diff --git a/src/Umbraco.Web.UI.Client/test/unit/app/templates/template.editor.controller.tests.js b/src/Umbraco.Web.UI.Client/test/unit/app/templates/template.editor.controller.tests.js
new file mode 100644
index 0000000000..a5657bf842
--- /dev/null
+++ b/src/Umbraco.Web.UI.Client/test/unit/app/templates/template.editor.controller.tests.js
@@ -0,0 +1,127 @@
+/// <reference path="../../../../lib/angular/1.1.5/angular.js" />
+/// <reference path="../../../lib/angular/angular-mocks.js" />
+/// <reference path="../../../../src/app.js" />
+/// <reference path="../../../../src/views/templates/edit.controller.js" />
+
+(function() {
+    "use strict";
+
+    describe("templates editor controller",
+        function() {
+
+
+            var scope,
+                controllerFactory,
+                q,
+                ace,
+                controller,
+                nada = function() {};
+
+            beforeEach(function() {
+                angular.module('umbraco.filters', []);
+                angular.module('umbraco.directives', []);
+                angular.module('umbraco.resources', []);
+                angular.module('umbraco.services', []);
+                angular.module('umbraco.packages', []);
+                angular.module('umbraco.views', []);
+                angular.module('ngCookies', []);
+                angular.module('ngSanitize', []);
+                angular.module('ngMobile', []);
+                angular.module('tmh.dynamicLocale', []);
+                angular.module('ngFileUpload', []);
+                angular.module('LocalStorageModule', []);
+            });
+
+            beforeEach(module("umbraco"));
+
+            beforeEach(inject(function($controller, $rootScope, $q) {
+
+                controllerFactory = $controller;
+                scope = $rootScope.$new();
+                q = $q;
+
+                ace = {
+                    on: function(){}
+                }
+
+                controller = createController();
+                scope.$digest();
+                controller.aceOption.onLoad(ace);
+
+            }));
+
+            function resolvedPromise(obj) {
+                return function() {
+                    var def = q.defer();
+                    def.resolve(obj);
+                    return def.promise;
+                }
+            }
+
+            function createController() {
+                return controllerFactory("Umbraco.Editors.Templates.EditController",
+                {
+                    $scope: scope,
+                    $routeParams: {},
+                    templateResource: {
+                        getById: resolvedPromise({})
+                    },
+                    assetsService: {
+                        loadCss: function() {}
+                    },
+                    notificationsService: {
+                    },
+                    editorState: {
+                        set: function(){}
+                    },
+                    navigationService: {
+                        syncTree: resolvedPromise({})
+                    },
+                    appState: {
+                        getSectionState : function() { return {}; }
+                    },
+                    macroService: {}
+                });
+            }
+
+            it("has ace editor",
+                function () {
+                    expect(controller.editor).toBe(ace);
+                });
+
+            it("sets masterpage on template",
+                function () {
+                    controller.setLayout = function() {};
+
+                    controller.openOrganizeOverlay();
+                    controller.organizeOverlay.submit({
+                        masterPage: {
+                            alias: "NewMasterPage"
+                        }
+                    });
+                    expect(controller.template.masterPageAlias).toBe("NewMasterPage");
+                });
+
+            it("changes layout value when masterpage is selected",
+                function() {
+                    var newTemplate;
+                    ace.clearSelection = nada;
+                    ace.navigateFileStart = nada;
+                    ace.getValue = function () {
+                        return "@{ Layout = null; }";
+                    }
+                    ace.setValue = function (value) {
+                        newTemplate = value;
+                    }
+
+                    controller.openOrganizeOverlay();
+                    controller.organizeOverlay.submit({
+                        masterPage: {
+                            alias: "NewMasterPage"
+                        }
+                    });
+                    expect(newTemplate).toBe("@{ Layout = \"NewMasterPage.cshtml\"; }");
+                });
+        });
+
+}());