diff --git a/tests/basic/test_main.py b/tests/basic/test_main.py
index 1deb5644d..434441fca 100644
--- a/tests/basic/test_main.py
+++ b/tests/basic/test_main.py
@@ -77,6 +77,54 @@ class TestMain(TestCase):
         self.assertTrue((subdir / "foo.txt").exists())
         self.assertTrue((subdir / "bar.txt").exists())
 
+    @patch('aider.main.Path.home')
+    @patch('aider.main.Path.glob')
+    @patch('aider.main.os.chdir')
+    @patch('aider.main.InputOutput')
+    def test_setup_git_home_existing_repo(self, mock_io, mock_chdir, mock_glob, mock_home):
+        mock_home.return_value = Path('/home/user')
+        mock_glob.return_value = [Path('/home/user/repo1/.git'), Path('/home/user/repo2/.git')]
+        mock_io.return_value.prompt_ask.return_value = '1'
+
+        result = setup_git_home(mock_io.return_value)
+
+        mock_io.return_value.tool_output.assert_called_with("Found git repositories in your home directory:")
+        mock_io.return_value.prompt_ask.assert_called_once()
+        mock_chdir.assert_called_once_with(Path('/home/user/repo1'))
+        self.assertEqual(result, str(Path('/home/user/repo1')))
+
+    @patch('aider.main.Path.home')
+    @patch('aider.main.Path.glob')
+    @patch('aider.main.os.chdir')
+    @patch('aider.main.InputOutput')
+    def test_setup_git_home_new_project(self, mock_io, mock_chdir, mock_glob, mock_home):
+        mock_home.return_value = Path('/home/user')
+        mock_glob.return_value = [Path('/home/user/repo1/.git'), Path('/home/user/repo2/.git')]
+        mock_io.return_value.prompt_ask.return_value = 'new_project'
+
+        result = setup_git_home(mock_io.return_value)
+
+        mock_io.return_value.tool_output.assert_called_with("Found git repositories in your home directory:")
+        mock_io.return_value.prompt_ask.assert_called_once()
+        mock_chdir.assert_called_once_with(Path('/home/user/new_project'))
+        self.assertEqual(result, str(Path('/home/user/new_project')))
+
+    @patch('aider.main.Path.home')
+    @patch('aider.main.Path.glob')
+    @patch('aider.main.os.chdir')
+    @patch('aider.main.InputOutput')
+    def test_setup_git_home_no_existing_repos(self, mock_io, mock_chdir, mock_glob, mock_home):
+        mock_home.return_value = Path('/home/user')
+        mock_glob.return_value = []
+        mock_io.return_value.user_input.return_value = 'new_project'
+
+        result = setup_git_home(mock_io.return_value)
+
+        mock_io.return_value.tool_output.assert_not_called()
+        mock_io.return_value.user_input.assert_called_once_with("Enter a name for your new project directory:")
+        mock_chdir.assert_called_once_with(Path('/home/user/new_project'))
+        self.assertEqual(result, str(Path('/home/user/new_project')))
+
     def test_main_with_git_config_yml(self):
         make_repo()