diff --git a/Gemfile b/Gemfile
index 01696152..4a7db0eb 100644
--- a/Gemfile
+++ b/Gemfile
@@ -70,6 +70,9 @@ gem "github-markup", "~> 0.7.4", require: 'github/markup'
 # Servers
 gem "unicorn", "~> 4.4.0"
 
+# State machine
+gem "state_machine"
+
 # Issue tags
 gem "acts-as-taggable-on", "2.3.3"
 
diff --git a/Gemfile.lock b/Gemfile.lock
index 1bc7124f..1b8c5837 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -425,6 +425,7 @@ GEM
       rack (~> 1.0)
       tilt (~> 1.1, != 1.3.0)
     stamp (0.3.0)
+    state_machine (1.1.2)
     temple (0.5.5)
     test_after_commit (0.0.1)
     therubyracer (0.10.2)
@@ -536,6 +537,7 @@ DEPENDENCIES
   slim
   spinach-rails
   stamp
+  state_machine
   test_after_commit
   therubyracer
   thin
diff --git a/app/assets/javascripts/merge_requests.js.coffee b/app/assets/javascripts/merge_requests.js.coffee
index 65ed817c..496da731 100644
--- a/app/assets/javascripts/merge_requests.js.coffee
+++ b/app/assets/javascripts/merge_requests.js.coffee
@@ -27,7 +27,7 @@ class MergeRequest
     this.$el.find(selector)
 
   initMergeWidget: ->
-    this.showState( @opts.current_state )
+    this.showState( @opts.current_status )
 
     if this.$('.automerge_widget').length and @opts.check_enable
       $.get @opts.url_to_automerge_check, (data) =>
diff --git a/app/contexts/merge_requests_load_context.rb b/app/contexts/merge_requests_load_context.rb
index 4ec66cd9..683f4c83 100644
--- a/app/contexts/merge_requests_load_context.rb
+++ b/app/contexts/merge_requests_load_context.rb
@@ -14,7 +14,7 @@ class MergeRequestsLoadContext < BaseContext
                      end
 
     merge_requests = merge_requests.page(params[:page]).per(20)
-    merge_requests = merge_requests.includes(:author, :project).order("closed, created_at desc")
+    merge_requests = merge_requests.includes(:author, :project).order("state, created_at desc")
 
     # Filter by specific assignee_id (or lack thereof)?
     if params[:assignee_id].present?
diff --git a/app/controllers/merge_requests_controller.rb b/app/controllers/merge_requests_controller.rb
index ab6bf595..bf665272 100644
--- a/app/controllers/merge_requests_controller.rb
+++ b/app/controllers/merge_requests_controller.rb
@@ -73,14 +73,14 @@ class MergeRequestsController < ProjectResourceController
     if @merge_request.unchecked?
       @merge_request.check_if_can_be_merged
     end
-    render json: {state: @merge_request.human_state}
+    render json: {merge_status: @merge_request.human_merge_status}
   rescue Gitlab::SatelliteNotExistError
-    render json: {state: :no_satellite}
+    render json: {merge_status: :no_satellite}
   end
 
   def automerge
     return access_denied! unless can?(current_user, :accept_mr, @project)
-    if @merge_request.open? && @merge_request.can_be_merged?
+    if @merge_request.opened? && @merge_request.can_be_merged?
       @merge_request.should_remove_source_branch = params[:should_remove_source_branch]
       @merge_request.automerge!(current_user)
       @status = true
diff --git a/app/controllers/milestones_controller.rb b/app/controllers/milestones_controller.rb
index a0c824e8..57f1e9e6 100644
--- a/app/controllers/milestones_controller.rb
+++ b/app/controllers/milestones_controller.rb
@@ -12,7 +12,7 @@ class MilestonesController < ProjectResourceController
 
   def index
     @milestones = case params[:f]
-                  when 'all'; @project.milestones.order("closed, due_date DESC")
+                  when 'all'; @project.milestones.order("state, due_date DESC")
                   when 'closed'; @project.milestones.closed.order("due_date DESC")
                   else @project.milestones.active.order("due_date ASC")
                   end
diff --git a/app/helpers/issues_helper.rb b/app/helpers/issues_helper.rb
index 2825787f..ed7e3e86 100644
--- a/app/helpers/issues_helper.rb
+++ b/app/helpers/issues_helper.rb
@@ -6,7 +6,7 @@ module IssuesHelper
 
   def issue_css_classes issue
     classes = "issue"
-    classes << " closed" if issue.closed
+    classes << " closed" if issue.closed?
     classes << " today" if issue.today?
     classes
   end
diff --git a/app/helpers/merge_requests_helper.rb b/app/helpers/merge_requests_helper.rb
index ca0a89c3..155d03d1 100644
--- a/app/helpers/merge_requests_helper.rb
+++ b/app/helpers/merge_requests_helper.rb
@@ -12,7 +12,7 @@ module MergeRequestsHelper
 
   def mr_css_classes mr
     classes = "merge_request"
-    classes << " closed" if mr.closed
+    classes << " closed" if mr.closed?
     classes << " merged" if mr.merged?
     classes
   end
diff --git a/app/models/concerns/issuable.rb b/app/models/concerns/issuable.rb
index 645b35ec..85337583 100644
--- a/app/models/concerns/issuable.rb
+++ b/app/models/concerns/issuable.rb
@@ -17,10 +17,9 @@ module Issuable
     validates :project, presence: true
     validates :author, presence: true
     validates :title, presence: true, length: { within: 0..255 }
-    validates :closed, inclusion: { in: [true, false] }
 
-    scope :opened, -> { where(closed: false) }
-    scope :closed, -> { where(closed: true) }
+    scope :opened, -> { with_state(:opened) }
+    scope :closed, -> { with_state(:closed) }
     scope :of_group, ->(group) { where(project_id: group.project_ids) }
     scope :of_user_team, ->(team) { where(project_id: team.project_ids, assignee_id: team.member_ids) }
     scope :assigned, ->(u) { where(assignee_id: u.id)}
@@ -62,14 +61,6 @@ module Issuable
     assignee_id_changed?
   end
 
-  def is_being_closed?
-    closed_changed? && closed
-  end
-
-  def is_being_reopened?
-    closed_changed? && !closed
-  end
-
   #
   # Votes
   #
diff --git a/app/models/issue.rb b/app/models/issue.rb
index 04c2df05..112f43c4 100644
--- a/app/models/issue.rb
+++ b/app/models/issue.rb
@@ -9,7 +9,7 @@
 #  project_id   :integer
 #  created_at   :datetime         not null
 #  updated_at   :datetime         not null
-#  closed       :boolean          default(FALSE), not null
+#  state        :string           default(FALSE), not null
 #  position     :integer          default(0)
 #  branch_name  :string(255)
 #  description  :text
@@ -19,8 +19,9 @@
 class Issue < ActiveRecord::Base
   include Issuable
 
-  attr_accessible :title, :assignee_id, :closed, :position, :description,
-                  :milestone_id, :label_list, :author_id_of_changes
+  attr_accessible :title, :assignee_id, :position, :description,
+                  :milestone_id, :label_list, :author_id_of_changes,
+                  :state_event
 
   acts_as_taggable_on :labels
 
@@ -33,4 +34,20 @@ class Issue < ActiveRecord::Base
       opened.assigned(user)
     end
   end
+
+  state_machine :state, initial: :opened do
+    event :close do
+      transition [:reopened, :opened] => :closed
+    end
+
+    event :reopen do
+      transition closed: :reopened
+    end
+
+    state :opened
+
+    state :reopened
+
+    state :closed
+  end
 end
diff --git a/app/models/merge_request.rb b/app/models/merge_request.rb
index ac7c9f74..06aa9f3c 100644
--- a/app/models/merge_request.rb
+++ b/app/models/merge_request.rb
@@ -9,15 +9,14 @@
 #  author_id     :integer
 #  assignee_id   :integer
 #  title         :string(255)
-#  closed        :boolean          default(FALSE), not null
+#  state         :string(255)      not null
 #  created_at    :datetime         not null
 #  updated_at    :datetime         not null
 #  st_commits    :text(2147483647)
 #  st_diffs      :text(2147483647)
-#  merged        :boolean          default(FALSE), not null
-#  state         :integer          default(1), not null
-#  milestone_id  :integer
+#  merge_status  :integer          default(1), not null
 #
+#  milestone_id  :integer
 
 require Rails.root.join("app/models/commit")
 require Rails.root.join("lib/static_model")
@@ -25,11 +24,33 @@ require Rails.root.join("lib/static_model")
 class MergeRequest < ActiveRecord::Base
   include Issuable
 
-  attr_accessible :title, :assignee_id, :closed, :target_branch, :source_branch, :milestone_id,
-                  :author_id_of_changes
+  attr_accessible :title, :assignee_id, :target_branch, :source_branch, :milestone_id,
+                  :author_id_of_changes, :state_event
 
   attr_accessor :should_remove_source_branch
 
+  state_machine :state, initial: :opened do
+    event :close do
+      transition [:reopened, :opened] => :closed
+    end
+
+    event :merge do
+      transition [:reopened, :opened] => :merged
+    end
+
+    event :reopen do
+      transition closed: :reopened
+    end
+
+    state :opened
+
+    state :reopened
+
+    state :closed
+
+    state :merged
+  end
+
   BROKEN_DIFF = "--broken-diff"
 
   UNCHECKED = 1
@@ -43,8 +64,13 @@ class MergeRequest < ActiveRecord::Base
   validates :target_branch, presence: true
   validate :validate_branches
 
+  scope :merged, -> { with_state(:merged) }
 
   class << self
+    def find_all_by_branch(branch_name)
+      where("source_branch LIKE :branch OR target_branch LIKE :branch", branch: branch_name)
+    end
+
     def cared(user)
       where('assignee_id = :user OR author_id = :user', user: user.id)
     end
@@ -58,13 +84,13 @@ class MergeRequest < ActiveRecord::Base
     end
   end
 
