diff --git a/tracks/app/controllers/projects_controller.rb b/tracks/app/controllers/projects_controller.rb
index 80843000..fb5d53db 100644
--- a/tracks/app/controllers/projects_controller.rb
+++ b/tracks/app/controllers/projects_controller.rb
@@ -113,6 +113,7 @@ class ProjectsController < ApplicationController
       elsif boolean_param('update_status')
         render :action => 'update_status'
       elsif boolean_param('update_default_context')
+        @initial_context_name = @project.default_context.name 
         render :action => 'update_default_context'
       else
         render :text => success_text || 'Success'
diff --git a/tracks/app/controllers/todos_controller.rb b/tracks/app/controllers/todos_controller.rb
index 0bad9f79..4392a624 100644
--- a/tracks/app/controllers/todos_controller.rb
+++ b/tracks/app/controllers/todos_controller.rb
@@ -74,6 +74,7 @@ class TodosController < ApplicationController
         determine_down_count if @saved
         @contexts = current_user.contexts.find(:all) if @new_context_created
         @projects = current_user.projects.find(:all) if @new_project_created
+        @initial_context_name = params['default_context_name']
         render :action => 'create'
       end
       format.xml do
diff --git a/tracks/app/views/projects/update_default_context.rjs b/tracks/app/views/projects/update_default_context.rjs
index 19dc57fc..a3e9389f 100644
--- a/tracks/app/views/projects/update_default_context.rjs
+++ b/tracks/app/views/projects/update_default_context.rjs
@@ -2,6 +2,7 @@ if @project.default_context.nil?
   page.notify :notice, "Removed default context", 5.0
 else
   if source_view_is :project
+    page['default_context_name_id'].value = @project.default_context.name
     page['todo_context_name'].value = @project.default_context.name
   end
   page.notify :notice, "Set project's default context to #{@project.default_context.name}", 5.0
diff --git a/tracks/app/views/shared/_add_new_item_form.rhtml b/tracks/app/views/shared/_add_new_item_form.rhtml
index 45ec7532..49345eb9 100644
--- a/tracks/app/views/shared/_add_new_item_form.rhtml
+++ b/tracks/app/views/shared/_add_new_item_form.rhtml
@@ -52,6 +52,7 @@ Event.observe($('todo_project_name'), "click", projectAutoCompleter.activate.bin
 Event.observe($('todo_project_name'), "blur", selectDefaultContext.bind($('todo_project_name')));
 </script>
 
+<input id="default_context_name_id" name="default_context_name" type="hidden" value="<%=@initial_context_name-%>" />
 <label for="todo_context_name">Context</label>
 <input id="todo_context_name" name="context_name" autocomplete="off" tabindex="4" size="30" type="text" value="<%= @initial_context_name %>" />
 <div class="page_name_auto_complete" id="context_list" style="display:none"></div>
diff --git a/tracks/app/views/todos/create.rjs b/tracks/app/views/todos/create.rjs
index c8515a7c..770ec301 100644
--- a/tracks/app/views/todos/create.rjs
+++ b/tracks/app/views/todos/create.rjs
@@ -7,6 +7,7 @@ if @saved
   page.notify :notice, status_message, 5.0
   page['badge_count'].replace_html @down_count
   page.send :record, "Form.reset('todo-form-new-action');Form.focusFirstElement('todo-form-new-action')"
+  page['todo_context_name'].value = @initial_context_name
   page << "updateContextNamesForAutoComplete(#{context_names_for_autocomplete})" if @new_context_created
   page << "projectAutoCompleter.options.array = #{project_names_for_autocomplete}" if @new_project_created
   if should_show_new_item()
diff --git a/tracks/test/selenium/project_detail/change_default_context.rsel b/tracks/test/selenium/project_detail/change_default_context.rsel
new file mode 100644
index 00000000..1e757acd
--- /dev/null
+++ b/tracks/test/selenium/project_detail/change_default_context.rsel
@@ -0,0 +1,23 @@
+setup :fixtures => :all
+login :as => 'admin'
+open "/projects/2"
+
+# change default context
+type "project[default_context_name]", "errand"
+click "commit"
+
+wait_for_visible "flash"
+
+# add actions
+type "todo_description", "test1"
+click "css=#todo-form-new-action .submit_box button"
+
+wait_for_visible "flash"
+wait_for_not_visible "flash"
+
+type "todo_description", "test2"
+click "css=#todo-form-new-action .submit_box button"
+
+# check that context errand now contains 2 todos
+open "/contexts/4"
+assert_text "badge_count", "2"