diff --git a/tests/unit/test_schema_reader.py b/tests/unit/test_schema_reader.py
index 39ac0dfab..ebbdf3418 100644
--- a/tests/unit/test_schema_reader.py
+++ b/tests/unit/test_schema_reader.py
@@ -20,9 +20,11 @@
     OFFSET_EMPTY,
     OFFSET_UNINITIALIZED,
 )
+from karapace.typing import SchemaId
 from tests.base_testcase import BaseTestCase
 from unittest.mock import Mock
 
+import confluent_kafka
 import json
 import pytest
 import random
@@ -243,3 +245,50 @@ def test_schema_reader_can_end_to_ready_state_if_last_message_is_invalid_in_sche
     assert schema_reader.offset == 3
     assert schema_reader.ready is True
     assert schema_reader.max_messages_to_process == MAX_MESSAGES_TO_CONSUME_AFTER_STARTUP
+
+
+def test_soft_deleted_schema_storing() -> None:
+    """This tests a case when _schemas has been compacted and only
+    the soft deleted version of the schema is present.
+    """
+    key_formatter_mock = Mock(spec=KeyFormatter)
+    consumer_mock = Mock(spec=KafkaConsumer)
+    soft_deleted_schema_record = Mock(spec=confluent_kafka.Message)
+    soft_deleted_schema_record.error.return_value = None
+    soft_deleted_schema_record.key.return_value = json.dumps(
+        {
+            "keytype": "SCHEMA",
+            "subject": "soft-delete-test",
+            "version": 1,
+            "magic": 0,
+        }
+    )
+    soft_deleted_schema_record.value.return_value = json.dumps(
+        {
+            "deleted": True,
+            "id": 1,
+            "schema": '"int"',
+            "subject": "test-soft-delete-test",
+            "version": 1,
+        }
+    )
+
+    consumer_mock.consume.return_value = [soft_deleted_schema_record]
+    # Return tuple (beginning, end), end offset is the next upcoming record offset
+    consumer_mock.get_watermark_offsets.return_value = (0, 1)
+
+    offset_watcher = OffsetWatcher()
+    schema_reader = KafkaSchemaReader(
+        config=DEFAULTS,
+        offset_watcher=offset_watcher,
+        key_formatter=key_formatter_mock,
+        master_coordinator=None,
+        database=InMemoryDatabase(),
+    )
+    schema_reader.consumer = consumer_mock
+    schema_reader.offset = 0
+
+    schema_reader.handle_messages()
+
+    soft_deleted_stored_schema = schema_reader.database.find_schema(schema_id=SchemaId(1))
+    assert soft_deleted_stored_schema is not None