diff --git a/collects/tests/typed-scheme/fail/nested-tvars.ss b/collects/tests/typed-scheme/fail/nested-tvars.ss
new file mode 100644
index 0000000000..9a03b559f3
--- /dev/null
+++ b/collects/tests/typed-scheme/fail/nested-tvars.ss
@@ -0,0 +1,9 @@
+#lang typed-scheme
+
+(: f (All (a) (a -> a)))
+(define (f x)
+ (: g (All (b) (a (Listof a) -> (Listof a))))
+ (define (g x y) y)
+ (g "foo" (list "foo")))
+
+(f 3)
\ No newline at end of file