diff --git a/IPython/nbconvert/transformers/tests/__init__.py b/IPython/nbconvert/transformers/tests/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/IPython/nbconvert/transformers/tests/__init__.py
diff --git a/IPython/nbconvert/transformers/tests/test_coalescestreams.py b/IPython/nbconvert/transformers/tests/test_coalescestreams.py
new file mode 100644
index 0000000..3c4fe02
--- /dev/null
+++ b/IPython/nbconvert/transformers/tests/test_coalescestreams.py
@@ -0,0 +1,48 @@
+"""
+Module with tests for the coalescestreams transformer
+"""
+
+#-----------------------------------------------------------------------------
+# Copyright (c) 2013, the IPython Development Team.
+#
+# Distributed under the terms of the Modified BSD License.
+#
+# The full license is in the file COPYING.txt, distributed with this software.
+#-----------------------------------------------------------------------------
+
+#-----------------------------------------------------------------------------
+# Imports
+#-----------------------------------------------------------------------------
+
+from ...tests.base import TestsBase
+from ..coalescestreams import coalesce_streams
+
+from IPython.nbformat import current as nbformat
+
+#-----------------------------------------------------------------------------
+# Class
+#-----------------------------------------------------------------------------
+
+class TestCoalesceStreams(TestsBase):
+    """Contains test functions for coalescestreams.py"""
+
+
+    def build_test_notebook(self):
+        outputs = [nbformat.new_output(output_type="stream", stream="stdout", output_text="a"),
+                   nbformat.new_output(output_type="text", output_text="b"),
+                   nbformat.new_output(output_type="stream", stream="stdout", output_text="c"),
+                   nbformat.new_output(output_type="stream", stream="stdout", output_text="d"),
+                   nbformat.new_output(output_type="stream", stream="stderr", output_text="e"),
+                   nbformat.new_output(output_type="stream", stream="stderr", output_text="f")]
+        cells=[nbformat.new_code_cell(input="test",
+            prompt_number=1,outputs=outputs)]
+        worksheets = [nbformat.new_worksheet(name="worksheet1", cells=cells)]
+        return nbformat.new_notebook(name="notebook1", worksheets=worksheets)
+
+    def test_coalesce_streams(self):
+        nb, res = coalesce_streams(self.build_test_notebook(), {})
+        self.assertEqual(nb.worksheets[0].cells[0].outputs[0].text, "a")
+        self.assertEqual(nb.worksheets[0].cells[0].outputs[1].output_type, "text")
+        self.assertEqual(nb.worksheets[0].cells[0].outputs[2].text, "cd")
+        self.assertEqual(nb.worksheets[0].cells[0].outputs[3].text, "ef")
+    
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