diff --git a/devito/types/tensor.py b/devito/types/tensor.py
index 6c94c5fc3af..62a555ef78b 100644
--- a/devito/types/tensor.py
+++ b/devito/types/tensor.py
@@ -173,7 +173,13 @@ def is_diagonal(self):
                        for i in range(self.rows) if i != j])
 
     def _evaluate(self, **kwargs):
-        return self.applyfunc(lambda x: getattr(x, 'evaluate', x))
+        def _do_evaluate(x):
+            try:
+                expand = kwargs.get('expand', True)
+                return x._evaluate(expand=expand)
+            except AttributeError:
+                return x
+        return self.applyfunc(_do_evaluate)
 
     def values(self):
         if self.is_diagonal:
diff --git a/tests/test_derivatives.py b/tests/test_derivatives.py
index 8031932df55..5fa11a6fa02 100644
--- a/tests/test_derivatives.py
+++ b/tests/test_derivatives.py
@@ -766,6 +766,16 @@ def test_transpose(self):
         i0, = term.dimensions
         assert term.base == f.subs(x, x + i0*h_x)
 
+    def test_tensor_algebra(self):
+        grid = Grid(shape=(4, 4))
+
+        f = Function(name='f', grid=grid, space_order=4)
+
+        v = grad(f)._evaluate(expand=False)
+
+        assert all(isinstance(i, IndexDerivative) for i in v)
+        assert all(zip([Add(*i.args) for i in grad(f).evaluate], v.evaluate))
+
 
 def bypass_uneval(expr):
     unevals = expr.find(EvalDerivative)