diff --git a/nibabel/nifti1.py b/nibabel/nifti1.py
index 548ad34658..5393b5a543 100644
--- a/nibabel/nifti1.py
+++ b/nibabel/nifti1.py
@@ -125,7 +125,9 @@
     (1, 'scanner', "NIFTI_XFORM_SCANNER_ANAT"),
     (2, 'aligned', "NIFTI_XFORM_ALIGNED_ANAT"),
     (3, 'talairach', "NIFTI_XFORM_TALAIRACH"),
-    (4, 'mni', "NIFTI_XFORM_MNI_152")), fields=('code', 'label', 'niistring'))
+    (4, 'mni', "NIFTI_XFORM_MNI_152"),
+    (5, 'template', "NIFTI_XFORM_TEMPLATE_OTHER"),
+    ), fields=('code', 'label', 'niistring'))
 
 # unit codes
 unit_codes = Recoder((  # code, label
diff --git a/nibabel/tests/test_nifti1.py b/nibabel/tests/test_nifti1.py
index 78f876ec7d..3287634f82 100644
--- a/nibabel/tests/test_nifti1.py
+++ b/nibabel/tests/test_nifti1.py
@@ -226,6 +226,21 @@ def test_nifti_qsform_checks(self):
         assert_equal(message,
                      'sform_code -1 not valid; setting to 0')
 
+    def test_nifti_xform_codes(self):
+        # Verify that all xform codes can be set in both qform and sform
+        hdr = self.header_class()
+        affine = np.eye(4)
+        for code in nifti1.xform_codes.keys():
+            hdr.set_qform(affine, code)
+            assert_equal(hdr['qform_code'], nifti1.xform_codes[code])
+            hdr.set_sform(affine, code)
+            assert_equal(hdr['sform_code'], nifti1.xform_codes[code])
+
+        # Raise KeyError on unknown code
+        for bad_code in (-1, 6, 10):
+            assert_raises(KeyError, hdr.set_qform, affine, bad_code)
+            assert_raises(KeyError, hdr.set_sform, affine, bad_code)
+
     def test_magic_offset_checks(self):
         # magic and offset
         HC = self.header_class