-  def human_state
-    states = {
+  def human_merge_status
+    merge_statuses = {
       CAN_BE_MERGED =>  "can_be_merged",
       CANNOT_BE_MERGED => "cannot_be_merged",
       UNCHECKED => "unchecked"
     }
-    states[self.state]
+    merge_statuses[self.merge_status]
   end
 
   def validate_branches
@@ -79,20 +105,20 @@ class MergeRequest < ActiveRecord::Base
   end
 
   def unchecked?
-    state == UNCHECKED
+    merge_status == UNCHECKED
   end
 
   def mark_as_unchecked
-    self.state = UNCHECKED
+    self.merge_status = UNCHECKED
     self.save
   end
 
   def can_be_merged?
-    state == CAN_BE_MERGED
+    merge_status == CAN_BE_MERGED
   end
 
   def check_if_can_be_merged
-    self.state = if Gitlab::Satellite::MergeAction.new(self.author, self).can_be_merged?
+    self.merge_status = if Gitlab::Satellite::MergeAction.new(self.author, self).can_be_merged?
                    CAN_BE_MERGED
                  else
                    CANNOT_BE_MERGED
@@ -105,7 +131,7 @@ class MergeRequest < ActiveRecord::Base
   end
 
   def reloaded_diffs
-    if open? && unmerged_diffs.any?
+    if opened? && unmerged_diffs.any?
       self.st_diffs = unmerged_diffs
       self.save
     end
@@ -135,10 +161,6 @@ class MergeRequest < ActiveRecord::Base
     commits.first
   end
 
-  def merged?
-    merged && merge_event
-  end
-
   def merge_event
     self.project.events.where(target_id: self.id, target_type: "MergeRequest", action: Event::MERGED).last
   end
@@ -153,26 +175,16 @@ class MergeRequest < ActiveRecord::Base
 
   def probably_merged?
     unmerged_commits.empty? &&
-      commits.any? && open?
-  end
-
-  def open?
-    !closed
-  end
-
-  def mark_as_merged!
-    self.merged = true
-    self.closed = true
-    save
+      commits.any? && opened?
   end
 
   def mark_as_unmergable
-    self.state = CANNOT_BE_MERGED
+    self.merge_status = CANNOT_BE_MERGED
     self.save
   end
 
   def reloaded_commits
-    if open? && unmerged_commits.any?
+    if opened? && unmerged_commits.any?
       self.st_commits = unmerged_commits
       save
     end
@@ -188,7 +200,8 @@ class MergeRequest < ActiveRecord::Base
   end
 
   def merge!(user_id)
-    self.mark_as_merged!
+    self.merge
+
     Event.create(
       project: self.project,
       action: Event::MERGED,
diff --git a/app/models/milestone.rb b/app/models/milestone.rb
index 457fe18f..d822a68d 100644
--- a/app/models/milestone.rb
+++ b/app/models/milestone.rb
@@ -13,19 +13,32 @@
 #
 
 class Milestone < ActiveRecord::Base
-  attr_accessible :title, :description, :due_date, :closed, :author_id_of_changes
+  attr_accessible :title, :description, :due_date, :state_event, :author_id_of_changes
   attr_accessor :author_id_of_changes
 
   belongs_to :project
   has_many :issues
   has_many :merge_requests
 
-  scope :active, -> { where(closed: false) }
-  scope :closed, -> { where(closed: true) }
+  scope :active, -> { with_state(:active) }
+  scope :closed, -> { with_state(:closed) }
 
   validates :title, presence: true
   validates :project, presence: true
-  validates :closed, inclusion: { in: [true, false] }
+
+  state_machine :state, initial: :active do
+    event :close do
+      transition active: :closed
+    end
+
+    event :activate do
+      transition closed: :active
+    end
+
+    state :closed
+
+    state :active
+  end
 
   def expired?
     if due_date
@@ -68,17 +81,13 @@ class Milestone < ActiveRecord::Base
   end
 
   def can_be_closed?
-    open? && issues.opened.count.zero?
+    active? && issues.opened.count.zero?
   end
 
   def is_empty?
     total_items_count.zero?
   end
 
-  def open?
-    !closed
-  end
-
   def author_id
     author_id_of_changes
   end
diff --git a/app/models/project.rb b/app/models/project.rb
index 15b2d858..9d61ffc1 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -43,7 +43,7 @@ class Project < ActiveRecord::Base
 
   has_many :events,             dependent: :destroy
   has_many :merge_requests,     dependent: :destroy
-  has_many :issues,             dependent: :destroy, order: "closed, created_at DESC"
+  has_many :issues,             dependent: :destroy, order: "state, created_at DESC"
   has_many :milestones,         dependent: :destroy
   has_many :users_projects,     dependent: :destroy
   has_many :notes,              dependent: :destroy
diff --git a/app/observers/activity_observer.rb b/app/observers/activity_observer.rb
index b568bb6b..9c72a6d3 100644
--- a/app/observers/activity_observer.rb
+++ b/app/observers/activity_observer.rb
@@ -20,15 +20,23 @@ class ActivityObserver < ActiveRecord::Observer
     end
   end
 
-  def after_save(record)
-    if record.changed.include?("closed") && record.author_id_of_changes
+  def after_close(record, transition)
       Event.create(
         project: record.project,
         target_id: record.id,
         target_type: record.class.name,
-        action: (record.closed ? Event::CLOSED : Event::REOPENED),
+        action: Event::CLOSED,
+        author_id: record.author_id_of_changes
+      )
+  end
+
+  def after_reopen(record, transition)
+      Event.create(
+        project: record.project,
+        target_id: record.id,
+        target_type: record.class.name,
+        action: Event::REOPENED,
         author_id: record.author_id_of_changes
       )
-    end
   end
 end
diff --git a/app/observers/issue_observer.rb b/app/observers/issue_observer.rb
index 262d0f89..592e2950 100644
--- a/app/observers/issue_observer.rb
+++ b/app/observers/issue_observer.rb
@@ -7,22 +7,31 @@ class IssueObserver < ActiveRecord::Observer
     end
   end
 
-  def after_update(issue)
+  def after_close(issue, transition)
     send_reassigned_email(issue) if issue.is_being_reassigned?
 
-    status = nil
-    status = 'closed' if issue.is_being_closed?
-    status = 'reopened' if issue.is_being_reopened?
-    if status
-      Note.create_status_change_note(issue, current_user, status)
-      [issue.author, issue.assignee].compact.each do |recipient|
-        Notify.delay.issue_status_changed_email(recipient.id, issue.id, status, current_user.id)
-      end
-    end
+    create_note(issue)
+  end
+
+  def after_reopen(issue, transition)
+    send_reassigned_email(issue) if issue.is_being_reassigned?
+
+    create_note(issue)
+  end
+
+  def after_update(issue)
+    send_reassigned_email(issue) if issue.is_being_reassigned?
   end
 
   protected
 
+  def create_note(issue)
+    Note.create_status_change_note(issue, current_user, issue.state)
+    [issue.author, issue.assignee].compact.each do |recipient|
+      Notify.delay.issue_status_changed_email(recipient.id, issue.id, issue.state, current_user.id)
+    end
+  end
+
   def send_reassigned_email(issue)
     recipient_ids = [issue.assignee_id, issue.assignee_id_was].keep_if {|id| id && id != current_user.id }
 
diff --git a/app/observers/merge_request_observer.rb b/app/observers/merge_request_observer.rb
index 6d3c2bdd..d89e7734 100644
--- a/app/observers/merge_request_observer.rb
+++ b/app/observers/merge_request_observer.rb
@@ -7,15 +7,20 @@ class MergeRequestObserver < ActiveRecord::Observer
     end
   end
 
-  def after_update(merge_request)
+  def after_close(merge_request, transition)
     send_reassigned_email(merge_request) if merge_request.is_being_reassigned?
 
-    status = nil
-    status = 'closed' if merge_request.is_being_closed?
-    status = 'reopened' if merge_request.is_being_reopened?
-    if status
-      Note.create_status_change_note(merge_request, current_user, status)
-    end
+    Note.create_status_change_note(merge_request, current_user, merge_request.state)
+  end
+
+  def after_reopen(merge_request, transition)
+    send_reassigned_email(merge_request) if merge_request.is_being_reassigned?
+
+    Note.create_status_change_note(merge_request, current_user, merge_request.state)
+  end
+
+  def after_update(merge_request)
+    send_reassigned_email(merge_request) if merge_request.is_being_reassigned?
   end
 
   protected
diff --git a/app/views/issues/_show.html.haml b/app/views/issues/_show.html.haml
index fa888618..3d1ecd43 100644
--- a/app/views/issues/_show.html.haml
+++ b/app/views/issues/_show.html.haml
@@ -8,10 +8,10 @@
         %i.icon-comment
         = issue.notes.count
     - if can? current_user, :modify_issue, issue
-      - if issue.closed
-        = link_to 'Reopen', project_issue_path(issue.project, issue, issue: {closed: false }, status_only: true), method: :put,  class: "btn btn-small grouped reopen_issue", remote: true
+      - if issue.closed?
+        = link_to 'Reopen', project_issue_path(issue.project, issue, issue: {state_event: :reopen }, status_only: true), method: :put,  class: "btn btn-small grouped reopen_issue", remote: true
       - else
-        = link_to 'Close', project_issue_path(issue.project, issue, issue: {closed: true }, status_only: true), method: :put, class: "btn btn-small grouped close_issue", remote: true
+        = link_to 'Close', project_issue_path(issue.project, issue, issue: {state_event: :close }, status_only: true), method: :put, class: "btn btn-small grouped close_issue", remote: true
       = link_to edit_project_issue_path(issue.project, issue), class: "btn btn-small edit-issue-link grouped" do
         %i.icon-edit
         Edit
diff --git a/app/views/issues/show.html.haml b/app/views/issues/show.html.haml
index 474955cc..f1a97e10 100644
--- a/app/views/issues/show.html.haml
+++ b/app/views/issues/show.html.haml
@@ -7,10 +7,10 @@
 
