diff --git a/dependencymanager/test/src/test/java/org/apache/felix/dm/test/FELIX3337_UpdatedConfigurationDependencyWithPropagationTest.java b/dependencymanager/test/src/test/java/org/apache/felix/dm/test/FELIX3337_UpdatedConfigurationDependencyWithPropagationTest.java
new file mode 100644
index 0000000..8475c26
--- /dev/null
+++ b/dependencymanager/test/src/test/java/org/apache/felix/dm/test/FELIX3337_UpdatedConfigurationDependencyWithPropagationTest.java
@@ -0,0 +1,169 @@
+/*
+ * 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.dm.test;
+
+import static org.ops4j.pax.exam.CoreOptions.mavenBundle;
+import static org.ops4j.pax.exam.CoreOptions.options;
+import static org.ops4j.pax.exam.CoreOptions.provision;
+
+import java.io.IOException;
+import java.util.Dictionary;
+import java.util.Map;
+import java.util.Properties;
+
+import junit.framework.Assert;
+
+import org.apache.felix.dm.Component;
+import org.apache.felix.dm.DependencyManager;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.ops4j.pax.exam.Option;
+import org.ops4j.pax.exam.junit.Configuration;
+import org.ops4j.pax.exam.junit.JUnit4TestRunner;
+import org.osgi.framework.BundleContext;
+import org.osgi.service.cm.ConfigurationAdmin;
+import org.osgi.service.cm.ConfigurationException;
+import org.osgi.service.cm.ManagedService;
+
+/**
+ * This test validates the following scenario:
+ * - Service S1 depends on a ConfigurationDependency with propagate = true
+ * - Service S2 depends on S1 (and has access to the S1 configuration using the S1 service 
+ *   properties (because the ConfigurationDependency is propagated)
+ * - then the ConfigurationDependency is updated
+ * - S1 is then called in its updated callback
+ * - but S2 is not called in its "change" callback.
+ * 
+ * this test is related to the issue FELIX3337 
+ */
+@RunWith(JUnit4TestRunner.class)
+public class FELIX3337_UpdatedConfigurationDependencyWithPropagationTest
+{
+    @Configuration
+    public static Option[] configuration() {
+        return options(
+            provision(
+                mavenBundle().groupId("org.osgi").artifactId("org.osgi.compendium").version(Base.OSGI_SPEC_VERSION),
+                mavenBundle().groupId("org.apache.felix").artifactId("org.apache.felix.configadmin").version("1.2.4"),
+                mavenBundle().groupId("org.apache.felix").artifactId("org.apache.felix.dependencymanager").versionAsInProject()
+            )
+        );
+    }    
+    
+    /*
+     * This Pojo creates the configuration pid "test".
+     */
+    static class ConfigurationCreator {
+        private volatile ConfigurationAdmin m_ca;
+        org.osgi.service.cm.Configuration m_conf;
+        
+        public void init() {
+            try {
+                m_conf = m_ca.getConfiguration("test", null);
+                Properties props = new Properties();
+                props.put("testkey", "testvalue");
+                m_conf.update(props);
+            }
+            catch (IOException e) {
+                Assert.fail("Could not create configuration: " + e.getMessage());
+            }
+        }
+        
+        public void update() {
+            try {
+                Properties props = new Properties();
+                props.put("testkey", "testmodifiedvalue");
+                m_conf.update(props);
+            } catch (IOException e) {
+                Assert.fail("Could not update the configured property: " + e.toString());
+            }
+        }
+    }
+
+    static class S1 implements ManagedService {
+        private Ensure m_ensure;
+        private boolean m_initialized;
+
+        public S1(Ensure e) {
+            m_ensure = e;
+        }
+        
+        public void updated(Dictionary props) throws ConfigurationException {
+            if (! m_initialized) {
+                m_ensure.step(1);
+                m_initialized = true;
+            } else {
+                // we are updated
+                m_ensure.step(3);
+            }
+        }
+    }
+
+    static class S2 {
+        private final Ensure m_ensure;
+
+        public S2(Ensure e) {
+            m_ensure = e;
+        }
+                        
+        public void add(S1 s1) {
+            m_ensure.step(2);
+        }
+        
+        public void change(S1 runnable) {
+            m_ensure.step(4);
+        }
+    }
+    
+    @Test
+    public void testComponentWithRequiredUpdatedConfigurationAndServicePropertyPropagation(BundleContext context) {
+        DependencyManager m = new DependencyManager(context);
+        // helper class that ensures certain steps get executed in sequence
+        Ensure e = new Ensure();        
+        ConfigurationCreator confCreator = new ConfigurationCreator();
+        Component s1 = m.createComponent()
+                .setImplementation(new S1(e))
+                .setInterface(S1.class.getName(), null)
+                .add(m.createConfigurationDependency()
+                     .setPid("test")
+                     .setPropagate(true));
+        Component s2 = m.createComponent()
+                .setImplementation(new S2(e))
+                .add(m.createServiceDependency()
+                     .setService(S1.class, ("(testkey=testvalue)"))
+                     .setRequired(true)
+                     .setCallbacks("add", "change", null));
+        Component s3 = m.createComponent()
+                .setImplementation(confCreator)
+                .add(m.createServiceDependency()
+                     .setService(ConfigurationAdmin.class)
+                     .setRequired(true));
+
+        m.add(s1);
+        m.add(s2);
+        m.add(s3);
+        e.waitForStep(2, 15000);
+        confCreator.update();
+        e.waitForStep(4, 15000);
+        m.remove(s1);
+        m.remove(s2);
+        m.remove(s3);
+        // ensure we executed all steps inside the component instance
+    }
+}