diff --git a/lib/ace/incremental_search.js b/lib/ace/incremental_search.js
index 48135519..87630f2e 100644
--- a/lib/ace/incremental_search.js
+++ b/lib/ace/incremental_search.js
@@ -68,8 +68,6 @@ oop.inherits(IncrementalSearch, Search);
         this.$editor = editor;
         var pos = editor.getCursorPosition();
         this.$startPos = this.$currentPos = pos;
-        // this.$startRange = this.$currentRange = Range.fromPoints(pos, pos);
-        // this.$startRange = this.$currentRange = editor.selection.toOrientedRange();
         this.installKeyboardHandler(editor);
         this.$options.needle = '';
         this.$options.backwards = backwards;
@@ -87,10 +85,10 @@ oop.inherits(IncrementalSearch, Search);
         this.$options.needle = '';
         e.session.highlight(null);
         if (reset) {
-            e.moveCursorTo(this.$startPos);
+            e.moveCursorToPosition(this.$startPos);
             this.$currentPos = this.$startPos;
         } else {
-            e.selection.clearSelection();
+            e.renderer.updateFull(true); // for highlight
         }
         return Range.fromPoints(this.$currentPos, this.$currentPos);
     }
@@ -98,23 +96,28 @@ oop.inherits(IncrementalSearch, Search);
     iSearch.highlightAndFindWithNeedle = function(moveToNext, needleUpdateFunc) {
         if (!this.$editor) return null;
         var options = this.$options;
+
+        // get search term
         if (needleUpdateFunc) options.needle = needleUpdateFunc(options.needle || '') || '';
-        if (options.needle.length === 0) {
-            return this.cancelSearch(true);
-        }
-
-        // -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
-        var session = this.$editor.session, pos = this.$currentPos;
-        options.start = pos;
-        var oldRange = this.$editor.selection.toOrientedRange();
-        var found = this.find(session);
-
-        // if (dir === "backward") range = Range.fromPoints(range.end, range.start);
-        this.$editor.selection.setRange(found || oldRange, options.backwards);
-        if (found && moveToNext) this.$currentPos = options.backwards ? found.end : found.start;
+        if (options.needle.length === 0) return this.cancelSearch(true);
 
+        // try to find the next occurence and enable  highlighting marker
+        options.start = this.$currentPos;
+        var session = this.$editor.session,
+            found = this.find(session);
         session.highlight(options.re);
-        return found || oldRange;
+        this.$editor.renderer.updateFull(true); // force highlight layer redraw
+        if (found) {
+            if (options.backwards) found = Range.fromPoints(found.end, found.start);
+            this.$editor.moveCursorToPosition(found.end);
+            if (moveToNext) this.$currentPos = found.end;
+        }
+        console.log("searching %s from [%s/%s]: %s",
+                    options.backwards ? 'backwards' : 'forwards',
+                    options.start.row, options.start.column,
+                    found ? found.toString() : 'found nothing');
+
+        return found;
     }
 
     this.addChar = function(c) {
@@ -130,28 +133,19 @@ oop.inherits(IncrementalSearch, Search);
     }
 
     iSearch.next = function(backwards) {
-        var currentRange = this.$editor.selection.toOrientedRange();
-        this.$currentPos = this.$options.backwards ? currentRange.start : currentRange.end;
+        // try to find the next occurence of whatever we have searched for
+        // earlier
         this.$options.backwards = backwards;
+        this.$currentPos = this.$editor.getCursorPosition();
         return this.highlightAndFindWithNeedle(true);
     }
 
     iSearch.installKeyboardHandler = function(editor) {
-        // this.$origKeyboardHandlers = [].concat(editor.keyBinding.$handlers);
-        // this.$origKeyboardHandlers.reverse().forEach(function(handler) {
-        //     editor.keyBinding.removeKeyboardHandler(handler);
-        // });
         editor.keyBinding.addKeyboardHandler(this.$keyboardHandler);
     }
 