   %span.pull-right
     - if can?(current_user, :admin_project, @project) || @issue.author == current_user
-      - if @issue.closed
-        = link_to 'Reopen', project_issue_path(@project, @issue, issue: {closed: false }, status_only: true), method: :put,  class: "btn grouped reopen_issue"
+      - if @issue.closed?
+        = link_to 'Reopen', project_issue_path(@project, @issue, issue: {state_event: :reopen }, status_only: true), method: :put,  class: "btn grouped reopen_issue"
       - else
-        = link_to 'Close', project_issue_path(@project, @issue, issue: {closed: true }, status_only: true), method: :put, class: "btn grouped close_issue", title: "Close Issue"
+        = link_to 'Close', project_issue_path(@project, @issue, issue: {state_event: :close }, status_only: true), method: :put, class: "btn grouped close_issue", title: "Close Issue"
     - if can?(current_user, :admin_project, @project) || @issue.author == current_user
       = link_to edit_project_issue_path(@project, @issue), class: "btn grouped" do
         %i.icon-edit
@@ -27,7 +27,7 @@
 .ui-box.ui-box-show
   .ui-box-head
     %h4.box-title
-      - if @issue.closed
+      - if @issue.closed?
         .error.status_info Closed
       = gfm escape_once(@issue.title)
 
diff --git a/app/views/merge_requests/_show.html.haml b/app/views/merge_requests/_show.html.haml
index cefd33c0..ae2cfe92 100644
--- a/app/views/merge_requests/_show.html.haml
+++ b/app/views/merge_requests/_show.html.haml
@@ -29,10 +29,10 @@
   $(function(){
     merge_request = new MergeRequest({
       url_to_automerge_check: "#{automerge_check_project_merge_request_path(@project, @merge_request)}",
-      check_enable: #{@merge_request.state == MergeRequest::UNCHECKED ? "true" : "false"},
+      check_enable: #{@merge_request.merge_status == MergeRequest::UNCHECKED ? "true" : "false"},
       url_to_ci_check: "#{ci_status_project_merge_request_path(@project, @merge_request)}",
       ci_enable: #{@project.gitlab_ci? ? "true" : "false"},
-      current_state: "#{@merge_request.human_state}",
+      current_status: "#{@merge_request.human_merge_status}",
       action: "#{controller.action_name}"
     });
   });
diff --git a/app/views/merge_requests/show/_mr_accept.html.haml b/app/views/merge_requests/show/_mr_accept.html.haml
index c2c04b86..64f25a51 100644
--- a/app/views/merge_requests/show/_mr_accept.html.haml
+++ b/app/views/merge_requests/show/_mr_accept.html.haml
@@ -3,7 +3,7 @@
     %strong Only masters can accept MR
 
 
-- if @merge_request.open? && @commits.any? && can?(current_user, :accept_mr, @project)
+- if @merge_request.opened? && @commits.any? && can?(current_user, :accept_mr, @project)
   .automerge_widget.can_be_merged{style: "display:none"}
     .alert.alert-success
       %span
diff --git a/app/views/merge_requests/show/_mr_box.html.haml b/app/views/merge_requests/show/_mr_box.html.haml
index 644d7fcc..3b54f613 100644
--- a/app/views/merge_requests/show/_mr_box.html.haml
+++ b/app/views/merge_requests/show/_mr_box.html.haml
@@ -1,11 +1,11 @@
 .ui-box.ui-box-show
   .ui-box-head
     %h4.box-title
-      - if @merge_request.merged
+      - if @merge_request.merged?
         .error.status_info
           %i.icon-ok
           Merged
-      - elsif @merge_request.closed
+      - elsif @merge_request.closed?
         .error.status_info Closed
       = gfm escape_once(@merge_request.title)
 
@@ -21,14 +21,14 @@
         %strong= link_to_gfm truncate(milestone.title, length: 20), project_milestone_path(milestone.project, milestone)
 
 
-  - if @merge_request.closed
+  - if @merge_request.closed?
     .ui-box-bottom
-      - if @merge_request.merged?
-        %span
-          Merged by #{link_to_member(@project, @merge_request.merge_event.author)}
-          %small #{time_ago_in_words(@merge_request.merge_event.created_at)} ago.
-      - elsif @merge_request.closed_event
-        %span
-          Closed by #{link_to_member(@project, @merge_request.closed_event.author)}
-          %small #{time_ago_in_words(@merge_request.closed_event.created_at)} ago.
+      %span
+        Closed by #{link_to_member(@project, @merge_request.closed_event.author)}
+        %small #{time_ago_in_words(@merge_request.closed_event.created_at)} ago.
+  - if @merge_request.merged?
+    .ui-box-bottom
+      %span
+        Merged by #{link_to_member(@project, @merge_request.merge_event.author)}
+        %small #{time_ago_in_words(@merge_request.merge_event.created_at)} ago.
 
diff --git a/app/views/merge_requests/show/_mr_ci.html.haml b/app/views/merge_requests/show/_mr_ci.html.haml
index dd1e78a0..a8faa6ba 100644
--- a/app/views/merge_requests/show/_mr_ci.html.haml
+++ b/app/views/merge_requests/show/_mr_ci.html.haml
@@ -1,4 +1,4 @@
-- if @merge_request.open? && @commits.any?
+- if @merge_request.opened? && @commits.any?
   .ci_widget.ci-success{style: "display:none"}
     .alert.alert-success
       %i.icon-ok
diff --git a/app/views/merge_requests/show/_mr_title.html.haml b/app/views/merge_requests/show/_mr_title.html.haml
index 8119728d..3df7e4b2 100644
--- a/app/views/merge_requests/show/_mr_title.html.haml
+++ b/app/views/merge_requests/show/_mr_title.html.haml
@@ -7,7 +7,7 @@
 
   %span.pull-right
     - if can?(current_user, :modify_merge_request, @merge_request)
-      - if @merge_request.open?
+      - if @merge_request.opened?
         .left.btn-group
           %a.btn.grouped.dropdown-toggle{ data: {toggle: :dropdown} }
             %i.icon-download-alt
@@ -17,7 +17,7 @@
             %li= link_to "Email Patches", project_merge_request_path(@project, @merge_request, format: :patch)
             %li= link_to "Plain Diff",    project_merge_request_path(@project, @merge_request, format: :diff)
 
-        = link_to 'Close', project_merge_request_path(@project, @merge_request, merge_request: {closed: true }, status_only: true), method: :put, class: "btn grouped btn-close", title: "Close merge request"
+        = link_to 'Close', project_merge_request_path(@project, @merge_request, merge_request: {state_event: :close }), method: :put, class: "btn grouped btn-close", title: "Close merge request"
 
         = link_to edit_project_merge_request_path(@project, @merge_request), class: "btn grouped" do
           %i.icon-edit
diff --git a/app/views/milestones/_milestone.html.haml b/app/views/milestones/_milestone.html.haml
index 00e20117..8a3727c6 100644
--- a/app/views/milestones/_milestone.html.haml
+++ b/app/views/milestones/_milestone.html.haml
@@ -1,12 +1,12 @@
-%li{class: "milestone milestone-#{milestone.closed ? 'closed' : 'open'}", id: dom_id(milestone) }
+%li{class: "milestone milestone-#{milestone.closed? ? 'closed' : 'open'}", id: dom_id(milestone) }
   .pull-right
-    - if can?(current_user, :admin_milestone, milestone.project) and milestone.open?
+    - if can?(current_user, :admin_milestone, milestone.project) and milestone.active?
       = link_to edit_project_milestone_path(milestone.project, milestone), class: "btn btn-small edit-milestone-link grouped" do
         %i.icon-edit
         Edit
   %h4
     = link_to_gfm truncate(milestone.title, length: 100), project_milestone_path(milestone.project, milestone)
-    - if milestone.expired? and not milestone.closed
+    - if milestone.expired? and not milestone.closed?
       %span.cred (Expired)
     %small
       = milestone.expires_at
diff --git a/app/views/milestones/show.html.haml b/app/views/milestones/show.html.haml
index 43d82a54..c2b09542 100644
--- a/app/views/milestones/show.html.haml
+++ b/app/views/milestones/show.html.haml
@@ -9,7 +9,7 @@
         &larr; To milestones list
   .span6
     .pull-right
-      - unless  @milestone.closed
+      - unless  @milestone.closed?
         = link_to new_project_issue_path(@project, issue: { milestone_id: @milestone.id }), class: "btn btn-small grouped", title: "New Issue" do
           %i.icon-plus
           New Issue
@@ -25,12 +25,12 @@
   %hr
   %p
     %span All issues for this milestone are closed. You may close milestone now.
-    = link_to 'Close Milestone', project_milestone_path(@project, @milestone, milestone: {closed: true }), method: :put, class: "btn btn-small btn-remove"
+    = link_to 'Close Milestone', project_milestone_path(@project, @milestone, milestone: {state_event: :close }), method: :put, class: "btn btn-small btn-remove"
 
