]
+      |  },
+      |  "D2" : {
+      |    "P2" : [ {
+      |      "COL2" : "12345"
+      |    } ]
+      |  },
+      |  "D3" : {
+      |    "P3" : [ {
+      |      "COL3" : "6789012"
+      |    } ]
+      |  }
+      |}, {
+      |  "IND" : {
+      |    "D1_PRESENT" : 1,
+      |    "D2_PRESENT" : 1,
+      |    "D3_PRESENT" : 1
+      |  },
+      |  "D1" : {
+      |    "P1" : [ {
+      |      "COL1" : "123"
+      |    } ]
+      |  },
+      |  "D2" : {
+      |    "P2" : [ {
+      |      "COL2" : "45678"
+      |    } ]
+      |  },
+      |  "D3" : {
+      |    "P3" : [ {
+      |      "COL3" : "9012345"
+      |    } ]
+      |  }
+      |} ]""".stripMargin
+
+  "Variable length by indicators" should {
+    "work as expected" in {
+      withTempBinFile("var_len_ind", ".dat", binFileContents) { tmpFileName =>
+        val df = spark
+          .read
+          .format("cobol")
+          .option("copybook_contents", copybook)
+          .option("record_format", "F")
+          .option("variable_size_occurs", "true")
+          .option("pedantic", "true")
+          .load(tmpFileName)
+
+        val actual = SparkUtils.convertDataFrameToPrettyJSON(df)
+
+        assertEqualsMultiline(actual, expected)
+      }
+    }
+  }
+}