diff --git a/t/pt-online-schema-change/privs.t b/t/pt-online-schema-change/privs.t
new file mode 100644
index 00000000..f92a2499
--- /dev/null
+++ b/t/pt-online-schema-change/privs.t
@@ -0,0 +1,86 @@
+#!/usr/bin/env perl
+
+BEGIN {
+   die "The PERCONA_TOOLKIT_BRANCH environment variable is not set.\n"
+      unless $ENV{PERCONA_TOOLKIT_BRANCH} && -d $ENV{PERCONA_TOOLKIT_BRANCH};
+   unshift @INC, "$ENV{PERCONA_TOOLKIT_BRANCH}/lib";
+};
+
+use strict;
+use warnings FATAL => 'all';
+use English qw(-no_match_vars);
+use Test::More;
+
+use Data::Dumper;
+use PerconaTest;
+use Sandbox;
+require "$trunk/bin/pt-online-schema-change";
+
+my $dp = new DSNParser(opts=>$dsn_opts);
+my $sb = new Sandbox(basedir => '/tmp', DSNParser => $dp);
+my $master_dbh = $sb->get_dbh_for('master');
+my $slave_dbh  = $sb->get_dbh_for('slave1');
+
+if ( !$master_dbh ) {
+   plan skip_all => 'Cannot connect to sandbox master';
+}
+elsif ( !$slave_dbh ) {
+   plan skip_all => 'Cannot connect to sandbox slave1';
+}
+elsif ( !@{$master_dbh->selectall_arrayref('show databases like "sakila"')} ) {
+   plan skip_all => 'sakila database is not loaded';
+}
+else {
+   plan tests => 2;
+}
+
+# The sandbox servers run with lock_wait_timeout=3 and it's not dynamic
+# so we need to specify --lock-wait-timeout=3 else the tool will die.
+my $master_dsn = 'h=127.1,P=12345,p=msandbox';
+my @args       = (qw(--lock-wait-timeout 3));
+my $row;
+my $output;
+my $exit_status;
+my $sample  = "t/pt-online-schema-change/samples/";
+
+# ############################################################################
+# --recursion-method=none to avoid SHOW SLAVE HOSTS
+# https://bugs.launchpad.net/percona-toolkit/+bug/987694
+# ############################################################################
+diag(`/tmp/12345/use -u root < $trunk/$sample/osc-user.sql`);
+PerconaTest::wait_for_table($slave_dbh, "mysql.tables_priv", "user='osc_user'");
+
+$sb->load_file('master', "$sample/basic_no_fks.sql");
+PerconaTest::wait_for_table($slave_dbh, "pt_osc.t", "id=20");
+
+$output = output(
+   sub { $exit_status = pt_online_schema_change::main(@args,
+      "$master_dsn,u=osc_user,D=pt_osc,t=t", '--alter', 'drop column id',
+      qw(--execute),
+      # Comment out this line and the tests fail because osc_user
+      # doesn't have privs to SHOW SLAVE HOSTS.  This proves that
+      # --recursion-method none is working.
+      qw(--recursion-method none)
+   ) },
+   stderr => 1,
+);
+
+is(
+   $exit_status,
+   0,
+   "Limited user (bug 987694): 0 exit"
+);
+
+like(
+   $output,
+   qr/Successfully altered `pt_osc`.`t`/,
+   "Limited user (bug 987694): altered table"
+);
+
+diag(`/tmp/12345/use -u root -e "drop user 'osc_user'\@'%'"`);
+
+# #############################################################################
+# Done.
+# #############################################################################
+$sb->wipe_clean($master_dbh);
+exit;
diff --git a/t/pt-online-schema-change/samples/osc-user.sql b/t/pt-online-schema-change/samples/osc-user.sql
new file mode 100644
index 00000000..a6596bb9
--- /dev/null
+++ b/t/pt-online-schema-change/samples/osc-user.sql
@@ -0,0 +1,3 @@
+CREATE USER 'osc_user'@'%' IDENTIFIED BY 'msandbox';
+GRANT ALL PRIVILEGES ON pt_osc.* TO 'osc_user'@'%';
+GRANT SUPER ON *.* TO 'osc_user'@'%';