diff --git a/src/test/contracts/high-order.ligo b/src/test/contracts/high-order.ligo
index 9059b1efb..44822f088 100644
--- a/src/test/contracts/high-order.ligo
+++ b/src/test/contracts/high-order.ligo
@@ -8,9 +8,9 @@ function foobar (const i : int) : int is
 
 // higher order function with more than one argument
 function higher2(const i: int; const f: int -> int): int is
-    block { 
-        const ii: int = f(i)
-     } with ii
+  block { 
+      const ii: int = f(i)
+   } with ii
 
 function foobar2 (const i : int) : int is
   function foo2 (const i : int) : int is
@@ -34,3 +34,16 @@ function g (const i : int) : int is
 function foobar4 (const i : int) : int is
   block { skip }
   with g(g(i))
+
+function higher3(const i: int; const f: int -> int; const g: int -> int): int is
+  block { 
+      const ii: int = f(g(i));
+   } with ii
+
+function foobar5 (const i : int) : int is
+  const a : int = 0;
+  function foo (const i : int) : int is
+    block { skip } with (a+i);
+  function goo (const i : int) : int is
+    block { skip } with foo(i);
+  block { skip } with higher3(i,foo,goo)
diff --git a/src/test/integration_tests.ml b/src/test/integration_tests.ml
index a7fc3858a..6726d66b5 100644
--- a/src/test/integration_tests.ml
+++ b/src/test/integration_tests.ml
@@ -115,6 +115,7 @@ let higher_order () : unit result =
   let%bind _ = expect_eq_n_int program "foobar2" make_expect in
   let%bind _ = expect_eq_n_int program "foobar3" make_expect in
   let%bind _ = expect_eq_n_int program "foobar4" make_expect in
+  let%bind _ = expect_eq_n_int program "foobar5" make_expect in
   ok () 
 
 let shared_function () : unit result =