diff --git a/spring-integration-ftp/pom.xml b/spring-integration-ftp/pom.xml
index b3ab0f838b..b72b350d77 100644
--- a/spring-integration-ftp/pom.xml
+++ b/spring-integration-ftp/pom.xml
@@ -85,5 +85,9 @@
 			<artifactId>commons-io</artifactId>
 			<version>1.4</version>
 		</dependency>
+		<dependency>
+			<groupId>org.mockito</groupId>
+			<artifactId>mockito-all</artifactId>
+		</dependency>
 	</dependencies>
 </project>
diff --git a/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests-inbound-fail.xml b/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests-inbound-fail.xml
new file mode 100644
index 0000000000..e115a5df34
--- /dev/null
+++ b/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests-inbound-fail.xml
@@ -0,0 +1,38 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans xmlns="http://www.springframework.org/schema/beans"
+	   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	   xmlns:ftp="http://www.springframework.org/schema/integration/ftp"
+	   xmlns:int="http://www.springframework.org/schema/integration"
+	   xmlns:context="http://www.springframework.org/schema/context"
+	   xmlns:ftps="http://www.springframework.org/schema/integration/ftps"
+	   xsi:schemaLocation="http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans.xsd
+	    http://www.springframework.org/schema/integration/ftps http://www.springframework.org/schema/integration/ftp/spring-integration-ftps.xsd
+        http://www.springframework.org/schema/integration  http://www.springframework.org/schema/integration/spring-integration.xsd
+       http://www.springframework.org/schema/integration/ftp http://www.springframework.org/schema/integration/ftp/spring-integration-ftp.xsd http://www.springframework.org/schema/context http://www.springframework.org/schema/context/spring-context.xsd">
+
+	<ftp:inbound-channel-adapter id="adapterFtpDontAutoCreate" 
+								 channel="ftpIn"
+								 file-type="binary-file-type"	
+								 filter="filter" 
+								 filename-pattern="foo"
+								 local-working-directory="file:target/bar"
+								 auto-create-directories="false"
+								 auto-delete-remote-files-on-sync="false"
+								 username="oleg"
+								 remote-directory="ftp://localhost" 
+								 host="localhost" 
+								 password="zhurakousky" 
+								 port="21"
+								 client-mode="passive-local-data-connection-mode">
+		<int:poller fixed-rate="1000"/>
+	</ftp:inbound-channel-adapter>
+
+	<bean id="filter" class="org.mockito.Mockito" factory-method="mock">
+		<constructor-arg value="org.springframework.integration.file.entries.EntryListFilter"/>
+	</bean>
+	
+	<int:channel id="ftpIn">
+		<int:queue/>
+	</int:channel>
+
+</beans>
diff --git a/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests-inbound.xml b/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests-inbound.xml
new file mode 100644
index 0000000000..689b4441aa
--- /dev/null
+++ b/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests-inbound.xml
@@ -0,0 +1,72 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans xmlns="http://www.springframework.org/schema/beans"
+	   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	   xmlns:ftp="http://www.springframework.org/schema/integration/ftp"
+	   xmlns:int="http://www.springframework.org/schema/integration"
+	   xmlns:context="http://www.springframework.org/schema/context"
+	   xmlns:ftps="http://www.springframework.org/schema/integration/ftps"
+	   xsi:schemaLocation="http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans.xsd
+	    http://www.springframework.org/schema/integration/ftps http://www.springframework.org/schema/integration/ftp/spring-integration-ftps.xsd
+        http://www.springframework.org/schema/integration  http://www.springframework.org/schema/integration/spring-integration.xsd
