diff --git a/GITLAB_SHELL_VERSION b/GITLAB_SHELL_VERSION
index ccbccc3dc62..276cbf9e285 100644
--- a/GITLAB_SHELL_VERSION
+++ b/GITLAB_SHELL_VERSION
@@ -1 +1 @@
-2.2.0
+2.3.0
diff --git a/config/application.rb b/config/application.rb
index 44a5d68d126..8300cf57a61 100644
--- a/config/application.rb
+++ b/config/application.rb
@@ -92,5 +92,7 @@ module Gitlab
 
     redis_config_hash[:namespace] = 'cache:gitlab'
     config.cache_store = :redis_store, redis_config_hash
+
+    ENV['GITLAB_PATH_OUTSIDE_HOOK'] = ENV['PATH']
   end
 end
diff --git a/config/gitlab.yml.example b/config/gitlab.yml.example
index bb0ffae0b70..14b5e134ce2 100644
--- a/config/gitlab.yml.example
+++ b/config/gitlab.yml.example
@@ -307,7 +307,7 @@ test:
     enabled: true
   gitlab:
     host: localhost
-    port: 80
+    port: 3001
 
     # When you run tests we clone and setup gitlab-shell
     # In order to setup it correctly you need to specify
diff --git a/config/initializers/gitlab_shell_secret_token.rb b/config/initializers/gitlab_shell_secret_token.rb
index 8d2b771e535..250b86caaf0 100644
--- a/config/initializers/gitlab_shell_secret_token.rb
+++ b/config/initializers/gitlab_shell_secret_token.rb
@@ -1,19 +1 @@
-# Be sure to restart your server when you modify this file.
-
-require 'securerandom'
-
-# Your secret key for verifying the gitlab_shell.
-
-
-secret_file = Rails.root.join('.gitlab_shell_secret')
-gitlab_shell_symlink = File.join(Gitlab.config.gitlab_shell.path, '.gitlab_shell_secret')
-
-unless File.exist? secret_file
-  # Generate a new token of 16 random hexadecimal characters and store it in secret_file.
-  token = SecureRandom.hex(16)
-  File.write(secret_file, token)
-end
-
-if File.exist?(Gitlab.config.gitlab_shell.path) && !File.exist?(gitlab_shell_symlink)
-  FileUtils.symlink(secret_file, gitlab_shell_symlink)
-end
\ No newline at end of file
+Gitlab::Shell.setup_secret_token
diff --git a/features/project/forked_merge_requests.feature b/features/project/forked_merge_requests.feature
index d9fbb875c28..7442145d87e 100644
--- a/features/project/forked_merge_requests.feature
+++ b/features/project/forked_merge_requests.feature
@@ -11,20 +11,18 @@ Feature: Project Forked Merge Requests
     And I submit the merge request
     Then I should see merge request "Merge Request On Forked Project"
 
-  # TODO: Improve it so it does not fail randomly
-  #
-  #@javascript
-  #Scenario: I can edit a forked merge request
-    #Given I visit project "Forked Shop" merge requests page
-    #And I click link "New Merge Request"
-    #And I fill out a "Merge Request On Forked Project" merge request
-    #And I submit the merge request
-    #And I should see merge request "Merge Request On Forked Project"
-    #And I click link edit "Merge Request On Forked Project"
-    #Then I see the edit page prefilled for "Merge Request On Forked Project"
-    #And I update the merge request title
-    #And I save the merge request
-    #Then I should see the edited merge request
+  @javascript
+  Scenario: I can edit a forked merge request
+    Given I visit project "Forked Shop" merge requests page
+    And I click link "New Merge Request"
+    And I fill out a "Merge Request On Forked Project" merge request
+    And I submit the merge request
+    And I should see merge request "Merge Request On Forked Project"
+    And I click link edit "Merge Request On Forked Project"
+    Then I see the edit page prefilled for "Merge Request On Forked Project"
+    And I update the merge request title
+    And I save the merge request
+    Then I should see the edited merge request
 
   @javascript
   Scenario: I cannot submit an invalid merge request
diff --git a/lib/gitlab/backend/shell.rb b/lib/gitlab/backend/shell.rb
index aabc7f1e69a..7b10ab539eb 100644
--- a/lib/gitlab/backend/shell.rb
+++ b/lib/gitlab/backend/shell.rb
@@ -1,3 +1,5 @@
+require 'securerandom'
+
 module Gitlab
   class Shell
     class AccessDenied < StandardError; end
@@ -13,6 +15,25 @@ module Gitlab
         @version_required ||= File.read(Rails.root.
                                         join('GITLAB_SHELL_VERSION')).strip
       end
+
+      # Be sure to restart your server when you modify this method.
+      def setup_secret_token
+        secret_file = Rails.root.join('.gitlab_shell_secret')
+        gitlab_shell_symlink = File.join(Gitlab.config.gitlab_shell.path,
+                                         '.gitlab_shell_secret')
+
+        unless File.exist? secret_file
+          # Generate a new token of 16 random hexadecimal characters
+          # and store it in secret_file.
+          token = SecureRandom.hex(16)
+          File.write(secret_file, token)
+        end
+
+        if File.exist?(Gitlab.config.gitlab_shell.path) &&
+          !File.exist?(gitlab_shell_symlink)
+          FileUtils.symlink(secret_file, gitlab_shell_symlink)
+        end
+      end
     end
 
