diff --git a/CHANGES.md b/CHANGES.md
index 1de6cb16414..2e7e7dc180d 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -3,6 +3,10 @@
 
 ## CKEditor 4.7.3
 
+Fixed Issues:
+
+* [#554](https://github.com/ckeditor/ckeditor-dev/issues/554): Fixed: [`change`](https://docs.ckeditor.com/#!/api/CKEDITOR.editor-event-change) event not fired when typing the first character after pasting into the editor. Thanks to [Daniel Miller](https://github.com/millerdev)!
+
 ## CKEditor 4.7.2
 
 New Features:
diff --git a/plugins/undo/plugin.js b/plugins/undo/plugin.js
index 809b457f319..a67ac3917e4 100644
--- a/plugins/undo/plugin.js
+++ b/plugins/undo/plugin.js
@@ -1049,6 +1049,14 @@
 			this.ignoreInputEvent = true;
 		},
 
+		/**
+		 * Stop ignoring `input` events.
+		 * @since 4.7.3
+		 */
+		activateInputEventListener: function() {
+			this.ignoreInputEvent = false;
+		},
+
 		/**
 		 * Attaches editable listeners required to provide the undo functionality.
 		 */
@@ -1080,6 +1088,9 @@
 			editable.attachListener( editable, 'paste', that.ignoreInputEventListener, that, null, 999 );
 			editable.attachListener( editable, 'drop', that.ignoreInputEventListener, that, null, 999 );
 
+			// After paste we need to re-enable input event listener (#554).
+			editor.on( 'afterPaste', that.activateInputEventListener, that, null, 999 );
+
 			// Click should create a snapshot if needed, but shouldn't cause change event.
 			// Don't pass onNavigationKey directly as a listener because it accepts one argument which
 			// will conflict with evt passed to listener.
diff --git a/tests/plugins/undo/change.js b/tests/plugins/undo/change.js
index 108ffe5820f..fb1049b58fe 100644
--- a/tests/plugins/undo/change.js
+++ b/tests/plugins/undo/change.js
@@ -1,5 +1,5 @@
 /* bender-tags: editor */
-/* bender-ckeditor-plugins: undo,basicstyles,toolbar,wysiwygarea */
+/* bender-ckeditor-plugins: undo,clipboard,basicstyles,toolbar,wysiwygarea */
 /* global undoEventDispatchTestsTools */
 
 ( function() {
@@ -180,6 +180,27 @@
 				// After setting text - caret is moved to beginning. We don't care - it does not change nothing.
 				keyTools.keyEvent( keyCodesEnum.LEFT, null, true );
 			} );
+		},
+
+		// #554
+		'test change event fired on type after paste': function() {
+			this.editorBot.setHtmlWithSelection( '<p>foo^</p>' );
+
+			var that = this,
+				keys = this.keyTools.keyCodesEnum;
+
+			bender.tools.emulatePaste( this.editor, 'PASTE' );
+
+			this.editor.once( 'afterPaste', function() {
+				resume( function() {
+					changeCounter = 0;
+					that.checkChange( function() {
+						that.keyTools.keyEvent( keys.KEY_G );
+					} );
+				} );
+			} );
+
+			wait();
 		}
 	} );
 
diff --git a/tests/plugins/undo/manual/changeevent.html b/tests/plugins/undo/manual/changeevent.html
new file mode 100644
index 00000000000..e974c54ae7d
--- /dev/null
+++ b/tests/plugins/undo/manual/changeevent.html
@@ -0,0 +1,14 @@
+<div id="editor1">
+	<p>Paste something here:</p>
+</div>
+<div id="changes"></div>
+
+<script>
+	var i = 1;
+	var changes = document.getElementById( 'changes' );
+	CKEDITOR.replace( 'editor1' ).on("change", function () {
+		var elem = document.createElement( 'div' );
+		elem.innerText = 'changes ' + i++;
+		changes.appendChild( elem );
+	});
+</script>
diff --git a/tests/plugins/undo/manual/changeevent.md b/tests/plugins/undo/manual/changeevent.md
new file mode 100644
index 00000000000..89c08cd6f93
--- /dev/null
+++ b/tests/plugins/undo/manual/changeevent.md
@@ -0,0 +1,10 @@
+@bender-tags: 554, 4.7.3, bug
+@bender-ui: collapsed
+@bender-ckeditor-plugins: undo,clipboard,basicstyles,toolbar,wysiwygarea
+
+----
+
+1. Paste some text into the editor.
+2. Type a single character after pasting.
+
+**Expected:** There should be exactly two change events shown below the editor.