diff --git a/libraries/chain/asset_evaluator.cpp b/libraries/chain/asset_evaluator.cpp
index 2c7a17fd..e8b4b0fe 100644
--- a/libraries/chain/asset_evaluator.cpp
+++ b/libraries/chain/asset_evaluator.cpp
@@ -144,7 +144,12 @@ void_result asset_reserve_evaluator::do_evaluate( const asset_reserve_operation&
    database& d   = db();
 
    const asset_object& a = o.amount_to_reserve.asset_id(d);
-   FC_ASSERT( !a.is_market_issued() );
+   GRAPHENE_ASSERT(
+      !a.is_market_issued(),
+      asset_reserve_invalid_on_mia,
+      "Cannot reserve ${sym} because it is a market-issued asset",
+      ("sym", a.symbol)
+   );
 
    from_account = &o.payer(d);
 
diff --git a/libraries/chain/include/graphene/chain/exceptions.hpp b/libraries/chain/include/graphene/chain/exceptions.hpp
index 05bde928..dc993912 100644
--- a/libraries/chain/include/graphene/chain/exceptions.hpp
+++ b/libraries/chain/include/graphene/chain/exceptions.hpp
@@ -90,6 +90,7 @@ namespace graphene { namespace chain {
    GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( call_order_update );
 
    GRAPHENE_DECLARE_OP_EVALUATE_EXCEPTION( unfilled_margin_call, call_order_update, 1, "Updating call order would trigger a margin call that cannot be fully filled" )
+
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( account_create );
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( account_update );
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( account_whitelist );
@@ -100,7 +101,11 @@ namespace graphene { namespace chain {
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( asset_update_bitasset );
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( asset_update_feed_producers );
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( asset_issue );
-   //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( asset_reserve );
+
+   GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( asset_reserve );
+
+   GRAPHENE_DECLARE_OP_EVALUATE_EXCEPTION( invalid_on_mia, asset_reserve, 1, "invalid on mia" )
+
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( asset_fund_fee_pool );
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( asset_settle );
    //GRAPHENE_DECLARE_OP_BASE_EXCEPTIONS( asset_global_settle );
diff --git a/libraries/chain/include/graphene/chain/protocol/asset_ops.hpp b/libraries/chain/include/graphene/chain/protocol/asset_ops.hpp
index 5cdc6661..d64f4474 100644
--- a/libraries/chain/include/graphene/chain/protocol/asset_ops.hpp
+++ b/libraries/chain/include/graphene/chain/protocol/asset_ops.hpp
@@ -366,7 +366,7 @@ namespace graphene { namespace chain {
     * @brief used to take an asset out of circulation, returning to the issuer
     * @ingroup operations
     *
-    * @note You cannot burn market-issued assets.
+    * @note You cannot use this operation on market-issued assets.
     */
    struct asset_reserve_operation : public base_operation
    {
diff --git a/tests/tests/operation_tests.cpp b/tests/tests/operation_tests.cpp
index dad31ead..08d12e1a 100644
--- a/tests/tests/operation_tests.cpp
+++ b/tests/tests/operation_tests.cpp
@@ -1217,6 +1217,91 @@ BOOST_AUTO_TEST_CASE( witness_pay_test )
 
