diff --git a/bundlerepository/src/test/java/org/apache/felix/bundlerepository/RepositoryImplTest.java b/bundlerepository/src/test/java/org/apache/felix/bundlerepository/RepositoryImplTest.java
new file mode 100644
index 0000000..367ff68
--- /dev/null
+++ b/bundlerepository/src/test/java/org/apache/felix/bundlerepository/RepositoryImplTest.java
@@ -0,0 +1,244 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you 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.apache.felix.bundlerepository;
+
+import java.io.File;
+import java.io.InputStream;
+import java.net.URL;
+import java.util.Dictionary;
+
+import junit.framework.TestCase;
+
+import org.osgi.framework.Bundle;
+import org.osgi.framework.BundleContext;
+import org.osgi.framework.BundleListener;
+import org.osgi.framework.Filter;
+import org.osgi.framework.FrameworkListener;
+import org.osgi.framework.ServiceListener;
+import org.osgi.framework.ServiceReference;
+import org.osgi.framework.ServiceRegistration;
+import org.osgi.service.obr.Repository;
+import org.osgi.service.obr.Resource;
+
+public class RepositoryImplTest extends TestCase
+{
+
+    public void testReferral1() throws Exception
+    {
+
+        URL url = getClass().getResource("/referral1_repository.xml");
+
+        RepositoryAdminImpl repoAdmin = createRepositoryAdmin();
+        RepositoryImpl repo = (RepositoryImpl) repoAdmin.addRepository(url);
+        Referral[] refs = repo.getReferrals();
+
+        assertNotNull("Expect referrals", refs);
+        assertTrue("Expect one referral", refs.length == 1);
+
+        // <referral depth="1" url="referred.xml" />
+        assertEquals(1, refs[0].getDepth());
+        assertEquals("referred.xml", refs[0].getUrl());
+
+        // expect two resources
+        Resource[] res = repoAdmin.discoverResources(null);
+        assertNotNull("Expect Resource", res);
+        assertEquals("Expect two resources", 2, res.length);
+
+        // first resource is from the referral1_repository.xml
+        assertEquals("6", res[0].getId());
+        assertEquals("referral1_repository", res[0].getRepository().getName());
+
+        // second resource is from the referred.xml
+        assertEquals("99", res[1].getId());
+        assertEquals("referred", res[1].getRepository().getName());
+    }
+
+    public void testReferral2() throws Exception
+    {
+
+        URL url = getClass().getResource("/referral1_repository.xml");
+
+        RepositoryAdminImpl repoAdmin = createRepositoryAdmin();
+        RepositoryImpl repo = (RepositoryImpl) repoAdmin.addRepository(url, 1);
+        Referral[] refs = repo.getReferrals();
+
+        assertNotNull("Expect referrals", refs);
+        assertTrue("Expect one referral", refs.length == 1);
+
+        // <referral depth="1" url="referred.xml" />
+        assertEquals(1, refs[0].getDepth());
+        assertEquals("referred.xml", refs[0].getUrl());
+
+        // expect one resource (referral is not followed
+        Resource[] res = repoAdmin.discoverResources(null);
+        assertNotNull("Expect Resource", res);
+        assertEquals("Expect one resource", 1, res.length);
+
+        // first resource is from the referral1_repository.xml
+        assertEquals("6", res[0].getId());
+        assertEquals("referral1_repository", res[0].getRepository().getName());
+    }
+
+    private RepositoryAdminImpl createRepositoryAdmin()
+    {
+        RepositoryAdminImpl repoAdmin = new RepositoryAdminImpl(new MockBundleContext());
+
+        // force initialization && remove all initial repositories
+        Repository[] repos = repoAdmin.listRepositories();
+        for (int i = 0; repos != null && i < repos.length; i++)
+        {
+            repoAdmin.removeRepository(repos[i].getURL());
+        }
+
+        return repoAdmin;
+    }
+
+    private static class MockBundleContext implements BundleContext
+    {
+
+        public void addBundleListener(BundleListener arg0)
+        {
+        }
+
+        public void addFrameworkListener(FrameworkListener arg0)
+        {
+        }
+
