diff --git a/test/black-box/layers-checkout/__layers/bar/2/recipes/bar.yaml b/test/black-box/layers-checkout/__layers/bar/2/recipes/bar.yaml
new file mode 100644
index 00000000..6f7962ee
--- /dev/null
+++ b/test/black-box/layers-checkout/__layers/bar/2/recipes/bar.yaml
@@ -0,0 +1,3 @@
+packageScript: "/bin/true"
+provideVars:
+  BAR_VERSION: "2"
diff --git a/test/black-box/layers-checkout/__layers/baz/1/recipes/baz.yaml b/test/black-box/layers-checkout/__layers/baz/1/recipes/baz.yaml
new file mode 100644
index 00000000..1413c580
--- /dev/null
+++ b/test/black-box/layers-checkout/__layers/baz/1/recipes/baz.yaml
@@ -0,0 +1,3 @@
+packageScript: "/bin/true"
+provideVars:
+  BAZ_VERSION: "1"
diff --git a/test/black-box/layers-checkout/__layers/baz/2/recipes/baz.yaml b/test/black-box/layers-checkout/__layers/baz/2/recipes/baz.yaml
new file mode 100644
index 00000000..7e1f8635
--- /dev/null
+++ b/test/black-box/layers-checkout/__layers/baz/2/recipes/baz.yaml
@@ -0,0 +1,3 @@
+packageScript: "/bin/true"
+provideVars:
+  BAZ_VERSION: "2"
diff --git a/test/black-box/layers-checkout/__layers/foo/config.yaml b/test/black-box/layers-checkout/__layers/foo/config.yaml
new file mode 100644
index 00000000..bce8c082
--- /dev/null
+++ b/test/black-box/layers-checkout/__layers/foo/config.yaml
@@ -0,0 +1,9 @@
+layers:
+  - bar:
+      checkoutSCM:
+        scm: import
+        url: "__layers/bar/2"
+  - baz:
+      checkoutSCM:
+        scm: import
+        url: "__layers/baz/1"
diff --git a/test/black-box/layers-checkout/__layers/foo/recipes/foo.yaml b/test/black-box/layers-checkout/__layers/foo/recipes/foo.yaml
new file mode 100644
index 00000000..7f85f00e
--- /dev/null
+++ b/test/black-box/layers-checkout/__layers/foo/recipes/foo.yaml
@@ -0,0 +1,2 @@
+buildScript: "true"
+packageScript: "true"
diff --git a/test/black-box/layers-checkout/config.yaml b/test/black-box/layers-checkout/config.yaml
new file mode 100644
index 00000000..ac95374d
--- /dev/null
+++ b/test/black-box/layers-checkout/config.yaml
@@ -0,0 +1,9 @@
+layers:
+  - name: foo
+    scm: git
+    url: "file://${FOO_DIR}"
+    commit: "${FOO_COMMIT}"
+  - name: bar
+    scm: git
+    url: "file://${BAR_DIR}"
+    commit: "${BAR_1_COMMIT}"
diff --git a/test/black-box/layers-checkout/layers_overrides.yaml b/test/black-box/layers-checkout/layers_overrides.yaml
new file mode 100644
index 00000000..232d26f0
--- /dev/null
+++ b/test/black-box/layers-checkout/layers_overrides.yaml
@@ -0,0 +1,8 @@
+layersScmOverrides:
+  -
+    match:
+      url: "file://${FOO_DIR}"
+    del: [branch, tag, commit]
+    set:
+      branch: "branch_override"
+
diff --git a/test/black-box/layers-checkout/recipes/root.yaml b/test/black-box/layers-checkout/recipes/root.yaml
new file mode 100644
index 00000000..80970720
--- /dev/null
+++ b/test/black-box/layers-checkout/recipes/root.yaml
@@ -0,0 +1,11 @@
+root: True
+
+depends:
+  - name: bar
+    use: [environment]
+
+buildVars: [BAR_VERSION]
+buildScript: |
+  echo "${BAR_VERSION}" > bar
+packageScript: |
+  cp $1/bar .
