diff --git a/src/AIS/AIS_InteractiveContext_1.cxx b/src/AIS/AIS_InteractiveContext_1.cxx
index 50257ac640..c44c8eed2e 100644
--- a/src/AIS/AIS_InteractiveContext_1.cxx
+++ b/src/AIS/AIS_InteractiveContext_1.cxx
@@ -1046,9 +1046,7 @@ Standard_Boolean AIS_InteractiveContext::HasSelectedShape() const
 #endif
     return Standard_False;
   }
-  return myLocalContexts(myCurLocalIndex)->HasShape();
-  
-  
+  return myLocalContexts(myCurLocalIndex)->HasSelectedShape();
 }
 
 //=======================================================================
@@ -1064,7 +1062,9 @@ TopoDS_Shape AIS_InteractiveContext::SelectedShape() const
     Handle(AIS_Shape) aShape = Handle(AIS_Shape)::DownCast (SelectedInteractive());
     if (!aShape.IsNull())
     {
-      aResShape = aShape->Shape().Located (TopLoc_Location (SelectedInteractive()->Transformation()) * aShape->Shape().Location());
+      TopLoc_Location aLocTrsf = SelectedInteractive()->Transformation().Form() == gp_Identity ?
+                                 TopLoc_Location() : TopLoc_Location (SelectedInteractive()->Transformation());
+      aResShape = aShape->Shape().Located (aLocTrsf * aShape->Shape().Location());
     }
 
     return aResShape;
@@ -1088,6 +1088,8 @@ Handle(AIS_InteractiveObject) AIS_InteractiveContext::Interactive() const
 Handle(AIS_InteractiveObject) AIS_InteractiveContext::SelectedInteractive() const 
 {
   if(!HasOpenedContext()){
+    if (AIS_Selection::Selection(myCurrentName.ToCString())->Extent() == 0)
+      return NULL;
     Handle(Standard_Transient) TR  =AIS_Selection::Selection(myCurrentName.ToCString())->Value();
     Handle(AIS_InteractiveObject) IO = *((Handle(AIS_InteractiveObject)*)&TR);
     return IO;}
diff --git a/src/AIS/AIS_LocalContext.cdl b/src/AIS/AIS_LocalContext.cdl
index ec645e4611..1d65dff7a2 100644
--- a/src/AIS/AIS_LocalContext.cdl
+++ b/src/AIS/AIS_LocalContext.cdl
@@ -388,6 +388,11 @@ is
     HasShape(me) returns Boolean from Standard;
     ---Purpose: returns TRUE if the detected entity is a shape
     --          coming from a Decomposition of an element.
+    HasSelectedShape(me) returns Boolean from Standard;
+    ---Purpose: returns true if current selection is not empty
+    --          and the owner of selected object contains a shape.
+    --          This method does not take into account decomposition
+    --          status of detected shape.
     SelectedShape(me) returns Shape from TopoDS;
 
     SelectedOwner(me) returns EntityOwner from SelectMgr;
diff --git a/src/AIS/AIS_LocalContext_1.cxx b/src/AIS/AIS_LocalContext_1.cxx
index 2301294576..c18ecbfc6b 100644
--- a/src/AIS/AIS_LocalContext_1.cxx
+++ b/src/AIS/AIS_LocalContext_1.cxx
@@ -772,6 +772,28 @@ HasShape() const
   return (hasshape&&comes);
 }
 
+//================================================================
+// Function : HasSelectedShape
+// Purpose  : Checks if there is a selected shape regardless of its decomposition status
+//================================================================
+Standard_Boolean AIS_LocalContext::HasSelectedShape() const
+{
+  if (AIS_Selection::CurrentSelection()->Extent() == 0)
+    return Standard_False;
+
+  Handle(Standard_Transient) aCurSelection = AIS_Selection::CurrentSelection()->Value();
+  if (aCurSelection.IsNull())
+    return Standard_False;
+
+  Handle(SelectMgr_EntityOwner) anOwner = Handle(SelectMgr_EntityOwner)::DownCast (aCurSelection);
+  Handle(StdSelect_BRepOwner) aBrepOwner = Handle(StdSelect_BRepOwner)::DownCast (anOwner);
+  if (aBrepOwner.IsNull())
+  {
+    return Standard_False;
+  }
+  return aBrepOwner->HasShape();
+}
+
 //==================================================
 // Function: 
 // Purpose :
@@ -785,6 +807,7 @@ TopoDS_Shape AIS_LocalContext::SelectedShape() const
   {
     return TopoDS_Shape();
   }
+
   return aBRO->Shape().Located (aBRO->Location() * aBRO->Shape().Location());
 }
 
diff --git a/src/ViewerTest/ViewerTest.cxx b/src/ViewerTest/ViewerTest.cxx
index 7c601ba10f..35d682f5dd 100644
--- a/src/ViewerTest/ViewerTest.cxx
+++ b/src/ViewerTest/ViewerTest.cxx
@@ -3644,10 +3644,34 @@ static Standard_Integer VState (Draw_Interpretor& theDI,
     return 1;
   }
 