 } FC_LOG_AND_RETHROW() }
 
+/**
+ *  Reserve asset test should make sure that all assets except bitassets
+ *  can be burned, and all supplies add up.
+ */
+BOOST_AUTO_TEST_CASE_EXPECTED_FAILURES( reserve_asset_test, 1 )
+BOOST_AUTO_TEST_CASE( reserve_asset_test )
+{
+   try
+   {
+      ACTORS((alice)(bob)(sam)(judge));
+      const auto& basset = create_bitasset("BITUSD");
+      const auto& uasset = create_user_issued_asset("TEST");
+      const auto& passet = create_prediction_market("PMARK", judge_id);
+      const auto& casset = asset_id_type()(db);
+
+      auto reserve_asset = [&]( account_id_type payer, asset amount_to_reserve )
+      {
+         asset_reserve_operation op;
+         op.payer = payer;
+         op.amount_to_reserve = amount_to_reserve;
+         transaction tx;
+         tx.operations.push_back( op );
+         tx.set_expiration( db.head_block_time() + fc::minutes(5) );
+         db.push_transaction( tx, database::skip_authority_check | database::skip_tapos_check | database::skip_transaction_signatures );
+      } ;
+
+      auto _issue_uia = [&]( const account_object& recipient, asset amount )
+      {
+         asset_issue_operation op;
+         op.issuer = amount.asset_id(db).issuer;
+         op.asset_to_issue = amount;
+         op.issue_to_account = recipient.id;
+         transaction tx;
+         tx.operations.push_back( op );
+         tx.set_expiration( db.head_block_time() + fc::minutes(5) );
+         db.push_transaction( tx, database::skip_authority_check | database::skip_tapos_check | database::skip_transaction_signatures );
+      } ;
+
+      int64_t init_balance = 10000;
+      int64_t reserve_amount = 3000;
+      share_type initial_reserve;
+
+      BOOST_TEST_MESSAGE( "Test reserve operation on core asset" );
+      transfer( committee_account, alice_id, casset.amount( init_balance ) );
+
+      initial_reserve = casset.reserved( db );
+      reserve_asset( alice_id, casset.amount( reserve_amount  ) );
+      BOOST_CHECK_EQUAL( get_balance( alice, casset ), init_balance - reserve_amount );
+      BOOST_CHECK_EQUAL( (casset.reserved( db ) - initial_reserve).value, reserve_amount );
+      verify_asset_supplies(db);
+
+      BOOST_TEST_MESSAGE( "Test reserve operation on market issued asset" );
+      transfer( committee_account, alice_id, casset.amount( init_balance*100 ) );
+      update_feed_producers( basset, {sam.id} );
+      price_feed current_feed;
+      current_feed.settlement_price = basset.amount( 2 ) / casset.amount(100);
+      publish_feed( basset, sam, current_feed );
+      borrow( alice_id, basset.amount( init_balance ), casset.amount( 100*init_balance ) );
+      BOOST_CHECK_EQUAL( get_balance( alice, basset ), init_balance );
+
+      GRAPHENE_REQUIRE_THROW( reserve_asset( alice_id, basset.amount( reserve_amount ) ), asset_reserve_invalid_on_mia );
+
+      BOOST_TEST_MESSAGE( "Test reserve operation on prediction market asset" );
+      transfer( committee_account, alice_id, casset.amount( init_balance ) );
+      borrow( alice_id, passet.amount( init_balance ), casset.amount( init_balance ) );
+      GRAPHENE_REQUIRE_THROW( reserve_asset( alice_id, passet.amount( reserve_amount ) ), asset_reserve_invalid_on_mia );
+
+      BOOST_TEST_MESSAGE( "Test reserve operation on user issued asset" );
+      _issue_uia( alice, uasset.amount( init_balance ) );
+      BOOST_CHECK_EQUAL( get_balance( alice, uasset ), init_balance );
+      verify_asset_supplies(db);
+
+      BOOST_TEST_MESSAGE( "Reserving asset" );
+      initial_reserve = uasset.reserved( db );
+      reserve_asset( alice_id, uasset.amount( reserve_amount  ) );
+      BOOST_CHECK_EQUAL( get_balance( alice, uasset ), init_balance - reserve_amount );
+      BOOST_CHECK_EQUAL( (uasset.reserved( db ) - initial_reserve).value, reserve_amount );
+      verify_asset_supplies(db);
+   }
+   catch (fc::exception& e)
+   {
+      edump((e.to_detail_string()));
+      throw;
+   }
+}
 
 /**
  * This test demonstrates how using the call_order_update_operation to