 .ui-box.ui-box-show
   .ui-box-head
     %h4.box-title
-      - if @milestone.closed
+      - if @milestone.closed?
         .error.status_info Closed
       - elsif @milestone.expired?
         .error.status_info Expired
@@ -63,7 +63,7 @@
           %li=link_to('All Issues', '#')
       %ul.well-list
         - @issues.each do |issue|
-          %li{data: {closed: issue.closed}}
+          %li{data: {closed: issue.closed?}}
             = link_to [@project, issue] do
               %span.badge.badge-info ##{issue.id}
             &ndash;
@@ -77,7 +77,7 @@
           %li=link_to('All Merge Requests', '#')
       %ul.well-list
         - @merge_requests.each do |merge_request|
-          %li{data: {closed: merge_request.closed}}
+          %li{data: {closed: merge_request.closed?}}
             = link_to [@project, merge_request] do
               %span.badge.badge-info ##{merge_request.id}
             &ndash;
diff --git a/db/migrate/20130214154045_rename_state_to_merge_status_in_milestone.rb b/db/migrate/20130214154045_rename_state_to_merge_status_in_milestone.rb
new file mode 100644
index 00000000..23797fe1
--- /dev/null
+++ b/db/migrate/20130214154045_rename_state_to_merge_status_in_milestone.rb
@@ -0,0 +1,5 @@
+class RenameStateToMergeStatusInMilestone < ActiveRecord::Migration
+  def change
+    rename_column :merge_requests, :state, :merge_status
+  end
+end
diff --git a/db/migrate/20130218140952_add_state_to_issue.rb b/db/migrate/20130218140952_add_state_to_issue.rb
new file mode 100644
index 00000000..062103d0
--- /dev/null
+++ b/db/migrate/20130218140952_add_state_to_issue.rb
@@ -0,0 +1,5 @@
+class AddStateToIssue < ActiveRecord::Migration
+  def change
+    add_column :issues, :state, :string
+  end
+end
diff --git a/db/migrate/20130218141038_add_state_to_merge_request.rb b/db/migrate/20130218141038_add_state_to_merge_request.rb
new file mode 100644
index 00000000..ac4108ee
--- /dev/null
+++ b/db/migrate/20130218141038_add_state_to_merge_request.rb
@@ -0,0 +1,5 @@
+class AddStateToMergeRequest < ActiveRecord::Migration
+  def change
+    add_column :merge_requests, :state, :string
+  end
+end
diff --git a/db/migrate/20130218141117_add_state_to_milestone.rb b/db/migrate/20130218141117_add_state_to_milestone.rb
new file mode 100644
index 00000000..c8403910
--- /dev/null
+++ b/db/migrate/20130218141117_add_state_to_milestone.rb
@@ -0,0 +1,5 @@
+class AddStateToMilestone < ActiveRecord::Migration
+  def change
+    add_column :milestones, :state, :string
+  end
+end
diff --git a/db/migrate/20130218141258_convert_closed_to_state_in_issue.rb b/db/migrate/20130218141258_convert_closed_to_state_in_issue.rb
new file mode 100644
index 00000000..0614a5c0
--- /dev/null
+++ b/db/migrate/20130218141258_convert_closed_to_state_in_issue.rb
@@ -0,0 +1,14 @@
+class ConvertClosedToStateInIssue < ActiveRecord::Migration
+  def up
+    Issue.transaction do
+      Issue.where(closed: true).update_all("state = 'closed'")
+      Issue.where(closed: false).update_all("state = 'opened'")
+    end
+  end
+
+  def down
+    Issue.transaction do
+      Issue.where(state: :closed).update_all("closed = 1")
+    end
+  end
+end
diff --git a/db/migrate/20130218141327_convert_closed_to_state_in_merge_request.rb b/db/migrate/20130218141327_convert_closed_to_state_in_merge_request.rb
new file mode 100644
index 00000000..4d5c6ee5
--- /dev/null
+++ b/db/migrate/20130218141327_convert_closed_to_state_in_merge_request.rb
@@ -0,0 +1,16 @@
+class ConvertClosedToStateInMergeRequest < ActiveRecord::Migration
+  def up
+    MergeRequest.transaction do
+      MergeRequest.where("closed = 1 AND merged = 1").update_all("state = 'merged'")
+      MergeRequest.where("closed = 1 AND merged = 0").update_all("state = 'closed'")
+      MergeRequest.where("closed = 0").update_all("state = 'opened'")
+    end
+  end
+
+  def down
+    MergeRequest.transaction do
+      MergeRequest.where(state: :closed).update_all("closed = 1")
+      MergeRequest.where(state: :merged).update_all("closed = 1, merged = 1")
+    end
+  end
+end
diff --git a/db/migrate/20130218141344_convert_closed_to_state_in_milestone.rb b/db/migrate/20130218141344_convert_closed_to_state_in_milestone.rb
new file mode 100644
index 00000000..78096666
--- /dev/null
+++ b/db/migrate/20130218141344_convert_closed_to_state_in_milestone.rb
@@ -0,0 +1,14 @@
+class ConvertClosedToStateInMilestone < ActiveRecord::Migration
+  def up
+    Milestone.transaction do
+      Milestone.where(closed: false).update_all("state = 'opened'")
+      Milestone.where(closed: false).update_all("state = 'active'")
+    end
+  end
+
+  def down
+    Milestone.transaction do
+      Milestone.where(state: :closed).update_all("closed = 1")
+    end
+  end
+end
diff --git a/db/migrate/20130218141444_remove_merged_from_merge_request.rb b/db/migrate/20130218141444_remove_merged_from_merge_request.rb
new file mode 100644
index 00000000..a7bd82f5
--- /dev/null
+++ b/db/migrate/20130218141444_remove_merged_from_merge_request.rb
@@ -0,0 +1,9 @@
+class RemoveMergedFromMergeRequest < ActiveRecord::Migration
+  def up
+    remove_column :merge_requests, :merged
+  end
+
+  def down
+    add_column :merge_requests, :merged, :boolean, default: true, null: false
+  end
+end
diff --git a/db/migrate/20130218141507_remove_closed_from_issue.rb b/db/migrate/20130218141507_remove_closed_from_issue.rb
new file mode 100644
index 00000000..95cc0642
--- /dev/null
+++ b/db/migrate/20130218141507_remove_closed_from_issue.rb
@@ -0,0 +1,9 @@
+class RemoveClosedFromIssue < ActiveRecord::Migration
+  def up
+    remove_column :issues, :closed
+  end
+
+  def down
+    add_column :issues, :closed, :boolean
+  end
+end
diff --git a/db/migrate/20130218141536_remove_closed_from_merge_request.rb b/db/migrate/20130218141536_remove_closed_from_merge_request.rb
new file mode 100644
index 00000000..37183593
--- /dev/null
+++ b/db/migrate/20130218141536_remove_closed_from_merge_request.rb
@@ -0,0 +1,9 @@
+class RemoveClosedFromMergeRequest < ActiveRecord::Migration
+  def up
+    remove_column :merge_requests, :closed
+  end
+
+  def down
+    add_column :merge_requests, :closed, :boolean
+  end
+end
diff --git a/db/migrate/20130218141554_remove_closed_from_milestone.rb b/db/migrate/20130218141554_remove_closed_from_milestone.rb
new file mode 100644
index 00000000..e8dae4a1
--- /dev/null
+++ b/db/migrate/20130218141554_remove_closed_from_milestone.rb
@@ -0,0 +1,9 @@
+class RemoveClosedFromMilestone < ActiveRecord::Migration
+  def up
+    remove_column :milestones, :closed
+  end
+
+  def down
+    add_column :milestones, :closed, :boolean
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 0f07d2bc..f837e6ed 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -11,7 +11,7 @@
 #
 # It's strongly recommended to check this file into your version control system.
 
-ActiveRecord::Schema.define(:version => 20130131070232) do
+ActiveRecord::Schema.define(:version => 20130218141554) do
 
   create_table "events", :force => true do |t|
     t.string   "target_type"
@@ -37,18 +37,17 @@ ActiveRecord::Schema.define(:version => 20130131070232) do
     t.integer  "assignee_id"
     t.integer  "author_id"
     t.integer  "project_id"
-    t.datetime "created_at",                      :null => false
-    t.datetime "updated_at",                      :null => false
-    t.boolean  "closed",       :default => false, :null => false
+    t.datetime "created_at",                  :null => false
+    t.datetime "updated_at",                  :null => false
     t.integer  "position",     :default => 0
     t.string   "branch_name"
     t.text     "description"
     t.integer  "milestone_id"
+    t.string   "state"
   end
 
   add_index "issues", ["assignee_id"], :name => "index_issues_on_assignee_id"
   add_index "issues", ["author_id"], :name => "index_issues_on_author_id"
-  add_index "issues", ["closed"], :name => "index_issues_on_closed"
   add_index "issues", ["created_at"], :name => "index_issues_on_created_at"
   add_index "issues", ["milestone_id"], :name => "index_issues_on_milestone_id"
   add_index "issues", ["project_id"], :name => "index_issues_on_project_id"
@@ -69,25 +68,23 @@ ActiveRecord::Schema.define(:version => 20130131070232) do
   add_index "keys", ["user_id"], :name => "index_keys_on_user_id"
 
   create_table "merge_requests", :force => true do |t|
-    t.string   "target_branch",                                          :null => false
-    t.string   "source_branch",                                          :null => false
-    t.integer  "project_id",                                             :null => false
+    t.string   "target_branch",                                      :null => false
+    t.string   "source_branch",                                      :null => false
+    t.integer  "project_id",                                         :null => false
     t.integer  "author_id"
     t.integer  "assignee_id"
     t.string   "title"
-    t.boolean  "closed",                              :default => false, :null => false
-    t.datetime "created_at",                                             :null => false
-    t.datetime "updated_at",                                             :null => false
+    t.datetime "created_at",                                         :null => false
+    t.datetime "updated_at",                                         :null => false
     t.text     "st_commits",    :limit => 2147483647
     t.text     "st_diffs",      :limit => 2147483647
-    t.boolean  "merged",                              :default => false, :null => false
-    t.integer  "state",                               :default => 1,     :null => false
+    t.integer  "merge_status",                        :default => 1, :null => false
     t.integer  "milestone_id"
+    t.string   "state"
   end
 
   add_index "merge_requests", ["assignee_id"], :name => "index_merge_requests_on_assignee_id"
   add_index "merge_requests", ["author_id"], :name => "index_merge_requests_on_author_id"
-  add_index "merge_requests", ["closed"], :name => "index_merge_requests_on_closed"
   add_index "merge_requests", ["created_at"], :name => "index_merge_requests_on_created_at"
   add_index "merge_requests", ["milestone_id"], :name => "index_merge_requests_on_milestone_id"
   add_index "merge_requests", ["project_id"], :name => "index_merge_requests_on_project_id"
@@ -96,13 +93,13 @@ ActiveRecord::Schema.define(:version => 20130131070232) do
   add_index "merge_requests", ["title"], :name => "index_merge_requests_on_title"
 
   create_table "milestones", :force => true do |t|
-    t.string   "title",                          :null => false
-    t.integer  "project_id",                     :null => false
+    t.string   "title",       :null => false
+    t.integer  "project_id",  :null => false
     t.text     "description"
     t.date     "due_date"
-    t.boolean  "closed",      :default => false, :null => false
-    t.datetime "created_at",                     :null => false
-    t.datetime "updated_at",                     :null => false
+    t.datetime "created_at",  :null => false
+    t.datetime "updated_at",  :null => false
+    t.string   "state"
   end
 
   add_index "milestones", ["due_date"], :name => "index_milestones_on_due_date"
diff --git a/features/steps/project/project_issues.rb b/features/steps/project/project_issues.rb
index 2103aeb1..7d540099 100644
--- a/features/steps/project/project_issues.rb
+++ b/features/steps/project/project_issues.rb
@@ -122,10 +122,9 @@ class ProjectIssues < Spinach::FeatureSteps
 
