diff --git a/bundle/tests/override_sync_test.go b/bundle/tests/override_sync_test.go
deleted file mode 100644
index 64f28e37..00000000
--- a/bundle/tests/override_sync_test.go
+++ /dev/null
@@ -1,41 +0,0 @@
-package config_tests
-
-import (
-	"path/filepath"
-	"testing"
-
-	"github.com/databricks/cli/bundle"
-	"github.com/stretchr/testify/assert"
-)
-
-func TestOverrideSyncTarget(t *testing.T) {
-	var b *bundle.Bundle
-
-	b = loadTarget(t, "./override_sync", "development")
-	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*"), filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
-	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
-
-	b = loadTarget(t, "./override_sync", "staging")
-	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*"), filepath.FromSlash("fixtures/*")}, b.Config.Sync.Include)
-	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
-
-	b = loadTarget(t, "./override_sync", "prod")
-	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*")}, b.Config.Sync.Include)
-	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
-}
-
-func TestOverrideSyncTargetNoRootSync(t *testing.T) {
-	var b *bundle.Bundle
-
-	b = loadTarget(t, "./override_sync_no_root", "development")
-	assert.ElementsMatch(t, []string{filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
-	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
-
-	b = loadTarget(t, "./override_sync_no_root", "staging")
-	assert.ElementsMatch(t, []string{filepath.FromSlash("fixtures/*")}, b.Config.Sync.Include)
-	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
-
-	b = loadTarget(t, "./override_sync_no_root", "prod")
-	assert.ElementsMatch(t, []string{}, b.Config.Sync.Include)
-	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
-}
diff --git a/bundle/tests/sync/nil/databricks.yml b/bundle/tests/sync/nil/databricks.yml
new file mode 100644
index 00000000..a8b4b901
--- /dev/null
+++ b/bundle/tests/sync/nil/databricks.yml
@@ -0,0 +1,19 @@
+bundle:
+  name: sync_nil
+
+workspace:
+  host: https://acme.cloud.databricks.com/
+
+sync:
+  include: ~
+  exclude: ~
+
+targets:
+  development:
+
+  staging:
+    sync:
+      include:
+        - tests/*
+      exclude:
+        - dist
diff --git a/bundle/tests/sync/nil_root/databricks.yml b/bundle/tests/sync/nil_root/databricks.yml
new file mode 100644
index 00000000..44e6c48e
--- /dev/null
+++ b/bundle/tests/sync/nil_root/databricks.yml
@@ -0,0 +1,17 @@
+bundle:
+  name: sync_nil_root
+
+workspace:
+  host: https://acme.cloud.databricks.com/
+
+sync: ~
+
+targets:
+  development:
+
+  staging:
+    sync:
+      include:
+        - tests/*
+      exclude:
+        - dist
diff --git a/bundle/tests/override_sync/databricks.yml b/bundle/tests/sync/override/databricks.yml
similarity index 93%
rename from bundle/tests/override_sync/databricks.yml
rename to bundle/tests/sync/override/databricks.yml
index 1417b864..8bb0e1de 100644
--- a/bundle/tests/override_sync/databricks.yml
+++ b/bundle/tests/sync/override/databricks.yml
@@ -1,5 +1,5 @@
 bundle:
-  name: override_sync
+  name: sync_override
 
 workspace:
   host: https://acme.cloud.databricks.com/
diff --git a/bundle/tests/override_sync_no_root/databricks.yml b/bundle/tests/sync/override_no_root/databricks.yml
similarity index 90%
rename from bundle/tests/override_sync_no_root/databricks.yml
rename to bundle/tests/sync/override_no_root/databricks.yml
index 109d8da1..bd1bfe8e 100644
--- a/bundle/tests/override_sync_no_root/databricks.yml
+++ b/bundle/tests/sync/override_no_root/databricks.yml
@@ -1,5 +1,5 @@
 bundle:
-  name: override_sync
+  name: sync_override_no_root
 
 workspace:
   host: https://acme.cloud.databricks.com/
diff --git a/bundle/tests/sync_include_exclude_no_matches_test.go b/bundle/tests/sync_include_exclude_no_matches_test.go
index 135e2faa..94cedbaa 100644
--- a/bundle/tests/sync_include_exclude_no_matches_test.go
+++ b/bundle/tests/sync_include_exclude_no_matches_test.go
@@ -13,7 +13,7 @@ import (
 )
 
 func TestSyncIncludeExcludeNoMatchesTest(t *testing.T) {
-	b := loadTarget(t, "./override_sync", "development")
+	b := loadTarget(t, "./sync/override", "development")
 
