diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/folding/JavaFoldingTest.groovy b/java/java-tests/testSrc/com/intellij/codeInsight/folding/JavaFoldingTest.groovy
index 5d13114d3e7f..fe161e00f75c 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/folding/JavaFoldingTest.groovy
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/folding/JavaFoldingTest.groovy
@@ -20,6 +20,8 @@ import com.intellij.codeInsight.folding.impl.CodeFoldingManagerImpl
 import com.intellij.codeInsight.folding.impl.JavaCodeFoldingSettingsImpl
 import com.intellij.find.FindManager
 import com.intellij.openapi.application.ex.PathManagerEx
+import com.intellij.openapi.editor.FoldRegion
+import com.intellij.openapi.editor.ex.FoldingModelEx
 import com.intellij.openapi.editor.impl.FoldingModelImpl
 import com.intellij.openapi.fileEditor.impl.text.TextEditorProvider
 import com.intellij.testFramework.fixtures.LightCodeInsightFixtureTestCase
@@ -215,9 +217,56 @@ class Test {
     myFixture.testFolding("$PathManagerEx.testDataPath/codeInsight/folding/${getTestName(false)}.java");
   }
   
+  public void "test move methods"() {
+    def initialText = '''\
+class Test {
+    void test1() {
+    }
+    
+    void test2() {
+    }
+}
+'''
+    
+    Closure<FoldRegion> fold = { String methodName ->
+      def text = myFixture.editor.document.text
+      def nameIndex = text.indexOf(methodName)
+      def start = text.indexOf('{', nameIndex)
+      def end = text.indexOf('}', start) + 1
+      def regions = myFixture.editor.foldingModel.allFoldRegions
+      for (region in regions) {
+        if (region.startOffset == start && region.endOffset == end) {
+          return region
+        }
+      }
+      fail("Can't find target fold region for method with name '$methodName'. Registered regions: $regions")
+      null
+    }
+
+    configure initialText
+    def foldingModel = myFixture.editor.foldingModel as FoldingModelEx
+    foldingModel.runBatchFoldingOperation {
+      fold('test1').expanded = true
+      fold('test2').expanded = false
+    }
+
+    myFixture.editor.caretModel.moveToOffset(initialText.indexOf('void'))
+    myFixture.performEditorAction 'MoveStatementDown'
+    CodeFoldingManager.getInstance(project).updateFoldRegions(myFixture.editor)
+    assertTrue(fold('test1').expanded)
+    assertFalse(fold('test2').expanded)
+
+    myFixture.performEditorAction 'MoveStatementUp'
+    CodeFoldingManager.getInstance(project).updateFoldRegions(myFixture.editor)
+    assertTrue(fold('test1').expanded)
+    assertFalse(fold('test2').expanded)
+  }
+  
   private def configure(String text) {
     myFixture.configureByText("a.java", text)
     CodeFoldingManagerImpl.getInstance(getProject()).buildInitialFoldings(myFixture.editor);
+    def foldingModel = myFixture.editor.foldingModel as FoldingModelEx
+    foldingModel.rebuild()
     myFixture.doHighlighting()
   }