     iSearch.uninstallKeyboardHandler = function(editor) {
         editor.keyBinding.removeKeyboardHandler(this.$keyboardHandler);
-        // if (this.$origKeyboardHandlers) {
-        //     this.$origKeyboardHandlers.forEach(function(handler) {
-        //         editor.keyBinding.addKeyboardHandler(handler);
-        //     });
-        //     delete this.$origKeyboardHandlers;
-        // }
     }
 
     iSearch.message = function(msg) {
@@ -162,8 +156,7 @@ oop.inherits(IncrementalSearch, Search);
 
     iSearch.handleKeyboard = function(data, hashId, key, keyCode) {
         this.message("data: " + data + ", hashId: " + hashId + ", key: " + key + ", keyCode: " + keyCode);
-        var stop = {command: 'null'},
-            result = undefined;
+        var stop = {command: 'null'}, result = undefined;
 
         console.log(this.$options.needle);
         if (hashId === 0) {
diff --git a/lib/ace/incremental_search_test.js b/lib/ace/incremental_search_test.js
index 0f48060d..230c3c28 100644
--- a/lib/ace/incremental_search_test.js
+++ b/lib/ace/incremental_search_test.js
@@ -108,11 +108,12 @@ module.exports = {
         var range = iSearch.next();
         testRanges("Range: [1/3] -> [1/5]", [range], "range");
 
-        range = iSearch.next();
-        testRanges("Range: [1/3] -> [1/5]", [range], "range");
+        range = iSearch.next(); // nothing to find
+        testRanges("", [range], "range");
+        assert.ok(!editor.selection.isBackwards(), 'reoriented?');
 
         range = iSearch.next(true); // backwards
-        testRanges("Range: [0/3] -> [0/5]", [range], "range");
+        testRanges("Range: [1/5] -> [1/3]", [range], "range");
     },
 
     "test: cancelSearch" : function() {
@@ -125,30 +126,32 @@ module.exports = {
         testRanges("Range: [0/3] -> [0/5]", [range], "range");
     },
 
-    "test: failing search keeps range" : function() {
+    "test: failing search keeps pos" : function() {
         iSearch.activate(editor);
         iSearch.addChar('1'); iSearch.addChar('2');
         var range = iSearch.addChar('x');
-        testRanges("Range: [0/3] -> [0/5]", [range], "range");
+        testRanges("", [range], "range");
+        assert.position(editor.getCursorPosition(), 0, 5);
     },
 
     "test: backwards search" : function() {
         editor.moveCursorTo(1,0);
         iSearch.activate(editor, true);
         iSearch.addChar('1'); var range = iSearch.addChar('2');;
-        testRanges("Range: [0/3] -> [0/5]", [range], "range");
-    }
+        testRanges("Range: [0/5] -> [0/3]", [range], "range");
+        assert.position(editor.getCursorPosition(), 0, 3);
+    },
 
-    // // "test: find simple text in document" : function() {
-    //     var session = new EditSession(["juhu kinners 123", "456"]);
-    //     var search = new Search().set({
-    //         needle: "kinners"
-    //     });
-    // session.getSelection().moveCursorTo(0, 13);
-    //     var range = search.find(session);
-    //     assert.position(range.start, 0, 5);
-    //     assert.position(range.end, 0, 12);
-    // },
+    "test: forwards then backwards, same result, reoriented range" : function() {
+        iSearch.activate(editor);
+        iSearch.addChar('1'); var range = iSearch.addChar('2');;
+        testRanges("Range: [0/3] -> [0/5]", [range], "range");
+        assert.position(editor.getCursorPosition(), 0, 5);
+
+        range = iSearch.next(true);
+        testRanges("Range: [0/5] -> [0/3]", [range], "range");
+        assert.position(editor.getCursorPosition(), 0, 3);
+    }
 
 };