diff --git a/src/com/android/settings/datausage/BillingCycleSettings.java b/src/com/android/settings/datausage/BillingCycleSettings.java
index deadc54..ce020b1 100644
--- a/src/com/android/settings/datausage/BillingCycleSettings.java
+++ b/src/com/android/settings/datausage/BillingCycleSettings.java
@@ -35,6 +35,7 @@
 import android.widget.NumberPicker;
 import android.widget.Spinner;
 
+import com.android.internal.annotations.VisibleForTesting;
 import com.android.internal.logging.MetricsProto.MetricsEvent;
 import com.android.settings.R;
 import com.android.settings.core.instrumentation.InstrumentedDialogFragment;
@@ -60,7 +61,7 @@
     private static final String KEY_BILLING_CYCLE = "billing_cycle";
     private static final String KEY_SET_DATA_WARNING = "set_data_warning";
     private static final String KEY_DATA_WARNING = "data_warning";
-    private static final String KEY_SET_DATA_LIMIT = "set_data_limit";
+    @VisibleForTesting static final String KEY_SET_DATA_LIMIT = "set_data_limit";
     private static final String KEY_DATA_LIMIT = "data_limit";
 
     private NetworkTemplate mNetworkTemplate;
@@ -139,12 +140,13 @@
     public boolean onPreferenceChange(Preference preference, Object newValue) {
         if (mEnableDataLimit == preference) {
             boolean enabled = (Boolean) newValue;
-            if (enabled) {
-                ConfirmLimitFragment.show(this);
-            } else {
+            if (!enabled) {
                 setPolicyLimitBytes(LIMIT_DISABLED);
+                return true;
             }
-            return true;
+            ConfirmLimitFragment.show(this);
+            // This preference is enabled / disabled by ConfirmLimitFragment.
+            return false;
         } else if (mEnableDataWarning == preference) {
             boolean enabled = (Boolean) newValue;
             if (enabled) {
@@ -162,7 +164,8 @@
         return MetricsEvent.BILLING_CYCLE;
     }
 
-    private void setPolicyLimitBytes(long limitBytes) {
+    @VisibleForTesting
+    void setPolicyLimitBytes(long limitBytes) {
         if (LOGD) Log.d(TAG, "setPolicyLimitBytes()");
         services.mPolicyEditor.setPolicyLimitBytes(mNetworkTemplate, limitBytes);
         updatePrefs();
@@ -373,7 +376,7 @@
     public static class ConfirmLimitFragment extends InstrumentedDialogFragment implements
             DialogInterface.OnClickListener {
         private static final String EXTRA_MESSAGE = "message";
-        private static final String EXTRA_LIMIT_BYTES = "limitBytes";
+        @VisibleForTesting static final String EXTRA_LIMIT_BYTES = "limitBytes";
         public static final float FLOAT = 1.2f;
 
         public static void show(BillingCycleSettings parent) {
@@ -423,12 +426,14 @@
 
         @Override
         public void onClick(DialogInterface dialog, int which) {
+            final BillingCycleSettings target = (BillingCycleSettings) getTargetFragment();
             if (which != DialogInterface.BUTTON_POSITIVE) return;
             final long limitBytes = getArguments().getLong(EXTRA_LIMIT_BYTES);
-            final BillingCycleSettings target = (BillingCycleSettings) getTargetFragment();
             if (target != null) {
                 target.setPolicyLimitBytes(limitBytes);
             }
+            target.getPreferenceManager().getSharedPreferences().edit()
+                    .putBoolean(KEY_SET_DATA_LIMIT, true).apply();
         }
     }
 }
diff --git a/tests/robotests/src/com/android/settings/datausage/BillingCycleSettingsTest.java b/tests/robotests/src/com/android/settings/datausage/BillingCycleSettingsTest.java
new file mode 100644
index 0000000..9ebb580
--- /dev/null
+++ b/tests/robotests/src/com/android/settings/datausage/BillingCycleSettingsTest.java
@@ -0,0 +1,86 @@
+/*
+ * Copyright (C) 2016 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License
+ */
+package com.android.settings.datausage;
+
+import android.content.Context;
+import android.content.DialogInterface;
+import android.content.SharedPreferences;
+import android.os.Bundle;
+import android.support.v7.preference.PreferenceManager;
+
+import com.android.settings.TestConfig;
+
+import org.junit.Before;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.mockito.Mock;
+import org.mockito.MockitoAnnotations;
+import org.robolectric.RobolectricTestRunner;
+import org.robolectric.RuntimeEnvironment;
+import org.robolectric.annotation.Config;
+
+import static junit.framework.Assert.assertFalse;
+import static junit.framework.Assert.assertTrue;
+import static org.mockito.Matchers.anyLong;
+import static org.mockito.Mockito.never;
+import static org.mockito.Mockito.verify;
+import static org.mockito.Mockito.when;
+
+@RunWith(RobolectricTestRunner.class)
+@Config(manifest = TestConfig.MANIFEST_PATH, sdk = TestConfig.SDK_VERSION)
+public class BillingCycleSettingsTest {
+
+    private static final int LIMIT_BYTES = 123;
+
+    @Mock
+    BillingCycleSettings mMockBillingCycleSettings;
+    BillingCycleSettings.ConfirmLimitFragment mConfirmLimitFragment;
+    @Mock
+    PreferenceManager mMockPreferenceManager;
+    SharedPreferences mSharedPreferences;
+
+    @Before
+    public void setUp() {
+        MockitoAnnotations.initMocks(this);
+        mConfirmLimitFragment = new BillingCycleSettings.ConfirmLimitFragment();
+        mConfirmLimitFragment.setTargetFragment(mMockBillingCycleSettings, 0);
+        mSharedPreferences = RuntimeEnvironment.application.getSharedPreferences(
+                "testSharedPreferences", Context.MODE_PRIVATE);
+        when(mMockBillingCycleSettings.getPreferenceManager()).thenReturn(mMockPreferenceManager);
+        when(mMockPreferenceManager.getSharedPreferences()).thenReturn(mSharedPreferences);
+        final Bundle args = new Bundle();
+        args.putLong(BillingCycleSettings.ConfirmLimitFragment.EXTRA_LIMIT_BYTES, LIMIT_BYTES);
+        mConfirmLimitFragment.setArguments(args);
+        mSharedPreferences.edit().putBoolean(
+                BillingCycleSettings.KEY_SET_DATA_LIMIT, false).apply();
+    }
+
+    @Test
+    public void testDataUsageLimit_shouldNotBeSetOnCancel() {
+        mConfirmLimitFragment.onClick(null, DialogInterface.BUTTON_NEGATIVE);
+
+        assertFalse(mSharedPreferences.getBoolean(BillingCycleSettings.KEY_SET_DATA_LIMIT, true));
+        verify(mMockBillingCycleSettings, never()).setPolicyLimitBytes(anyLong());
+    }
+
+    @Test
+    public void testDataUsageLimit_shouldBeSetOnConfirmation() {
+        mConfirmLimitFragment.onClick(null, DialogInterface.BUTTON_POSITIVE);
+
+        assertTrue(mSharedPreferences.getBoolean(BillingCycleSettings.KEY_SET_DATA_LIMIT, false));
+        verify(mMockBillingCycleSettings).setPolicyLimitBytes(LIMIT_BYTES);
+    }
+}
\ No newline at end of file