 	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), validate.ValidateSyncPatterns())
 	require.Len(t, diags, 3)
@@ -21,7 +21,7 @@ func TestSyncIncludeExcludeNoMatchesTest(t *testing.T) {
 
 	require.Equal(t, diags[0].Severity, diag.Warning)
 	require.Equal(t, diags[0].Summary, "Pattern dist does not match any files")
-	require.Equal(t, diags[0].Location.File, filepath.Join("override_sync", "databricks.yml"))
+	require.Equal(t, diags[0].Location.File, filepath.Join("sync", "override", "databricks.yml"))
 	require.Equal(t, diags[0].Location.Line, 17)
 	require.Equal(t, diags[0].Location.Column, 11)
 	require.Equal(t, diags[0].Path.String(), "sync.exclude[0]")
diff --git a/bundle/tests/sync_test.go b/bundle/tests/sync_test.go
new file mode 100644
index 00000000..d08e889c
--- /dev/null
+++ b/bundle/tests/sync_test.go
@@ -0,0 +1,65 @@
+package config_tests
+
+import (
+	"path/filepath"
+	"testing"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/stretchr/testify/assert"
+)
+
+func TestSyncOverride(t *testing.T) {
+	var b *bundle.Bundle
+
+	b = loadTarget(t, "./sync/override", "development")
+	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*"), filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
+	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
+
+	b = loadTarget(t, "./sync/override", "staging")
+	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*"), filepath.FromSlash("fixtures/*")}, b.Config.Sync.Include)
+	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
+
+	b = loadTarget(t, "./sync/override", "prod")
+	assert.ElementsMatch(t, []string{filepath.FromSlash("src/*")}, b.Config.Sync.Include)
+	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
+}
+
+func TestSyncOverrideNoRootSync(t *testing.T) {
+	var b *bundle.Bundle
+
+	b = loadTarget(t, "./sync/override_no_root", "development")
+	assert.ElementsMatch(t, []string{filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
+	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
+
+	b = loadTarget(t, "./sync/override_no_root", "staging")
+	assert.ElementsMatch(t, []string{filepath.FromSlash("fixtures/*")}, b.Config.Sync.Include)
+	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
+
+	b = loadTarget(t, "./sync/override_no_root", "prod")
+	assert.ElementsMatch(t, []string{}, b.Config.Sync.Include)
+	assert.ElementsMatch(t, []string{}, b.Config.Sync.Exclude)
+}
+
+func TestSyncNil(t *testing.T) {
+	var b *bundle.Bundle
+
+	b = loadTarget(t, "./sync/nil", "development")
+	assert.Nil(t, b.Config.Sync.Include)
+	assert.Nil(t, b.Config.Sync.Exclude)
+
+	b = loadTarget(t, "./sync/nil", "staging")
+	assert.ElementsMatch(t, []string{filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
+	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
+}
+
+func TestSyncNilRoot(t *testing.T) {
+	var b *bundle.Bundle
+
+	b = loadTarget(t, "./sync/nil_root", "development")
+	assert.Nil(t, b.Config.Sync.Include)
+	assert.Nil(t, b.Config.Sync.Exclude)
+
+	b = loadTarget(t, "./sync/nil_root", "staging")
+	assert.ElementsMatch(t, []string{filepath.FromSlash("tests/*")}, b.Config.Sync.Include)
+	assert.ElementsMatch(t, []string{filepath.FromSlash("dist")}, b.Config.Sync.Exclude)
+}