diff --git a/spring-batch-core/.springBeans b/spring-batch-core/.springBeans
index 8bb3a49b4..8eb9665d6 100644
--- a/spring-batch-core/.springBeans
+++ b/spring-batch-core/.springBeans
@@ -57,6 +57,7 @@
 		<config>src/test/resources/org/springframework/batch/core/configuration/xml/StepParserBeanNameTests-context.xml</config>
 		<config>src/test/resources/org/springframework/batch/core/configuration/xml/StepParserTaskletAttributesTests-context.xml</config>
 		<config>src/test/resources/org/springframework/batch/core/configuration/xml/StopIncompleteJobParserTests-context.xml</config>
+		<config>src/test/resources/org/springframework/batch/core/configuration/xml/StopRestartOnFailedStepJobParserTests-context.xml</config>
 	</configs>
 	<configSets>
 		<configSet>
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StopRestartOnFailedStepJobParserTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StopRestartOnFailedStepJobParserTests.java
new file mode 100644
index 000000000..d2e7e06e3
--- /dev/null
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StopRestartOnFailedStepJobParserTests.java
@@ -0,0 +1,79 @@
+/*
+ * Copyright 2006-2007 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package org.springframework.batch.core.configuration.xml;
+
+import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.assertTrue;
+
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.springframework.batch.core.BatchStatus;
+import org.springframework.batch.core.ExitStatus;
+import org.springframework.batch.core.JobExecution;
+import org.springframework.batch.core.StepExecution;
+import org.springframework.batch.core.job.flow.JobExecutionDecider;
+import org.springframework.batch.core.repository.JobExecutionAlreadyRunningException;
+import org.springframework.batch.core.repository.JobInstanceAlreadyCompleteException;
+import org.springframework.batch.core.repository.JobRestartException;
+import org.springframework.test.context.ContextConfiguration;
+import org.springframework.test.context.junit4.SpringJUnit4ClassRunner;
+
+/**
+ * @author Dave Syer
+ * 
+ */
+@ContextConfiguration
+@RunWith(SpringJUnit4ClassRunner.class)
+public class StopRestartOnFailedStepJobParserTests extends AbstractJobParserTests {
+
+	@Test
+	public void testStopIncomplete() throws Exception {
+
+		//
+		// First Launch
+		//
+		launchAndAssert();
+
+		//
+		// Second Launch
+		//
+		stepNamesList.clear();
+		launchAndAssert();
+
+	}
+
+	private void launchAndAssert() throws JobInstanceAlreadyCompleteException, JobRestartException,
+			JobExecutionAlreadyRunningException {
+		JobExecution jobExecution = createJobExecution();
+		job.execute(jobExecution);
+		assertEquals(1, stepNamesList.size());
+		assertTrue(stepNamesList.contains("s1"));
+
+		assertEquals(BatchStatus.INCOMPLETE, jobExecution.getStatus());
+		assertEquals(ExitStatus.FAILED.getExitCode(), jobExecution.getExitStatus().getExitCode());
+
+		StepExecution stepExecution1 = getStepExecution(jobExecution, "s1");
+		assertEquals(BatchStatus.COMPLETED, stepExecution1.getStatus());
+		assertEquals(ExitStatus.COMPLETED.getExitCode(), stepExecution1.getExitStatus().getExitCode());
+	}
+
+	public static class TestDecider implements JobExecutionDecider {
+		public String decide(JobExecution jobExecution, StepExecution stepExecution) {
+			return "FOO";
+		}
+	}
+
+}
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StopRestartOnFailedStepJobParserTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StopRestartOnFailedStepJobParserTests-context.xml
new file mode 100644
index 000000000..2e8a93543
--- /dev/null
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StopRestartOnFailedStepJobParserTests-context.xml
@@ -0,0 +1,22 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans:beans xmlns="http://www.springframework.org/schema/batch" xmlns:beans="http://www.springframework.org/schema/beans"
+	xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xsi:schemaLocation="http://www.springframework.org/schema/batch http://www.springframework.org/schema/batch/spring-batch-2.0.xsd
+	http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans-2.5.xsd">
+
+	<beans:import resource="common-context.xml" />
+	
+	<beans:bean id="decider" class="org.springframework.batch.core.configuration.xml.StopJobParserTests$TestDecider"/>
+
+	<job id="job">
+		<step id="s1" ref="taskletStep">
+			<stop on="COMPLETED" restart="s1"/>
+			<end on="*"/>
+		</step>
+	</job>
+
+	<beans:bean id="taskletStep" parent="step1">
+		<beans:property name="allowStartIfComplete" value="true"/>
+	</beans:bean>
+
+</beans:beans>
\ No newline at end of file
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/common-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/common-context.xml
index 2fe7d570c..630008b47 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/common-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/common-context.xml
@@ -12,26 +12,26 @@
 	<bean id="step1" class="org.springframework.batch.core.step.tasklet.TaskletStep">
 		<property name="jobRepository" ref="jobRepository"/>
 		<property name="transactionManager" ref="transactionManager"/>
-		<property name="tasklet">
-			<bean class="org.springframework.batch.core.configuration.xml.NameStoringTasklet">
-				<property name="stepNamesList" ref="stepNamesList"/>
-			</bean>
-		</property>
+		<property name="tasklet" ref="nameStoringTasklet"/>
 	</bean>
 	<bean id="step2" parent="step1"/>
 	<bean id="step3" parent="step1"/>
 	<bean id="step4" parent="step1"/>
 	
+	<bean id="nameStoringTasklet" class="org.springframework.batch.core.configuration.xml.NameStoringTasklet">
+		<property name="stepNamesList" ref="stepNamesList"/>
+	</bean>
+
 	<bean id="failingStep" class="org.springframework.batch.core.step.tasklet.TaskletStep">
 		<property name="jobRepository" ref="jobRepository"/>
 		<property name="transactionManager" ref="transactionManager"/>
-		<property name="tasklet">
-			<bean class="org.springframework.batch.core.configuration.xml.FailingTasklet">
-				<property name="stepNamesList" ref="stepNamesList"/>
-			</bean>
-		</property>
+		<property name="tasklet" ref="failingTasklet"/>
 	</bean>
 	
+	<bean id="failingTasklet" class="org.springframework.batch.core.configuration.xml.FailingTasklet">
+		<property name="stepNamesList" ref="stepNamesList"/>
+	</bean>
+
 	<bean id="stepNamesList" class="java.util.ArrayList"/>
 
 </beans>
\ No newline at end of file