diff --git a/include/uv-win.h b/include/uv-win.h
index 3c4af1e502..28825344c7 100644
--- a/include/uv-win.h
+++ b/include/uv-win.h
@@ -626,7 +626,7 @@ RB_HEAD(uv_timer_tree_s, uv_timer_s);
   HANDLE dir_handle;                                                          \
   int req_pending;                                                            \
   uv_fs_event_cb cb;                                                          \
-  unsigned int win_flags;                                                     \
+  unsigned int fs_flags;                                                     \
   WCHAR* filew;                                                               \
   WCHAR* short_filew;                                                         \
   WCHAR* dirw;                                                                \
diff --git a/src/win/fs-event.c b/src/win/fs-event.c
index c84b272230..c21574a580 100644
--- a/src/win/fs-event.c
+++ b/src/win/fs-event.c
@@ -43,7 +43,7 @@ static void uv_fs_event_queue_readdirchanges(uv_loop_t* loop,
   if (!ReadDirectoryChangesW(handle->dir_handle,
                              handle->buffer,
                              uv_directory_watcher_buffer_size,
-                             (handle->win_flags & UV_FS_EVENT_RECURSIVE) ? TRUE: FALSE,
+                             (handle->fs_flags & UV_FS_EVENT_RECURSIVE) ? TRUE: FALSE,
                              FILE_NOTIFY_CHANGE_FILE_NAME      |
                                FILE_NOTIFY_CHANGE_DIR_NAME     |
                                FILE_NOTIFY_CHANGE_ATTRIBUTES   |
@@ -152,8 +152,7 @@ int uv_fs_event_start(uv_fs_event_t* handle,
     return UV_EINVAL;
 
   handle->cb = cb;
-  // Added win_flags for recursive watcher
-  handle->win_flags = flags;
+  handle->fs_flags = flags;
   handle->path = strdup(path);
   if (!handle->path) {
     uv_fatal_error(ERROR_OUTOFMEMORY, "malloc");
@@ -254,7 +253,7 @@ int uv_fs_event_start(uv_fs_event_t* handle,
   if (!ReadDirectoryChangesW(handle->dir_handle,
                              handle->buffer,
                              uv_directory_watcher_buffer_size,
-                             (handle->win_flags & UV_FS_EVENT_RECURSIVE) ? TRUE: FALSE,
+                             (handle->fs_flags & UV_FS_EVENT_RECURSIVE) ? TRUE: FALSE,
                              FILE_NOTIFY_CHANGE_FILE_NAME      |
                                FILE_NOTIFY_CHANGE_DIR_NAME     |
                                FILE_NOTIFY_CHANGE_ATTRIBUTES   |
diff --git a/test/test-fs-event.c b/test/test-fs-event.c
index 5fd8da430b..e42ad8ff95 100644
--- a/test/test-fs-event.c
+++ b/test/test-fs-event.c
@@ -37,6 +37,7 @@
 
 static uv_fs_event_t fs_event;
 static const char file_prefix[] = "fsevent-";
+static const char file_prefix_in_subdir[] = "subdir";
 static uv_timer_t timer;
 static int timer_cb_called;
 static int close_cb_called;
@@ -51,6 +52,7 @@ static char fs_event_filename[1024];
 static int timer_cb_touch_called;
 
 static void fs_event_unlink_files(uv_timer_t* handle);
+static void fs_event_unlink_files_in_subdir(uv_timer_t* handle);
 
 static void create_dir(uv_loop_t* loop, const char* name) {
   int r;
@@ -138,6 +140,25 @@ static void fs_event_cb_dir_multi_file(uv_fs_event_t* handle,
   }
 }
 
+static void fs_event_cb_dir_multi_file_in_subdir(uv_fs_event_t* handle,
+                                       const char* filename,
+                                       int events,
+                                       int status) {
+  fs_event_cb_called++;
+  ASSERT(handle == &fs_event);
+  ASSERT(status == 0);
+  ASSERT(events == UV_RENAME || events == UV_CHANGE);
+  ASSERT(filename == NULL ||
+         strncmp(filename, file_prefix_in_subdir, sizeof(file_prefix_in_subdir) - 1) == 0);
+
+  /* Stop watching dir when received events about all files:
+   * both create and close events */
+  if (fs_event_cb_called == 2 * fs_event_file_count) {
+    ASSERT(0 == uv_fs_event_stop(handle));
+    uv_close((uv_handle_t*) handle, close_cb);
+  }
+}
+
 static const char* fs_event_get_filename(int i) {
   snprintf(fs_event_filename,
            sizeof(fs_event_filename),
@@ -147,6 +168,15 @@ static const char* fs_event_get_filename(int i) {
   return fs_event_filename;
 }
 
