diff --git a/idea/testData/templates/Iter.kt b/idea/testData/templates/Iter.kt
new file mode 100644
index 00000000000..1a68ddab34a
--- /dev/null
+++ b/idea/testData/templates/Iter.kt
@@ -0,0 +1,16 @@
+import java.io.InputStream
+import java.util.ArrayList
+import java.io.FileInputStream
+import java.util.HashSet
+
+class MyClass {
+    public var collection : HashSet<Int>? = null
+    private var isAlive : Boolean = false
+
+    fun main(args : Array<String>, v : Int) {
+        var str = ""
+        val myList = ArrayList<String>()
+        val stream = FileInputStream(".")
+        <caret>
+    }
+}
diff --git a/idea/tests/org/jetbrains/jet/plugin/codeInsight/LiveTemplatesTest.java b/idea/tests/org/jetbrains/jet/plugin/codeInsight/LiveTemplatesTest.java
new file mode 100644
index 00000000000..2c65045b33c
--- /dev/null
+++ b/idea/tests/org/jetbrains/jet/plugin/codeInsight/LiveTemplatesTest.java
@@ -0,0 +1,84 @@
+package org.jetbrains.jet.plugin.codeInsight;
+
+import com.intellij.codeInsight.lookup.LookupElement;
+import com.intellij.codeInsight.lookup.LookupEx;
+import com.intellij.codeInsight.lookup.LookupManager;
+import com.intellij.codeInsight.template.TemplateManager;
+import com.intellij.codeInsight.template.impl.TemplateManagerImpl;
+import com.intellij.ide.DataManager;
+import com.intellij.openapi.editor.actionSystem.EditorActionHandler;
+import com.intellij.openapi.editor.actionSystem.EditorActionManager;
+import com.intellij.testFramework.LightProjectDescriptor;
+import com.intellij.testFramework.fixtures.LightCodeInsightFixtureTestCase;
+import com.intellij.util.ArrayUtil;
+import org.jetbrains.annotations.NonNls;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.jet.plugin.JetWithJdkAndRuntimeLightProjectDescriptor;
+import org.jetbrains.jet.plugin.PluginTestCaseBase;
+
+import java.io.File;
+import java.util.ArrayList;
+import java.util.Arrays;
+
+/**
+ * @author Evgeny Gerashchenko
+ * @since 2/10/12
+ */
+public class LiveTemplatesTest extends LightCodeInsightFixtureTestCase {
+    public void testIter() {
+        myFixture.configureByFile(getTestName(false) + ".kt");
+        myFixture.type("iter");
+
+        doAction("ExpandLiveTemplateByTab");
+        assertStringItems("args", "collection", "myList", "str", "stream");
+    }
+
+    @NotNull
+    @Override
+    protected LightProjectDescriptor getProjectDescriptor() {
+        return JetWithJdkAndRuntimeLightProjectDescriptor.INSTANCE;
+    }
+
+    @SuppressWarnings("MethodOverridesPrivateMethodOfSuperclass")
+    private void doAction(@NotNull String actionId) {
+        EditorActionManager actionManager = EditorActionManager.getInstance();
+        EditorActionHandler actionHandler = actionManager.getActionHandler(actionId);
+        actionHandler.execute(myFixture.getEditor(), DataManager.getInstance().getDataContext());
+    }
+
+    @Override
+    protected void tearDown() throws Exception {
+        ((TemplateManagerImpl) TemplateManager.getInstance(getProject())).setTemplateTesting(false);
+        super.tearDown();
+    }
+
+    private void assertStringItems(@NonNls String... items) {
+        assertEquals(Arrays.asList(items), Arrays.asList(getItemStringsSorted()));
+    }
+
+    @Override
+    protected void setUp() throws Exception {
+        super.setUp();
+
+        myFixture.setTestDataPath(new File(PluginTestCaseBase.getTestDataPathBase(), "/templates").getPath() +
+                                  File.separator);
+
+        ((TemplateManagerImpl) TemplateManager.getInstance(getProject())).setTemplateTesting(true);
+    }
+
+    private String[] getItemStrings() {
+        LookupEx lookup = LookupManager.getActiveLookup(myFixture.getEditor());
+        assertNotNull(lookup);
+        ArrayList<String> result = new ArrayList<String>();
+        for (LookupElement element : lookup.getItems()) {
+            result.add(element.getLookupString());
+        }
+        return ArrayUtil.toStringArray(result);
+    }
+    
+    private String[] getItemStringsSorted() {
+        String[] items = getItemStrings();
+        Arrays.sort(items);
+        return items;
+    }
+}