diff --git a/binaries/data/mods/_test.tex/art/textures/b/test.png b/binaries/data/mods/_test.tex/art/textures/b/test.png
new file mode 100644
index 0000000000..bfb48efb1c
--- /dev/null
+++ b/binaries/data/mods/_test.tex/art/textures/b/test.png
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:544b9abe80735232efdc333a8a6a1b47e0f17688004aaaeddbf46f901e0d6137
+size 101
diff --git a/source/graphics/tests/test_TextureConverter.h b/source/graphics/tests/test_TextureConverter.h
new file mode 100644
index 0000000000..4415a2f2ea
--- /dev/null
+++ b/source/graphics/tests/test_TextureConverter.h
@@ -0,0 +1,102 @@
+/* Copyright (C) 2010 Wildfire Games.
+ * This file is part of 0 A.D.
+ *
+ * 0 A.D. is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License as published by
+ * the Free Software Foundation, either version 2 of the License, or
+ * (at your option) any later version.
+ *
+ * 0 A.D. is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU General Public License for more details.
+ *
+ * You should have received a copy of the GNU General Public License
+ * along with 0 A.D.  If not, see <http://www.gnu.org/licenses/>.
+ */
+
+#include "lib/self_test.h"
+
+#include "graphics/TextureConverter.h"
+
+#include "lib/file/vfs/vfs.h"
+#include "lib/res/h_mgr.h"
+#include "lib/tex/tex.h"
+#include "ps/XML/Xeromyces.h"
+
+class TestTextureConverter : public CxxTest::TestSuite
+{
+	PIVFS m_VFS;
+
+public:
+
+	void setUp()
+	{
+		DeleteDirectory(DataDir()/L"_testcache"); // clean up in case the last test run failed
+
+		m_VFS = CreateVfs(20*MiB);
+		TS_ASSERT_OK(m_VFS->Mount(L"", DataDir()/L"mods/_test.tex", VFS_MOUNT_MUST_EXIST));
+		TS_ASSERT_OK(m_VFS->Mount(L"cache/", DataDir()/L"_testcache"));
+
+		tex_codec_register_all();
+	}
+
+	void tearDown()
+	{
+		tex_codec_unregister_all();
+
+		m_VFS.reset();
+		DeleteDirectory(DataDir()/L"_testcache");
+	}
+
+	void test_convert_quality()
+	{
+		// Test for the bug in http://code.google.com/p/nvidia-texture-tools/issues/detail?id=139
+
+		VfsPath src = L"art/textures/b/test.png";
+
+		CTextureConverter converter(m_VFS, false);
+		CTextureConverter::Settings settings = converter.ComputeSettings(L"", std::vector<CTextureConverter::SettingsFile*>());
+		TS_ASSERT(converter.ConvertTexture(CTexturePtr(), src, L"cache/test.png", settings));
+
+		VfsPath dest;
+		for (size_t i = 0; i < 100; ++i)
+		{
+			CTexturePtr texture;
+			bool ok;
+			if (converter.Poll(texture, dest, ok))
+			{
+				TS_ASSERT(ok);
+				break;
+			}
+			SDL_Delay(10);
+		}
+
+		shared_ptr<u8> file;
+		size_t fileSize;
+		TS_ASSERT_OK(m_VFS->LoadFile(dest, file, fileSize));
+
+		Tex tex;
+		TS_ASSERT_OK(tex_decode(file, fileSize, &tex));
+
+		TS_ASSERT_OK(tex_transform_to(&tex, (tex.flags | TEX_BGR | TEX_ALPHA) & ~(TEX_DXT | TEX_MIPMAPS)));
+
+		u8* texdata = tex_get_data(&tex);
+
+		// The source texture is repeated after 4 pixels, so the compressed texture
+		// should be identical after 4 pixels
+		TS_ASSERT_EQUALS(texdata[0*4], texdata[4*4]);
+		// 1st, 2nd and 4th rows should be unequal
+		TS_ASSERT_DIFFERS(texdata[0*4], texdata[8*4]);
+		TS_ASSERT_EQUALS(texdata[8*4], texdata[16*4]);
+		TS_ASSERT_DIFFERS(texdata[16*4], texdata[24*4]);
+
+//		for (size_t i = 0; i < tex.dataSize; ++i)
+//		{
+//			if (i % 4 == 0) printf("\n");
+//			printf("%02x ", texdata[i]);
+//		}
+
+		tex_free(&tex);
+	}
+};