diff --git a/test/Jamfile b/test/Jamfile
index ef4fd7a1..fe0c7261 100644
--- a/test/Jamfile
+++ b/test/Jamfile
@@ -88,6 +88,8 @@ bpl-test pickle1 ;
 bpl-test pickle2 ;
 bpl-test pickle3 ;
 
+bpl-test nested ;
+
 if $(TEST_BIENSTMAN_NON_BUGS)
 {
     bpl-test bienstman4 ;
diff --git a/test/nested.cpp b/test/nested.cpp
new file mode 100644
index 00000000..1187c7d8
--- /dev/null
+++ b/test/nested.cpp
@@ -0,0 +1,35 @@
+// Copyright David Abrahams 2002. Permission to copy, use,
+// modify, sell and distribute this software is granted provided this
+// copyright notice appears in all copies. This software is provided
+// "as is" without express or implied warranty, and with no claim as
+// to its suitability for any purpose.
+#include <boost/python/module_init.hpp>
+#include <boost/python/class.hpp>
+#include <boost/python/operators.hpp>
+#include <boost/python/scope.hpp>
+#include "test_class.hpp"
+
+typedef test_class<> X;
+typedef test_class<1> Y;
+
+BOOST_PYTHON_MODULE_INIT(nested_ext)
+{
+    using namespace boost::python;
+
+    // Establish X as the current scope.
+    scope x_class(
+        class_<X>("X", args<int>())
+           .def(str(self))
+        );
+
+    // Y will now be defined in the current scope
+    class_<Y>("Y", args<int>())
+        .def(str(self))
+        ;
+}
+
+
+#include "module_tail.cpp"
+
+
+
diff --git a/test/nested.py b/test/nested.py
new file mode 100644
index 00000000..97ac2a33
--- /dev/null
+++ b/test/nested.py
@@ -0,0 +1,35 @@
+'''
+    >>> from nested_ext import *
+    
+    >>> X
+    <class 'nested_ext.X'>
+    
+    >>> X.__module__
+    'nested_ext'
+    
+    >>> X.__name__
+    'X'
+    
+    >>> X.Y
+    <class 'nested_ext.Y'>
+    
+    >>> X.Y.__module__
+    'nested_ext'
+    
+    >>> X.Y.__name__
+    'Y'
+    
+'''
+
+def run(args = None):
+    import sys
+    import doctest
+
+    if args is not None:
+        sys.argv = args
+    return doctest.testmod(sys.modules.get(__name__))
+    
+if __name__ == '__main__':
+    print "running..."
+    import sys
+    sys.exit(run()[0])