diff --git a/compiler/tests/org/jetbrains/jet/resolve/MutableDiagnosticsTest.kt b/compiler/tests/org/jetbrains/jet/resolve/MutableDiagnosticsTest.kt
new file mode 100644
index 00000000000..74f91738d07
--- /dev/null
+++ b/compiler/tests/org/jetbrains/jet/resolve/MutableDiagnosticsTest.kt
@@ -0,0 +1,134 @@
+/*
+ * Copyright 2010-2014 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.jet.resolve
+
+import org.jetbrains.jet.lang.resolve.BindingTraceContext
+import org.jetbrains.jet.lang.resolve.DelegatingBindingTrace
+import org.junit.Assert
+import org.jetbrains.jet.lang.diagnostics.Diagnostic
+import org.jetbrains.jet.lang.psi.JetPsiFactory
+import org.jetbrains.jet.cli.jvm.compiler.JetCoreEnvironment
+import org.jetbrains.jet.lang.resolve.lazy.KotlinTestWithEnvironment
+import org.jetbrains.jet.config.CompilerConfiguration
+import org.jetbrains.jet.lang.resolve.BindingTrace
+import org.jetbrains.jet.lang.resolve.Diagnostics
+
+class MutableDiagnosticsTest : KotlinTestWithEnvironment() {
+    override fun createEnvironment(): JetCoreEnvironment? {
+        return JetCoreEnvironment.createForTests(getTestRootDisposable()!!, CompilerConfiguration())
+    }
+
+    private val BindingTrace.diagnostics: Diagnostics
+        get() = getBindingContext().getDiagnostics()
+
+    fun testPropagatingModification() {
+        val base = BindingTraceContext()
+        val middle = DelegatingBindingTrace(base.getBindingContext(), "middle")
+        val derived = DelegatingBindingTrace(middle.getBindingContext(), "derived")
+
+        Assert.assertTrue(base.diagnostics.isEmpty())
+        Assert.assertTrue(middle.diagnostics.isEmpty())
+        Assert.assertTrue(derived.diagnostics.isEmpty())
+
+        middle.report(DummyDiagnostic())
+
+        Assert.assertTrue(base.diagnostics.isEmpty())
+        Assert.assertFalse(middle.diagnostics.isEmpty())
+        Assert.assertFalse(derived.diagnostics.isEmpty())
+
+        base.clearDiagnostics()
+        derived.clear()
+
+        Assert.assertTrue(base.diagnostics.isEmpty())
+        Assert.assertFalse(middle.diagnostics.isEmpty())
+        Assert.assertFalse(derived.diagnostics.isEmpty())
+
+        middle.clear()
+
+        Assert.assertTrue(base.diagnostics.isEmpty())
+        Assert.assertTrue(middle.diagnostics.isEmpty())
+        Assert.assertTrue(derived.diagnostics.isEmpty())
+
+        base.report(DummyDiagnostic())
+        middle.report(DummyDiagnostic())
+        derived.report(DummyDiagnostic())
+
+        Assert.assertEquals(1, base.diagnostics.all().size)
+        Assert.assertEquals(2, middle.diagnostics.all().size)
+        Assert.assertEquals(3, derived.diagnostics.all().size)
+
+        middle.clear()
+
+        Assert.assertEquals(1, base.diagnostics.all().size)
+        Assert.assertEquals(1, middle.diagnostics.all().size)
+        Assert.assertEquals(2, derived.diagnostics.all().size)
+    }
+
+    fun testCaching() {
+        val base = BindingTraceContext()
+        val middle = DelegatingBindingTrace(base.getBindingContext(), "middle")
+        val derived = DelegatingBindingTrace(middle.getBindingContext(), "derived")
+
+        val cachedBase = base.diagnostics
+        val cachedMiddle = middle.diagnostics
+        val cachedDerived = derived.diagnostics
+
+        val cachedListForBase = cachedBase.all()
+        val cachedListForMiddle = cachedMiddle.all()
+        val cachedListForDerived = cachedDerived.all()
+
+        Assert.assertSame(cachedListForBase, base.diagnostics.all())
+        Assert.assertSame(cachedListForMiddle, middle.diagnostics.all())
+        Assert.assertSame(cachedListForDerived, derived.diagnostics.all())
+
+        Assert.assertSame(cachedBase, base.diagnostics)
+        Assert.assertSame(cachedMiddle, middle.diagnostics)
+        Assert.assertSame(cachedDerived, derived.diagnostics)
+
+        derived.report(DummyDiagnostic())
+
+        Assert.assertSame(cachedListForBase, base.diagnostics.all())
+        Assert.assertSame(cachedListForMiddle, middle.diagnostics.all())
+        Assert.assertNotSame(cachedListForDerived, derived.diagnostics.all())
+
+        Assert.assertSame(cachedBase, base.diagnostics)
+        Assert.assertSame(cachedMiddle, middle.diagnostics)
+
+        middle.report(DummyDiagnostic())
+
+        Assert.assertSame(cachedListForBase, base.diagnostics.all())
+        Assert.assertNotSame(cachedListForMiddle, middle.diagnostics.all())
+        Assert.assertNotSame(cachedListForDerived, derived.diagnostics.all())
+
+        Assert.assertSame(cachedBase, base.diagnostics)
+    }
+
+
+    private inner class DummyDiagnostic : Diagnostic {
+        val dummyElement = JetPsiFactory(getEnvironment().getProject()).createType("Int")
+
+        override fun getFactory() = unimplemented()
+        override fun getSeverity() = unimplemented()
+        override fun getPsiElement() = dummyElement
+        override fun getTextRanges() = unimplemented()
+        override fun getPsiFile() = unimplemented()
+        override fun isValid() = unimplemented()
+
+        private fun unimplemented(): Nothing = throw UnsupportedOperationException()
+
+    }
+}