diff --git a/internal/ceres/solver_impl_test.cc b/internal/ceres/solver_impl_test.cc
index 81775fb..ef4a6e0 100644
--- a/internal/ceres/solver_impl_test.cc
+++ b/internal/ceres/solver_impl_test.cc
@@ -29,6 +29,7 @@
 // Author: sameeragarwal@google.com (Sameer Agarwal)
 
 #include "gtest/gtest.h"
+#include "ceres/autodiff_cost_function.h"
 #include "ceres/linear_solver.h"
 #include "ceres/parameter_block.h"
 #include "ceres/problem_impl.h"
@@ -560,5 +561,69 @@
   EXPECT_TRUE(solver.get() != NULL);
 }
 
+struct QuadraticCostFunction {
+  template <typename T> bool operator()(const T* const x,
+                                        T* residual) const {
+    residual[0] = T(5.0) - *x;
+    return true;
+  }
+};
+
+struct RememberingCallback : public IterationCallback {
+  RememberingCallback(double *x) : calls(0), x(x) {}
+  virtual ~RememberingCallback() {}
+  virtual CallbackReturnType operator()(const IterationSummary& summary) {
+    x_values.push_back(*x);
+    return SOLVER_CONTINUE;
+  }
+  int calls;
+  double *x;
+  vector<double> x_values;
+};
+
+TEST(SolverImpl, UpdateStateEveryIterationOption) {
+  double x = 50.0;
+  const double original_x = x;
+
+  scoped_ptr<CostFunction> cost_function(
+      new AutoDiffCostFunction<QuadraticCostFunction, 1, 1>(
+          new QuadraticCostFunction));
+
+  Problem::Options problem_options;
+  problem_options.cost_function_ownership = DO_NOT_TAKE_OWNERSHIP;
+  Problem problem(problem_options);
+  problem.AddResidualBlock(cost_function.get(), NULL, &x);
+
+  Solver::Options options;
+  options.linear_solver_type = DENSE_QR;
+
+  RememberingCallback callback(&x);
+  options.callbacks.push_back(&callback);
+
+  Solver::Summary summary;
+
+  int num_iterations;
+
+  // First try: no updating.
+  SolverImpl::Solve(options, &problem, &summary);
+  num_iterations = summary.num_successful_steps +
+                   summary.num_unsuccessful_steps;
+  EXPECT_GT(num_iterations, 1);
+  for (int i = 0; i < callback.x_values.size(); ++i) {
+    EXPECT_EQ(50.0, callback.x_values[i]);
+  }
+
+  // Second try: with updating
+  x = 50.0;
+  options.update_state_every_iteration = true;
+  callback.x_values.clear();
+  SolverImpl::Solve(options, &problem, &summary);
+  num_iterations = summary.num_successful_steps +
+                   summary.num_unsuccessful_steps;
+  EXPECT_GT(num_iterations, 1);
+  EXPECT_EQ(original_x, callback.x_values[0]);
+  EXPECT_NE(original_x, callback.x_values[1]);
+}
+
 }  // namespace internal
 }  // namespace ceres