diff --git a/Assets/Mirror/Tests/Editor/NetworkIdentityTests.cs b/Assets/Mirror/Tests/Editor/NetworkIdentityTests.cs
index a3f4a4035..a1616a838 100644
--- a/Assets/Mirror/Tests/Editor/NetworkIdentityTests.cs
+++ b/Assets/Mirror/Tests/Editor/NetworkIdentityTests.cs
@@ -223,6 +223,14 @@ public override bool OnRebuildObservers(HashSet<NetworkConnection> observers, bo
                 // OnRebuildObservers, but return no observers
                 return true;
             }
+
+            public int hostVisibilityCalled;
+            public bool hostVisibilityValue;
+            public override void OnSetHostVisibility(bool visible)
+            {
+                ++hostVisibilityCalled;
+                hostVisibilityValue = visible;
+            }
         }
 
         class IsClientServerCheckComponent : NetworkBehaviour
@@ -1443,5 +1451,34 @@ public void RebuildObserversDoesNotAddServerConnectionsIfImplemented()
             NetworkServer.Shutdown();
             Transport.activeTransport = null;
         }
+
+        [Test]
+        public void RebuildObserversSetsHostVisibility()
+        {
+            // set local connection for host mode
+            ULocalConnectionToClient localConnection = new ULocalConnectionToClient();
+            localConnection.connectionToServer = new ULocalConnectionToServer();
+            localConnection.isReady = true;
+            NetworkServer.SetLocalConnection(localConnection);
+
+            // add at least one observers component, otherwise it will just add
+            // all server connections
+            RebuildEmptyObserversNetworkBehaviour comp = gameObject.AddComponent<RebuildEmptyObserversNetworkBehaviour>();
+            Assert.That(comp.hostVisibilityCalled, Is.EqualTo(0));
+
+            // call OnStartServer so that observers dict is created
+            identity.OnStartServer();
+
+            // rebuild will result in 0 observers. it won't contain host
+            // connection so it should call OnSetHostVisibility(false)
+            identity.RebuildObservers(true);
+            Assert.That(identity.observers.Count, Is.EqualTo(0));
+            Assert.That(comp.hostVisibilityCalled, Is.EqualTo(1));
+            Assert.That(comp.hostVisibilityValue, Is.False);
+
+            // clean up
+            NetworkServer.RemoveLocalConnection();
+            NetworkServer.Shutdown();
+        }
     }
 }