     # Init new repository
diff --git a/lib/tasks/gitlab/shell.rake b/lib/tasks/gitlab/shell.rake
index 202e55c89ad..d3cc7135c54 100644
--- a/lib/tasks/gitlab/shell.rake
+++ b/lib/tasks/gitlab/shell.rake
@@ -22,10 +22,14 @@ namespace :gitlab do
 
       # Make sure we're on the right tag
       Dir.chdir(target_dir) do
+        # Allows to change the origin URL to the fork
+        # when developing gitlab-shell.
+        sh(*%W(git remote set-url origin #{args.repo}))
+
         # First try to checkout without fetching
         # to avoid stalling tests if the Internet is down.
-        reset = "git reset --hard $(git describe #{args.tag} || git describe origin/#{args.tag})"
-        sh "#{reset} || git fetch origin && #{reset}"
+        reset = "(rev=\"$(git describe #{args.tag} || git describe \"origin/#{args.tag}\")\" && git reset --hard \"$rev\")"
+        sh "#{reset} || (git fetch --tags origin && #{reset})"
 
         config = {
           user: user,
@@ -37,7 +41,7 @@ namespace :gitlab do
             bin: %x{which redis-cli}.chomp,
             namespace: "resque:gitlab"
           }.stringify_keys,
-          log_level: "INFO",
+          log_level: Rails.env.test? ? 'DEBUG' : 'INFO',
           audit_usernames: false
         }.stringify_keys
 
@@ -66,6 +70,8 @@ namespace :gitlab do
       File.open(File.join(home_dir, ".ssh", "environment"), "w+") do |f|
         f.puts "PATH=#{ENV['PATH']}"
       end
+
+      Gitlab::Shell.setup_secret_token
     end
 
     desc "GITLAB | Setup gitlab-shell"
diff --git a/spec/support/test_env.rb b/spec/support/test_env.rb
index e6db410fb1c..eb665b8b618 100644
--- a/spec/support/test_env.rb
+++ b/spec/support/test_env.rb
@@ -1,4 +1,5 @@
 require 'rspec/mocks'
+require 'webrick'
 
 module TestEnv
   extend self
@@ -24,8 +25,6 @@ module TestEnv
     disable_mailer if opts[:mailer] == false
 
     # Clean /tmp/tests
-    tmp_test_path = Rails.root.join('tmp', 'tests')
-
     if File.directory?(tmp_test_path)
       Dir.entries(tmp_test_path).each do |entry|
         unless ['.', '..', 'gitlab-shell', factory_repo_name].include?(entry)
@@ -39,6 +38,8 @@ module TestEnv
     # Setup GitLab shell for test instance
     setup_gitlab_shell
 
+    setup_internal_api_mock
+
     # Create repository for FactoryGirl.create(:project)
     setup_factory_repo
   end
@@ -108,4 +109,52 @@ module TestEnv
   def factory_repo_name
     'gitlab-test'
   end
+
+  def tmp_test_path
+    Rails.root.join('tmp', 'tests')
+  end
+
+  def internal_api_mock_pid_path
+    File.join(tmp_test_path, 'internal_api_mock.pid')
+  end
+
+  # This mock server exists because during testing GitLab is not served
+  # on any port, but gitlab-shell needs to ask the GitLab internal API
+  # if it is OK to push to repositories. This can happen during blob web
+  # edit tests. The server always replies yes: this should not modify affect
+  # web interface tests.
+  def setup_internal_api_mock
+    begin
+      server = WEBrick::HTTPServer.new(
+        BindAddress: '0.0.0.0',
+        Port: Gitlab.config.gitlab.port,
+        AccessLog: [],
+        Logger: WEBrick::Log.new('/dev/null')
+      )
+    rescue => ex
+      ex.message.prepend('could not start mock server on configured port. ')
+      raise ex
+    end
+    fork do
+      trap(:INT) { server.shutdown }
+      server.mount_proc('/') do |_req, res|
+        res.status = 200
+        res.body = 'true'
+      end
+      WEBrick::Daemon.start do
+        File.write(internal_api_mock_pid_path, Process.pid)
+      end
+      server.start
+    end
+    # Ideally this should be called from `config.after(:suite)`,
+    # but on Spinach when user hits Ctrl+C the server does not get killed
+    # if the hook is set up with `Spinach.hooks.after_run`.
+    at_exit do
+      # The file should exist on normal operation,
+      # but certain errors can lead to it not existing.
+      if File.exists?(internal_api_mock_pid_path)
+        Process.kill(:INT, File.read(internal_api_mock_pid_path).to_i)
+      end
+    end
+  end
 end