   And 'project "Shop" have "Release 0.3" closed issue' do
     project = Project.find_by_name("Shop")
-    create(:issue,
+    create(:closed_issue,
            :title => "Release 0.3",
            :project => project,
-           :author => project.users.first,
-           :closed => true)
+           :author => project.users.first)
   end
 end
diff --git a/features/steps/project/project_merge_requests.rb b/features/steps/project/project_merge_requests.rb
index 329261ad..ff95a47d 100644
--- a/features/steps/project/project_merge_requests.rb
+++ b/features/steps/project/project_merge_requests.rb
@@ -26,7 +26,7 @@ class ProjectMergeRequests < Spinach::FeatureSteps
 
   Then 'I should see closed merge request "Bug NS-04"' do
     mr = MergeRequest.find_by_title("Bug NS-04")
-    mr.closed.should be_true
+    mr.closed?.should be_true
     page.should have_content "Closed by"
   end
 
@@ -80,11 +80,10 @@ class ProjectMergeRequests < Spinach::FeatureSteps
 
   And 'project "Shop" have "Feature NS-03" closed merge request' do
     project = Project.find_by_name("Shop")
-    create(:merge_request,
+    create(:closed_merge_request,
            title: "Feature NS-03",
            project: project,
-           author: project.users.first,
-           closed: true)
+           author: project.users.first)
   end
 
   And 'I switch to the diff tab' do
diff --git a/lib/api/entities.rb b/lib/api/entities.rb
index 2cd8aa6c..b5dd033b 100644
--- a/lib/api/entities.rb
+++ b/lib/api/entities.rb
@@ -35,12 +35,11 @@ module Gitlab
     class Group < Grape::Entity
       expose :id, :name, :path, :owner_id
     end
-    
+
     class GroupDetail < Group
       expose :projects, using: Entities::Project
     end
 
-    
     class RepoObject < Grape::Entity
       expose :name, :commit
       expose :protected do |repo, options|
@@ -63,7 +62,7 @@ module Gitlab
     class Milestone < Grape::Entity
       expose :id
       expose (:project_id) {|milestone| milestone.project.id}
-      expose :title, :description, :due_date, :closed, :updated_at, :created_at
+      expose :title, :description, :due_date, :state, :updated_at, :created_at
     end
 
     class Issue < Grape::Entity
@@ -73,7 +72,7 @@ module Gitlab
       expose :label_list, as: :labels
       expose :milestone, using: Entities::Milestone
       expose :assignee, :author, using: Entities::UserBasic
-      expose :closed, :updated_at, :created_at
+      expose :state, :updated_at, :created_at
     end
 
     class SSHKey < Grape::Entity
@@ -81,7 +80,7 @@ module Gitlab
     end
 
     class MergeRequest < Grape::Entity
-      expose :id, :target_branch, :source_branch, :project_id, :title, :closed, :merged
+      expose :id, :target_branch, :source_branch, :project_id, :title, :state
       expose :author, :assignee, using: Entities::UserBasic
     end
 
diff --git a/lib/api/issues.rb b/lib/api/issues.rb
index 4d832fbe..70bbf47e 100644
--- a/lib/api/issues.rb
+++ b/lib/api/issues.rb
@@ -69,14 +69,14 @@ module Gitlab
       #   assignee_id (optional) - The ID of a user to assign issue
       #   milestone_id (optional) - The ID of a milestone to assign issue
       #   labels (optional) - The labels of an issue
-      #   closed (optional) - The state of an issue (0 = false, 1 = true)
+      #   state (optional) - The state of an issue (close|reopen)
       # Example Request:
       #   PUT /projects/:id/issues/:issue_id
       put ":id/issues/:issue_id" do
         @issue = user_project.issues.find(params[:issue_id])
         authorize! :modify_issue, @issue
 
-        attrs = attributes_for_keys [:title, :description, :assignee_id, :milestone_id, :closed]
+        attrs = attributes_for_keys [:title, :description, :assignee_id, :milestone_id, :state_event]
         attrs[:label_list] = params[:labels] if params[:labels].present?
         IssueObserver.current_user = current_user
         if @issue.update_attributes attrs
diff --git a/lib/api/merge_requests.rb b/lib/api/merge_requests.rb
index 470cd1e1..7f763eb4 100644
--- a/lib/api/merge_requests.rb
+++ b/lib/api/merge_requests.rb
@@ -73,12 +73,12 @@ module Gitlab
       #   target_branch               - The target branch
       #   assignee_id                 - Assignee user ID
       #   title                       - Title of MR
-      #   closed                      - Status of MR. true - closed
+      #   state_event                 - Status of MR. (close|reopen|merge)
       # Example:
       #   PUT /projects/:id/merge_request/:merge_request_id
       #
       put ":id/merge_request/:merge_request_id" do
-        attrs = attributes_for_keys [:source_branch, :target_branch, :assignee_id, :title, :closed]
+        attrs = attributes_for_keys [:source_branch, :target_branch, :assignee_id, :title, :state_event]
         merge_request = user_project.merge_requests.find(params[:merge_request_id])
 
         authorize! :modify_merge_request, merge_request
diff --git a/lib/api/milestones.rb b/lib/api/milestones.rb
index 6aca9d01..eaf0d37c 100644
--- a/lib/api/milestones.rb
+++ b/lib/api/milestones.rb
@@ -59,14 +59,14 @@ module Gitlab
       #   title (optional) - The title of a milestone
       #   description (optional) - The description of a milestone
       #   due_date (optional) - The due date of a milestone
-      #   closed (optional) - The status of the milestone
+      #   state (optional) - The status of the milestone (close|activate)
       # Example Request:
       #   PUT /projects/:id/milestones/:milestone_id
       put ":id/milestones/:milestone_id" do
         authorize! :admin_milestone, user_project
 
         @milestone = user_project.milestones.find(params[:milestone_id])
-        attrs = attributes_for_keys [:title, :description, :due_date, :closed]
+        attrs = attributes_for_keys [:title, :description, :due_date, :state_event]
         if @milestone.update_attributes attrs
           present @milestone, with: Entities::Milestone
         else
diff --git a/spec/factories.rb b/spec/factories.rb
index 17dbc796..b81984b5 100644
--- a/spec/factories.rb
+++ b/spec/factories.rb
@@ -54,10 +54,15 @@ FactoryGirl.define do
     project
 
     trait :closed do
-      closed true
+      state :closed
+    end
+
+    trait :reopened do
+      state :reopened
     end
 
     factory :closed_issue, traits: [:closed]
+    factory :reopened_issue, traits: [:reopened]
   end
 
   factory :merge_request do
@@ -67,10 +72,6 @@ FactoryGirl.define do
     source_branch "master"
     target_branch "stable"
 
-    trait :closed do
-      closed true
-    end
-
     # pick 3 commits "at random" (from bcf03b5d~3 to bcf03b5d)
     trait :with_diffs do
       target_branch "master" # pretend bcf03b5d~3
@@ -85,7 +86,16 @@ FactoryGirl.define do
       end
     end
 
+    trait :closed do
+      state :closed
+    end
+
+    trait :reopened do
+      state :reopened
+    end
+
     factory :closed_merge_request, traits: [:closed]
+    factory :reopened_merge_request, traits: [:reopened]
     factory :merge_request_with_diffs, traits: [:with_diffs]
   end
 
@@ -159,6 +169,12 @@ FactoryGirl.define do
   factory :milestone do
     title
     project
+
+    trait :closed do
+      state :closed
+    end
+
+    factory :closed_milestone, traits: [:closed]
   end
 
   factory :system_hook do
diff --git a/spec/models/concerns/issuable_spec.rb b/spec/models/concerns/issuable_spec.rb
index b5d4bd7b..551e1753 100644
--- a/spec/models/concerns/issuable_spec.rb
+++ b/spec/models/concerns/issuable_spec.rb
@@ -15,7 +15,6 @@ describe Issue, "Issuable" do
     it { should validate_presence_of(:author) }
     it { should validate_presence_of(:title) }
     it { should ensure_length_of(:title).is_at_least(0).is_at_most(255) }
-    it { should ensure_inclusion_of(:closed).in_array([true, false]) }
   end
 
   describe "Scope" do
diff --git a/spec/models/issue_spec.rb b/spec/models/issue_spec.rb
index 10db53e0..99d9f65b 100644
--- a/spec/models/issue_spec.rb
+++ b/spec/models/issue_spec.rb
@@ -9,7 +9,7 @@
 #  project_id   :integer
 #  created_at   :datetime         not null
 #  updated_at   :datetime         not null
-#  closed       :boolean          default(FALSE), not null
+#  state        :string           default(FALSE), not null
 #  position     :integer          default(0)
 #  branch_name  :string(255)
 #  description  :text
@@ -44,34 +44,15 @@ describe Issue do
     end
   end
 
