diff --git a/xml/tests/src/com/intellij/xml/XmlEntityManagerCachingTest.java b/xml/tests/src/com/intellij/xml/XmlEntityManagerCachingTest.java
new file mode 100644
index 000000000000..8091efbfe154
--- /dev/null
+++ b/xml/tests/src/com/intellij/xml/XmlEntityManagerCachingTest.java
@@ -0,0 +1,58 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.xml;
+
+import com.intellij.javaee.ExternalResourceManagerExImpl;
+import com.intellij.testFramework.PlatformTestUtil;
+import com.intellij.testFramework.fixtures.LightPlatformCodeInsightFixtureTestCase;
+import com.intellij.xml.util.CheckXmlFileWithXercesValidatorInspection;
+
+import java.io.File;
+
+/**
+ * @author ibessonov
+ */
+public class XmlEntityManagerCachingTest extends LightPlatformCodeInsightFixtureTestCase {
+
+  @Override
+  protected void setUp() throws Exception {
+    super.setUp();
+
+    ExternalResourceManagerExImpl.registerResourceTemporarily("http://dl.google.com/gwt/DTD/xhtml.ent",
+                                                              getTestDataPath() + "xhtml.ent", getTestRootDisposable());
+    ExternalResourceManagerExImpl.registerResourceTemporarily("urn:ui:com.google.gwt.uibinder",
+                                                              getTestDataPath() + "UiBinder.xsd", getTestRootDisposable());
+
+    myFixture.enableInspections(CheckXmlFileWithXercesValidatorInspection.class);
+  }
+
+  public void testXmlEntityManagerCaching() {
+    myFixture.configureByFile(getTestName(false) + ".ui.xml");
+    myFixture.checkHighlighting();
+    myFixture.type('\b'); // edit content, document has to be valid after that
+    myFixture.checkHighlighting();
+  }
+
+  @Override
+  protected String getBasePath() {
+    return "/xml/tests/testData/xml/";
+  }
+
+  @Override
+  protected String getTestDataPath() {
+    return PlatformTestUtil.getCommunityPath().replace(File.separatorChar, '/') + getBasePath();
+  }
+}
diff --git a/xml/tests/testData/xml/UiBinder.xsd b/xml/tests/testData/xml/UiBinder.xsd
new file mode 100644
index 000000000000..c44dd5c7fd50
--- /dev/null
+++ b/xml/tests/testData/xml/UiBinder.xsd
@@ -0,0 +1,30 @@
+<?xml version="1.0"?>
+
+<xs:schema
+    xmlns:xs="http://www.w3.org/2001/XMLSchema"
+    targetNamespace="urn:ui:com.google.gwt.uibinder"
+    xmlns="urn:ui:com.google.gwt.uibinder"
+    elementFormDefault="qualified">
+
+  <xs:element
+      name="UiBinder">
+    <xs:complexType
+        mixed="true">
+
+      <xs:choice
+          minOccurs="0"
+          maxOccurs="unbounded">
+
+        <!-- Allow any elements (e.g. widgets from any package) -->
+        <xs:any
+            processContents="lax" />
+      </xs:choice>
+
+      <!-- Allow any attributes (e.g. namespace definitions) -->
+      <xs:anyAttribute
+          processContents="lax" />
+
+    </xs:complexType>
+  </xs:element>
+
+</xs:schema>
diff --git a/xml/tests/testData/xml/XmlEntityManagerCaching.ui.xml b/xml/tests/testData/xml/XmlEntityManagerCaching.ui.xml
new file mode 100644
index 000000000000..197ce309c79e
--- /dev/null
+++ b/xml/tests/testData/xml/XmlEntityManagerCaching.ui.xml
@@ -0,0 +1,5 @@
+<!DOCTYPE ui:UiBinder SYSTEM "http://dl.google.com/gwt/DTD/xhtml.ent">
+<ui:UiBinder xmlns:ui='urn:ui:com.google.gwt.uibinder'
+>
+  Hello&nbsp;World<caret>
+</ui:UiBinder>
\ No newline at end of file
diff --git a/xml/tests/testData/xml/xhtml.ent b/xml/tests/testData/xml/xhtml.ent
new file mode 100644
index 000000000000..21cbb5442c58
--- /dev/null
+++ b/xml/tests/testData/xml/xhtml.ent
@@ -0,0 +1 @@
+  <!ENTITY nbsp   "&#160;"> <!-- no-break space = non-breaking space, U+00A0 ISOnum -->
\ No newline at end of file