diff --git a/test/lib/internals/compile-dotfile-test.sh b/test/lib/internals/compile-dotfile-test.sh
new file mode 100755
index 0000000..c6c0743
--- /dev/null
+++ b/test/lib/internals/compile-dotfile-test.sh
@@ -0,0 +1,83 @@
+#! /usr/bin/env bash
+source "../../test-helper.sh"
+source "../../../src/lib/helpers/trim.sh"
+source "../../../src/lib/internals/compile-dotfile.sh"
+
+#
+# compile-dotfile() tests
+#
+
+# Create temp files/folders used for locate-dotfile() tests.
+mkdir -p "tmp"
+dotfile="tmp/Dotfile"
+echo "hostname='air'" > $dotfile
+
+
+# Compiles file given as first argument.
+assert "compile-dotfile $dotfile" "hostname='air'"
+assert_raises "compile-dotfile tmp/fake" 1
+assert "compile-dotfile tmp/fake" ""
+assert "compile-dotfile tmp/fake 2>&1" "ERROR: \"tmp/fake\" does not exist."
+
+
+# Compiles file from global $DOTFILE variable.
+DOTFILE=$dotfile
+assert "compile-dotfile" "hostname='air'"
+DOTFILE="tmp/fake"
+assert_raises "compile-dotfile" 1
+assert "compile-dotfile" ""
+assert "compile-dotfile 2>&1" "ERROR: \"tmp/fake\" does not exist."
+unset DOTFILE
+
+
+# Compiles standard actions
+echo -e "root_link .dotfiles
+link: ackrc     -> .ackrc
+link: gitconfig -> \".gitconfig\"" > $dotfile
+assert "compile-dotfile $dotfile" "root_link .dotfiles
+dotify-action link ackrc .ackrc
+dotify-action link gitconfig \".gitconfig\""
+
+
+# Compiles default (shorthand) actions
+echo -e "root_link .dotfiles
+link: ackrc -> .ackrc
+gitconfig   -> \".gitconfig\"" > $dotfile
+assert "compile-dotfile $dotfile" "root_link .dotfiles
+dotify-action link ackrc .ackrc
+dotify-action default gitconfig \".gitconfig\""
+
+
+# Correctly indents actions
+echo -e "root_link .dotfiles
+if [ true ]; then
+  ackrc -> .ackrc
+fi" > $dotfile
+assert "compile-dotfile $dotfile" "root_link .dotfiles
+if [ true ]; then
+  dotify-action default ackrc .ackrc
+fi"
+
+
+# Strips out comments and blank lines.
+echo -e "# My Dotfile
+root_link .dotfiles
+
+# Basics
+profile -> .profile
+
+# Apps
+ackrc     -> .ackrc
+gitconfig -> .gitconfig" > $dotfile
+assert "compile-dotfile $dotfile" "root_link .dotfiles
+dotify-action default profile .profile
+dotify-action default ackrc .ackrc
+dotify-action default gitconfig .gitconfig"
+
+
+# Remove temp files/folders used for locate-dotfile() tests.
+rm "tmp/Dotfile"
+rmdir "tmp"
+assert_raises "test -d tmp" 1
+
+assert_end 'compile-dotfile()'