+static const char* fs_event_get_filename_in_subdir(int i) {
+  snprintf(fs_event_filename,
+           sizeof(fs_event_filename),
+           "watch_dir/subdir/%s%d",
+           file_prefix,
+           i);
+  return fs_event_filename;
+}
+
 static void fs_event_create_files(uv_timer_t* handle) {
   int i;
 
@@ -164,6 +194,42 @@ static void fs_event_create_files(uv_timer_t* handle) {
   ASSERT(0 == uv_timer_start(&timer, fs_event_unlink_files, 50, 0));
 }
 
+
+static void fs_event_create_files_in_subdir(uv_timer_t* handle) {
+  int i;
+
+  /* Already created all files */
+  if (fs_event_created == fs_event_file_count) {
+    uv_close((uv_handle_t*) &timer, close_cb);
+    return;
+  }
+
+  /* Create all files */
+  for (i = 0; i < 16; i++, fs_event_created++)
+    create_file(handle->loop, fs_event_get_filename_in_subdir(i));
+
+  /* And unlink them */
+  ASSERT(0 == uv_timer_start(&timer, fs_event_unlink_files_in_subdir, 50, 0));
+}
+
+void fs_event_unlink_files_in_subdir(uv_timer_t* handle) {
+  int r;
+  int i;
+
+  /* NOTE: handle might be NULL if invoked not as timer callback */
+
+  /* Unlink all files */
+  for (i = 0; i < 16; i++) {
+    r = remove(fs_event_get_filename_in_subdir(i));
+    if (handle != NULL)
+      ASSERT(r == 0);
+  }
+
+  /* And create them again */
+  if (handle != NULL)
+    ASSERT(0 == uv_timer_start(&timer, fs_event_create_files_in_subdir, 50, 0));
+}
+
 void fs_event_unlink_files(uv_timer_t* handle) {
   int r;
   int i;
@@ -282,6 +348,47 @@ TEST_IMPL(fs_event_watch_dir) {
   return 0;
 }
 
+#if defined(__APPLE__) || defined(_WIN32)
+TEST_IMPL(fs_event_watch_dir_recursive) {
+  uv_loop_t* loop = uv_default_loop();
+  int r;
+
+  /* Setup */
+  fs_event_unlink_files(NULL);
+  remove("watch_dir/file2");
+  remove("watch_dir/file1");
+  remove("watch_dir/subdir");
+  remove("watch_dir/");
+  create_dir(loop, "watch_dir");
+  create_dir(loop, "watch_dir/subdir");
+
+  r = uv_fs_event_init(loop, &fs_event);
+  ASSERT(r == 0);
+  r = uv_fs_event_start(&fs_event, fs_event_cb_dir_multi_file_in_subdir, "watch_dir", UV_FS_EVENT_RECURSIVE);
+  ASSERT(r == 0);
+  r = uv_timer_init(loop, &timer);
+  ASSERT(r == 0);
+  r = uv_timer_start(&timer, fs_event_create_files_in_subdir, 100, 0);
+  ASSERT(r == 0);
+
+  uv_run(loop, UV_RUN_DEFAULT);
+
+  ASSERT(fs_event_cb_called == 2 * fs_event_file_count);
+  ASSERT(fs_event_created == fs_event_file_count);
+  ASSERT(close_cb_called == 2);
+
+  /* Cleanup */
+  fs_event_unlink_files_in_subdir(NULL);
+  remove("watch_dir/file2");
+  remove("watch_dir/file1");
+  remove("watch_dir/subdir");
+  remove("watch_dir/");
+
+  MAKE_VALGRIND_HAPPY();
+  return 0;
+}
+#endif
+
 TEST_IMPL(fs_event_watch_file) {
   uv_loop_t* loop = uv_default_loop();
   int r;
diff --git a/test/test-list.h b/test/test-list.h
index 9d51da9acb..e4d858a713 100644
--- a/test/test-list.h
+++ b/test/test-list.h
@@ -228,6 +228,7 @@ TEST_DECLARE   (fs_file_open_append)
 TEST_DECLARE   (fs_stat_missing_path)
 TEST_DECLARE   (fs_read_file_eof)
 TEST_DECLARE   (fs_event_watch_dir)
+TEST_DECLARE   (fs_event_watch_dir_recursive)
 TEST_DECLARE   (fs_event_watch_file)
 TEST_DECLARE   (fs_event_watch_file_twice)
 TEST_DECLARE   (fs_event_watch_file_current_dir)
@@ -595,6 +596,7 @@ TASK_LIST_START
   TEST_ENTRY  (fs_read_file_eof)
   TEST_ENTRY  (fs_file_open_append)
   TEST_ENTRY  (fs_event_watch_dir)
+  TEST_ENTRY  (fs_event_watch_dir_recursive)
   TEST_ENTRY  (fs_event_watch_file)
   TEST_ENTRY  (fs_event_watch_file_twice)
   TEST_ENTRY  (fs_event_watch_file_current_dir)