diff --git a/husky b/husky
index 8d2aa3f85..86bd0ba5f 100644
--- a/husky
+++ b/husky
@@ -1,6 +1,5 @@
 #!/usr/bin/env sh
-H="$HUSKY"
-[ "$H" = "2" ] && set -x
+[ "$HUSKY" = "2" ] && set -x
 h="${0##*/}"
 s="${0%/*/*}/$h"
 
@@ -11,7 +10,7 @@ for f in "${XDG_CONFIG_HOME:-$HOME/.config}/husky/init.sh" "$HOME/.huskyrc"; do
 	[ -f "$f" ] && . "$f"
 done
 
-[ "$H" = "0" ] && exit 0
+[ "${HUSKY-}" = "0" ] && exit 0
 
 sh -e "$s" "$@"
 c=$?
diff --git a/test.sh b/test.sh
index 6f6d9d406..334b428f9 100755
--- a/test.sh
+++ b/test.sh
@@ -8,5 +8,7 @@ sh test/3_from-sub-dir.sh
 sh test/4_not-git-dir.sh
 sh test/5_git_command_not_found.sh
 sh test/6_command_not_found.sh
-sh test/7_init.sh
-# sh test/8_time.sh
+sh test/7_set_u.sh
+sh test/8_husky_0.sh
+sh test/9_init.sh
+sh test/10_time.sh
diff --git a/test/8_time.sh b/test/10_time.sh
similarity index 100%
rename from test/8_time.sh
rename to test/10_time.sh
diff --git a/test/7_set_u.sh b/test/7_set_u.sh
new file mode 100644
index 000000000..6767e7a1a
--- /dev/null
+++ b/test/7_set_u.sh
@@ -0,0 +1,15 @@
+#!/bin/sh
+. test/functions.sh
+setup
+install
+
+npx --no-install husky
+expect_hooksPath_to_be ".husky/_"
+
+git add package.json
+echo "echo \"pre-commit\"" >.husky/pre-commit
+
+# Should not fail if set -u is used
+mkdir -p config/husky
+echo "set -u" > config/husky/init.sh
+XDG_CONFIG_HOME="$(pwd)/config" expect 0 "git commit -m foo"
\ No newline at end of file
diff --git a/test/8_husky_0.sh b/test/8_husky_0.sh
new file mode 100644
index 000000000..03c9fde1c
--- /dev/null
+++ b/test/8_husky_0.sh
@@ -0,0 +1,22 @@
+#!/bin/sh
+. test/functions.sh
+setup
+install
+
+# Should not setup hooks when HUSKY=0
+HUSKY=0 npx --no-install husky
+expect_hooksPath_to_be ""
+
+# Should setup hooks
+npx --no-install husky
+expect_hooksPath_to_be ".husky/_"
+
+# Should not commit
+git add package.json
+echo "echo \"pre-commit\" && exit 1" >.husky/pre-commit
+expect 1 "git commit -m foo"
+
+# Should commit when HUSKY=0
+mkdir -p config/husky
+echo "export HUSKY=0" > config/husky/init.sh
+XDG_CONFIG_HOME="$(pwd)/config" expect 0 "git commit -m foo"
\ No newline at end of file
diff --git a/test/7_init.sh b/test/9_init.sh
similarity index 80%
rename from test/7_init.sh
rename to test/9_init.sh
index b01908ca3..8079e733a 100644
--- a/test/7_init.sh
+++ b/test/9_init.sh
@@ -3,4 +3,5 @@
 setup
 install
 
+# Test init command
 expect 0 "npx --no-install husky init"
diff --git a/test/functions.sh b/test/functions.sh
index 41dccb5dc..07052a046 100755
--- a/test/functions.sh
+++ b/test/functions.sh
@@ -2,54 +2,55 @@
 set -eu
 
 setup() {
-  name="$(basename -- "$0")"
-  testDir="/tmp/husky-test-$name"
-  echo
-  echo "-------------------"
-  echo "+ $name"
-  echo "-------------------"
-  echo
-
-  # Create test directory
-  rm -rf "$testDir"
-  mkdir -p "$testDir"
-  cd "$testDir"
-
-  # Init git
-  git init --quiet
-  git config user.email "test@test"
-  git config user.name "test"
-
-  # Init package.json
-  npm_config_loglevel="error" npm init -y 1>/dev/null
+	name="$(basename -- "$0")"
+	testDir="/tmp/husky-test-$name"
+	echo
+	echo "-------------------"
+	echo "+ $name"
+	echo "-------------------"
+	echo
+
+	# Create test directory
+	rm -rf "$testDir"
+	mkdir -p "$testDir"
+	cd "$testDir"
+
+	# Init git
+	git init --quiet
+	git config user.email "test@test"
+	git config user.name "test"
+
+	# Init package.json
+	npm_config_loglevel="error" npm init -y 1>/dev/null
 }
 
 install() {
-  npm install ../husky.tgz
+	npm install ../husky.tgz
 }
 
 expect() {
-  set +e
-  sh -c "$2"
-  exitCode="$?"
-  set -e
-  if [ $exitCode != "$1" ]; then
-    error "expect command \"$2\" to exit with code $1 (got $exitCode)"
-  fi
+	set +e
+	sh -c "$2"
+	exitCode="$?"
+	set -e
+	if [ $exitCode != "$1" ]; then
+		error "expect command \"$2\" to exit with code $1 (got $exitCode)"
+	fi
 }
 
 expect_hooksPath_to_be() {
-  hooksPath=$(git config core.hooksPath)
-  if [ "$hooksPath" != "$1" ]; then
-    error "core.hooksPath should be $1, was $hooksPath"
-  fi
+	set +e
+	hooksPath=$(git config core.hooksPath)
+	if [ "$hooksPath" != "$1" ]; then
+		error "core.hooksPath should be $1, was $hooksPath"
+	fi
 }
 
 error() {
-  echo -e "\e[0;31mERROR:\e[m $1"
-  exit 1
+	echo -e "\e[0;31mERROR:\e[m $1"
+	exit 1
 }
 
 ok() {
-  echo -e "\e[0;32mOK\e[m"
+	echo -e "\e[0;32mOK\e[m"
 }