diff --git a/lib/model-builder.js b/lib/model-builder.js
index e18aac89..7063915f 100644
--- a/lib/model-builder.js
+++ b/lib/model-builder.js
@@ -104,6 +104,7 @@ ModelBuilder.prototype.getModelDefinition = function (name) {
  * @param {String} className Name of class
  * @param {Object} properties Hash of class properties in format `{property: Type, property2: Type2, ...}` or `{property: {type: Type}, property2: {type: Type2}, ...}`
  * @param {Object} settings Other configuration of class
+ * @param {Function} parent Parent model
  * @return newly created class
  *
  */
@@ -152,6 +153,12 @@ ModelBuilder.prototype.define = function defineClass(className, properties, sett
     }
   }
 
+  // Make sure base properties are inherited
+  // See https://github.com/strongloop/loopback-datasource-juggler/issues/293
+  if ((parent && !settings.base) || (!parent && settings.base)) {
+    return ModelBaseClass.extend(className, properties, settings);
+  }
+
   // Check if there is a unresolved model with the same name
   var ModelClass = this.models[className];
 
@@ -349,8 +356,9 @@ ModelBuilder.prototype.define = function defineClass(className, properties, sett
     // Ensure 'base' is not inherited. Note we don't have to delete 'super'
     // as that is removed from settings by modelBuilder.define and thus
     // it is never inherited
-    if (!originalSubclassSettings.base)
-      delete subclassSettings.base;
+    if (!originalSubclassSettings.base) {
+      subclassSettings.base = ModelClass;
+    }
 
     // Define the subclass
     var subClass = modelBuilder.define(className, subclassProperties, subclassSettings, ModelClass);
diff --git a/test/loopback-dl.test.js b/test/loopback-dl.test.js
index c3a47e2c..41fee2e8 100644
--- a/test/loopback-dl.test.js
+++ b/test/loopback-dl.test.js
@@ -660,6 +660,18 @@ describe('Load models with base', function () {
     }
   });
 
+  it('should inherit properties from base option', function () {
+    var ds = new ModelBuilder();
+
+    var User = ds.define('User', {name: String});
+
+    var Customer = ds.define('Customer', {vip: Boolean}, {base: 'User'});
+
+    Customer.definition.properties.should.have.property('name');
+    Customer.definition.properties.name.should.have.property('type', String);
+  });
+
+
   it('should set up base class via parent arg', function () {
     var ds = new ModelBuilder();
 
@@ -672,6 +684,9 @@ describe('Load models with base', function () {
 
     var Customer = ds.define('Customer', {vip: Boolean}, {}, User);
 
+    Customer.definition.properties.should.have.property('name');
+    Customer.definition.properties.name.should.have.property('type', String);
+
     assert(Customer.prototype instanceof User);
     assert(Customer.staticMethod === User.staticMethod);
     assert(Customer.prototype.instanceMethod === User.prototype.instanceMethod);
@@ -1646,7 +1661,8 @@ describe('Load models from json', function () {
           model: 'Order'
         }
       },
-      strict: false
+      strict: false,
+      base: User
     });
 
     done();