diff --git a/src/item/Layer.js b/src/item/Layer.js
index d357c7d9..09a940bd 100644
--- a/src/item/Layer.js
+++ b/src/item/Layer.js
@@ -98,7 +98,7 @@ var Layer = this.Layer = Group.extend(/** @lends Layer# */{
 			if (item instanceof Layer && !item._parent
 						&& this._remove(false, true)) {
 				Base.splice(item._project.layers, [this],
-						item._index + (above ? 1 : -1), 0);
+						item._index + (above ? 1 : 0), 0);
 				this._setProject(item._project);
 				return true;
 			}
diff --git a/test/tests/Layer.js b/test/tests/Layer.js
index 98945878..139d1ad6 100644
--- a/test/tests/Layer.js
+++ b/test/tests/Layer.js
@@ -59,9 +59,19 @@ test('insertAbove / insertBelow', function() {
 	var project = paper.project;
 	var firstLayer = project.activeLayer;
 	var secondLayer = new Layer();
+	var thirdLayer = new Layer();
+
+	thirdLayer.insertBelow(firstLayer);
+	equals(function() {
+		return thirdLayer.previousSibling == null;
+	}, true);
+	equals(function() {
+		return thirdLayer.nextSibling == firstLayer;
+	}, true);
+
 	secondLayer.insertBelow(firstLayer);
 	equals(function() {
-		return secondLayer.previousSibling == null;
+		return secondLayer.previousSibling == thirdLayer;
 	}, true);
 	equals(function() {
 		return secondLayer.nextSibling == firstLayer;
@@ -78,10 +88,10 @@ test('insertAbove / insertBelow', function() {
 	equals(function() {
 		return secondLayer.parent == firstLayer;
 	}, true);
-	// There should now only be one layer left:
+	// There should now only be two layers left:
 	equals(function() {
 		return project.layers.length;
-	}, 1);
+	}, 2);
 });
 
 test('addChild / appendBottom / nesting', function() {
@@ -114,4 +124,4 @@ test('addChild / appendBottom / nesting', function() {
 		return project.layers[0] == secondLayer
 			&& project.layers[1] == firstLayer;
 	}, true);
-});
\ No newline at end of file
+});