diff --git a/tests/functional/flakes/circular.sh b/tests/functional/flakes/circular.sh
deleted file mode 100644
index 1c4293763..000000000
--- a/tests/functional/flakes/circular.sh
+++ /dev/null
@@ -1,49 +0,0 @@
-# Test circular flake dependencies.
-source ./common.sh
-
-requireGit
-
-flakeA=$TEST_ROOT/flakeA
-flakeB=$TEST_ROOT/flakeB
-
-createGitRepo $flakeA
-createGitRepo $flakeB
-
-cat > $flakeA/flake.nix <<EOF
-{
-  inputs.b.url = "git+file://$flakeB";
-  inputs.b.inputs.a.follows = "/";
-
-  outputs = { self, b }: {
-    foo = 123 + b.bar;
-    xyzzy = 1000;
-  };
-}
-EOF
-
-git -C $flakeA add flake.nix
-
-cat > $flakeB/flake.nix <<EOF
-{
-  inputs.a.url = "git+file://$flakeA";
-
-  outputs = { self, a }: {
-    bar = 456 + a.xyzzy;
-  };
-}
-EOF
-
-git -C $flakeB add flake.nix
-git -C $flakeB commit -a -m 'Foo'
-
-[[ $(nix eval $flakeA#foo) = 1579 ]]
-[[ $(nix eval $flakeA#foo) = 1579 ]]
-
-sed -i $flakeB/flake.nix -e 's/456/789/'
-git -C $flakeB commit -a -m 'Foo'
-
-nix flake update b --flake $flakeA
-[[ $(nix eval $flakeA#foo) = 1912 ]]
-
-# Test list-inputs with circular dependencies
-nix flake metadata $flakeA
diff --git a/tests/functional/meson.build b/tests/functional/meson.build
index 14dfb494a..fc86095bb 100644
--- a/tests/functional/meson.build
+++ b/tests/functional/meson.build
@@ -36,7 +36,6 @@ functional_tests_scripts = [
   'flakes/develop.sh',
   'flakes/develop-r8854.sh',
   'flakes/mercurial.sh',
-  'flakes/circular.sh',
   'flakes/init.sh',
   'flakes/inputs.sh',
   'flakes/follow-paths.sh',
diff --git a/tests/functional2/flakes/test_circular.py b/tests/functional2/flakes/test_circular.py
new file mode 100644
index 000000000..af5b358e5
--- /dev/null
+++ b/tests/functional2/flakes/test_circular.py
@@ -0,0 +1,55 @@
+from testlib.fixtures.nix import Nix
+from testlib.fixtures.git import Git
+from testlib.fixtures.file_helper import with_files, File
+from testlib.utils import get_global_asset_pack
+from pathlib import Path
+
+
+@with_files(
+    {
+        "flakeA": get_global_asset_pack(".git")
+        | {
+            "flake.nix": File("""{
+          inputs.b.url = "git+file://$flakeB";
+          inputs.b.inputs.a.follows = "/";
+
+          outputs = { self, b }: {
+            foo = 123 + b.bar;
+            xyzzy = 1000;
+          };
+        }""")
+        },
+        "flakeB": get_global_asset_pack(".git")
+        | {
+            "flake.nix": File("""{
+          inputs.a.url = "git+file://$flakeA";
+
+          outputs = { self, a }: {
+            bar = 456 + a.xyzzy;
+          };
+        }""")
+        },
+    }
+)
+def test_circular(nix: Nix, files: Path, git: Git):
+    nix.settings.add_xp_feature("nix-command", "flakes")
+
+    path = files / "flakeA/flake.nix"
+    path.write_text(path.read_text().replace("$flakeB", str(files / "flakeB")))
+    git(files / "flakeA", "add", "flake.nix")
+
+    path = files / "flakeB/flake.nix"
+    path.write_text(path.read_text().replace("$flakeA", str(files / "flakeA")))
+    git(files / "flakeB", "add", "flake.nix")
+    git(files / "flakeB", "commit", "-a", "-m", "Foo")
+
+    assert nix.nix(["eval", f"{files}/flakeA#foo"]).run().ok().stdout_s == "1579\n"
+
+    path = files / "flakeB/flake.nix"
+    path.write_text(path.read_text().replace("456", "789"))
+    git(files / "flakeB", "commit", "-a", "-m", "Foo")
+    nix.nix(["flake", "update", "b", "--flake", f"{files}/flakeA"]).run().ok()
+    assert nix.nix(["eval", f"{files}/flakeA#foo"]).run().ok().stdout_s == "1912\n"
+
+    # Test list-inputs with circular dependencies
+    nix.nix(["flake", "metadata", f"{files}/flakeA"]).run().ok()