diff --git a/src/systems/material.js b/src/systems/material.js
index 2c985991dab..12045b255d7 100755
--- a/src/systems/material.js
+++ b/src/systems/material.js
@@ -145,12 +145,14 @@ module.exports.System = registerSystem('material', {
     texture.minFilter = THREE.LinearFilter;
     setTextureProperties(texture, data);
 
-    // if we're on iOS, and the video is HLS, we currently need to do some hacks
-    if (this.sceneEl.isIOS && isHLS(videoEl.src || videoEl.getAttribute('src'), videoEl.type || videoEl.getAttribute('type'))) {
-      // really it's BGRA, so this needs correction in shader
+    // If iOS and video is HLS, do some hacks.
+    if (this.sceneEl.isIOS &&
+        isHLS(videoEl.src || videoEl.getAttribute('src'),
+              videoEl.type || videoEl.getAttribute('type'))) {
+      // Actually BGRA. Tell shader to correct later.
       texture.format = THREE.RGBAFormat;
       texture.needsCorrectionBGRA = true;
-      // apparently this is needed for HLS, so this needs correction in shader
+      // Apparently needed for HLS. Tell shader to correct later.
       texture.flipY = false;
       texture.needsCorrectionFlipY = true;
     }
diff --git a/src/utils/material.js b/src/utils/material.js
index 2f9ae9d16c0..8ff4e5ddb3e 100644
--- a/src/utils/material.js
+++ b/src/utils/material.js
@@ -125,7 +125,7 @@ function handleTextureEvents (el, texture) {
     // Check to see if we need to use iOS 10 HLS shader.
     // Only override the shader if it is a stock (or test) shader that we know doesn't correct.
     if (texture.needsCorrectionBGRA && texture.needsCorrectionFlipY &&
-      ['standard', 'flat', 'testShader'].indexOf(el.components.material.data.shader) !== -1) {
+        ['standard', 'flat'].indexOf(el.components.material.data.shader) !== -1) {
       el.setAttribute('material', 'shader', 'ios10hls');
     }
 
diff --git a/tests/shaders/ios10hls.test.js b/tests/shaders/ios10hls.test.js
new file mode 100644
index 00000000000..4ac6f9cc656
--- /dev/null
+++ b/tests/shaders/ios10hls.test.js
@@ -0,0 +1,34 @@
+/* global AFRAME, CustomEvent, assert, process, setup, suite, test */
+var entityFactory = require('../helpers').entityFactory;
+
+var VIDEO = 'base/tests/assets/test.mp4';
+
+suite('ios10hls', function () {
+  setup(function (done) {
+    this.el = entityFactory();
+    if (this.el.hasLoaded) {
+      done();
+    } else {
+      this.el.addEventListener('loaded', function () { done(); });
+    }
+  });
+
+  test('iOS HLS video uses appropriate shader', function (done) {
+    var el = this.el;
+    el.sceneEl.isIOS = true;
+
+    // Set up and verify video element to be treated as HLS.
+    var videoEl = document.createElement('video');
+    videoEl.src = VIDEO;
+    videoEl.type = 'application/x-mpegurl';
+    assert.equal(AFRAME.utils.material.isHLS(videoEl.src, videoEl.type), true);
+
+    el.setAttribute('material', {src: videoEl});
+    videoEl.dispatchEvent(new CustomEvent('loadeddata'));
+
+    setTimeout(function () {
+      assert.equal(el.getAttribute('material').shader, 'ios10hls');
+      done();
+    });
+  });
+});