diff --git a/README.md b/README.md
index d3b04d0..0a8d14b 100644
--- a/README.md
+++ b/README.md
@@ -64,9 +64,9 @@ But the easiest way to show it is with an example.
 
 Create a file called default.o.do:
 	redo-ifchange $1.c
-	gcc -MD -MF deps.tmp -c -o $3 $1.c
-	DEPS=$(sed -e "s/^$3://" -e 's/\\//g' <deps.tmp)
-	rm -f deps.tmp
+	gcc -MD -MF $3.deps.tmp -c -o $3 $1.c
+	DEPS=$(sed -e "s/^$3://" -e 's/\\//g' <$3.deps.tmp)
+	rm -f $3.deps.tmp
 	redo-ifchange $DEPS
 
 Create a file called myprog.do:
diff --git a/t/all.do b/t/all.do
index ed97828..fa8e896 100644
--- a/t/all.do
+++ b/t/all.do
@@ -1,3 +1 @@
-redo-ifchange hello yellow bellow c d
-
-
+redo-ifchange hello yellow bellow c d example/all
diff --git a/t/clean.do b/t/clean.do
index 59dd83f..48bc555 100644
--- a/t/clean.do
+++ b/t/clean.do
@@ -1,3 +1,2 @@
+redo example/clean
 rm -f c c.c c.c.c c.c.c.b c.c.c.b.b d
-
-
diff --git a/t/example/.gitignore b/t/example/.gitignore
new file mode 100644
index 0000000..0d93ead
--- /dev/null
+++ b/t/example/.gitignore
@@ -0,0 +1,3 @@
+*.o
+CC
+hello
diff --git a/t/example/CC.do b/t/example/CC.do
new file mode 100644
index 0000000..a036046
--- /dev/null
+++ b/t/example/CC.do
@@ -0,0 +1,10 @@
+redo-ifchange config.sh
+. ./config.sh
+cat <<-EOF
+	redo-ifchange \$1.c
+	gcc -MD -MF \$3.deps.tmp -o \$3 -c \$1.c
+	DEPS=\$(sed -e "s/^\$3://" -e 's/\\\\//g' <\$3.deps.tmp)
+	rm -f \$3.deps.tmp
+	redo-ifchange \$DEPS
+EOF
+chmod +x $3
diff --git a/t/example/Makefile b/t/example/Makefile
new file mode 100644
index 0000000..cf36535
--- /dev/null
+++ b/t/example/Makefile
@@ -0,0 +1,6 @@
+all:
+
+%: FORCE
+	+redo $@
+
+.PHONY: FORCE
diff --git a/t/example/all.do b/t/example/all.do
new file mode 100644
index 0000000..29b0c32
--- /dev/null
+++ b/t/example/all.do
@@ -0,0 +1 @@
+redo-ifchange hello
diff --git a/t/example/clean.do b/t/example/clean.do
new file mode 100644
index 0000000..420393f
--- /dev/null
+++ b/t/example/clean.do
@@ -0,0 +1 @@
+rm -f *.tmp *~ *.o hello CC
diff --git a/t/example/config.sh b/t/example/config.sh
new file mode 100644
index 0000000..f37d93a
--- /dev/null
+++ b/t/example/config.sh
@@ -0,0 +1 @@
+CFLAGS="-Wall"
diff --git a/t/example/default.o.do b/t/example/default.o.do
new file mode 100644
index 0000000..d48bdd1
--- /dev/null
+++ b/t/example/default.o.do
@@ -0,0 +1,2 @@
+redo-ifchange CC
+. ./CC "$@"
diff --git a/t/example/hello.do b/t/example/hello.do
new file mode 100644
index 0000000..330290e
--- /dev/null
+++ b/t/example/hello.do
@@ -0,0 +1,4 @@
+DEPS="main.o
+mystr.o"
+redo-ifchange $DEPS
+gcc -o $3 $DEPS
diff --git a/t/example/main.c b/t/example/main.c
new file mode 100644
index 0000000..35e746b
--- /dev/null
+++ b/t/example/main.c
@@ -0,0 +1,8 @@
+#include <stdio.h>
+#include "mystr.h"
+
+int main()
+{
+    printf("%s\n", mystr);
+    return 0;
+}
diff --git a/t/example/mystr.c b/t/example/mystr.c
new file mode 100644
index 0000000..b64b7a5
--- /dev/null
+++ b/t/example/mystr.c
@@ -0,0 +1,4 @@
+
+#include "mystr.h"
+
+char *mystr = "Hello, world!";
diff --git a/t/example/mystr.h b/t/example/mystr.h
new file mode 100644
index 0000000..1bf584e
--- /dev/null
+++ b/t/example/mystr.h
@@ -0,0 +1,6 @@
+#ifndef __MYSTR_H
+#define __MYSTR_H
+
+extern char *mystr;
+
+#endif