diff --git a/railties/CHANGELOG b/railties/CHANGELOG
index 1b7e6c0da9..f881dd07d5 100644
--- a/railties/CHANGELOG
+++ b/railties/CHANGELOG
@@ -1,5 +1,7 @@
 *SVN*
 
+* Fixed test/mocks/testing to the correct test/mocks/test #740
+
 * Added early failure if the Ruby version isn't 1.8.2 or above #735
 
 * Fixed the missing shebang in main "rails" script #736
diff --git a/railties/Rakefile b/railties/Rakefile
index 9be89e8f5f..b54673ef3b 100644
--- a/railties/Rakefile
+++ b/railties/Rakefile
@@ -17,7 +17,7 @@ PKG_DESTINATION = ENV["RAILS_PKG_DESTINATION"] || "../#{PKG_NAME}"
 BASE_DIRS   = %w( app config/environments components db doc log lib public script test vendor )
 APP_DIRS    = %w( apis models controllers helpers views views/layouts )
 PUBLIC_DIRS = %w( images javascripts stylesheets )
-TEST_DIRS   = %w( fixtures unit functional mocks mocks/development mocks/testing )
+TEST_DIRS   = %w( fixtures unit functional mocks mocks/development mocks/test )
 
 LOG_FILES    = %w( server.log development.log test.log production.log )
 HTML_FILES   = %w( 404.html 500.html index.html )
diff --git a/railties/lib/rails_generator/generators/applications/app/app_generator.rb b/railties/lib/rails_generator/generators/applications/app/app_generator.rb
index 347140358b..dc731c4e3f 100644
--- a/railties/lib/rails_generator/generators/applications/app/app_generator.rb
+++ b/railties/lib/rails_generator/generators/applications/app/app_generator.rb
@@ -113,7 +113,7 @@ class AppGenerator < Rails::Generator::Base
     test/fixtures
     test/functional
     test/mocks/development
-    test/mocks/testing
+    test/mocks/test
     test/unit
     vendor
   )