diff --git a/lib/model.js b/lib/model.js
index 543af043..773e2c59 100644
--- a/lib/model.js
+++ b/lib/model.js
@@ -13,6 +13,8 @@ var List = require('./list');
 var Hookable = require('./hooks');
 var validations = require('./validations');
 var _extend = util._extend;
+var utils = require('./utils');
+var fieldsToArray = utils.fieldsToArray;
 
 // Set up an object for quick lookup
 var BASE_TYPES = {
@@ -170,7 +172,16 @@ ModelBaseClass.prototype._initProperties = function (data, options) {
       if (relationType === 'belongsTo' && propVal != null) {
         // If the related model is populated
         self.__data[ctor.relations[p].keyFrom] = propVal[ctor.relations[p].keyTo];
+
+        if (ctor.relations[p].options.embedsProperties) {
+          var fields = fieldsToArray(ctor.relations[p].properties, modelTo.definition.properties);
+          if (!~fields.indexOf(ctor.relations[p].keyTo)) {
+            fields.push(ctor.relations[p].keyTo);
+          }
+          self.__data[p] = new modelTo(propVal, { fields: fields, applySetters: false, persisted: options.persisted });
+        }
       }
+
       self.__cachedRelations[p] = propVal;
     } else {
       // Un-managed property
diff --git a/lib/relation-definition.js b/lib/relation-definition.js
index 504eb939..aae43be1 100644
--- a/lib/relation-definition.js
+++ b/lib/relation-definition.js
@@ -208,11 +208,20 @@ RelationDefinition.prototype.applyProperties = function(modelInstance, obj) {
   if (this.options.invertProperties) {
     source = obj, target = modelInstance;
   }
+  if (this.options.embedsProperties) {
+    target = target.__data[this.name] = {};
+    target[this.keyTo] = source[this.keyTo];
+  }
   if (typeof this.properties === 'function') {
     var data = this.properties.call(this, source);
     for(var k in data) {
       target[k] = data[k];
     }
+  } else if (Array.isArray(this.properties)) {
+    for(var k = 0; k < this.properties.length; k++) {
+      var key = this.properties[k];
+      target[key] = source[key];
+    }
   } else if (typeof this.properties === 'object') {
     for(var k in this.properties) {
       var key = this.properties[k];
@@ -1309,7 +1318,7 @@ BelongsTo.prototype.related = function (refresh, params) {
     }
     
     var cb = params;
-    if (cachedValue === undefined) {
+    if (cachedValue === undefined || !(cachedValue instanceof ModelBaseClass)) {
       var query = {where: {}};
       query.where[pk] = modelInstance[fk];
       
diff --git a/test/relations.test.js b/test/relations.test.js
index 7d8bed84..8acc391a 100644
--- a/test/relations.test.js
+++ b/test/relations.test.js
@@ -1718,6 +1718,45 @@ describe('relations', function () {
   
   });
 
+  describe('belongsTo with embed', function () {
+    var Person, Passport;
+
+    it('can be declared with embed and properties', function (done) {
+      Person = db.define('Person', {name: String, age: Number});
+      Passport = db.define('Passport', {name: String, notes: String});
+      Passport.belongsTo(Person, {
+        properties: ['name'],
+        options: { embedsProperties: true, invertProperties: true }
+      });
+      db.automigrate(done);
+    });
+
+    it('should create record with embedded data', function (done) {
+      Person.create({name: 'Fred', age: 36 }, function(err, person) {
+        var p = new Passport({ name: 'Passport', notes: 'Some notes...' });
+        p.person(person);
+        p.personId.should.equal(person.id);
+        var data = p.toObject(true);
+        data.person.id.should.equal(person.id);
+        data.person.name.should.equal('Fred');
+        p.save(function (err) {
+          should.not.exists(err);
+          done();
+        });
+      });
+    });
+
+    it('should find record with embedded data', function (done) {
+      Passport.findOne(function (err, p) {
+        should.not.exists(err);
+        var data = p.toObject(true);
+        data.person.id.should.equal(p.personId);
+        data.person.name.should.equal('Fred');
+        done();
+      });
+    });
+  });
+
   describe('hasOne', function () {
     var Supplier, Account;
     var supplierId, accountId;