+       http://www.springframework.org/schema/integration/ftp http://www.springframework.org/schema/integration/ftp/spring-integration-ftp.xsd http://www.springframework.org/schema/context http://www.springframework.org/schema/context/spring-context.xsd">
+
+	
+	<ftp:inbound-channel-adapter id="adapterFtp" 
+								 channel="ftpIn"
+								 file-type="binary-file-type"	
+								 filter="filter" 
+								 filename-pattern="foo"
+								 local-working-directory="file:target/foo"
+								 auto-create-directories="true"
+								 auto-delete-remote-files-on-sync="false"
+								 username="oleg"
+								 remote-directory="ftp://localhost" 
+								 host="localhost" 
+								 password="zhurakousky" 
+								 port="21"
+								 client-mode="passive-local-data-connection-mode">
+		<int:poller fixed-rate="1000"/>
+	</ftp:inbound-channel-adapter>
+		<ftp:inbound-channel-adapter id="adapterFtp" 
+								 channel="ftpIn"
+								 file-type="binary-file-type"	
+								 filter="filter" 
+								 filename-pattern="foo"
+								 local-working-directory="file:target"
+								 auto-create-directories="true"
+								 auto-delete-remote-files-on-sync="false"
+								 username="oleg"
+								 remote-directory="ftp://localhost" 
+								 host="localhost" 
+								 password="zhurakousky" 
+								 port="21"
+								 client-mode="passive-local-data-connection-mode">
+		<int:poller fixed-rate="1000"/>
+	</ftp:inbound-channel-adapter>
+
+<!--	<ftps:inbound-channel-adapter id="adapterFtp" -->
+<!--								 channel="ftpIn"-->
+<!--								 file-type="binary-file-type"	-->
+<!--								 filter="filter" -->
+<!--								 filename-pattern="foo"-->
+<!--								 local-working-directory="file:target/ftps"-->
+<!--								 auto-create-directories="true"-->
+<!--								 auto-delete-remote-files-on-sync="false"-->
+<!--								 username="oleg"-->
+<!--								 remote-directory="ftp://localhost" -->
+<!--								 host="localhost" -->
+<!--								 password="zhurakousky" -->
+<!--								 port="21"-->
+<!--								 client-mode="passive-local-data-connection-mode">-->
+<!--		<int:poller fixed-rate="1000"/>-->
+<!--	</ftps:inbound-channel-adapter>-->
+	
+	<bean id="filter" class="org.mockito.Mockito" factory-method="mock">
+		<constructor-arg value="org.springframework.integration.file.entries.EntryListFilter"/>
+	</bean>
+	
+	<int:channel id="ftpIn">
+		<int:queue/>
+	</int:channel>
+
+</beans>
diff --git a/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests.java b/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests.java
new file mode 100644
index 0000000000..65fe45423e
--- /dev/null
+++ b/spring-integration-ftp/src/test/java/org/springframework/integration/ftp/FtpParserTests.java
@@ -0,0 +1,56 @@
+/*
+ * Copyright 2002-2010 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.integration.ftp;
+
+import static junit.framework.Assert.assertTrue;
+
+import java.io.File;
+
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Test;
+import org.springframework.beans.factory.BeanCreationException;
+import org.springframework.context.ApplicationContext;
+import org.springframework.context.support.ClassPathXmlApplicationContext;
+
+/**
+ * @author Oleg Zhurakousky
+ *
+ */
+public class FtpParserTests {
+	@Before
+	public void prepare(){
+		new File("target/foo").delete();
+	}
+
+	@Test
+	public void testLocalFilesAutoCreationTrue() throws Exception{
+		assertTrue(!new File("target/foo").exists());
+		new ClassPathXmlApplicationContext("FtpParserTests-inbound.xml", this.getClass());
+		assertTrue(new File("target/foo").exists());
+		assertTrue(!new File("target/bar").exists());
+	}
+	@Test(expected=BeanCreationException.class)
+	public void testLocalFilesAutoCreationFalse() throws Exception{
+		assertTrue(!new File("target/bar").exists());
+		new ClassPathXmlApplicationContext("FtpParserTests-inbound-fail.xml", this.getClass());
+	}
+	
+	@After
+	public void cleanUp() throws Exception{
+		new File("target/foo").delete();
+	}
+}
\ No newline at end of file