diff --git a/python/gtsam/tests/test_lago.py b/python/gtsam/tests/test_lago.py
new file mode 100644
index 000000000..f1e62ca92
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+++ b/python/gtsam/tests/test_lago.py
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+"""
+GTSAM Copyright 2010, Georgia Tech Research Corporation,
+Atlanta, Georgia 30332-0415
+All Rights Reserved
+Authors: Frank Dellaert, et al. (see THANKS for the full author list)
+See LICENSE for the license information
+
+Author: John Lambert (Python)
+"""
+
+import numpy as np
+
+import gtsam
+from gtsam import Pose2, PriorFactorPose2, Values
+
+
+def vector3(x: float, y: float, z: float) -> np.ndarray:
+    """Create 3d double numpy array."""
+    return np.array([x, y, z], dtype=float)
+
+
+def test_lago() -> None:
+    """Smokescreen to ensure LAGO can be imported and run on toy data stored in a g2o file."""
+    g2oFile = gtsam.findExampleDataFile("noisyToyGraph.txt")
+
+    graph = gtsam.NonlinearFactorGraph()
+    graph, initial = gtsam.readG2o(g2oFile)
+
+    # Add prior on the pose having index (key) = 0
+    priorModel = gtsam.noiseModel.Diagonal.Variances(vector3(1e-6, 1e-6, 1e-8))
+    graph.add(PriorFactorPose2(0, Pose2(), priorModel))
+
+    estimateLago: Values = gtsam.lago.initialize(graph)
+    assert isinstance(estimateLago, Values)