diff --git a/Tools/autotest/arducopter.py b/Tools/autotest/arducopter.py
index 9b47f12106a4b..b71247338ac89 100644
--- a/Tools/autotest/arducopter.py
+++ b/Tools/autotest/arducopter.py
@@ -10828,6 +10828,21 @@ def CameraLogMessages(self):
             if abs(got - want) > 1:
                 raise NotAchievedException(f"Incorrect relalt {want=} {got=}")
 
+    def LoiterToGuidedHomeVSOrigin(self):
+        '''test moving from guided to loiter mode when home is a different alt
+        to origin'''
+        self.set_parameters({
+            "TERRAIN_ENABLE": 1,
+            "SIM_TERRAIN": 1,
+        })
+        self.takeoff(10, mode='GUIDED')
+        here = self.mav.location()
+        self.set_home(here)
+        self.change_mode('LOITER')
+        self.wait_altitude(here.alt-1, here.alt+1, minimum_duration=10)
+        self.disarm_vehicle(force=True)
+        self.reboot_sitl()  # to "unstick" home
+
     def tests2b(self):  # this block currently around 9.5mins here
         '''return list of all tests'''
         ret = ([
@@ -10906,6 +10921,7 @@ def tests2b(self):  # this block currently around 9.5mins here
             self.PILOT_THR_BHV,
             self.GPSForYawCompassLearn,
             self.CameraLogMessages,
+            self.LoiterToGuidedHomeVSOrigin,
         ])
         return ret
 
diff --git a/Tools/autotest/vehicle_test_suite.py b/Tools/autotest/vehicle_test_suite.py
index d223290addb1e..e752171665112 100644
--- a/Tools/autotest/vehicle_test_suite.py
+++ b/Tools/autotest/vehicle_test_suite.py
@@ -8993,6 +8993,15 @@ def monitor_groundspeed(self, want, tolerance=0.5, timeout=5):
             self.progress("GroundSpeed OK (got=%f) (want=%f)" %
                           (m.groundspeed, want))
 
+    def set_home(self, loc):
+        '''set home to supplied loc'''
+        self.run_cmd_int(
+            mavutil.mavlink.MAV_CMD_DO_SET_HOME,
+            p5=int(loc.lat*1e7),
+            p6=int(loc.lng*1e7),
+            p7=loc.alt,
+        )
+
     def SetHome(self):
         '''Setting and fetching of home'''
         if self.is_tracker():