diff --git a/crates/nu-command/src/core_commands/overlay/use_.rs b/crates/nu-command/src/core_commands/overlay/use_.rs
index 816b3cc1aa..052cdb7a90 100644
--- a/crates/nu-command/src/core_commands/overlay/use_.rs
+++ b/crates/nu-command/src/core_commands/overlay/use_.rs
@@ -191,6 +191,13 @@ impl Command for OverlayUse {
                 description: "Create an overlay from a module",
                 example: r#"module spam { export def foo [] { "foo" } }
     overlay use spam
+    foo"#,
+                result: None,
+            },
+            Example {
+                description: "Create an overlay from a module and rename it",
+                example: r#"module spam { export def foo [] { "foo" } }
+    overlay use spam as spam_new
     foo"#,
                 result: None,
             },
diff --git a/tests/overlays/mod.rs b/tests/overlays/mod.rs
index f51a14d631..57cca589dd 100644
--- a/tests/overlays/mod.rs
+++ b/tests/overlays/mod.rs
@@ -17,6 +17,21 @@ fn add_overlay() {
     assert_eq!(actual_repl.out, "foo");
 }
 
+#[test]
+fn add_overlay_as_new_name() {
+    let inp = &[
+        r#"module spam { export def foo [] { "foo" } }"#,
+        r#"overlay use spam as spam_new"#,
+        r#"foo"#,
+    ];
+
+    let actual = nu!(cwd: "tests/overlays", pipeline(&inp.join("; ")));
+    let actual_repl = nu!(cwd: "tests/overlays", nu_repl_code(inp));
+
+    assert_eq!(actual.out, "foo");
+    assert_eq!(actual_repl.out, "foo");
+}
+
 #[test]
 fn add_overlay_twice() {
     let inp = &[