diff --git a/src/etc/testcases/taskdefs/optional/junit/cdataoutput.xml b/src/etc/testcases/taskdefs/optional/junit/cdataoutput.xml
new file mode 100644
index 000000000..eb1f8738e
--- /dev/null
+++ b/src/etc/testcases/taskdefs/optional/junit/cdataoutput.xml
@@ -0,0 +1,11 @@
+<project basedir=".">
+  <target name="run-junit">
+    <junit fork="true">
+      <classpath path="${tests-classpath.value}"/>
+      <sysproperty key="cdata.inner" value="true"/>
+      <test
+        name="org.apache.tools.ant.taskdefs.optional.junit.XMLFormatterWithCDATAOnSystemOut"/>
+      <formatter type="xml"/>
+    </junit>
+  </target>
+</project>
\ No newline at end of file
diff --git a/src/testcases/org/apache/tools/ant/taskdefs/optional/junit/XMLFormatterWithCDATAOnSystemOut.java b/src/testcases/org/apache/tools/ant/taskdefs/optional/junit/XMLFormatterWithCDATAOnSystemOut.java
new file mode 100644
index 000000000..c78f99385
--- /dev/null
+++ b/src/testcases/org/apache/tools/ant/taskdefs/optional/junit/XMLFormatterWithCDATAOnSystemOut.java
@@ -0,0 +1,113 @@
+/*
+ * The Apache Software License, Version 1.1
+ *
+ * Copyright (c) 2003 The Apache Software Foundation.  All rights
+ * reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions
+ * are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright
+ *    notice, this list of conditions and the following disclaimer.
+ *
+ * 2. Redistributions in binary form must reproduce the above copyright
+ *    notice, this list of conditions and the following disclaimer in
+ *    the documentation and/or other materials provided with the
+ *    distribution.
+ *
+ * 3. The end-user documentation included with the redistribution, if
+ *    any, must include the following acknowlegement:
+ *       "This product includes software developed by the
+ *        Apache Software Foundation (http://www.apache.org/)."
+ *    Alternately, this acknowlegement may appear in the software itself,
+ *    if and wherever such third-party acknowlegements normally appear.
+ *
+ * 4. The names "Ant" and "Apache Software
+ *    Foundation" must not be used to endorse or promote products derived
+ *    from this software without prior written permission. For written
+ *    permission, please contact apache@apache.org.
+ *
+ * 5. Products derived from this software may not be called "Apache"
+ *    nor may "Apache" appear in their names without prior written
+ *    permission of the Apache Group.
+ *
+ * THIS SOFTWARE IS PROVIDED ``AS IS'' AND ANY EXPRESSED OR IMPLIED
+ * WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES
+ * OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE APACHE SOFTWARE FOUNDATION OR
+ * ITS CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+ * SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT
+ * LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF
+ * USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND
+ * ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY,
+ * OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT
+ * OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF
+ * SUCH DAMAGE.
+ * ====================================================================
+ *
+ * This software consists of voluntary contributions made by many
+ * individuals on behalf of the Apache Software Foundation.  For more
+ * information on the Apache Software Foundation, please see
+ * <http://www.apache.org/>.
+ */
+package org.apache.tools.ant.taskdefs.optional.junit;
+
+import java.io.File;
+import java.io.FileReader;
+import java.io.IOException;
+import org.apache.tools.ant.BuildFileTest;
+import org.apache.tools.ant.util.FileUtils;
+
+public class XMLFormatterWithCDATAOnSystemOut extends BuildFileTest {
+
+    private static String DIR = "src/etc/testcases/taskdefs/optional/junit";
+    private static String REPORT = 
+        "TEST-" + XMLFormatterWithCDATAOnSystemOut.class.getName() + ".xml";
+
+    private static String TESTDATA = 
+        "<ERROR>" +
+        "<![CDATA[<?xml version=\"1.0\" encoding=\"UTF-8\"?>" +
+        "  <RESPONSE>" +
+        "    <GDS/>" +
+        "    <ERROR>" +
+        "      <ID/>" +
+        "      <MESSAGE/>" +
+        "      <REQUEST_TYPE/>" +
+        "      <RESEND/>" +
+        "      <RAW_RESPONSE/>" +
+        "    </ERROR>" +
+        "  </RESPONSE>" +
+        "]]>" +
+        "</ERROR>";
+
+    public XMLFormatterWithCDATAOnSystemOut(String name) {
+        super(name);
+    }
+
+    public void testOutput() {
+        System.out.println(TESTDATA);
+    }
+
+    public void testBuildfile() throws IOException {
+        configureProject(DIR + "/cdataoutput.xml");
+        if (getProject().getProperty("cdata.inner") == null) {
+            // avoid endless loop
+            executeTarget("run-junit");
+            File f = getProject().resolveFile(REPORT);
+            FileReader reader = null;
+            try {
+                reader = new FileReader(f);
+                String content = FileUtils.newFileUtils().readFully(reader);
+                assertTrue(content.indexOf("</RESPONSE>&#x5d;&#x5d;&gt;"
+                                           + "</ERROR>") > 0);
+            } finally {
+                if (reader != null) {
+                    reader.close();
+                }
+                f.delete();
+            }
+        }
+    }
+
+}