diff --git a/tests/Makefile.am b/tests/Makefile.am
index fa78bf81..3ecddf59 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -34,6 +34,7 @@ endif
 
 check_PROGRAMS = \
 	create_compress_files \
+	test_memlimit \
 	test_check \
 	test_stream_flags \
 	test_filter_flags \
@@ -42,6 +43,7 @@ check_PROGRAMS = \
 	test_info
 
 TESTS = \
+	test_memlimit \
 	test_check \
 	test_stream_flags \
 	test_filter_flags \
diff --git a/tests/test_memlimit.c b/tests/test_memlimit.c
new file mode 100644
index 00000000..8b156401
--- /dev/null
+++ b/tests/test_memlimit.c
@@ -0,0 +1,114 @@
+///////////////////////////////////////////////////////////////////////////////
+//
+/// \file       test_memlimit.c
+/// \brief      Tests the memory usage limitter
+///
+/// \note       These tests cannot be done at exact byte count accuracy,
+///             because memory limitter takes into account the memory wasted
+///             by bookkeeping structures and alignment (padding).
+//
+//  Copyright (C) 2008 Lasse Collin
+//
+//  This library is free software; you can redistribute it and/or
+//  modify it under the terms of the GNU Lesser General Public
+//  License as published by the Free Software Foundation; either
+//  version 2.1 of the License, or (at your option) any later version.
+//
+//  This library is distributed in the hope that it will be useful,
+//  but WITHOUT ANY WARRANTY; without even the implied warranty of
+//  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the GNU
+//  Lesser General Public License for more details.
+//
+///////////////////////////////////////////////////////////////////////////////
+
+#include "tests.h"
+
+
+int
+main(void)
+{
+	void *a;
+	void *b;
+	lzma_memlimit *mem;
+
+	expect((mem = lzma_memlimit_create(1 << 16)) != NULL);
+	expect(lzma_memlimit_count(mem) == 0);
+	expect(lzma_memlimit_used(mem) > 0);
+	expect(lzma_memlimit_used(mem) < 4096);
+	expect(lzma_memlimit_used(mem) == lzma_memlimit_max(mem, false));
+	expect(!lzma_memlimit_reached(mem, false));
+
+	expect((a = lzma_memlimit_alloc(mem, 1, 4096)) != NULL);
+	expect(lzma_memlimit_count(mem) == 1);
+	expect(lzma_memlimit_used(mem) > 4096);
+	expect(lzma_memlimit_used(mem) < 8192);
+	expect(lzma_memlimit_used(mem) == lzma_memlimit_max(mem, false));
+	expect(!lzma_memlimit_reached(mem, false));
+
+	expect((b = lzma_memlimit_alloc(mem, 1, 4096)) != NULL);
+	expect(lzma_memlimit_count(mem) == 2);
+	expect(lzma_memlimit_used(mem) > 8192);
+	expect(lzma_memlimit_used(mem) < 12288);
+	expect(lzma_memlimit_used(mem) == lzma_memlimit_max(mem, false));
+	expect(!lzma_memlimit_reached(mem, false));
+
+	expect((lzma_memlimit_alloc(mem, 1, 1 << 17)) == NULL);
+	expect(lzma_memlimit_count(mem) == 2);
+	expect(lzma_memlimit_used(mem) > 8192);
+	expect(lzma_memlimit_used(mem) < 12288);
+	expect(lzma_memlimit_used(mem) < lzma_memlimit_max(mem, false));
+	expect(lzma_memlimit_max(mem, false) > (1 << 17));
+	expect(lzma_memlimit_reached(mem, false));
+
+	lzma_memlimit_free(mem, a);
+	expect(lzma_memlimit_count(mem) == 1);
+	expect(lzma_memlimit_used(mem) > 4096);
+	expect(lzma_memlimit_used(mem) < 8192);
+	expect(lzma_memlimit_max(mem, true) > (1 << 17));
+	expect(lzma_memlimit_reached(mem, true));
+	expect(lzma_memlimit_used(mem) == lzma_memlimit_max(mem, false));
+	expect(!lzma_memlimit_reached(mem, false));
+
+	expect(lzma_memlimit_get(mem) == 1 << 16);
+	lzma_memlimit_set(mem, 6144);
+	expect(lzma_memlimit_get(mem) == 6144);
+	expect(lzma_memlimit_alloc(mem, 1, 4096) == NULL);
+	expect(lzma_memlimit_max(mem, false) > 8192);
+	expect(lzma_memlimit_reached(mem, false));
+
+	lzma_memlimit_free(mem, b);
+	expect(lzma_memlimit_count(mem) == 0);
+	expect(lzma_memlimit_used(mem) > 0);
+	expect(lzma_memlimit_used(mem) < 4096);
+
+	expect((a = lzma_memlimit_alloc(mem, 1, 4096)) != NULL);
+	expect(lzma_memlimit_count(mem) == 1);
+	expect(lzma_memlimit_used(mem) > 4096);
+	expect(lzma_memlimit_used(mem) < 8192);
+
+	expect(lzma_memlimit_max(mem, false) > 8192);
+	expect(lzma_memlimit_reached(mem, false));
+	expect(lzma_memlimit_max(mem, true) > 8192);
+	expect(lzma_memlimit_reached(mem, true));
+	expect(lzma_memlimit_max(mem, true) < 8192);
+	expect(!lzma_memlimit_reached(mem, true));
+
+	lzma_memlimit_detach(mem, a);
+	free(a);
+	expect(lzma_memlimit_count(mem) == 0);
+
+	lzma_memlimit_set(mem, SIZE_MAX);
+	expect(lzma_memlimit_alloc(mem, 1, SIZE_MAX - 33) == NULL);
+	expect(lzma_memlimit_count(mem) == 0);
+	expect(lzma_memlimit_max(mem, true) == SIZE_MAX);
+	expect(lzma_memlimit_reached(mem, true));
+
+	expect(lzma_memlimit_alloc(mem, 1, SIZE_MAX) == NULL);
+	expect(lzma_memlimit_count(mem) == 0);
+	expect(lzma_memlimit_max(mem, false) == SIZE_MAX);
+	expect(lzma_memlimit_reached(mem, false));
+
+	lzma_memlimit_end(mem, true);
+
+	return 0;
+}