diff --git a/ledger/ledger-api-test-tool/BUILD.bazel b/ledger/ledger-api-test-tool/BUILD.bazel
index 0e520094ca7..21824f0b350 100644
--- a/ledger/ledger-api-test-tool/BUILD.bazel
+++ b/ledger/ledger-api-test-tool/BUILD.bazel
@@ -30,6 +30,7 @@ load(
     ":conformance.bzl",
     "conformance_test",
 )
+load("@os_info//:os_info.bzl", "is_windows")
 
 # we release ledger-api-test-tool-stable as ledger-api-test-tool
 da_scala_binary(
@@ -270,3 +271,23 @@ conformance_test(
     ],
     test_tool_args = ["--verbose"],
 )
+
+# This deliberately uses the deploy.jar since that’s what we ship
+# and we want to test that the extract option works there.
+# Given subleties in classpaths, it could potentially work
+# in the non-deploy jar.
+sh_test(
+    name = "test-extract",
+    srcs = ["test-extract.sh"],
+    args = [
+        "$(location @local_jdk//:bin/java.exe)" if is_windows else "$(location @local_jdk//:bin/java)",
+        "$(location :ledger-api-test-tool_deploy.jar)",
+    ],
+    data = [
+        ":ledger-api-test-tool_deploy.jar",
+        "@local_jdk//:bin/java.exe" if is_windows else "@local_jdk//:bin/java",
+    ],
+    deps = [
+        "@bazel_tools//tools/bash/runfiles",
+    ],
+)
diff --git a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
index 4cad6c0f46b..16681204f56 100644
--- a/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
+++ b/ledger/ledger-api-test-tool/src/main/scala/com/daml/ledger/api/testtool/LedgerApiTestTool.scala
@@ -70,7 +70,7 @@ object LedgerApiTestTool {
     val pwd = Paths.get(".").toAbsolutePath
     println(s"Extracting all DAML resources necessary to run the tests into $pwd.")
     for (resource <- resources) {
-      val is = getClass.getResourceAsStream(resource)
+      val is = getClass.getClassLoader.getResourceAsStream(resource)
       if (is == null) sys.error(s"Could not find $resource in classpath")
       val targetFile = new File(new File(resource).getName)
       Files.copy(is, targetFile.toPath, StandardCopyOption.REPLACE_EXISTING)
diff --git a/ledger/ledger-api-test-tool/test-extract.sh b/ledger/ledger-api-test-tool/test-extract.sh
new file mode 100755
index 00000000000..f7391864b19
--- /dev/null
+++ b/ledger/ledger-api-test-tool/test-extract.sh
@@ -0,0 +1,47 @@
+#!/usr/bin/env bash
+# Copyright (c) 2021 Digital Asset (Switzerland) GmbH and/or its affiliates. All rights reserved.
+# SPDX-License-Identifier: Apache-2.0
+
+#
+# Golden scenario tests
+#
+
+set -eu
+
+export LC_ALL="en_US.UTF-8"
+
+# --- begin runfiles.bash initialization ---
+# Copy-pasted from Bazel's Bash runfiles library (tools/bash/runfiles/runfiles.bash).
+if [[ ! -d "${RUNFILES_DIR:-/dev/null}" && ! -f "${RUNFILES_MANIFEST_FILE:-/dev/null}" ]]; then
+  if [[ -f "$0.runfiles_manifest" ]]; then
+    export RUNFILES_MANIFEST_FILE="$0.runfiles_manifest"
+  elif [[ -f "$0.runfiles/MANIFEST" ]]; then
+    export RUNFILES_MANIFEST_FILE="$0.runfiles/MANIFEST"
+  elif [[ -f "$0.runfiles/bazel_tools/tools/bash/runfiles/runfiles.bash" ]]; then
+    export RUNFILES_DIR="$0.runfiles"
+  fi
+fi
+if [[ -f "${RUNFILES_DIR:-/dev/null}/bazel_tools/tools/bash/runfiles/runfiles.bash" ]]; then
+  source "${RUNFILES_DIR}/bazel_tools/tools/bash/runfiles/runfiles.bash"
+elif [[ -f "${RUNFILES_MANIFEST_FILE:-/dev/null}" ]]; then
+  source "$(grep -m1 "^bazel_tools/tools/bash/runfiles/runfiles.bash " \
+            "$RUNFILES_MANIFEST_FILE" | cut -d ' ' -f 2-)"
+else
+  echo >&2 "ERROR: cannot find @bazel_tools//tools/bash/runfiles:runfiles.bash"
+  exit 1
+fi
+# --- end runfiles.bash initialization ---
+
+JAVA=$(rlocation "$TEST_WORKSPACE/$1")
+TEST_TOOL=$(rlocation "$TEST_WORKSPACE/$2")
+
+DIR=$(mktemp -d)
+trap "rm -rf $$DIR" EXIT
+
+cd $DIR
+$JAVA -jar $TEST_TOOL --extract
+if [[ $(ls | wc -l) != 4 ]]; then
+    echo "Expected 4 DARs but got:"
+    ls
+    exit 1
+fi