-  TCollection_AsciiString anOption (theArgNb >= 2 ? theArgVec[1] : "");
-  anOption.LowerCase();
-  if (anOption == "-detectedEntities"
-   || anOption == "-entities")
+  Standard_Boolean toPrintEntities = Standard_False;
+  Standard_Boolean toCheckSelected = Standard_False;
+
+  for (Standard_Integer anArgIdx = 1; anArgIdx < theArgNb; ++anArgIdx)
+  {
+    TCollection_AsciiString anOption (theArgVec[anArgIdx]);
+    anOption.LowerCase();
+    if (anOption == "-detectedentities"
+      || anOption == "-entities")
+    {
+      toPrintEntities = Standard_True;
+    }
+    else if (anOption == "-hasselected")
+    {
+      toCheckSelected = Standard_True;
+    }
+  }
+
+  if (toCheckSelected)
+  {
+    aCtx->InitSelected();
+    TCollection_AsciiString hasSelected (static_cast<Standard_Integer> (aCtx->HasSelectedShape()));
+    theDI << "Check if context has selected shape: " << hasSelected << "\n";
+
+    return 0;
+  }
+
+  if (toPrintEntities)
   {
     theDI << "Detected entities:\n";
     Handle(StdSelect_ViewerSelector3d) aSelector = aCtx->HasOpenedContext() ? aCtx->LocalSelector() : aCtx->MainSelector();
@@ -4664,9 +4688,10 @@ void ViewerTest::Commands(Draw_Interpretor& theCommands)
 		  __FILE__,VActivatedMode,group);
 
   theCommands.Add("vstate",
-      "vstate [-entities] [name1] ... [nameN]"
+      "vstate [-entities] [-hasSelected] [name1] ... [nameN]"
       "\n\t\t: Reports show/hidden state for selected or named objects"
-      "\n\t\t:   -entities - print low-level information about detected entities",
+      "\n\t\t:   -entities - print low-level information about detected entities"
+      "\n\t\t:   -hasSelected - prints 1 if context has selected shape and 0 otherwise",
 		  __FILE__,VState,group);
 
   theCommands.Add("vpickshapes",
diff --git a/tests/bugs/vis/bug25627 b/tests/bugs/vis/bug25627
new file mode 100644
index 0000000000..1246bb2660
--- /dev/null
+++ b/tests/bugs/vis/bug25627
@@ -0,0 +1,49 @@
+puts "============"
+puts "CR25627"
+puts "============"
+puts ""
+#######################################################################
+# SelectedShape() and HasSelectedShape() of AIS_InteractiveContext
+# class do not work as expected.
+#######################################################################
+pload ALL
+
+vinit
+box aBox 5 5 5
+vdisplay aBox
+vfit
+vselect 100 100
+set aSelectionRes [vstate -hasSelected]
+if { [lsearch $aSelectionRes 0] != -1 } {
+  puts "ERROR: Incorrect result of HasSelectedShape of the context!"
+}
+vpickselected aSelected
+set aRes [vstate aSelected]
+if { $aRes == "aSelected doesn't exist!" } {
+  puts "ERROR: No shape selected in neutral point!"
+}
+set aCompRes [compare aBox aSelected]
+if { [lsearch $aCompRes not] != -1 } {
+  puts "ERROR: Selected box and selected shape from the context are not equal!"
+}
+
+vselect 0 0
+vremove aSelected
+
+vselmode aBox 6 1
+vselect 100 100
+set aSelectionRes [vstate -hasSelected]
+if { [lsearch $aSelectionRes 0] != -1 } {
+  puts "ERROR: Incorrect result of HasSelectedShape of the context!"
+}
+vpickselected aSelected
+set aRes [vstate aSelected]
+if { $aRes == "aSelected doesn't exist!" } {
+  puts "ERROR: No shape selected in local selection!"
+}
+set aCompRes [compare aBox aSelected]
+if { [lsearch $aCompRes not] != -1 } {
+  puts "ERROR: Selected box and selected solid are not equal!"
+}
+
+set only_screen 1