diff --git a/test/units/TEST-07-PID1.issue-33672.sh b/test/units/TEST-07-PID1.issue-33672.sh
new file mode 100755
index 0000000000..ab388e32b1
--- /dev/null
+++ b/test/units/TEST-07-PID1.issue-33672.sh
@@ -0,0 +1,41 @@
+#!/usr/bin/env bash
+# SPDX-License-Identifier: LGPL-2.1-or-later
+# -*- mode: shell-script; indent-tabs-mode: nil; sh-basic-offset: 4; -*-
+# ex: ts=8 sw=4 sts=4 et filetype=sh
+
+set -eux
+set -o pipefail
+
+# shellcheck source=test/units/util.sh
+. "$(dirname "$0")"/util.sh
+
+# systemctl status always shows daemon-reload warning for a masked service with drop-ins
+# Issue: https://github.com/systemd/systemd/issues/33672
+
+UNIT=test-23-NeedDaemonReload.service
+
+cleanup() {
+    rm -rf /run/systemd/system/"$UNIT" /run/systemd/system/"$UNIT".d
+    systemctl daemon-reload
+}
+
+trap cleanup EXIT
+
+cat > /run/systemd/system/"$UNIT" <<EOF
+[Service]
+ExecStart=/usr/bin/true
+EOF
+
+mkdir /run/systemd/system/"$UNIT".d
+cat > /run/systemd/system/"$UNIT".d/desc.conf <<EOF
+[Unit]
+Description=Test NeedDaemonReload status of a masked unit with drop-ins
+EOF
+
+systemctl daemon-reload
+systemctl unmask "$UNIT"
+assert_eq "$(systemctl show -P NeedDaemonReload "$UNIT")" no
+
+systemctl mask "$UNIT"
+# FIXME: should be "no"
+assert_eq "$(systemctl show -P NeedDaemonReload "$UNIT")" yes