diff --git a/baseapp/baseapp_test.go b/baseapp/baseapp_test.go
index eacc3af8c4bf..179c80463bc4 100644
--- a/baseapp/baseapp_test.go
+++ b/baseapp/baseapp_test.go
@@ -6,6 +6,7 @@ import (
 	"fmt"
 	"io/ioutil"
 	"os"
+	"sync"
 	"testing"
 
 	"github.com/stretchr/testify/assert"
@@ -1446,3 +1447,64 @@ func TestGetMaximumBlockGas(t *testing.T) {
 	app.setConsensusParams(&abci.ConsensusParams{Block: &abci.BlockParams{MaxGas: -5000000}})
 	require.Panics(t, func() { app.getMaximumBlockGas() })
 }
+
+// NOTE: represents a new custom router for testing purposes of WithRouter()
+type testCustomRouter struct {
+	routes sync.Map
+}
+
+func (rtr *testCustomRouter) AddRoute(path string, h sdk.Handler) sdk.Router {
+	rtr.routes.Store(path, h)
+	return rtr
+}
+
+func (rtr *testCustomRouter) Route(ctx sdk.Context, path string) sdk.Handler {
+	if v, ok := rtr.routes.Load(path); ok {
+		if h, ok := v.(sdk.Handler); ok {
+			return h
+		}
+	}
+	return nil
+}
+
+func TestWithRouter(t *testing.T) {
+	// test increments in the ante
+	anteKey := []byte("ante-key")
+	anteOpt := func(bapp *BaseApp) { bapp.SetAnteHandler(anteHandlerTxTest(t, capKey1, anteKey)) }
+
+	// test increments in the handler
+	deliverKey := []byte("deliver-key")
+	routerOpt := func(bapp *BaseApp) {
+		bapp.SetRouter(&testCustomRouter{routes: sync.Map{}})
+		bapp.Router().AddRoute(routeMsgCounter, handlerMsgCounter(t, capKey1, deliverKey))
+	}
+
+	app := setupBaseApp(t, anteOpt, routerOpt)
+	app.InitChain(abci.RequestInitChain{})
+
+	// Create same codec used in txDecoder
+	codec := codec.New()
+	registerTestCodec(codec)
+
+	nBlocks := 3
+	txPerHeight := 5
+
+	for blockN := 0; blockN < nBlocks; blockN++ {
+		header := abci.Header{Height: int64(blockN) + 1}
+		app.BeginBlock(abci.RequestBeginBlock{Header: header})
+
+		for i := 0; i < txPerHeight; i++ {
+			counter := int64(blockN*txPerHeight + i)
+			tx := newTxCounter(counter, counter)
+
+			txBytes, err := codec.MarshalBinaryLengthPrefixed(tx)
+			require.NoError(t, err)
+
+			res := app.DeliverTx(abci.RequestDeliverTx{Tx: txBytes})
+			require.True(t, res.IsOK(), fmt.Sprintf("%v", res))
+		}
+
+		app.EndBlock(abci.RequestEndBlock{})
+		app.Commit()
+	}
+}