-  describe '#is_being_closed?' do
-    it 'returns true if the closed attribute has changed and is now true' do
-      subject.closed = true
-      subject.is_being_closed?.should be_true
-    end
-    it 'returns false if the closed attribute has changed and is now false' do
-      issue = create(:closed_issue)
-      issue.closed = false
-      issue.is_being_closed?.should be_false
-    end
-    it 'returns false if the closed attribute has not changed' do
-      subject.is_being_closed?.should be_false
-    end
-  end
+  describe '#is_being_reassigned?' do
+    it 'returnes issues assigned to user' do
+      user = create :user
 
+      2.times do
+        issue = create :issue, assignee: user
+      end
 
-  describe '#is_being_reopened?' do
-    it 'returns true if the closed attribute has changed and is now false' do
-      issue = create(:closed_issue)
-      issue.closed = false
-      issue.is_being_reopened?.should be_true
-    end
-    it 'returns false if the closed attribute has changed and is now true' do
-      subject.closed = true
-      subject.is_being_reopened?.should be_false
-    end
-    it 'returns false if the closed attribute has not changed' do
-      subject.is_being_reopened?.should be_false
+      Issue.open_for(user).count.should eq 2
     end
   end
 end
diff --git a/spec/models/merge_request_spec.rb b/spec/models/merge_request_spec.rb
index 41f4ede5..e61bf44c 100644
--- a/spec/models/merge_request_spec.rb
+++ b/spec/models/merge_request_spec.rb
@@ -15,7 +15,7 @@
 #  st_commits    :text(2147483647)
 #  st_diffs      :text(2147483647)
 #  merged        :boolean          default(FALSE), not null
-#  state         :integer          default(1), not null
+#  merge_status  :integer          default(1), not null
 #  milestone_id  :integer
 #
 
@@ -36,6 +36,10 @@ describe MergeRequest do
     it { should include_module(Issuable) }
   end
 
+  describe "#mr_and_commit_notes" do
+
+  end
+
   describe "#mr_and_commit_notes" do
     let!(:merge_request) { create(:merge_request) }
 
@@ -62,35 +66,4 @@ describe MergeRequest do
       subject.is_being_reassigned?.should be_false
     end
   end
-
-  describe '#is_being_closed?' do
-    it 'returns true if the closed attribute has changed and is now true' do
-      subject.closed = true
-      subject.is_being_closed?.should be_true
-    end
-    it 'returns false if the closed attribute has changed and is now false' do
-      merge_request = create(:closed_merge_request)
-      merge_request.closed = false
-      merge_request.is_being_closed?.should be_false
-    end
-    it 'returns false if the closed attribute has not changed' do
-      subject.is_being_closed?.should be_false
-    end
-  end
-
-
-  describe '#is_being_reopened?' do
-    it 'returns true if the closed attribute has changed and is now false' do
-      merge_request = create(:closed_merge_request)
-      merge_request.closed = false
-      merge_request.is_being_reopened?.should be_true
-    end
-    it 'returns false if the closed attribute has changed and is now true' do
-      subject.closed = true
-      subject.is_being_reopened?.should be_false
-    end
-    it 'returns false if the closed attribute has not changed' do
-      subject.is_being_reopened?.should be_false
-    end
-  end
 end
diff --git a/spec/models/milestone_spec.rb b/spec/models/milestone_spec.rb
index 2ea2c56a..b473f843 100644
--- a/spec/models/milestone_spec.rb
+++ b/spec/models/milestone_spec.rb
@@ -7,7 +7,7 @@
 #  project_id  :integer          not null
 #  description :text
 #  due_date    :date
-#  closed      :boolean          default(FALSE), not null
+#  state       :string           default(FALSE), not null
 #  created_at  :datetime         not null
 #  updated_at  :datetime         not null
 #
@@ -27,7 +27,6 @@ describe Milestone do
   describe "Validation" do
     it { should validate_presence_of(:title) }
     it { should validate_presence_of(:project) }
-    it { should ensure_inclusion_of(:closed).in_array([true, false]) }
   end
 
   let(:milestone) { create(:milestone) }
@@ -41,7 +40,7 @@ describe Milestone do
 
     it "should count closed issues" do
       IssueObserver.current_user = issue.author
-      issue.update_attributes(closed: true)
+      issue.close
       milestone.issues << issue
       milestone.percent_complete.should == 100
     end
@@ -96,7 +95,7 @@ describe Milestone do
   describe :items_count do
     before do
       milestone.issues << create(:issue)
-      milestone.issues << create(:issue, closed: true)
+      milestone.issues << create(:closed_issue)
       milestone.merge_requests << create(:merge_request)
     end
 
@@ -110,7 +109,35 @@ describe Milestone do
     it { milestone.can_be_closed?.should be_true }
   end
 
-  describe :open? do
-    it { milestone.open?.should be_true }
+  describe :is_empty? do
+    before do
+      issue = create :closed_issue, milestone: milestone
+      merge_request = create :merge_request, milestone: milestone
+    end
+
+    it 'Should return total count of issues and merge requests assigned to milestone' do
+      milestone.total_items_count.should eq 2
+    end
   end
+
+  describe :can_be_closed? do
+    before do
+      milestone = create :milestone
+      create :closed_issue, milestone: milestone
+
+      issue = create :issue
+    end
+
+    it 'should be true if milestone active and all nestied issues closed' do
+      milestone.can_be_closed?.should be_true
+    end
+
+    it 'should be false if milestone active and not all nestied issues closed' do
+      issue.milestone = milestone
+      issue.save 
+
+      milestone.can_be_closed?.should be_false
+    end
+  end
+
 end
diff --git a/spec/models/project_spec.rb b/spec/models/project_spec.rb
index 4b620a2f..5c27f363 100644
--- a/spec/models/project_spec.rb
+++ b/spec/models/project_spec.rb
@@ -121,10 +121,7 @@ describe Project do
     let(:project) { create(:project) }
 
     before do
-      @merge_request = create(:merge_request,
-                              project: project,
-                              merged: false,
-                              closed: false)
+      @merge_request = create(:merge_request, project: project)
       @key = create(:key, user_id: project.owner.id)
     end
 
@@ -133,8 +130,7 @@ describe Project do
       @merge_request.last_commit.id.should == "bcf03b5de6c33f3869ef70d68cf06e679d1d7f9a"
       project.update_merge_requests("8716fc78f3c65bbf7bcf7b574febd583bc5d2812", "bcf03b5de6c33f3869ef70d68cf06e679d1d7f9a", "refs/heads/stable", @key.user)
       @merge_request.reload
-      @merge_request.merged.should be_true
-      @merge_request.closed.should be_true
+      @merge_request.merged?.should be_true
     end
 
     it "should update merge request commits with new one if pushed to source branch" do
diff --git a/spec/observers/issue_observer_spec.rb b/spec/observers/issue_observer_spec.rb
index 700c9a3a..e4e66917 100644
--- a/spec/observers/issue_observer_spec.rb
+++ b/spec/observers/issue_observer_spec.rb
@@ -1,10 +1,15 @@
 require 'spec_helper'
 
 describe IssueObserver do
-  let(:some_user) { double(:user, id: 1) }
-  let(:assignee) { double(:user, id: 2) }
-  let(:author) { double(:user, id: 3) }
-  let(:issue)    { double(:issue, id: 42, assignee: assignee, author: author) }
+  let(:some_user)      { create :user }
+  let(:assignee)       { create :user }
+  let(:author)         { create :user }
+  let(:mock_issue)     { double(:issue, id: 42, assignee: assignee, author: author) }
+  let(:assigned_issue)   { create(:issue, assignee: assignee, author: author) }
+  let(:unassigned_issue) { create(:issue, author: author) }
+  let(:closed_assigned_issue)   { create(:closed_issue, assignee: assignee, author: author) }
+  let(:closed_unassigned_issue) { create(:closed_issue, author: author) }
+
 
   before(:each) { subject.stub(:current_user).and_return(some_user) }
 
@@ -21,24 +26,66 @@ describe IssueObserver do
     end
 
     it 'sends an email to the assignee' do
-      Notify.should_receive(:new_issue_email).with(issue.id)
+      Notify.should_receive(:new_issue_email).with(mock_issue.id)
 
-      subject.after_create(issue)
+      subject.after_create(mock_issue)
     end
 
     it 'does not send an email to the assignee if assignee created the issue' do
       subject.stub(:current_user).and_return(assignee)
       Notify.should_not_receive(:new_issue_email)
 
-      subject.after_create(issue)
+      subject.after_create(mock_issue)
+    end
+  end
+
+  context '#after_close' do
+    context 'a status "closed"' do
+      it 'note is created if the issue is being closed' do
+        Note.should_receive(:create_status_change_note).with(assigned_issue, some_user, 'closed')
+
+        assigned_issue.close
+      end
+
+      it 'notification is delivered if the issue being closed' do
+        Notify.should_receive(:issue_status_changed_email).twice
+
+        assigned_issue.close
+      end
+
+      it 'notification is delivered only to author if the issue being closed' do
+        Notify.should_receive(:issue_status_changed_email).once
+        Note.should_receive(:create_status_change_note).with(unassigned_issue, some_user, 'closed')
+
+        unassigned_issue.close
+      end
+    end
+
+    context 'a status "reopened"' do
+      it 'note is created if the issue is being reopened' do
+        Note.should_receive(:create_status_change_note).with(closed_assigned_issue, some_user, 'reopened')
+
+        closed_assigned_issue.reopen
+      end
+
+      it 'notification is delivered if the issue being reopened' do
+        Notify.should_receive(:issue_status_changed_email).twice
+
+        closed_assigned_issue.reopen
+      end
+
+      it 'notification is delivered only to author if the issue being reopened' do
+        Notify.should_receive(:issue_status_changed_email).once
+        Note.should_receive(:create_status_change_note).with(closed_unassigned_issue, some_user, 'reopened')
+
+        closed_unassigned_issue.reopen
+      end
     end
   end
 
   context '#after_update' do
     before(:each) do
-      issue.stub(:is_being_reassigned?).and_return(false)
-      issue.stub(:is_being_closed?).and_return(false)
-      issue.stub(:is_being_reopened?).and_return(false)
+      mock_issue.stub(:is_being_reassigned?).and_return(false)
     end
 
     it 'is called when an issue is changed' do
@@ -53,105 +100,17 @@ describe IssueObserver do
 
     context 'a reassigned email' do
       it 'is sent if the issue is being reassigned' do
-        issue.should_receive(:is_being_reassigned?).and_return(true)
-        subject.should_receive(:send_reassigned_email).with(issue)
+        mock_issue.should_receive(:is_being_reassigned?).and_return(true)
+        subject.should_receive(:send_reassigned_email).with(mock_issue)
 
