diff --git a/ChangeLog b/ChangeLog
index 355b4854..585356c5 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,5 +1,10 @@
 2010-08-31  Peter Rosin  <peda@lysator.liu.se>
 
+	archive-in-archive.at passes with Microsoft lib.
+	* tests/archive-in-archive.at: Tighten test to check that the desired
+	object files are indeed part of the archive. Microsoft lib still
+	passes, so remove the expected failure for that case.
+
 	Dump archiver output to the log when testing @file support.
 	* libltdl/m4/libtool.m4 (_LT_PROG_AR): Redirect stdout to config.log
 	when testing for @file support.
diff --git a/tests/archive-in-archive.at b/tests/archive-in-archive.at
index 32e3543b..fd67c7d4 100644
--- a/tests/archive-in-archive.at
+++ b/tests/archive-in-archive.at
@@ -26,7 +26,8 @@
 AT_SETUP([static library contains static library])
 AT_KEYWORDS([libtool])
 
-AT_XFAIL_IF([:]) dnl This is currently broken
+# This test passes with MS lib.
+AT_XFAIL_IF([case $AR in ar-lib\ * | *[[/\\]]ar-lib\ *) false;; *) :;; esac])
 
 AT_DATA([foo.c],
 [
@@ -53,4 +54,6 @@ AT_CHECK([$LIBTOOL --mode=install cp libbar.la $thisdir], [], [ignore], [ignore]
 eval `$EGREP '^(old_library)=' < libbar.la`
 libbar=$old_library
 AT_CHECK([$AR -t $libbar | grep $libfoo],[1],[ignore],[ignore])
+AT_CHECK([$AR -t $libbar | grep foo.$OBJEXT],[],[ignore],[ignore])
+AT_CHECK([$AR -t $libbar | grep bar.$OBJEXT],[],[ignore],[ignore])
 AT_CLEANUP