+        public void addServiceListener(ServiceListener arg0)
+        {
+        }
+
+        public void addServiceListener(ServiceListener arg0, String arg1)
+        {
+        }
+
+        public Filter createFilter(String arg0)
+        {
+            // returns a match-all filter always
+            return new Filter()
+            {
+                public boolean matchCase(Dictionary arg0)
+                {
+                    return true;
+                }
+
+                public boolean match(Dictionary arg0)
+                {
+                    return true;
+                }
+
+                public boolean match(ServiceReference arg0)
+                {
+                    return true;
+                }
+            };
+        }
+
+        public ServiceReference[] getAllServiceReferences(String arg0, String arg1)
+        {
+            return null;
+        }
+
+        public Bundle getBundle()
+        {
+            return null;
+        }
+
+        public Bundle getBundle(long arg0)
+        {
+            return null;
+        }
+
+        public Bundle[] getBundles()
+        {
+            return null;
+        }
+
+        public File getDataFile(String arg0)
+        {
+            return null;
+        }
+
+        public String getProperty(String name)
+        {
+            if (RepositoryAdminImpl.REPOSITORY_URL_PROP.equals(name))
+            {
+                URL url = getClass().getResource("/referred.xml");
+                if (url != null)
+                {
+                    return url.toExternalForm();
+                }
+            }
+
+            return null;
+        }
+
+        public Object getService(ServiceReference arg0)
+        {
+            return null;
+        }
+
+        public ServiceReference getServiceReference(String arg0)
+        {
+            return null;
+        }
+
+        public ServiceReference[] getServiceReferences(String arg0, String arg1)
+        {
+            return null;
+        }
+
+        public Bundle installBundle(String arg0)
+        {
+            return null;
+        }
+
+        public Bundle installBundle(String arg0, InputStream arg1)
+        {
+            return null;
+        }
+
+        public ServiceRegistration registerService(String[] arg0, Object arg1, Dictionary arg2)
+        {
+            return null;
+        }
+
+        public ServiceRegistration registerService(String arg0, Object arg1, Dictionary arg2)
+        {
+            return null;
+        }
+
+        public void removeBundleListener(BundleListener arg0)
+        {
+        }
+
+        public void removeFrameworkListener(FrameworkListener arg0)
+        {
+        }
+
+        public void removeServiceListener(ServiceListener arg0)
+        {
+        }
+
+        public boolean ungetService(ServiceReference arg0)
+        {
+            return false;
+        }
+    }
+}
diff --git a/bundlerepository/src/test/resources/referral1_repository.xml b/bundlerepository/src/test/resources/referral1_repository.xml
new file mode 100644
index 0000000..26e640f
--- /dev/null
+++ b/bundlerepository/src/test/resources/referral1_repository.xml
@@ -0,0 +1,9 @@
+<repository lastmodified="20061215121044.644" name="referral1_repository">
+    <referral depth="1" url="referred.xml" />
+
+    <resource id="6" presentationname="0_telnetd"
+        symbolicname="com.softsell.open.osgi.telnetd"
+        uri="http://oscar-osgi.sf.net/obr2/telnetd/telnetd.jar"
+        version="1.0.0" />
+        
+</repository>
\ No newline at end of file
diff --git a/bundlerepository/src/test/resources/referred.xml b/bundlerepository/src/test/resources/referred.xml
new file mode 100644
index 0000000..19ad608
--- /dev/null
+++ b/bundlerepository/src/test/resources/referred.xml
@@ -0,0 +1,8 @@
+<repository lastmodified="20061215121044.644" name="referred">
+
+    <resource id="99" presentationname="1_referredSample"
+        symbolicname="org.sample.referred"
+        uri="referredSample.jar"
+        version="1.0.0" />
+        
+</repository>
\ No newline at end of file