diff --git a/IPython/nbconvert/preprocessors/tests/test_coalescestreams.py b/IPython/nbconvert/preprocessors/tests/test_coalescestreams.py
index fd9c14f..8d96794 100644
--- a/IPython/nbconvert/preprocessors/tests/test_coalescestreams.py
+++ b/IPython/nbconvert/preprocessors/tests/test_coalescestreams.py
@@ -13,7 +13,6 @@ Module with tests for the coalescestreams preprocessor
 #-----------------------------------------------------------------------------
 # Imports
 #-----------------------------------------------------------------------------
-
 from IPython.nbformat import current as nbformat
 
 from .base import PreprocessorTestsBase
@@ -23,7 +22,6 @@ from ..coalescestreams import coalesce_streams
 #-----------------------------------------------------------------------------
 # Class
 #-----------------------------------------------------------------------------
-
 class TestCoalesceStreams(PreprocessorTestsBase):
     """Contains test functions for coalescestreams.py"""
 
@@ -38,10 +36,8 @@ class TestCoalesceStreams(PreprocessorTestsBase):
         self.assertEqual(outputs[2].text, "cd")
         self.assertEqual(outputs[3].text, "ef")
 
-
     def test_coalesce_sequenced_streams(self):
         """Can the coalesce streams preprocessor merge a sequence of streams?"""
-
         outputs = [nbformat.new_output(output_type="stream", stream="stdout", output_text="0"),
                    nbformat.new_output(output_type="stream", stream="stdout", output_text="1"),
                    nbformat.new_output(output_type="stream", stream="stdout", output_text="2"),
@@ -58,3 +54,19 @@ class TestCoalesceStreams(PreprocessorTestsBase):
         nb, res = coalesce_streams(nb, res)
         outputs = nb.worksheets[0].cells[0].outputs
         self.assertEqual(outputs[0].text, u'01234567')
+
+    def test_coalesce_replace_streams(self):
+        """Are \\r characters handled?"""
+        outputs = [nbformat.new_output(output_type="stream", stream="stdout", output_text="z"),
+                   nbformat.new_output(output_type="stream", stream="stdout", output_text="\ra"),
+                   nbformat.new_output(output_type="stream", stream="stdout", output_text="\nz\rb"),
+                   nbformat.new_output(output_type="stream", stream="stdout", output_text="\nz"),
+                   nbformat.new_output(output_type="stream", stream="stdout", output_text="\rc")]
+        cells=[nbformat.new_code_cell(input="# None", prompt_number=1,outputs=outputs)]
+        worksheets = [nbformat.new_worksheet(name="worksheet1", cells=cells)]
+
+        nb = nbformat.new_notebook(name="notebook1", worksheets=worksheets)
+        res = self.build_resources()
+        nb, res = coalesce_streams(nb, res)
+        outputs = nb.worksheets[0].cells[0].outputs
+        self.assertEqual(outputs[0].text, u'a\nb\nc')