diff --git a/README.rst b/README.rst
index ac5e4091..1ce6be3e 100644
--- a/README.rst
+++ b/README.rst
@@ -162,7 +162,7 @@ See `model-agnostic notebook
 **Gradient-based methods**
 
 * An explicit loss-based method described in `Mothilal et al. (2020) <https://arxiv.org/abs/1905.07697>`_ (Default for deep learning models).
-* A Variational AutoEncoder (VAE)-based method described in `Mahajan et al. (2019) <https://arxiv.org/abs/1912.03277>`_ (see the BaseVAE `notebook <https://github.com/interpretml/DiCE/blob/master/docs/notebooks/DiCE_getting_started_feasible.ipynb>`_).
+* A Variational AutoEncoder (VAE)-based method described in `Mahajan et al. (2019) <https://arxiv.org/abs/1912.03277>`_ (see the BaseVAE `notebook <https://github.com/interpretml/DiCE/blob/master/docs/source/notebooks/DiCE_getting_started_feasible.ipynb>`_).
 
 The last two methods require a differentiable model, such as a neural network. If you are interested in a specific method, do raise an issue `here <https://github.com/interpretml/DiCE/issues>`_.
 
diff --git a/tests/test_readme_links.py b/tests/test_readme_links.py
new file mode 100644
index 00000000..eb7119e1
--- /dev/null
+++ b/tests/test_readme_links.py
@@ -0,0 +1,49 @@
+"""Lightweight regression test for README notebook links.
+
+Issue #308 reported that the BaseVAE notebook link in README.rst pointed
+at `docs/notebooks/...` instead of the actual `docs/source/notebooks/...`
+path. The link had been broken for years because nothing in CI checked
+that in-repo notebook references resolve to real files.
+
+This test scans README.rst for any `https://github.com/interpretml/DiCE/
+blob/<ref>/docs/...notebook.ipynb` URL and asserts each one resolves to
+a file under the working tree. It only validates *in-repo* links — it
+does not hit the network.
+"""
+from __future__ import annotations
+
+import os
+import re
+
+REPO_ROOT = os.path.abspath(os.path.join(os.path.dirname(__file__), os.pardir))
+README_PATH = os.path.join(REPO_ROOT, "README.rst")
+
+# Match `https://github.com/interpretml/DiCE/blob/<ref>/<path>.ipynb`.
+_NOTEBOOK_RE = re.compile(
+    r"https://github\.com/interpretml/DiCE/blob/[^/]+/(?P<path>[^>\s)]+\.ipynb)"
+)
+
+
+def _readme_notebook_paths():
+    with open(README_PATH, "r", encoding="utf-8") as fh:
+        text = fh.read()
+    return list({m.group("path") for m in _NOTEBOOK_RE.finditer(text)})
+
+
+def test_readme_lists_at_least_one_notebook_link():
+    # Sanity: if this drops to 0 the regex got broken or README was rewritten.
+    assert _readme_notebook_paths(), "README must list at least one notebook"
+
+
+def test_readme_notebook_links_resolve():
+    """Every notebook URL in README.rst must point to a file in the repo."""
+    missing = [
+        path
+        for path in _readme_notebook_paths()
+        if not os.path.isfile(os.path.join(REPO_ROOT, path))
+    ]
+    assert not missing, (
+        "README.rst links to notebooks that do not exist in the repo: "
+        f"{missing}. See issue #308 — make sure the URL path matches the "
+        "actual on-disk path under docs/source/notebooks/."
+    )