-        subject.after_update(issue)
+        subject.after_update(mock_issue)
       end
 
       it 'is not sent if the issue is not being reassigned' do
-        issue.should_receive(:is_being_reassigned?).and_return(false)
+        mock_issue.should_receive(:is_being_reassigned?).and_return(false)
         subject.should_not_receive(:send_reassigned_email)
 
-        subject.after_update(issue)
-      end
-    end
-
-    context 'a status "closed"' do
-      it 'note is created if the issue is being closed' do
-        issue.should_receive(:is_being_closed?).and_return(true)
-        Notify.should_receive(:issue_status_changed_email).twice
-        Note.should_receive(:create_status_change_note).with(issue, some_user, 'closed')
-
-        subject.after_update(issue)
-      end
-
-      it 'note is not created if the issue is not being closed' do
-        issue.should_receive(:is_being_closed?).and_return(false)
-        Note.should_not_receive(:create_status_change_note).with(issue, some_user, 'closed')
-
-        subject.after_update(issue)
-      end
-
-      it 'notification is delivered if the issue being closed' do
-        issue.stub(:is_being_closed?).and_return(true)
-        Notify.should_receive(:issue_status_changed_email).twice
-        Note.should_receive(:create_status_change_note).with(issue, some_user, 'closed')
-
-        subject.after_update(issue)
-      end
-
-      it 'notification is not delivered if the issue not being closed' do
-        issue.stub(:is_being_closed?).and_return(false)
-        Notify.should_not_receive(:issue_status_changed_email)
-        Note.should_not_receive(:create_status_change_note).with(issue, some_user, 'closed')
-
-        subject.after_update(issue)
-      end
-
-      it 'notification is delivered only to author if the issue being closed' do
-        issue_without_assignee = double(:issue, id: 42, author: author, assignee: nil)
-        issue_without_assignee.stub(:is_being_reassigned?).and_return(false)
-        issue_without_assignee.stub(:is_being_closed?).and_return(true)
-        issue_without_assignee.stub(:is_being_reopened?).and_return(false)
-        Notify.should_receive(:issue_status_changed_email).once
-        Note.should_receive(:create_status_change_note).with(issue_without_assignee, some_user, 'closed')
-
-        subject.after_update(issue_without_assignee)
-      end
-    end
-
-    context 'a status "reopened"' do
-      it 'note is created if the issue is being reopened' do
-        Notify.should_receive(:issue_status_changed_email).twice
-        issue.should_receive(:is_being_reopened?).and_return(true)
-        Note.should_receive(:create_status_change_note).with(issue, some_user, 'reopened')
-
-        subject.after_update(issue)
-      end
-
-      it 'note is not created if the issue is not being reopened' do
-        issue.should_receive(:is_being_reopened?).and_return(false)
-        Note.should_not_receive(:create_status_change_note).with(issue, some_user, 'reopened')
-
-        subject.after_update(issue)
-      end
-
-      it 'notification is delivered if the issue being reopened' do
-        issue.stub(:is_being_reopened?).and_return(true)
-        Notify.should_receive(:issue_status_changed_email).twice
-        Note.should_receive(:create_status_change_note).with(issue, some_user, 'reopened')
-
-        subject.after_update(issue)
-      end
-
-      it 'notification is not delivered if the issue not being reopened' do
-        issue.stub(:is_being_reopened?).and_return(false)
-        Notify.should_not_receive(:issue_status_changed_email)
-        Note.should_not_receive(:create_status_change_note).with(issue, some_user, 'reopened')
-
-        subject.after_update(issue)
-      end
-
-      it 'notification is delivered only to author if the issue being reopened' do
-        issue_without_assignee = double(:issue, id: 42, author: author, assignee: nil)
-        issue_without_assignee.stub(:is_being_reassigned?).and_return(false)
-        issue_without_assignee.stub(:is_being_closed?).and_return(false)
-        issue_without_assignee.stub(:is_being_reopened?).and_return(true)
-        Notify.should_receive(:issue_status_changed_email).once
-        Note.should_receive(:create_status_change_note).with(issue_without_assignee, some_user, 'reopened')
-
-        subject.after_update(issue_without_assignee)
+        subject.after_update(mock_issue)
       end
     end
   end
@@ -160,23 +119,23 @@ describe IssueObserver do
     let(:previous_assignee) { double(:user, id: 3) }
 
     before(:each) do
-      issue.stub(:assignee_id).and_return(assignee.id)
-      issue.stub(:assignee_id_was).and_return(previous_assignee.id)
+      mock_issue.stub(:assignee_id).and_return(assignee.id)
+      mock_issue.stub(:assignee_id_was).and_return(previous_assignee.id)
     end
 
     def it_sends_a_reassigned_email_to(recipient)
-      Notify.should_receive(:reassigned_issue_email).with(recipient, issue.id, previous_assignee.id)
+      Notify.should_receive(:reassigned_issue_email).with(recipient, mock_issue.id, previous_assignee.id)
     end
 
     def it_does_not_send_a_reassigned_email_to(recipient)
-      Notify.should_not_receive(:reassigned_issue_email).with(recipient, issue.id, previous_assignee.id)
+      Notify.should_not_receive(:reassigned_issue_email).with(recipient, mock_issue.id, previous_assignee.id)
     end
 
     it 'sends a reassigned email to the previous and current assignees' do
       it_sends_a_reassigned_email_to assignee.id
       it_sends_a_reassigned_email_to previous_assignee.id
 
-      subject.send(:send_reassigned_email, issue)
+      subject.send(:send_reassigned_email, mock_issue)
     end
 
     context 'does not send an email to the user who made the reassignment' do
@@ -185,14 +144,14 @@ describe IssueObserver do
         it_sends_a_reassigned_email_to previous_assignee.id
         it_does_not_send_a_reassigned_email_to assignee.id
 
-        subject.send(:send_reassigned_email, issue)
+        subject.send(:send_reassigned_email, mock_issue)
       end
       it 'if the user is the previous assignee' do
         subject.stub(:current_user).and_return(previous_assignee)
         it_sends_a_reassigned_email_to assignee.id
         it_does_not_send_a_reassigned_email_to previous_assignee.id
 
-        subject.send(:send_reassigned_email, issue)
+        subject.send(:send_reassigned_email, mock_issue)
       end
     end
   end
diff --git a/spec/observers/merge_request_observer_spec.rb b/spec/observers/merge_request_observer_spec.rb
index 4841bf88..9d702107 100644
--- a/spec/observers/merge_request_observer_spec.rb
+++ b/spec/observers/merge_request_observer_spec.rb
@@ -1,10 +1,14 @@
 require 'spec_helper'
 
 describe MergeRequestObserver do
-  let(:some_user) { double(:user, id: 1) }
-  let(:assignee) { double(:user, id: 2) }
-  let(:author) { double(:user, id: 3) }
-  let(:mr)    { double(:merge_request, id: 42, assignee: assignee, author: author) }
+  let(:some_user)      { create :user }
+  let(:assignee)       { create :user }
+  let(:author)         { create :user }
+  let(:mr_mock)    { double(:merge_request, id: 42, assignee: assignee, author: author) }
+  let(:assigned_mr)   { create(:merge_request, assignee: assignee, author: author) }
+  let(:unassigned_mr) { create(:merge_request, author: author) }
+  let(:closed_assigned_mr)   { create(:closed_merge_request, assignee: assignee, author: author) }
+  let(:closed_unassigned_mr) { create(:closed_merge_request, author: author) }
 
   before(:each) { subject.stub(:current_user).and_return(some_user) }
 
@@ -21,23 +25,21 @@ describe MergeRequestObserver do
     end
 
     it 'sends an email to the assignee' do
-      Notify.should_receive(:new_merge_request_email).with(mr.id)
-      subject.after_create(mr)
+      Notify.should_receive(:new_merge_request_email).with(mr_mock.id)
+      subject.after_create(mr_mock)
     end
 
     it 'does not send an email to the assignee if assignee created the merge request' do
       subject.stub(:current_user).and_return(assignee)
       Notify.should_not_receive(:new_merge_request_email)
 
-      subject.after_create(mr)
+      subject.after_create(mr_mock)
     end
   end
 
   context '#after_update' do
     before(:each) do
-      mr.stub(:is_being_reassigned?).and_return(false)
-      mr.stub(:is_being_closed?).and_return(false)
-      mr.stub(:is_being_reopened?).and_return(false)
+      mr_mock.stub(:is_being_reassigned?).and_return(false)
     end
 
     it 'is called when a merge request is changed' do
@@ -52,97 +54,50 @@ describe MergeRequestObserver do
 
     context 'a reassigned email' do
       it 'is sent if the merge request is being reassigned' do
-        mr.should_receive(:is_being_reassigned?).and_return(true)
-        subject.should_receive(:send_reassigned_email).with(mr)
+        mr_mock.should_receive(:is_being_reassigned?).and_return(true)
+        subject.should_receive(:send_reassigned_email).with(mr_mock)
 
