diff --git a/project/Sbt.scala b/project/Sbt.scala
index a4e93d5af..f3a48ab52 100644
--- a/project/Sbt.scala
+++ b/project/Sbt.scala
@@ -143,7 +143,8 @@ object Sbt extends Build
 			val loader = classpath.ClasspathUtilities.toLoader(scriptedSbtClasspath.files, scriptedSbtInstance.loader)
 			val m = ModuleUtilities.getObject("sbt.test.ScriptedTests", loader)
 			val r = m.getClass.getMethod("run", classOf[File], classOf[Boolean], classOf[String], classOf[String], classOf[String], classOf[Array[String]], classOf[File], classOf[Array[String]])
-			try { r.invoke(m, sourcePath, true: java.lang.Boolean, v, sv, ssv, args.toArray[String], launcher, Array[String]()) }
+			val launcherVmOptions = Array("-XX:MaxPermSize=256M") // increased after a failure in scripted source-dependencies/macro
+			try { r.invoke(m, sourcePath, true: java.lang.Boolean, v, sv, ssv, args.toArray[String], launcher, launcherVmOptions) }
 			catch { case ite: java.lang.reflect.InvocationTargetException => throw ite.getCause }
 		}
 	}
diff --git a/sbt/src/sbt-test/source-dependencies/macro/macro-client/Client.scala b/sbt/src/sbt-test/source-dependencies/macro/macro-client/Client.scala
new file mode 100644
index 000000000..90932d136
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/macro/macro-client/Client.scala
@@ -0,0 +1,5 @@
+package macro
+
+object Client {
+	Provider.tree(0)
+}
diff --git a/sbt/src/sbt-test/source-dependencies/macro/macro-provider/Provider.scala b/sbt/src/sbt-test/source-dependencies/macro/macro-provider/Provider.scala
new file mode 100644
index 000000000..93764e1b4
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/macro/macro-provider/Provider.scala
@@ -0,0 +1,5 @@
+package macro
+
+object Provider {
+	def macro tree(args: Any) = reify(args)
+}
diff --git a/sbt/src/sbt-test/source-dependencies/macro/macro-provider/changes/Provider.scala b/sbt/src/sbt-test/source-dependencies/macro/macro-provider/changes/Provider.scala
new file mode 100644
index 000000000..53a086bb8
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/macro/macro-provider/changes/Provider.scala
@@ -0,0 +1,5 @@
+package macro
+
+object Provider {
+	def macro tree(args: Any) = sys.error("no macro for you!")
+}
diff --git a/sbt/src/sbt-test/source-dependencies/macro/project/build.scala b/sbt/src/sbt-test/source-dependencies/macro/project/build.scala
new file mode 100644
index 000000000..1f95fbeb9
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/macro/project/build.scala
@@ -0,0 +1,29 @@
+import sbt._
+import Keys._
+
+object build extends Build {
+	val defaultSettings = Seq(
+		scalaVersion := "2.10.0-M2",
+		scalacOptions += "-Xmacros"
+	)
+
+	lazy val root = Project(
+	   base = file("."),
+	   id = "macro",
+	   aggregate = Seq(macroProvider, macroClient),
+	   settings = Defaults.defaultSettings ++ defaultSettings
+	)
+
+	lazy val macroProvider = Project(
+	   base = file("macro-provider"),
+	   id = "macro-provider",
+	   settings = Defaults.defaultSettings ++ defaultSettings
+	)
+
+	lazy val macroClient = Project(
+	   base = file("macro-client"),
+	   id = "macro-client",
+	   dependencies = Seq(macroProvider),
+	   settings = Defaults.defaultSettings ++ defaultSettings
+	)
+}
diff --git a/sbt/src/sbt-test/source-dependencies/macro/test b/sbt/src/sbt-test/source-dependencies/macro/test
new file mode 100644
index 000000000..b3755d4ee
--- /dev/null
+++ b/sbt/src/sbt-test/source-dependencies/macro/test
@@ -0,0 +1,13 @@
+> compile
+
+# replace macro with one that throws an error
+
+$ copy-file macro-provider/changes/Provider.scala macro-provider/Provider.scala
+
+> macro-provider/compile
+
+-> macro-client/compile
+
+> clean
+
+-> compile