diff --git a/python/testData/debug/test_return_values.py b/python/testData/debug/test_return_values.py
new file mode 100644
index 000000000000..b289abfdf52f
--- /dev/null
+++ b/python/testData/debug/test_return_values.py
@@ -0,0 +1,13 @@
+
+def bar():
+    return [1, 2, 3]
+
+
+def foo():
+    bar()
+    return 33
+
+
+foo()
+a = 1
+b = 2
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/env/python/PythonDebuggerTest.java b/python/testSrc/com/jetbrains/env/python/PythonDebuggerTest.java
index 5e5f9c0fe479..f8cfee919629 100644
--- a/python/testSrc/com/jetbrains/env/python/PythonDebuggerTest.java
+++ b/python/testSrc/com/jetbrains/env/python/PythonDebuggerTest.java
@@ -18,6 +18,7 @@ import com.jetbrains.env.python.debug.PyDebuggerTask;
 import com.jetbrains.env.ut.PyUnitTestProcessRunner;
 import com.jetbrains.python.PythonHelpersLocator;
 import com.jetbrains.python.console.pydev.PydevCompletionVariant;
+import com.jetbrains.python.debugger.PyDebugValue;
 import com.jetbrains.python.debugger.PyDebuggerException;
 import com.jetbrains.python.debugger.PyExceptionBreakpointProperties;
 import com.jetbrains.python.debugger.PyExceptionBreakpointType;
@@ -908,6 +909,35 @@ public class PythonDebuggerTest extends PyEnvTestCase {
     });
   }
 
+  @Test
+  public void testReturnValues() throws Exception {
+    runPythonTest(new PyDebuggerTask("/debug", "test_return_values.py") {
+      @Override
+      public void before() throws Exception {
+        toggleBreakpoint(getScriptPath(), 7);
+        toggleBreakpoint(getScriptPath(), 11);
+        final PyDebuggerSettings debuggerSettings = PyDebuggerSettings.getInstance();
+        debuggerSettings.WATCH_RETURN_VALUES = true;
+      }
+
+      @Override
+      public void doFinally() {
+        final PyDebuggerSettings debuggerSettings = PyDebuggerSettings.getInstance();
+        debuggerSettings.WATCH_RETURN_VALUES = false;
+      }
+
+      @Override
+      public void testing() throws Exception {
+        waitForPause();
+        eval(PyDebugValue.RETURN_VALUES_PREFIX + "bar[0]").hasValue("1");
+        resume();
+        waitForPause();
+        eval(PyDebugValue.RETURN_VALUES_PREFIX + "foo").hasValue("33");
+        resume();
+      }
+    });
+  }
+
 
   //TODO: fix me as I don't work properly sometimes (something connected with process termination on agent)
   @Staging