diff --git a/IPython/terminal/tests/test_embed.py b/IPython/terminal/tests/test_embed.py
index 70a4508..ec51316 100644
--- a/IPython/terminal/tests/test_embed.py
+++ b/IPython/terminal/tests/test_embed.py
@@ -16,11 +16,13 @@ import sys
 import nose.tools as nt
 from IPython.utils.process import process_handler
 from IPython.utils.tempdir import NamedFileInTemporaryDirectory
+from IPython.testing.decorators import skip_win32
 
 #-----------------------------------------------------------------------------
 # Tests
 #-----------------------------------------------------------------------------
 
+
 _sample_embed = b"""
 from __future__ import print_function
 import IPython
@@ -55,3 +57,69 @@ def test_ipython_embed():
             nt.assert_in('IPython', std)
         nt.assert_in('bye!', std)
 
+@skip_win32
+def test_nest_embed():
+    """test that `IPython.embed()` is nestable"""
+    from IPython.external import pexpect
+    ipy_prompt = r']:' #ansi color codes give problems matching beyond this
+
+
+    child = pexpect.spawn('%s -m IPython'%(sys.executable, ))
+    child.expect(ipy_prompt)
+    child.sendline("from __future__ import print_function")
+    child.expect(ipy_prompt)
+    child.sendline("import IPython")
+    child.expect(ipy_prompt)
+    child.sendline("ip0 = get_ipython()")
+    #enter first nested embed
+    child.sendline("IPython.embed()")
+    #skip the banner until we get to a prompt
+    try:
+        prompted = -1
+        while prompted != 0:
+            prompted = child.expect([ipy_prompt, '\r\n'])
+    except pexpect.TIMEOUT as e:
+        print(e)
+        #child.interact()
+    child.sendline("embed1 = get_ipython()"); child.expect(ipy_prompt)
+    child.sendline("print('true' if embed1 is not ip0 else 'false')")
+    assert(child.expect(['true\r\n', 'false\r\n']) == 0)
+    child.expect(ipy_prompt)
+    child.sendline("print('true' if IPython.get_ipython() is embed1 else 'false')")
+    assert(child.expect(['true\r\n', 'false\r\n']) == 0)
+    child.expect(ipy_prompt)
+    #enter second nested embed
+    child.sendline("IPython.embed()")
+    #skip the banner until we get to a prompt
+    try:
+        prompted = -1
+        while prompted != 0:
+            prompted = child.expect([ipy_prompt, '\r\n'])
+    except pexpect.TIMEOUT as e:
+        print(e)
+        #child.interact()
+    child.sendline("embed2 = get_ipython()"); child.expect(ipy_prompt)
+    child.sendline("print('true' if embed2 is not embed1 else 'false')")
+    assert(child.expect(['true\r\n', 'false\r\n']) == 0)
+    child.expect(ipy_prompt)
+    child.sendline("print('true' if embed2 is IPython.get_ipython() else 'false')")
+    assert(child.expect(['true\r\n', 'false\r\n']) == 0)
+    child.expect(ipy_prompt)
+    child.sendline('exit')
+    #back at first embed
+    child.expect(ipy_prompt)
+    child.sendline("print('true' if get_ipython() is embed1 else 'false')")
+    assert(child.expect(['true\r\n', 'false\r\n']) == 0)
+    child.expect(ipy_prompt)
+    child.sendline("print('true' if IPython.get_ipython() is embed1 else 'false')")
+    assert(child.expect(['true\r\n', 'false\r\n']) == 0)
+    child.expect(ipy_prompt)
+    child.sendline('exit')
+    #back at launching scope
+    child.expect(ipy_prompt)
+    child.sendline("print('true' if get_ipython() is ip0 else 'false')")
+    assert(child.expect(['true\r\n', 'false\r\n']) == 0)
+    child.expect(ipy_prompt)
+    child.sendline("print('true' if IPython.get_ipython() is ip0 else 'false')")
+    assert(child.expect(['true\r\n', 'false\r\n']) == 0)
+    child.expect(ipy_prompt)