diff --git a/test/black-box/layers-checkout/run.sh b/test/black-box/layers-checkout/run.sh
new file mode 100755
index 00000000..32281681
--- /dev/null
+++ b/test/black-box/layers-checkout/run.sh
@@ -0,0 +1,174 @@
+#!/bin/bash -e
+. ../../test-lib.sh 2>/dev/null || { echo "Must run in script directory!" ; exit 1 ; }
+
+foo_dir=$(mktemp -d)
+bar_dir=$(mktemp -d)
+baz_dir=$(mktemp -d)
+trap 'rm -rf "$foo_dir" "$bar_dir" "$baz_dir" layers layers.attic log-status.txt' EXIT
+cleanup
+
+# build the git layer bar/1
+pushd ${bar_dir}
+mkdir recipes
+cat > recipes/bar.yaml << EOF
+packageScript: "/bin/true"
+provideVars: 
+  BAR_VERSION: "1"
+EOF
+git init .
+git config user.email "bob@bob.bob"
+git config user.name est
+
+git add .
+git commit -m "first commit"
+bar_c0=$(git rev-parse HEAD)
+
+sed -i 's/BAR_VERSION: "1"/BAR_VERSION: "3"/g' recipes/bar.yaml
+git commit -a -m "bump bar"
+bar_c1=$(git rev-parse HEAD)
+popd # ${bar_dir}
+
+pushd ${foo_dir}
+cat > config.yaml << 'EOF'
+layers:
+  - name: bar
+    scm: git
+    url: "file://${BAR_DIR}"
+    commit: "${BAR_2_COMMIT}"
+  - name: baz
+    scm: git
+    url: "file://${BAZ_DIR}"
+    commit: "${BAZ_COMMIT}"
+  - name: baz1
+    scm: git
+    url: "file://${BAZ_DIR}"
+    commit: "${BAZ1_COMMIT}"
+
+EOF
+mkdir recipes
+cat > recipes/foo.yaml << EOF
+buildScript: "true"
+packageScript: "true"
+EOF
+git init .
+git config user.email "bob@bob.bob"
+git config user.name est
+
+git add .
+git commit -m "first commit"
+foo_c0=$(git rev-parse HEAD)
+
+cat > config.yaml << 'EOF'
+layers:
+  - name: bar
+    scm: git
+    url: "file://${BAR_DIR}"
+    commit: "${BAR_2_COMMIT}"
+EOF
+git add .
+git commit -m "remove baz"
+foo_c1=$(git rev-parse HEAD)
+
+git checkout -b branch_override
+echo "override" > override
+git add .
+git commit -m "override"
+popd # $foo_dir
+
+pushd ${baz_dir}
+mkdir recipes
+cat > recipes/baz.yaml << EOF
+buildScript: "true"
+packageScript: "true"
+provideVars:
+   BAZ_VERSION: "1"
+EOF
+git init .
+git config user.email "bob@bob.bob"
+git config user.name est
+git add .
+git commit -m "first commit"
+baz_c0=$(git rev-parse HEAD)
+cat > recipes/baz.yaml << EOF
+buildScript: "true"
+packageScript: "true"
+provideVars:
+   BAZ_VERSION: "2"
+EOF
+git commit -a -m "bump"
+baz_c1=$(git rev-parse HEAD)
+
+mv recipes/baz.yaml recipes/baz1.yaml
+git commit -a -m "rename"
+baz_c2=$(git rev-parse HEAD)
+
+popd # $baz_dir
+
+# just build the root recipe. Layer should be fetched automatically.
