diff --git a/tests/merge/conflict_data.h b/tests/merge/conflict_data.h
index 173892d9552..b6c51332f25 100644
--- a/tests/merge/conflict_data.h
+++ b/tests/merge/conflict_data.h
@@ -40,3 +40,33 @@
 	"this file is changed in master and branch\n" \
 	"this file is changed in branch and master\n"
 
+#define CONFLICTING_RECURSIVE_F1_TO_F2 \
+	"VEAL SOUP.\n" \
+	"\n" \
+	"<<<<<<< HEAD\n" \
+	"PUT INTO A POT THREE QUARTS OF WATER, three onions cut small, ONE\n" \
+	"=======\n" \
+	"PUT INTO A POT THREE QUARTS OF WATER, three onions cut not too small, one\n" \
+	">>>>>>> branchF-2\n" \
+	"spoonful of black pepper pounded, and two of salt, with two or three\n" \
+	"slices of lean ham; let it boil steadily two hours; skim it\n" \
+	"occasionally, then put into it a shin of veal, let it boil two hours\n" \
+	"longer; take out the slices of ham, and skim off the grease if any\n" \
+	"should rise, take a gill of good cream, mix with it two table-spoonsful\n" \
+	"of flour very nicely, and the yelks of two eggs beaten well, strain this\n" \
+	"mixture, and add some chopped parsley; pour some soup on by degrees,\n" \
+	"stir it well, and pour it into the pot, continuing to stir until it has\n" \
+	"boiled two or three minutes to take off the raw taste of the eggs. If\n" \
+	"the cream be not perfectly sweet, and the eggs quite new, the thickening\n" \
+	"will curdle in the soup. For a change you may put a dozen ripe tomatos\n" \
+	"in, first taking off their skins, by letting them stand a few minutes in\n" \
+	"hot water, when they may be easily peeled. When made in this way you\n" \
+	"must thicken it with the flour only. Any part of the veal may be used,\n" \
+	"but the shin or knuckle is the nicest.\n" \
+	"\n" \
+	"<<<<<<< HEAD\n" \
+	"This certainly is a mighty fine recipe.\n" \
+	"=======\n" \
+	"This is a mighty fine recipe!\n" \
+	">>>>>>> branchF-2\n"
+
diff --git a/tests/merge/workdir/recursive.c b/tests/merge/workdir/recursive.c
new file mode 100644
index 00000000000..a7326009adc
--- /dev/null
+++ b/tests/merge/workdir/recursive.c
@@ -0,0 +1,51 @@
+#include "clar_libgit2.h"
+#include "git2/repository.h"
+#include "git2/merge.h"
+#include "merge.h"
+#include "../merge_helpers.h"
+#include "../conflict_data.h"
+
+static git_repository *repo;
+
+#define TEST_REPO_PATH "merge-recursive"
+
+void test_merge_workdir_recursive__initialize(void)
+{
+	repo = cl_git_sandbox_init(TEST_REPO_PATH);
+}
+
+void test_merge_workdir_recursive__cleanup(void)
+{
+	cl_git_sandbox_cleanup();
+}
+
+void test_merge_workdir_recursive__writes_conflict_with_virtual_base(void)
+{
+	git_index *index;
+	git_merge_options opts = GIT_MERGE_OPTIONS_INIT;
+	git_buf conflicting_buf = GIT_BUF_INIT;
+
+	struct merge_index_entry merge_index_entries[] = {
+		{ 0100644, "ffb36e513f5fdf8a6ba850a20142676a2ac4807d", 0, "asparagus.txt" },
+		{ 0100644, "68f6182f4c85d39e1309d97c7e456156dc9c0096", 0, "beef.txt" },
+		{ 0100644, "4b7c5650008b2e747fe1809eeb5a1dde0e80850a", 0, "bouilli.txt" },
+		{ 0100644, "c4e6cca3ec6ae0148ed231f97257df8c311e015f", 0, "gravy.txt" },
+		{ 0100644, "68af1fc7407fd9addf1701a87eb1c95c7494c598", 0, "oyster.txt" },
+		{ 0100644, "fa567f568ed72157c0c617438d077695b99d9aac", 1, "veal.txt" },
+		{ 0100644, "21950d5e4e4d1a871b4dfcf72ecb6b9c162c434e", 2, "veal.txt" },
+		{ 0100644, "3855170cef875708da06ab9ad7fc6a73b531cda1", 3, "veal.txt" },
+	};
+
+
+	cl_git_pass(merge_branches(repo, GIT_REFS_HEADS_DIR "branchF-1", GIT_REFS_HEADS_DIR "branchF-2", &opts, NULL));
+
+	cl_git_pass(git_repository_index(&index, repo));
+	cl_assert(merge_test_index(index, merge_index_entries, 8));
+
+	cl_git_pass(git_futils_readbuffer(&conflicting_buf, "merge-recursive/veal.txt"));
+
+	cl_assert_equal_s(CONFLICTING_RECURSIVE_F1_TO_F2, conflicting_buf.ptr);
+	
+	git_index_free(index);
+	git_buf_free(&conflicting_buf);
+}