diff --git a/lib/deploy.js b/lib/deploy.js
index 3650cd0a5..9378dbabc 100644
--- a/lib/deploy.js
+++ b/lib/deploy.js
@@ -117,8 +117,12 @@ Deploy.prototype.execute_cmds = function(cmds) {
   for (var i = 0; i < cmds.length; i++) {
     var cmd = cmds[i];
 
-    // need to initialize all variables of deployed contracts making them
-    // available to deployment
+    for(className in this.deployedContracts) {
+      var contractAddress = this.deployedContracts[className];
+
+      var re = new RegExp("\\$" + className, 'g');
+      cmd = cmd.replace(re, '"' + contractAddress + '"');
+    }
 
     console.log("executing: " + cmd);
     eval(cmd);
diff --git a/test/deploy.js b/test/deploy.js
index e0655bbd2..c52ddfe35 100644
--- a/test/deploy.js
+++ b/test/deploy.js
@@ -135,7 +135,7 @@ describe('embark.deploy', function() {
       deploy.deploy_contracts("development");
 
       it("should deploy contracts", function() {
-        var all_contracts = ['DataSource', 'Manager'];
+        var all_contracts = ['DataSource', 'MyDataSource', 'Manager'];
         for(var i=0; i < all_contracts.length; i++) {
           var className = all_contracts[i];
 
@@ -149,10 +149,17 @@ describe('embark.deploy', function() {
 
         data_source_abi     = deploy.contractDB['DataSource'].compiled.info.abiDefinition;
         data_source_address = deploy.deployedContracts['DataSource'];
+        my_data_source_abi     = deploy.contractDB['MyDataSource'].compiled.info.abiDefinition;
+        my_data_source_address = deploy.deployedContracts['MyDataSource'];
+        manager_abi     = deploy.contractDB['Manager'].compiled.info.abiDefinition;
+        manager_address = deploy.deployedContracts['Manager'];
 
         DataSource = web3.eth.contract(data_source_abi).at(data_source_address);
+        MyDataSource = web3.eth.contract(my_data_source_abi).at(my_data_source_address);
+        ManagerSource = web3.eth.contract(manager_abi).at(manager_address);
 
         assert.equal(DataSource.storeData().toNumber(), 5);
+        assert.equal(Manager.data().toString(), my_data_source_address);
       });
 
     });
diff --git a/test/support/arguments3.yml b/test/support/arguments3.yml
index 9ade4a5ce..7fe418f86 100644
--- a/test/support/arguments3.yml
+++ b/test/support/arguments3.yml
@@ -1,6 +1,9 @@
 development:
   DataSource:
     args:
+  MyDataSource:
+    args:
+    instanceOf: DataSource
   Manager:
     stubs:
       - DataSource
@@ -8,4 +11,5 @@ development:
       - $DataSource
     onDeploy:
       - DataSource.set(5)
+      - Manager.update($MyDataSource)
 staging:
diff --git a/test/support/contracts/manager.sol b/test/support/contracts/manager.sol
index 78e390ba2..0445cee2e 100644
--- a/test/support/contracts/manager.sol
+++ b/test/support/contracts/manager.sol
@@ -1,8 +1,11 @@
 contract Manager {
-  address data;
+  address public data;
 
   function Manager(address dataAddress) {
     data = dataAddress;
   }
 
+  function update(address _addr) {
+    data = _addr;
+  }
 }