+run_bob dev root -DBAR_1_COMMIT=${bar_c0} -DBAR_2_COMMIT=${bar_c1} -DBAR_DIR=${bar_dir} \
+	-DBAZ_DIR=${baz_dir} -DBAZ_COMMIT="${baz_c0}" \
+	-DBAZ1_COMMIT="${baz_c2}" \
+	-DFOO_DIR=${foo_dir} -DFOO_COMMIT="${foo_c0}" -vvv
+
+# run update
+run_bob layers update -DBAR_1_COMMIT=${bar_c0} -DBAR_2_COMMIT=${bar_c1} -DBAR_DIR=${bar_dir} \
+	-DBAZ_DIR=${baz_dir} -DBAZ_COMMIT="${baz_c0}" \
+	-DBAZ1_COMMIT="${baz_c2}" \
+	-DFOO_DIR=${foo_dir} -DFOO_COMMIT="${foo_c0}"
+
+# remove layers + clean
+cleanup
+rm -rf layers
+
+# if the layer already exists we fail
+mkdir -p layers/bar
+
+expect_fail run_bob layers update -DBAR_1_COMMIT=${bar_c0} -DBAR_2_COMMIT=${bar_c1} -DBAR_DIR=${bar_dir} \
+	-DBAZ_DIR=${baz_dir} -DBAZ_COMMIT="${baz_c0}" \
+	-DBAZ1_COMMIT="${baz_c2}" \
+	-DFOO_DIR=${foo_dir} -DFOO_COMMIT="${foo_c0}"
+
+rm -rf layers/bar
+
+# run update
+run_bob layers update -DBAR_1_COMMIT=${bar_c0} -DBAR_2_COMMIT=${bar_c1} -DBAR_DIR=${bar_dir} \
+	-DBAZ_DIR=${baz_dir} -DBAZ_COMMIT="${baz_c0}" \
+	-DBAZ1_COMMIT="${baz_c2}" \
+	-DFOO_DIR=${foo_dir} -DFOO_COMMIT="${foo_c0}"
+
+# make some changes in layers
+echo "#foo" >> layers/bar/recipes/bar.yaml
+
+run_bob layers status -DBAR_1_COMMIT=${bar_c0} -DBAR_2_COMMIT=${bar_c1} -DBAR_DIR=${bar_dir} \
+	-DBAZ_DIR=${baz_dir} -DBAZ_COMMIT="${baz_c0}" \
+	-DBAZ1_COMMIT="${baz_c2}" \
+	-DFOO_DIR=${foo_dir} -DFOO_COMMIT="${foo_c0}" | tee log-status.txt
+grep -q 'STATUS.\+M.\+[/\]bar' log-status.txt 
+
+# update bar to new revision (bar will be moved to attic)
+run_bob layers update -DBAR_1_COMMIT=${bar_c1} -DBAR_2_COMMIT=${bar_c1} -DBAR_DIR=${bar_dir} \
+	-DBAZ_DIR=${baz_dir} -DBAZ_COMMIT="${baz_c0}" \
+	-DBAZ1_COMMIT="${baz_c2}" \
+	-DFOO_DIR=${foo_dir} -DFOO_COMMIT="${foo_c0}"
+expect_exist layers.attic/*_bar
+
+bar_now=$(git -C layers/bar rev-parse HEAD)
+expect_equal ${bar_c1} ${bar_now}
+
+rm layers.attic -rf
+# checkout new foo where the baz* layers have been removed. they should go to attic
+run_bob layers update -DBAR_1_COMMIT=${bar_c1} -DBAR_2_COMMIT=${bar_c1} -DBAR_DIR=${bar_dir} \
+	-DFOO_DIR=${foo_dir} -DFOO_COMMIT="${foo_c1}"
+
+expect_exist layers.attic/*_baz
+expect_exist layers.attic/*_baz1
+
+# test layersScmOverrides
+run_bob layers update -DBAR_1_COMMIT=${bar_c1} -DBAR_2_COMMIT=${bar_c1} -DBAR_DIR=${bar_dir} \
+	-DFOO_DIR=${foo_dir} -DFOO_COMMIT="${foo_c1}" \
+	-lc layers_overrides -vv
+expect_exist layers/foo/override
+
+# remove layers + clean
+cleanup
+rm -rf layers