diff --git a/testsuite/paraphrase/lambda.gf b/testsuite/paraphrase/lambda.gf
new file mode 100644
index 000000000..3476866c9
--- /dev/null
+++ b/testsuite/paraphrase/lambda.gf
@@ -0,0 +1,17 @@
+abstract lambda = {
+
+fun f1 : Int -> Int ;
+def f1 = (\x -> x) ;
+
+fun f2 : Int ;
+def f2 = f1 1 ;
+
+cat D ;
+data D1 : D ;
+     D2 : D ;
+
+fun d : D -> Int -> Int ;
+def d D1 = \x -> x ;
+    d D2 = \x -> 2 ;
+
+}
\ No newline at end of file
diff --git a/testsuite/paraphrase/lambda.gfs b/testsuite/paraphrase/lambda.gfs
new file mode 100644
index 000000000..54b0708cb
--- /dev/null
+++ b/testsuite/paraphrase/lambda.gfs
@@ -0,0 +1,9 @@
+i testsuite/paraphrase/lambda.gf
+
+pt -compute f1
+pt -compute f2
+
+pt -compute d D1
+pt -compute d D2
+pt -compute d D1 1
+pt -compute d D2 1
diff --git a/testsuite/paraphrase/lambda.gfs.gold b/testsuite/paraphrase/lambda.gfs.gold
new file mode 100644
index 000000000..0d8f027d6
--- /dev/null
+++ b/testsuite/paraphrase/lambda.gfs.gold
@@ -0,0 +1,12 @@
+\v0 -> v0

+

+1

+

+\v0 -> v0

+

+\v0 -> 2

+

+1

+

+2

+