diff --git a/src/engine/pathnt.c b/src/engine/pathnt.c
index 8abf8fe7bd..412f5f4b50 100644
--- a/src/engine/pathnt.c
+++ b/src/engine/pathnt.c
@@ -175,6 +175,10 @@ static int canonicWindowsPath( char const * const path, int const path_length,
                 return 1;
             }
         }
+        else
+        {
+            return 1;
+        }
     }
     return 0;
 }
@@ -243,7 +247,10 @@ static path_key_entry * path_key( OBJECT * const path,
         {
             nresult->path = normalized;
             if ( known_to_be_canonic )
+            {
                 nresult->key = object_copy( path );
+                nresult->exists = 1;
+            }
             else
             {
                 string canonic_path[ 1 ];
diff --git a/test/builtin_glob.py b/test/builtin_glob.py
new file mode 100755
index 0000000000..6f55a4d9c1
--- /dev/null
+++ b/test/builtin_glob.py
@@ -0,0 +1,87 @@
+#!/usr/bin/python
+
+# Copyright 2014 Steven Watanabe
+# Distributed under the Boost Software License, Version 1.0.
+# (See accompanying file LICENSE_1_0.txt or http://www.boost.org/LICENSE_1_0.txt)
+
+# This tests the GLOB rule.
+
+import os
+import BoostBuild
+
+def test_glob(files, glob, expected, setup=""):
+    t = BoostBuild.Tester(["-ffile.jam"], pass_toolset=0)
+    t.write("file.jam", setup + """
+    for local p in [ SORT %s ]
+    {
+        ECHO $(p) ;
+    }
+    UPDATE ;
+    """ % glob)
+    for f in files:
+        t.write(f, "")
+    # convert / into \ on windows
+    expected = [os.path.join(*p.split("/")) for p in expected]
+    expected.sort()
+    t.run_build_system(stdout="\n".join(expected + [""]))
+    t.cleanup()
+
+# one or both arguments empty
+test_glob([], "[ GLOB : ]", [])
+test_glob([], "[ GLOB . : ]", [])
+test_glob([], "[ GLOB : * ]", [])
+
+# a single result
+test_glob([], "[ GLOB . : * ]", ["./file.jam"])
+
+# * can match any number of characters
+test_glob([], "[ GLOB . : file*.jam ]", ["./file.jam"])
+test_glob([], "[ GLOB . : f*am ]", ["./file.jam"])
+# ? should match a single character, but not more than one
+test_glob([], "[ GLOB . : fi?e.?am ]", ["./file.jam"])
+test_glob([], "[ GLOB . : fi?.jam ]", [])
+# [abc-fh-j] matches a set of characters
+test_glob([], "[ GLOB . : [f][i][l][e].jam ]", ["./file.jam"])
+test_glob([], "[ GLOB . : [fghau][^usdrwe][k-o][^f-s].jam ]", ["./file.jam"])
+# \x matches x
+test_glob([], "[ GLOB . : \\f\\i\\l\\e.jam ]", ["./file.jam"])
+
+# multiple results
+test_glob(["test.txt"], "[ GLOB . : * ]", ["./file.jam", "./test.txt"])
+
+# directories
+test_glob(["dir1/dir2/test.txt"], "[ GLOB dir1 : * ]", ["dir1/dir2"]);
+
+# non-existent directory
+test_glob([], "[ GLOB dir1 : * ] ", [])
+
+# multiple directories and patterns
+test_glob(["dir1/file1.txt", "dir2/file1.txt",
+           "dir2/file2.txt"],
+          "[ GLOB dir1 dir2 : file1* file2* ]",
+          ["dir1/file1.txt", "dir2/file1.txt",
+           "dir2/file2.txt"])
+
+# The directory can contain . and ..
+test_glob(["dir/test.txt"], "[ GLOB dir/. : test.txt ]", ["dir/./test.txt"])
+test_glob(["dir/test.txt"], "[ GLOB dir/.. : file.jam ]", ["dir/../file.jam"])
+
+# On case insensitive filesystems, the result should
+# be normalized.  It should NOT be downcased.
+test_glob(["TEST.TXT"], "[ GLOB . : TEST.TXT ]", ["./TEST.TXT"])
+
+case_insensitive = (os.path.normcase("FILE") == "file")
+
+if case_insensitive:
+    test_glob(["TEST.TXT"], "[ GLOB . : test.txt ]", ["./TEST.TXT"])
+    # This used to fail because the caching routines incorrectly
+    # reported that . and .. do not exist.
+    test_glob(["D1/D2/TEST.TXT"], "[ GLOB D1/./D2 : test.txt ]",
+              ["D1/./D2/TEST.TXT"])
+    test_glob(["D1/TEST.TXT", "TEST.TXT"], "[ GLOB D1/../D1 : test.txt ]",
+              ["D1/../D1/TEST.TXT"])
+    # This also failed because directories that were first found
+    # by GLOB were recorded as non-existent.
+    test_glob(["D1/D2/TEST.TXT"], "[ GLOB d1/d2 : test.txt ]",
+              ["D1/D2/TEST.TXT"],
+              "GLOB . : * ;")
diff --git a/test/test_all.py b/test/test_all.py
index 02b7bd83ba..8fa522d1ea 100644
--- a/test/test_all.py
+++ b/test/test_all.py
@@ -166,6 +166,7 @@ def reorder_tests(tests, first_test):
          "build_no",
          "builtin_echo",
          "builtin_exit",
+         "builtin_glob",
          "builtin_split_by_characters",
          "c_file",
          "chain",