diff --git a/Code/Mantid/Framework/API/test/WorkspaceGroupTest.h b/Code/Mantid/Framework/API/test/WorkspaceGroupTest.h
index 70ccc259c6a0..6884bf0973f2 100644
--- a/Code/Mantid/Framework/API/test/WorkspaceGroupTest.h
+++ b/Code/Mantid/Framework/API/test/WorkspaceGroupTest.h
@@ -65,19 +65,19 @@ class WorkspaceGroupTest : public CxxTest::TestSuite
 public:
 
   /// Make a simple group
-  WorkspaceGroup_sptr makeGroup()
+  WorkspaceGroup_sptr makeGroup(const std::string& groupName = "group",const std::string& prefix = "ws")
   {
+    WorkspaceGroup_sptr group(new WorkspaceGroup());
+    AnalysisDataService::Instance().addOrReplace(groupName, group);
+
     for (size_t i=0; i<3; i++)
     {
       boost::shared_ptr<WorkspaceTester> ws(new WorkspaceTester());
       ws->initialize(2,3,4);
-      AnalysisDataService::Instance().addOrReplace("ws" + Strings::toString(i), ws);
+      AnalysisDataService::Instance().addOrReplace(prefix + Strings::toString(i), ws);
+      group->add(prefix + Strings::toString(i));
     }
-    WorkspaceGroup_sptr group(new WorkspaceGroup());
-    AnalysisDataService::Instance().addOrReplace("group", group);
-    group->add("ws0");
-    group->add("ws1");
-    group->add("ws2");
+
     return group;
   }
 
@@ -334,6 +334,78 @@ class WorkspaceGroupTest : public CxxTest::TestSuite
       TS_ASSERT_THROWS( group->isInGroup( *b ), std::runtime_error );
   }
 
+  void test_renameWorkspaceToWorkspaceGroupChild()
+  {
+    WorkspaceGroup_sptr group = makeGroup();
+    
+    //create new top level workspace
+    boost::shared_ptr<WorkspaceTester> ws(new WorkspaceTester());
+    ws->initialize(5,6,7);
+    AnalysisDataService::Instance().addOrReplace("NewWorkspace", ws);
+
+    //rename workspace should replace child in group
+    TS_ASSERT_THROWS_NOTHING( AnalysisDataService::Instance().rename("NewWorkspace", "ws1") );
+
+    TS_ASSERT( group->getNames().size() == 3 );
+    TS_ASSERT_THROWS_NOTHING( group->getItem("ws1") );
+    auto ws1 = boost::dynamic_pointer_cast<WorkspaceTester>(AnalysisDataService::Instance().retrieve("ws1"));
+    TS_ASSERT( ws->blocksize() == 7 );
+  }
+
+  void test_renameWorkspaceChildToTopLevelWorkspace()
+  {
+    WorkspaceGroup_sptr group = makeGroup();
+    
+    //create new top level workspace
+    boost::shared_ptr<WorkspaceTester> ws(new WorkspaceTester());
+    ws->initialize(5,6,7);
+    AnalysisDataService::Instance().addOrReplace("NewWorkspace", ws);
+
+    //rename child should replace top level workspace
+    TS_ASSERT_THROWS_NOTHING( AnalysisDataService::Instance().rename("ws1", "NewWorkspace") );
+
+    TS_ASSERT_EQUALS( group->getNames().size(), 3 );
+    TS_ASSERT_THROWS( group->getItem("ws1"), std::out_of_range );
+    TS_ASSERT_THROWS_NOTHING( group->getItem("NewWorkspace") );
+    auto ws1 = boost::dynamic_pointer_cast<WorkspaceTester>(group->getItem("NewWorkspace"));
+    TS_ASSERT( ws1->blocksize() == 4 );
+  }
+
+  void test_renameChildFromOneGroupToAnother()
+  {
+    WorkspaceGroup_sptr groupA = makeGroup("wsA", "wsA");
+    WorkspaceGroup_sptr groupB = makeGroup("wsB", "wsB");
+
+    TS_ASSERT_THROWS_NOTHING( AnalysisDataService::Instance().rename("wsA1", "wsB1") );
+
+    TS_ASSERT_EQUALS( groupA->getNames().size(), 3 );
+    TS_ASSERT_EQUALS( groupB->getNames().size(), 3 );
+
+    TS_ASSERT_THROWS( groupA->getItem("wsA1"), std::out_of_range );
+    TS_ASSERT_THROWS_NOTHING( groupB->getItem("wsB1") );
+
+    auto ws = boost::dynamic_pointer_cast<WorkspaceTester>(groupB->getItem("wsB1"));
+    TS_ASSERT( ws->blocksize() == 4 );
+  }
+
+  void test_renameOneGroupToAnother()
+  {
+    WorkspaceGroup_sptr groupA = makeGroup("wsA", "wsA");
+    WorkspaceGroup_sptr groupB = makeGroup("wsB", "wsB");
+
+    TS_ASSERT_THROWS_NOTHING( AnalysisDataService::Instance().rename("wsB", "wsA") );
+
+    TS_ASSERT_THROWS_NOTHING( groupA = boost::dynamic_pointer_cast<WorkspaceGroup>(AnalysisDataService::Instance().retrieve("wsA")) );
+    TS_ASSERT_THROWS( AnalysisDataService::Instance().retrieve("wsB"),  Mantid::Kernel::Exception::NotFoundError );
+
+    TS_ASSERT_THROWS_NOTHING( groupA->getItem("wsB1") );
+    TS_ASSERT_THROWS( groupA->getItem("wsA1"), std::out_of_range );
+
+    //A's workspaces should still exist outside the renamed group
+    TS_ASSERT_THROWS_NOTHING( AnalysisDataService::Instance().retrieve("wsA1") );
+    TS_ASSERT_THROWS_NOTHING( AnalysisDataService::Instance().retrieve("wsA2") );
+  }
+
 };
 
 
diff --git a/Code/Mantid/Framework/Algorithms/src/RenameWorkspace.cpp b/Code/Mantid/Framework/Algorithms/src/RenameWorkspace.cpp
index a8a47796e3ab..3a563b880775 100644
--- a/Code/Mantid/Framework/Algorithms/src/RenameWorkspace.cpp
+++ b/Code/Mantid/Framework/Algorithms/src/RenameWorkspace.cpp
@@ -1,10 +1,11 @@
 /*WIKI* 
 
 
-Renames a workspace to a different name in the data service. If the same name is provided for input and output then the algorithm will fail with an error. The Renaming is implemented as a removal of the original workspace from the data service and re-addition under the new name.
+Renames a workspace to a different name in the data service. If the same name is provided for input and output then the algorithm will fail with an error.
 
 If run on a group workspace, the members of the group will be renamed if their names follow the pattern groupName_1, groupName_2, etc. (they will be renamed to newName_1, newname_2, etc.). Otherwise, only the group itself will be renamed - the members will keep their previous names.
 
+There is a known issue that if a member of a workspace group is renamed to be the same as the member of a different workspace group, two pointers to the same object workspace are created.
 *WIKI*/
 //----------------------------------------------------------------------
 // Includes