diff --git a/Source/CMakeLists.txt b/Source/CMakeLists.txt
index 6ba192792..f615db2f5 100644
--- a/Source/CMakeLists.txt
+++ b/Source/CMakeLists.txt
@@ -598,6 +598,18 @@ IF(BUILD_TESTING)
     "${CMake_BINARY_DIR}/Tests/SubDir/ShouldBeHere"
     "${CMake_BINARY_DIR}/Tests/SubDir/testfromsubdir.o"
     )
+    
+  IF(${CMAKE_GENERATOR} MATCHES "Visual Studio")
+    ADD_TEST(VSExternalInclude ${CMAKE_CTEST_COMMAND}
+      --build-and-test 
+      "${CMake_SOURCE_DIR}/Tests/VSExternalInclude"
+      "${CMake_BINARY_DIR}/Tests/VSExternalInclude"
+      --build-two-config
+      --build-generator ${CMAKE_GENERATOR}
+      --build-project VSExternalInclude
+      --build-makeprogram ${MAKEPROGRAM}
+      --test-command VSExternalInclude)
+  ENDIF(${CMAKE_GENERATOR} MATCHES "Visual Studio")
 
   IF (APPLE)
     ADD_TEST(objc++ ${CMAKE_CTEST_COMMAND}
diff --git a/Tests/VSExternalInclude/CMakeLists.txt b/Tests/VSExternalInclude/CMakeLists.txt
new file mode 100644
index 000000000..74f686893
--- /dev/null
+++ b/Tests/VSExternalInclude/CMakeLists.txt
@@ -0,0 +1,38 @@
+PROJECT(VSExternalInclude)
+
+IF(${CMAKE_GENERATOR} MATCHES "Visual Studio 6")
+SET(PROJECT_EXT dps)
+ELSE(${CMAKE_GENERATOR} MATCHES "Visual Studio 6")
+SET(PROJECT_EXT vcproj)
+ENDIF(${CMAKE_GENERATOR} MATCHES "Visual Studio 6")
+
+
+# make sure directories exists
+SET(LIB1_BINARY_DIR ${VSExternalInclude_BINARY_DIR}/Lib1)
+MAKE_DIRECTORY("${LIB1_BINARY_DIR}")
+
+SET(LIB2_BINARY_DIR ${VSExternalInclude_BINARY_DIR}/Lib2)
+MAKE_DIRECTORY("${LIB2_BINARY_DIR}")
+
+# generate lib1
+EXEC_PROGRAM("${CMAKE_COMMAND}" "${LIB1_BINARY_DIR}"  ARGS -G\"${CMAKE_GENERATOR}\" 
+  \"${VSExternalInclude_SOURCE_DIR}/Lib1\" OUTPUT_VARIABLE OUT)
+
+
+# generate lib2
+EXEC_PROGRAM("${CMAKE_COMMAND}" "${LIB2_BINARY_DIR}"  ARGS -G\"${CMAKE_GENERATOR}\" 
+  \"${VSExternalInclude_SOURCE_DIR}/Lib2\" OUTPUT_VARIABLE OUT)
+
+
+INCLUDE_EXTERNAL_MSPROJECT(lib1 ${VSExternalInclude_BINARY_DIR}/Lib1/LIB1.${PROJECT_EXT})
+# lib2 depends on lib1
+INCLUDE_EXTERNAL_MSPROJECT(lib2 ${VSExternalInclude_BINARY_DIR}/Lib2/LIB2.${PROJECT_EXT} lib1)
+
+INCLUDE_DIRECTORIES(${VSExternalInclude_SOURCE_DIR}/Lib2 ${VSExternalInclude_SOURCE_DIR}/Lib1)
+
+SET(SOURCES main.cpp)
+
+ADD_EXECUTABLE(VSExternalInclude ${SOURCES})
+
+# target depends on lib1
+ADD_DEPENDENCIES(VSExternalInclude lib2)
diff --git a/Tests/VSExternalInclude/Lib1/CMakeLists.txt b/Tests/VSExternalInclude/Lib1/CMakeLists.txt
new file mode 100644
index 000000000..72ffcedc1
--- /dev/null
+++ b/Tests/VSExternalInclude/Lib1/CMakeLists.txt
@@ -0,0 +1,5 @@
+PROJECT(LIB1)
+
+SET(SOURCES lib1.cpp)
+
+ADD_LIBRARY(lib1 ${SOURCES})
diff --git a/Tests/VSExternalInclude/Lib1/lib1.cpp b/Tests/VSExternalInclude/Lib1/lib1.cpp
new file mode 100644
index 000000000..690eb740f
--- /dev/null
+++ b/Tests/VSExternalInclude/Lib1/lib1.cpp
@@ -0,0 +1,7 @@
+
+#include "lib1.h"
+
+int add1(int num)
+{
+  return num + 1;
+}
diff --git a/Tests/VSExternalInclude/Lib1/lib1.h b/Tests/VSExternalInclude/Lib1/lib1.h
new file mode 100644
index 000000000..543e71e02
--- /dev/null
+++ b/Tests/VSExternalInclude/Lib1/lib1.h
@@ -0,0 +1,8 @@
+
+#ifndef LIB1_HPP
+#define LIB1_HPP
+
+int add1(int num);
+
+
+#endif
diff --git a/Tests/VSExternalInclude/Lib2/CMakeLists.txt b/Tests/VSExternalInclude/Lib2/CMakeLists.txt
new file mode 100644
index 000000000..31e40e4e1
--- /dev/null
+++ b/Tests/VSExternalInclude/Lib2/CMakeLists.txt
@@ -0,0 +1,7 @@
+PROJECT(VSEXTERNAL_LIB2)
+
+INCLUDE_DIRECTORIES(${VSEXTERNAL_LIB2_SOURCE_DIR}/../Lib1)
+
+SET(SOURCES lib2.cpp)
+
+ADD_LIBRARY(lib2 ${SOURCES})
diff --git a/Tests/VSExternalInclude/Lib2/lib2.cpp b/Tests/VSExternalInclude/Lib2/lib2.cpp
new file mode 100644
index 000000000..adc2d29af
--- /dev/null
+++ b/Tests/VSExternalInclude/Lib2/lib2.cpp
@@ -0,0 +1,9 @@
+
+#include "lib2.h"
+#include "lib1.h"
+
+int add1_and_mult2(int num)
+{
+  int tmp = add1(num);
+  return tmp * 2;
+}
diff --git a/Tests/VSExternalInclude/Lib2/lib2.h b/Tests/VSExternalInclude/Lib2/lib2.h
new file mode 100644
index 000000000..48bda468d
--- /dev/null
+++ b/Tests/VSExternalInclude/Lib2/lib2.h
@@ -0,0 +1,10 @@
+
+
+#ifndef LIB2_HPP
+#define LIB2_HPP
+
+#include "lib1.h"
+
+int add1_and_mult2(int num);
+
+#endif
diff --git a/Tests/VSExternalInclude/main.cpp b/Tests/VSExternalInclude/main.cpp
new file mode 100644
index 000000000..ea1047cb6
--- /dev/null
+++ b/Tests/VSExternalInclude/main.cpp
@@ -0,0 +1,9 @@
+
+#include "lib2.h"
+
+int main(int argc, char** argv)
+{
+  int num = add1_and_mult2(4);
+
+  return 0;
+}