new file mode 100644
--- /dev/null
+++ b/proxy_next_upstream.t
@@ -0,0 +1,104 @@
+#!/usr/bin/perl
+
+# (C) Maxim Dounin
+
+# Tests for http proxy module, proxy_next_upstream directive.
+
+###############################################################################
+
+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 $t = Test::Nginx->new()->has(qw/http proxy rewrite/)->plan(6);
+
+$t->write_file_expand('nginx.conf', <<'EOF');
+
+%%TEST_GLOBALS%%
+
+daemon off;
+
+events {
+}
+
+http {
+    %%TEST_GLOBALS_HTTP%%
+
+    upstream u {
+        server 127.0.0.1:8081;
+        server 127.0.0.1:8082;
+    }
+
+    server {
+        listen       127.0.0.1:8080;
+        server_name  localhost;
+
+        location / {
+            proxy_pass http://u;
+            proxy_next_upstream http_500 http_404;
+        }
+    }
+
+    server {
+        listen       127.0.0.1:8081;
+        server_name  localhost;
+
+        location / {
+            return 404;
+        }
+        location /ok {
+            return 200 "AND-THIS\n";
+        }
+        location /500 {
+            return 500;
+        }
+    }
+
+    server {
+        listen       127.0.0.1:8082;
+        server_name  localhost;
+
+        location / {
+            return 200 "TEST-OK-IF-YOU-SEE-THIS\n";
+        }
+    }
+}
+
+EOF
+
+$t->run();
+
+###############################################################################
+
+# check if both request fallback to a backend
+# which returns valid response
+
+like(http_get('/'), qr/SEE-THIS/, 'proxy request');
+like(http_get('/'), qr/SEE-THIS/, 'second request');
+
+# make sure backend isn't switched off after
+# proxy_next_upstream http_404
+
+like(http_get('/ok') . http_get('/ok'), qr/AND-THIS/, 'not down');
+
+# next upstream on http_500
+
+like(http_get('/500'), qr/SEE-THIS/, 'request 500');
+like(http_get('/500'), qr/SEE-THIS/, 'request 500 second');
+
+# make sure backend switched off with http_500
+
+unlike(http_get('/ok') . http_get('/ok'), qr/AND-THIS/, 'down after 500');
+
+###############################################################################