diff --git a/idea/testData/templates/closure.exp.kt b/idea/testData/templates/closure.exp.kt
new file mode 100644
index 00000000000..bf00def3787
--- /dev/null
+++ b/idea/testData/templates/closure.exp.kt
@@ -0,0 +1,3 @@
+fun main(args : Array<String>) {
+    val someFun = {param -> param}<caret>
+}
diff --git a/idea/testData/templates/closure.kt b/idea/testData/templates/closure.kt
new file mode 100644
index 00000000000..83464539e04
--- /dev/null
+++ b/idea/testData/templates/closure.kt
@@ -0,0 +1,3 @@
+fun main(args : Array<String>) {
+    val someFun = <caret>
+}
diff --git a/idea/tests/org/jetbrains/jet/plugin/codeInsight/LiveTemplatesTest.java b/idea/tests/org/jetbrains/jet/plugin/codeInsight/LiveTemplatesTest.java
index cd97e7680bb..3379270176c 100644
--- a/idea/tests/org/jetbrains/jet/plugin/codeInsight/LiveTemplatesTest.java
+++ b/idea/tests/org/jetbrains/jet/plugin/codeInsight/LiveTemplatesTest.java
@@ -109,9 +109,13 @@ public class LiveTemplatesTest extends LightCodeInsightFixtureTestCase {
         checkAfter();
     }
 
-    private void typeAndNext(String s) {
-        type(s);
+    public void testClosure() {
+        start();
+
+        typeAndNext("param");
         nextTab();
+
+        checkAfter();
     }
 
     public void testIter() {
@@ -144,6 +148,11 @@ public class LiveTemplatesTest extends LightCodeInsightFixtureTestCase {
         myFixture.checkResultByFile(getTestName(true) + ".exp.kt");
     }
 
+    private void typeAndNext(String s) {
+        type(s);
+        nextTab();
+    }
+
     private void type(String s) {
         myFixture.type(s);
     }