diff --git a/CHANGES b/CHANGES
index fa8c00bf..b39a2001 100644
--- a/CHANGES
+++ b/CHANGES
@@ -40,6 +40,8 @@ Relase date to be decided, codename to be chosen.
   as defaults.
 - Added :attr:`flask.views.View.decorators` to support simpler decorating of
   pluggable (class based) views.
+- Fixed an issue where the test client if used with the with statement did not
+  trigger the execution of the teardown handlers.
 
 Version 0.7.3
 -------------
diff --git a/docs/upgrading.rst b/docs/upgrading.rst
index b318292c..0ba46c13 100644
--- a/docs/upgrading.rst
+++ b/docs/upgrading.rst
@@ -36,6 +36,11 @@ longer have to handle that error to avoid an internal server error showing
 up for the user.  If you were catching this down explicitly in the past
 as `ValueError` you will need to change this.
 
+Due to a bug in the test client Flask 0.7 did not trigger teardown
+handlers when the test client was used in a with statement.  This was
+since fixed but might require some changes in your testsuites if you
+relied on this behavior.
+
 Version 0.7
 -----------
 
diff --git a/flask/testing.py b/flask/testing.py
index 6ce96163..612b4d4d 100644
--- a/flask/testing.py
+++ b/flask/testing.py
@@ -86,9 +86,7 @@ class FlaskClient(Client):
             self.cookie_jar.extract_wsgi(c.request.environ, headers)
 
     def open(self, *args, **kwargs):
-        if self.context_preserved:
-            _request_ctx_stack.pop()
-            self.context_preserved = False
+        self._pop_reqctx_if_necessary()
         kwargs.setdefault('environ_overrides', {}) \
             ['flask._preserve_context'] = self.preserve_context
 
@@ -114,5 +112,12 @@ class FlaskClient(Client):
 
     def __exit__(self, exc_type, exc_value, tb):
         self.preserve_context = False
+        self._pop_reqctx_if_necessary()
+
+    def _pop_reqctx_if_necessary(self):
         if self.context_preserved:
-            _request_ctx_stack.pop()
+            # we have to use _request_ctx_stack.top.pop instead of
+            # _request_ctx_stack.pop since we want teardown handlers
+            # to be executed.
+            _request_ctx_stack.top.pop()
+            self.context_preserved = False
diff --git a/flask/testsuite/testing.py b/flask/testsuite/testing.py
index b7a71b1a..32867c3f 100644
--- a/flask/testsuite/testing.py
+++ b/flask/testsuite/testing.py
@@ -126,6 +126,38 @@ class TestToolsTestCase(FlaskTestCase):
         else:
             raise AssertionError('some kind of exception expected')
 
+    def test_reuse_client(self):
+        app = flask.Flask(__name__)
+        c = app.test_client()
+
+        with c:
+            self.assert_equal(c.get('/').status_code, 404)
+
+        with c:
+            self.assert_equal(c.get('/').status_code, 404)
+
+    def test_test_client_calls_teardown_handlers(self):
+        app = flask.Flask(__name__)
+        called = []
+        @app.teardown_request
+        def remember(error):
+            called.append(error)
+
+        with app.test_client() as c:
+            self.assert_equal(called, [])
+            c.get('/')
+            self.assert_equal(called, [])
+        self.assert_equal(called, [None])
+
+        del called[:]
+        with app.test_client() as c:
+            self.assert_equal(called, [])
+            c.get('/')
+            self.assert_equal(called, [])
+            c.get('/')
+            self.assert_equal(called, [None])
+        self.assert_equal(called, [None, None])
+
 
 def suite():
     suite = unittest.TestSuite()