diff --git a/middleware/basicauth/basicauth.go b/middleware/basicauth/basicauth.go
index de29b8d9a..25d1d5046 100644
--- a/middleware/basicauth/basicauth.go
+++ b/middleware/basicauth/basicauth.go
@@ -19,6 +19,10 @@ type BasicAuth struct {
 
 // ServeHTTP implements the middleware.Handler interface.
 func (a BasicAuth) ServeHTTP(w http.ResponseWriter, r *http.Request) (int, error) {
+
+	var hasAuth bool
+	var isAuthenticated bool
+
 	for _, rule := range a.Rules {
 		for _, res := range rule.Resources {
 			if !middleware.Path(r.URL.Path).Matches(res) {
@@ -27,16 +31,26 @@ func (a BasicAuth) ServeHTTP(w http.ResponseWriter, r *http.Request) (int, error
 
 			// Path matches; parse auth header
 			username, password, ok := r.BasicAuth()
+			hasAuth = true
 
 			// Check credentials
 			if !ok || username != rule.Username || password != rule.Password {
-				w.Header().Set("WWW-Authenticate", "Basic")
-				return http.StatusUnauthorized, nil
+				continue
 			}
-
+			// flag set only on success authentication
+			isAuthenticated = true
+		}
+	}
+	
+	if hasAuth {
+		if !isAuthenticated {
+			w.Header().Set("WWW-Authenticate", "Basic")
+			return http.StatusUnauthorized, nil
+		} else {
 			// "It's an older code, sir, but it checks out. I was about to clear them."
 			return a.Next.ServeHTTP(w, r)
 		}
+
 	}
 
 	// Pass-thru when no paths match
diff --git a/middleware/basicauth/basicauth_test.go b/middleware/basicauth/basicauth_test.go
new file mode 100644
index 000000000..b590bc35b
--- /dev/null
+++ b/middleware/basicauth/basicauth_test.go
@@ -0,0 +1,121 @@
+package basicauth
+
+import (
+	"encoding/base64"
+	"fmt"
+	"net/http"
+	"net/http/httptest"
+	"testing"
+
+	"github.com/mholt/caddy/middleware"
+)
+
+func TestBasicAuth(t *testing.T) {
+
+	rw := BasicAuth{
+		Next: middleware.HandlerFunc(contentHandler),
+		Rules: []Rule{
+			{Username: "test", Password: "ttest", Resources: []string{"/testing"}},
+		},
+	}
+
+	tests := []struct {
+		from   string
+		result int
+		cred   string
+	}{
+		{"/testing", http.StatusUnauthorized, "ttest:test"},
+		{"/testing", http.StatusOK, "test:ttest"},
+		{"/testing", http.StatusUnauthorized, ""},
+
+	}
+
+	
+	for i, test := range tests {
+
+		
+		req, err := http.NewRequest("GET", test.from, nil)
+		if err != nil {
+			t.Fatalf("Test %d: Could not create HTTP request %v", i, err)
+		}
+		auth := "Basic " + base64.StdEncoding.EncodeToString([]byte(test.cred))
+		req.Header.Set("Authorization", auth)
+
+		rec := httptest.NewRecorder()
+		result, err := rw.ServeHTTP(rec, req)
+		if err != nil {
+			t.Fatalf("Test %d: Could not ServeHTTP %v", i, err)
+		}
+		if result != test.result {
+			t.Errorf("Test %d: Expected Header '%d' but was '%d'",
+				i, test.result, result)
+		}
+		if result == http.StatusUnauthorized {
+			headers := rec.Header()
+			if val, ok := headers["Www-Authenticate"]; ok {
+				if val[0] != "Basic" {
+					t.Errorf("Test %d, Www-Authenticate should be %s provided %s", i, "Basic", val[0]) 
+				}
+			} else {
+				t.Errorf("Test %d, should provide a header Www-Authenticate", i)
+			}
+		}
+
+	
+	}
+
+}
+
+
+func TestMultipleOverlappingRules(t *testing.T) {
+	rw := BasicAuth{
+		Next: middleware.HandlerFunc(contentHandler),
+		Rules: []Rule{
+			{Username: "t", Password: "p1", Resources: []string{"/t"}},
+			{Username: "t1", Password: "p2", Resources: []string{"/t/t"}},
+		},
+	}
+	
+	tests := []struct {
+		from   string
+		result int
+		cred   string
+	}{
+		{"/t", http.StatusOK, "t:p1"},
+		{"/t/t", http.StatusOK, "t:p1"},
+		{"/t/t", http.StatusOK, "t1:p2"},
+		{"/a", http.StatusOK, "t1:p2"},
+		{"/t/t", http.StatusUnauthorized, "t1:p3"},
+		{"/t", http.StatusUnauthorized, "t1:p2"},
+	}
+
+	
+	for i, test := range tests {
+		
+		req, err := http.NewRequest("GET", test.from, nil)
+		if err != nil {
+			t.Fatalf("Test %d: Could not create HTTP request %v", i, err)
+		}
+		auth := "Basic " + base64.StdEncoding.EncodeToString([]byte(test.cred))
+		req.Header.Set("Authorization", auth)
+
+		rec := httptest.NewRecorder()
+		result, err := rw.ServeHTTP(rec, req)
+		if err != nil {
+			t.Fatalf("Test %d: Could not ServeHTTP %v", i, err)
+		}
+		if result != test.result {
+			t.Errorf("Test %d: Expected Header '%d' but was '%d'",
+				i, test.result, result)
+		}
+		
+	}
+
+}
+
+
+
+func contentHandler(w http.ResponseWriter, r *http.Request) (int, error) {
+	fmt.Fprintf(w, r.URL.String())
+	return http.StatusOK, nil
+}
\ No newline at end of file