diff --git a/core/includes/common.inc b/core/includes/common.inc
index 2f1474056adb9ffff365dc491238c838c3f13192..ed57616f10d1e15089a40117e35bdf090566556e 100644
--- a/core/includes/common.inc
+++ b/core/includes/common.inc
@@ -7444,6 +7444,8 @@ function drupal_flush_all_caches() {
   system_rebuild_theme_data();
   drupal_theme_rebuild();
 
+  entity_info_cache_clear();
+
   // @todo D8: Split cache flushing from rebuilding.
   // @see http://drupal.org/node/996236
   if (module_exists('node')) {
diff --git a/core/modules/entity/tests/entity.test b/core/modules/entity/tests/entity.test
index e7a4b349c170ec65435f089fed0641aff96c2788..35b6ab1c26226e4ed054e7c6a77655ddb21aaeb9 100644
--- a/core/modules/entity/tests/entity.test
+++ b/core/modules/entity/tests/entity.test
@@ -66,3 +66,50 @@ class EntityAPITestCase extends DrupalWebTestCase {
     $this->assertTrue(empty($all), 'Deleted all entities.');
   }
 }
+
+/**
+ * Tests Entity API base functionality.
+ */
+class EntityAPIInfoTestCase extends DrupalWebTestCase  {
+
+  public static function getInfo() {
+    return array(
+      'name' => 'Entity info',
+      'description' => 'Makes sure entity info is accurately cached.',
+      'group' => 'Entity API',
+    );
+  }
+
+  /**
+   * Ensures entity info cache is updated after changes.
+   */
+  function testEntityInfoChanges() {
+    module_enable(array('entity_cache_test'));
+    $entity_info = entity_get_info();
+    $this->assertTrue(isset($entity_info['entity_cache_test']), 'Test entity type found.');
+
+    // Change the label of the test entity type and make sure changes appear
+    // after flushing caches.
+    variable_set('entity_cache_test_label', 'New label.');
+    drupal_flush_all_caches();
+    $info = entity_get_info('entity_cache_test');
+    $this->assertEqual($info['label'], 'New label.', 'New label appears in entity info.');
+
+    // Disable the providing module and make sure the entity type is gone.
+    module_disable(array('entity_cache_test', 'entity_cache_test_dependency'));
+    $entity_info = entity_get_info();
+    $this->assertFalse(isset($entity_info['entity_cache_test']), 'Entity type of the providing module is gone.');
+  }
+
+  /**
+   * Tests entity info cache after enabling a module with a dependency on an entity providing module.
+   *
+   * @see entity_cache_test_watchdog()
+   */
+  function testEntityInfoCacheWatchdog() {
+    module_enable(array('entity_cache_test'));
+    $info = variable_get('entity_cache_test');
+    $this->assertEqual($info['label'], 'Entity Cache Test', 'Entity info label is correct.');
+    $this->assertEqual($info['controller class'], 'DrupalDefaultEntityController', 'Entity controller class info is correct.');
+  }
+}
diff --git a/core/modules/entity/tests/entity_cache_test_dependency.module b/core/modules/entity/tests/entity_cache_test_dependency.module
index 73a11495f58f95d1248cbdad2f57661f03ee4055..2d4b3be4d6f83489917c7302b2b0f8b99d2109fa 100644
--- a/core/modules/entity/tests/entity_cache_test_dependency.module
+++ b/core/modules/entity/tests/entity_cache_test_dependency.module
@@ -11,7 +11,7 @@
 function entity_cache_test_dependency_entity_info() {
   return array(
     'entity_cache_test' => array(
-      'label' => 'Entity Cache Test',
+      'label' => variable_get('entity_cache_test_label', 'Entity Cache Test'),
     ),
   );
 }
diff --git a/core/modules/system/system.test b/core/modules/system/system.test
index 36b7f0cb5e0761736fd581ba44043b49804d74b4..7e35657e3cda0704578e82dadc21a2e6a671bb41 100644
--- a/core/modules/system/system.test
+++ b/core/modules/system/system.test
@@ -271,19 +271,6 @@ class EnableDisableTestCase extends ModuleTestCase {
     $this->assertText(t('The configuration options have been saved.'), t('Modules status has been updated.'));
   }
 
-  /**
-   * Tests entity cache after enabling a module with a dependency on an enitity
-   * providing module.
-   *
-   * @see entity_cache_test_watchdog()
-   */
-  function testEntityCache() {
-    module_enable(array('entity_cache_test'));
-    $info = variable_get('entity_cache_test');
-    $this->assertEqual($info['label'], 'Entity Cache Test', 'Entity info label is correct.');
-    $this->assertEqual($info['controller class'], 'DrupalDefaultEntityController', 'Entity controller class info is correct.');
-  }
-
   /**
    * Disables and uninstalls a module and asserts that it was done correctly.
    *