diff --git a/t/t4012-diff-binary.sh b/t/t4012-diff-binary.sh
new file mode 100755
index 0000000000..bdd95c0d3d
--- /dev/null
+++ b/t/t4012-diff-binary.sh
@@ -0,0 +1,85 @@
+#!/bin/sh
+#
+# Copyright (c) 2006 Junio C Hamano
+#
+
+test_description='Binary diff and apply
+'
+
+. ./test-lib.sh
+
+test_expect_success 'prepare repository' \
+	'echo AIT >a && echo BIT >b && echo CIT >c && echo DIT >d &&
+	 git-update-index --add a b c d &&
+	 echo git >a &&
+	 cat ../test4012.png >b &&
+	 echo git >c &&
+	 cat b b >d'
+
+test_expect_success 'diff without --binary' \
+	'git-diff | git-apply --stat --summary >current &&
+	 cmp current - <<\EOF
+ a |    2 +-
+ b |  Bin
+ c |    2 +-
+ d |  Bin
+ 4 files changed, 2 insertions(+), 2 deletions(-)
+EOF'
+
+test_expect_success 'diff with --binary' \
+	'git-diff --binary | git-apply --stat --summary >current &&
+	 cmp current - <<\EOF
+ a |    2 +-
+ b |  Bin
+ c |    2 +-
+ d |  Bin
+ 4 files changed, 2 insertions(+), 2 deletions(-)
+EOF'
+
+# apply needs to be able to skip the binary material correctly
+# in order to report the line number of a corrupt patch.
+test_expect_success 'apply detecting corrupt patch correctly' \
+	'git-diff | sed -e 's/-CIT/xCIT/' >broken &&
+	 if git-apply --stat --summary broken 2>detected
+	 then
+		echo unhappy - should have detected an error
+		(exit 1)
+	 else
+		echo happy
+	 fi &&
+	 detected=`cat detected` &&
+	 detected=`expr "$detected" : "fatal.*at line \\([0-9]*\\)\$"` &&
+	 detected=`sed -ne "${detected}p" broken` &&
+	 test "$detected" = xCIT'
+
+test_expect_success 'apply detecting corrupt patch correctly' \
+	'git-diff --binary | sed -e 's/-CIT/xCIT/' >broken &&
+	 if git-apply --stat --summary broken 2>detected
+	 then
+		echo unhappy - should have detected an error
+		(exit 1)
+	 else
+		echo happy
+	 fi &&
+	 detected=`cat detected` &&
+	 detected=`expr "$detected" : "fatal.*at line \\([0-9]*\\)\$"` &&
+	 detected=`sed -ne "${detected}p" broken` &&
+	 test "$detected" = xCIT'
+
+test_expect_success 'initial commit' 'git-commit -a -m initial'
+
+# Try removal (b), modification (d), and creation (e).
+test_expect_success 'diff-index with --binary' \
+	'echo AIT >a && mv b e && echo CIT >c && cat e >d &&
+	 git-update-index --add --remove a b c d e &&
+	 tree0=`git-write-tree` &&
+	 git-diff --cached --binary >current &&
+	 git-apply --stat --summary current'
+
+test_expect_success 'apply binary patch' \
+	'git-reset --hard &&
+	 git-apply --binary --index <current &&
+	 tree1=`git-write-tree` &&
+	 test "$tree1" = "$tree0"'
+
+test_done
diff --git a/t/test4012.png b/t/test4012.png
new file mode 100644
index 0000000000..7b181d15ce
Binary files /dev/null and b/t/test4012.png differ