diff --git a/rhodecode/tests/vcs/test_branches.py b/rhodecode/tests/vcs/test_branches.py
new file mode 100644
--- /dev/null
+++ b/rhodecode/tests/vcs/test_branches.py
@@ -0,0 +1,118 @@
+from __future__ import with_statement
+
+from rhodecode.lib import vcs
+import datetime
+from rhodecode.lib.vcs.utils.compat import unittest
+
+from base import BackendTestMixin
+from conf import SCM_TESTS
+
+from rhodecode.lib.vcs.nodes import FileNode
+
+
+class BranchesTestCaseMixin(BackendTestMixin):
+
+    @classmethod
+    def _get_commits(cls):
+        commits = [
+            {
+                'message': 'Initial commit',
+                'author': 'Joe Doe <joe.doe@example.com>',
+                'date': datetime.datetime(2010, 1, 1, 20),
+                'added': [
+                    FileNode('foobar', content='Foobar'),
+                    FileNode('foobar2', content='Foobar II'),
+                    FileNode('foo/bar/baz', content='baz here!'),
+                ],
+            },
+            {
+                'message': 'Changes...',
+                'author': 'Jane Doe <jane.doe@example.com>',
+                'date': datetime.datetime(2010, 1, 1, 21),
+                'added': [
+                    FileNode('some/new.txt', content='news...'),
+                ],
+                'changed': [
+                    FileNode('foobar', 'Foobar I'),
+                ],
+                'removed': [],
+            },
+        ]
+        return commits
+
+    def test_simple(self):
+        tip = self.repo.get_changeset()
+        self.assertEqual(tip.date, datetime.datetime(2010, 1, 1, 21))
+
+    def test_new_branch(self):
+        # This check must not be removed to ensure the 'branches' LazyProperty
+        # gets hit *before* the new 'foobar' branch got created:
+        self.assertFalse('foobar' in self.repo.branches)
+        self.imc.add(vcs.nodes.FileNode('docs/index.txt',
+            content='Documentation\n'))
+        foobar_tip = self.imc.commit(
+            message=u'New branch: foobar',
+            author=u'joe',
+            branch='foobar',
+        )
+        self.assertTrue('foobar' in self.repo.branches)
+        self.assertEqual(foobar_tip.branch, 'foobar')
+
+    def test_new_head(self):
+        tip = self.repo.get_changeset()
+        self.imc.add(vcs.nodes.FileNode('docs/index.txt',
+            content='Documentation\n'))
+        foobar_tip = self.imc.commit(
+            message=u'New branch: foobar',
+            author=u'joe',
+            branch='foobar',
+            parents=[tip],
+        )
+        self.imc.change(vcs.nodes.FileNode('docs/index.txt',
+            content='Documentation\nand more...\n'))
+        newtip = self.imc.commit(
+            message=u'At default branch',
+            author=u'joe',
+            branch=foobar_tip.branch,
+            parents=[foobar_tip],
+        )
+
+        newest_tip = self.imc.commit(
+            message=u'Merged with %s' % foobar_tip.raw_id,
+            author=u'joe',
+            branch=self.backend_class.DEFAULT_BRANCH_NAME,
+            parents=[newtip, foobar_tip],
+        )
+
+        self.assertEqual(newest_tip.branch,
+            self.backend_class.DEFAULT_BRANCH_NAME)
+
+    def test_branch_with_slash_in_name(self):
+        self.imc.add(vcs.nodes.FileNode('extrafile', content='Some data\n'))
+        self.imc.commit(u'Branch with a slash!', author=u'joe',
+            branch='issue/123')
+        self.assertTrue('issue/123' in self.repo.branches)
+
+    def test_branch_with_slash_in_name_and_similar_without(self):
+        self.imc.add(vcs.nodes.FileNode('extrafile', content='Some data\n'))
+        self.imc.commit(u'Branch with a slash!', author=u'joe',
+            branch='issue/123')
+        self.imc.add(vcs.nodes.FileNode('extrafile II', content='Some data\n'))
+        self.imc.commit(u'Branch without a slash...', author=u'joe',
+            branch='123')
+        self.assertIn('issue/123', self.repo.branches)
+        self.assertIn('123', self.repo.branches)
+
+
+# For each backend create test case class
+for alias in SCM_TESTS:
+    attrs = {
+        'backend_alias': alias,
+    }
+    cls_name = ''.join(('%s branches test' % alias).title().split())
+    bases = (BranchesTestCaseMixin, unittest.TestCase)
+    globals()[cls_name] = type(cls_name, bases, attrs)
+
+
+if __name__ == '__main__':
+    unittest.main()