new file mode 100644
--- /dev/null
+++ b/rewrite_unescape.t
@@ -0,0 +1,164 @@
+#!/usr/bin/perl
+
+# (C) Maxim Dounin
+
+# Tests for escaping/unescaping in rewrite module.
+
+###############################################################################
+
+use warnings;
+use strict;
+
+use Test::More;
+
+BEGIN { use FindBin; chdir($FindBin::Bin); }
+
+use lib 'lib';
+use Test::Nginx;
+
+###############################################################################
+
+select STDERR; $| = 1;
+select STDOUT; $| = 1;
+
+my $t = Test::Nginx->new()->has(qw/http rewrite/)->plan(9)
+	->write_file_expand('nginx.conf', <<'EOF');
+
+%%TEST_GLOBALS%%
+
+master_process off;
+daemon         off;
+
+events {
+}
+
+http {
+    %%TEST_GLOBALS_HTTP%%
+
+    server {
+        listen       127.0.0.1:8080;
+        server_name  localhost;
+
+        location /t1 {
+            rewrite ^ $arg_r? redirect;
+        }
+
+        location /t2 {
+            rewrite ^ http://example.com$request_uri? redirect;
+        }
+
+        location /t3 {
+            rewrite ^ http://example.com$uri redirect;
+        }
+
+        location /t4 {
+            rewrite ^(.*) http://example.com$1 redirect;
+        }
+
+        location /t5 {
+            rewrite ^ http://example.com/blah%20%3Fblah redirect;
+        }
+
+        location /t6 {
+            rewrite ^ http://example.com/blah%20%2Fblah redirect;
+        }
+    }
+}
+
+EOF
+
+mkdir($t->testdir() . '/directory');
+
+$t->run();
+
+###############################################################################
+
+# Some rewrites and expected (?) behaviour
+# 
+# /t1?r=http%3A%2F%2Fexample.com%2F%3Ffrom
+# rewrite ^ $arg_r? redirect;
+# expected: http://example.com/?from
+# got:      http://example.com/?from
+#
+# /t1?r=http%3A%2F%2Fexample.com%0D%0Asplit
+# rewrite ^ $arg_r? redirect;
+# expected: http://example.com%0D%0Asplit
+# got:      http://example.com%0D%0Asplit
+#
+# /t1?r=http%3A%2F%2Fexample.com%2F%3Ffrom%3Dblah
+# rewrite ^ $arg_r? redirect;
+# expected: http://example.com/?from=blah
+# got:      http://example.com/?from%3Dblah
+#
+# /blah%3Fblah
+# rewrite ^ http://example.com$request_uri? redirect;
+# expected: http://example.com/blah%3Fblah
+# got:      http://example.com/blah?blah
+#
+# /blah%3Fblah
+# rewrite ^ http://example.com$uri redirect;
+# expected: http://example.com/blah%3Fblah
+# got:      http://example.com/blah?blah
+#
+# /blah%3Fblah
+# rewrite ^(.*) http://example.com$1 redirect;
+# expected: http://example.com/blah%3Fblah
+# got:      http://example.com/blah?blah
+#
+# /
+# rewrite ^ http://example.com/blah%3Fblah redirect;
+# expected: http://example.com/blah%3Fblah
+# got:      http://example.com/blah?blah
+#
+
+location('/t1?r=http%3A%2F%2Fexample.com%2F%3Ffrom',
+	'http://example.com/?from', 'escaped argument');
+
+location('/t1?r=http%3A%2F%2Fexample.com%0D%0Asplit',
+	'http://example.com%0D%0Asplit', 'escaped argument header splitting');
+
+TODO: {
+local $TODO = 'not yet';
+
+# Fixing this cases will require major changes to the whole aproach and
+# likely to break some currently working cases.  On the other hand, current
+# behaviour is far from acceptable.  Should be carefully thought.
+
+location('/t1?r=http%3A%2F%2Fexample.com%2F%3Ffrom%3Dblah',
+	'http://example.com/?from=blah', 'escaped argument with complex query');
+
+location('/t2/blah%20%3Fblah',
+	'http://example.com/t2/blah%20%3Fblah', 'escaped $request_uri');
+
+location('/t3/blah%20%3Fblah',
+	'http://example.com/t3/blah%20%3Fblah', 'escaped $uri');
+
+location('/t4/blah%20%3Fblah',
+	'http://example.com/t4/blah%20%3Fblah', 'escaped $1');
+
+location('/t5',
+	'http://example.com/blah%20%3Fblah', 'escaped static');
+
+location('/t5?arg=blah',
+	'http://example.com/blah%20%3Fblah?arg=blah',
+	'escaped static with argument');
+
+location('/t6',
+	'http://example.com/blah%20%2Fblah', 'escaped static slash');
+
+}
+
+###############################################################################
+
+sub location {
+	my ($url, $value, $name) = @_;
+	my $data = http_get($url);
+	if ($data !~ qr!^Location: (.*?)\x0d?$!ms) {
+		fail($name);
+		return;
+	}
+	my $location = $1;
+	is($location, $value, $name);
+}
+
+###############################################################################