-        subject.after_update(mr)
+        subject.after_update(mr_mock)
       end
 
       it 'is not sent if the merge request is not being reassigned' do
-        mr.should_receive(:is_being_reassigned?).and_return(false)
+        mr_mock.should_receive(:is_being_reassigned?).and_return(false)
         subject.should_not_receive(:send_reassigned_email)
 
-        subject.after_update(mr)
+        subject.after_update(mr_mock)
       end
     end
 
+  end
+
+  context '#after_close' do
     context 'a status "closed"' do
       it 'note is created if the merge request is being closed' do
-        mr.should_receive(:is_being_closed?).and_return(true)
-        Note.should_receive(:create_status_change_note).with(mr, some_user, 'closed')
+        Note.should_receive(:create_status_change_note).with(assigned_mr, some_user, 'closed')
 
-        subject.after_update(mr)
-      end
-
-      it 'note is not created if the merge request is not being closed' do
-        mr.should_receive(:is_being_closed?).and_return(false)
-        Note.should_not_receive(:create_status_change_note).with(mr, some_user, 'closed')
-
-        subject.after_update(mr)
-      end
-
-      it 'notification is delivered if the merge request being closed' do
-        mr.stub(:is_being_closed?).and_return(true)
-        Note.should_receive(:create_status_change_note).with(mr, some_user, 'closed')
-
-        subject.after_update(mr)
-      end
-
-      it 'notification is not delivered if the merge request not being closed' do
-        mr.stub(:is_being_closed?).and_return(false)
-        Note.should_not_receive(:create_status_change_note).with(mr, some_user, 'closed')
-
-        subject.after_update(mr)
+        assigned_mr.close
       end
 
       it 'notification is delivered only to author if the merge request is being closed' do
-        mr_without_assignee = double(:merge_request, id: 42, author: author, assignee: nil)
-        mr_without_assignee.stub(:is_being_reassigned?).and_return(false)
-        mr_without_assignee.stub(:is_being_closed?).and_return(true)
-        mr_without_assignee.stub(:is_being_reopened?).and_return(false)
-        Note.should_receive(:create_status_change_note).with(mr_without_assignee, some_user, 'closed')
+        Note.should_receive(:create_status_change_note).with(unassigned_mr, some_user, 'closed')
 
-        subject.after_update(mr_without_assignee)
+        unassigned_mr.close
       end
     end
+  end
 
+  context '#after_reopen' do
     context 'a status "reopened"' do
       it 'note is created if the merge request is being reopened' do
-        mr.should_receive(:is_being_reopened?).and_return(true)
-        Note.should_receive(:create_status_change_note).with(mr, some_user, 'reopened')
+        Note.should_receive(:create_status_change_note).with(closed_assigned_mr, some_user, 'reopened')
 
-        subject.after_update(mr)
-      end
-
-      it 'note is not created if the merge request is not being reopened' do
-        mr.should_receive(:is_being_reopened?).and_return(false)
-        Note.should_not_receive(:create_status_change_note).with(mr, some_user, 'reopened')
-
-        subject.after_update(mr)
-      end
-
-      it 'notification is delivered if the merge request being reopened' do
-        mr.stub(:is_being_reopened?).and_return(true)
-        Note.should_receive(:create_status_change_note).with(mr, some_user, 'reopened')
-
-        subject.after_update(mr)
-      end
-
-      it 'notification is not delivered if the merge request is not being reopened' do
-        mr.stub(:is_being_reopened?).and_return(false)
-        Note.should_not_receive(:create_status_change_note).with(mr, some_user, 'reopened')
-
-        subject.after_update(mr)
+        closed_assigned_mr.reopen
       end
 
       it 'notification is delivered only to author if the merge request is being reopened' do
-        mr_without_assignee = double(:merge_request, id: 42, author: author, assignee: nil)
-        mr_without_assignee.stub(:is_being_reassigned?).and_return(false)
-        mr_without_assignee.stub(:is_being_closed?).and_return(false)
-        mr_without_assignee.stub(:is_being_reopened?).and_return(true)
-        Note.should_receive(:create_status_change_note).with(mr_without_assignee, some_user, 'reopened')
+        Note.should_receive(:create_status_change_note).with(closed_unassigned_mr, some_user, 'reopened')
 
-        subject.after_update(mr_without_assignee)
+        closed_unassigned_mr.reopen
       end
     end
   end
@@ -151,23 +106,23 @@ describe MergeRequestObserver do
     let(:previous_assignee) { double(:user, id: 3) }
 
     before(:each) do
-      mr.stub(:assignee_id).and_return(assignee.id)
-      mr.stub(:assignee_id_was).and_return(previous_assignee.id)
+      mr_mock.stub(:assignee_id).and_return(assignee.id)
+      mr_mock.stub(:assignee_id_was).and_return(previous_assignee.id)
     end
 
     def it_sends_a_reassigned_email_to(recipient)
-      Notify.should_receive(:reassigned_merge_request_email).with(recipient, mr.id, previous_assignee.id)
+      Notify.should_receive(:reassigned_merge_request_email).with(recipient, mr_mock.id, previous_assignee.id)
     end
 
     def it_does_not_send_a_reassigned_email_to(recipient)
-      Notify.should_not_receive(:reassigned_merge_request_email).with(recipient, mr.id, previous_assignee.id)
+      Notify.should_not_receive(:reassigned_merge_request_email).with(recipient, mr_mock.id, previous_assignee.id)
     end
 
     it 'sends a reassigned email to the previous and current assignees' do
       it_sends_a_reassigned_email_to assignee.id
       it_sends_a_reassigned_email_to previous_assignee.id
 
-      subject.send(:send_reassigned_email, mr)
+      subject.send(:send_reassigned_email, mr_mock)
     end
 
     context 'does not send an email to the user who made the reassignment' do
@@ -176,14 +131,14 @@ describe MergeRequestObserver do
         it_sends_a_reassigned_email_to previous_assignee.id
         it_does_not_send_a_reassigned_email_to assignee.id
 
-        subject.send(:send_reassigned_email, mr)
+        subject.send(:send_reassigned_email, mr_mock)
       end
       it 'if the user is the previous assignee' do
         subject.stub(:current_user).and_return(previous_assignee)
         it_sends_a_reassigned_email_to assignee.id
         it_does_not_send_a_reassigned_email_to previous_assignee.id
 
-        subject.send(:send_reassigned_email, mr)
+        subject.send(:send_reassigned_email, mr_mock)
       end
     end
   end
diff --git a/spec/requests/api/issues_spec.rb b/spec/requests/api/issues_spec.rb
index 781ebab0..630ac0f8 100644
--- a/spec/requests/api/issues_spec.rb
+++ b/spec/requests/api/issues_spec.rb
@@ -54,14 +54,24 @@ describe Gitlab::API do
     end
   end
 
-  describe "PUT /projects/:id/issues/:issue_id" do
+  describe "PUT /projects/:id/issues/:issue_id to update only title" do
     it "should update a project issue" do
       put api("/projects/#{project.id}/issues/#{issue.id}", user),
-        title: 'updated title', labels: 'label2', closed: 1
+        title: 'updated title'
       response.status.should == 200
+
       json_response['title'].should == 'updated title'
+    end
+  end
+
+  describe "PUT /projects/:id/issues/:issue_id to update state and label" do
+    it "should update a project issue" do
+      put api("/projects/#{project.id}/issues/#{issue.id}", user),
+        labels: 'label2', state_event: "close"
+      response.status.should == 200
+
       json_response['labels'].should == ['label2']
-      json_response['closed'].should be_true
+      json_response['state'].should eq "closed"
     end
   end
 
diff --git a/spec/requests/api/merge_requests_spec.rb b/spec/requests/api/merge_requests_spec.rb
index 5da54154..1abd7a20 100644
--- a/spec/requests/api/merge_requests_spec.rb
+++ b/spec/requests/api/merge_requests_spec.rb
@@ -43,6 +43,23 @@ describe Gitlab::API do
     end
   end
 
+  describe "PUT /projects/:id/merge_request/:merge_request_id to close MR" do
+    it "should return merge_request" do
+      put api("/projects/#{project.id}/merge_request/#{merge_request.id}", user), state_event: "close"
+      response.status.should == 200
+      json_response['state'].should == 'closed'
+    end
+  end
+
+  describe "PUT /projects/:id/merge_request/:merge_request_id to merge MR" do
+    it "should return merge_request" do
+      put api("/projects/#{project.id}/merge_request/#{merge_request.id}", user), state_event: "merge"
+      response.status.should == 200
+      json_response['state'].should == 'merged'
+    end
+  end
+
+
   describe "PUT /projects/:id/merge_request/:merge_request_id" do
     it "should return merge_request" do
       put api("/projects/#{project.id}/merge_request/#{merge_request.id}", user), title: "New title"
diff --git a/spec/requests/api/milestones_spec.rb b/spec/requests/api/milestones_spec.rb
index 80696671..d1b5e449 100644
--- a/spec/requests/api/milestones_spec.rb
+++ b/spec/requests/api/milestones_spec.rb
@@ -44,4 +44,14 @@ describe Gitlab::API do
       json_response['title'].should == 'updated title'
     end
   end
+
+  describe "PUT /projects/:id/milestones/:milestone_id to close milestone" do
+    it "should update a project milestone" do
+      put api("/projects/#{project.id}/milestones/#{milestone.id}", user),
+        state_event: 'close'
+      response.status.should == 200
+
+      json_response['state'].should == 'closed'
+    end
+  end
 end
diff --git a/spec/requests/issues_spec.rb b/spec/requests/issues_spec.rb
index 2e94ffd0..6fff59f0 100644
--- a/spec/requests/issues_spec.rb
+++ b/spec/requests/issues_spec.rb
@@ -58,8 +58,7 @@ describe "Issues" do
 
     it "should be able to search on different statuses" do
       issue = Issue.first # with title 'foobar'
-      issue.closed = true
-      issue.save
+      issue.close
 
       visit project_issues_path(project)
       click_link 'Closed'