diff --git a/IPython/core/tests/test_profile.py b/IPython/core/tests/test_profile.py
new file mode 100644
index 0000000..edba003
--- /dev/null
+++ b/IPython/core/tests/test_profile.py
@@ -0,0 +1,103 @@
+"""Tests for profile-related functions.
+
+Currently only the startup-dir functionality is tested, but more tests should
+be added for:
+
+    * ipython profile create
+    * ipython profile list
+    * ipython profile create --parallel
+    * security dir permissions
+
+Authors
+-------
+
+* MinRK
+
+"""
+from __future__ import absolute_import
+
+#-----------------------------------------------------------------------------
+# Imports
+#-----------------------------------------------------------------------------
+
+import os
+import shutil
+import sys
+import tempfile
+
+import nose.tools as nt
+from nose import SkipTest
+
+from IPython.core.profiledir import ProfileDir
+
+from IPython.testing import decorators as dec
+from IPython.testing import tools as tt
+from IPython.utils import py3compat
+
+
+#-----------------------------------------------------------------------------
+# Globals
+#-----------------------------------------------------------------------------
+TMP_TEST_DIR = tempfile.mkdtemp()
+HOME_TEST_DIR = os.path.join(TMP_TEST_DIR, "home_test_dir")
+IP_TEST_DIR = os.path.join(HOME_TEST_DIR,'.ipython')
+
+#
+# Setup/teardown functions/decorators
+#
+
+def setup():
+    """Setup test environment for the module:
+
+            - Adds dummy home dir tree
+    """
+    # Do not mask exceptions here.  In particular, catching WindowsError is a
+    # problem because that exception is only defined on Windows...
+    os.makedirs(IP_TEST_DIR)
+
+
+def teardown():
+    """Teardown test environment for the module:
+
+            - Remove dummy home dir tree
+    """
+    # Note: we remove the parent test dir, which is the root of all test
+    # subdirs we may have created.  Use shutil instead of os.removedirs, so
+    # that non-empty directories are all recursively removed.
+    shutil.rmtree(TMP_TEST_DIR)
+
+
+#-----------------------------------------------------------------------------
+# Test functions
+#-----------------------------------------------------------------------------
+
+def test_startup_py():
+    # create profile dir
+    pd = ProfileDir.create_profile_dir_by_name(IP_TEST_DIR, 'test')
+    # write startup python file
+    with open(os.path.join(pd.startup_dir, '00-start.py'), 'w') as f:
+        f.write('zzz=123\n')
+    # write simple test file, to check that the startup file was run
+    fname = os.path.join(TMP_TEST_DIR, 'test.py')
+    with open(fname, 'w') as f:
+        f.write('print zzz\n')
+    # validate output
+    tt.ipexec_validate(fname, '123', '', 
+        options=['--ipython-dir', IP_TEST_DIR, '--profile', 'test'])
+
+def test_startup_ipy():
+    # create profile dir
+    pd = ProfileDir.create_profile_dir_by_name(IP_TEST_DIR, 'test')
+    # write startup ipython file
+    with open(os.path.join(pd.startup_dir, '00-start.ipy'), 'w') as f:
+        f.write('%profile\n')
+    # write empty script, because we don't need anything to happen
+    # after the startup file is run
+    fname = os.path.join(TMP_TEST_DIR, 'test.py')
+    with open(fname, 'w') as f:
+        f.write('')
+    # validate output
+    tt.ipexec_validate(fname, 'test', '', 
+        options=['--ipython-dir', IP_TEST_DIR, '--profile', 'test'])
+    
+    
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