diff --git a/test/project-test4/Jamfile5 b/test/project-test4/Jamfile5
new file mode 100644
index 000000000..9c67cbf1f
--- /dev/null
+++ b/test/project-test4/Jamfile5
@@ -0,0 +1,6 @@
+
+project test : requirements <include>everything <threading>single ;
+
+make a.exe : a.obj lib/b.obj/<variant>release : yfc-link ;
+make b.exe : a.obj : yfc-link : <define>MACROS ;
+make a.obj : a.cpp : yfc-compile ;
diff --git a/test/project-test4/lib/Jamfile1 b/test/project-test4/lib/Jamfile1
new file mode 100644
index 000000000..be2c3649a
--- /dev/null
+++ b/test/project-test4/lib/Jamfile1
@@ -0,0 +1,2 @@
+
+make b.obj : b.cpp : yfc-compile ;
diff --git a/test/project_test4.py b/test/project_test4.py
index e303d02c0..e9b7abc9f 100644
--- a/test/project_test4.py
+++ b/test/project_test4.py
@@ -90,4 +90,20 @@ t.run_build_system("rtti=on", stdout=expected, status=None)
 #"bin/gcc/debug/a_gcc.obj\n"
 #)
 
+# Test that if we specified composite property in target reference,
+# everything works OK.
+
+t.copy("lib/Jamfile1", "lib/Jamfile")
+t.copy("Jamfile5", "Jamfile")
+
+t.run_build_system()
+
+t.expect_addition("lib/bin/gcc/release/b.obj")
+
+t.expect_content("bin/gcc/debug/a.exe",
+"gcc/debug/include-everything\n" +
+"bin/gcc/debug/a.obj lib/bin/gcc/release/b.obj\n"
+)
+
+
 t.cleanup()
diff --git a/v2/test/project-test4/Jamfile5 b/v2/test/project-test4/Jamfile5
new file mode 100644
index 000000000..9c67cbf1f
--- /dev/null
+++ b/v2/test/project-test4/Jamfile5
@@ -0,0 +1,6 @@
+
+project test : requirements <include>everything <threading>single ;
+
+make a.exe : a.obj lib/b.obj/<variant>release : yfc-link ;
+make b.exe : a.obj : yfc-link : <define>MACROS ;
+make a.obj : a.cpp : yfc-compile ;
diff --git a/v2/test/project-test4/lib/Jamfile1 b/v2/test/project-test4/lib/Jamfile1
new file mode 100644
index 000000000..be2c3649a
--- /dev/null
+++ b/v2/test/project-test4/lib/Jamfile1
@@ -0,0 +1,2 @@
+
+make b.obj : b.cpp : yfc-compile ;
diff --git a/v2/test/project_test4.py b/v2/test/project_test4.py
index e303d02c0..e9b7abc9f 100644
--- a/v2/test/project_test4.py
+++ b/v2/test/project_test4.py
@@ -90,4 +90,20 @@ t.run_build_system("rtti=on", stdout=expected, status=None)
 #"bin/gcc/debug/a_gcc.obj\n"
 #)
 
+# Test that if we specified composite property in target reference,
+# everything works OK.
+
+t.copy("lib/Jamfile1", "lib/Jamfile")
+t.copy("Jamfile5", "Jamfile")
+
+t.run_build_system()
+
+t.expect_addition("lib/bin/gcc/release/b.obj")
+
+t.expect_content("bin/gcc/debug/a.exe",
+"gcc/debug/include-everything\n" +
+"bin/gcc/debug/a.obj lib/bin/gcc/release/b.obj\n"
+)
+
+
 t.cleanup()