diff --git a/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/transaction/jta/NarayanaJtaConfiguration.java b/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/transaction/jta/NarayanaJtaConfiguration.java
index ac243d57f1..8fbdc180f6 100644
--- a/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/transaction/jta/NarayanaJtaConfiguration.java
+++ b/spring-boot-autoconfigure/src/main/java/org/springframework/boot/autoconfigure/transaction/jta/NarayanaJtaConfiguration.java
@@ -16,12 +16,15 @@
 
 package org.springframework.boot.autoconfigure.transaction.jta;
 
+import java.io.File;
+
 import javax.jms.Message;
 import javax.transaction.TransactionManager;
 import javax.transaction.UserTransaction;
 
 import com.arjuna.ats.jbossatx.jta.RecoveryManagerService;
 
+import org.springframework.boot.ApplicationHome;
 import org.springframework.boot.autoconfigure.condition.ConditionalOnClass;
 import org.springframework.boot.autoconfigure.condition.ConditionalOnMissingBean;
 import org.springframework.boot.jta.XAConnectionFactoryWrapper;
@@ -37,6 +40,7 @@ import org.springframework.context.annotation.Configuration;
 import org.springframework.context.annotation.DependsOn;
 import org.springframework.transaction.PlatformTransactionManager;
 import org.springframework.transaction.jta.JtaTransactionManager;
+import org.springframework.util.StringUtils;
 
 /**
  * JTA Configuration for <a href="http://narayana.io/">Narayana</a>.
@@ -66,9 +70,7 @@ public class NarayanaJtaConfiguration {
 	@ConditionalOnMissingBean
 	public NarayanaConfigurationBean narayanaConfiguration(
 			NarayanaProperties properties) {
-		if (this.jtaProperties.getLogDir() != null) {
-			properties.setLogDir(this.jtaProperties.getLogDir());
-		}
+		properties.setLogDir(getLogDir().getAbsolutePath());
 		if (this.jtaProperties.getTransactionManagerId() != null) {
 			properties.setTransactionManagerId(
 					this.jtaProperties.getTransactionManagerId());
@@ -76,6 +78,14 @@ public class NarayanaJtaConfiguration {
 		return new NarayanaConfigurationBean(properties);
 	}
 
+	private File getLogDir() {
+		if (StringUtils.hasLength(this.jtaProperties.getLogDir())) {
+			return new File(this.jtaProperties.getLogDir());
+		}
+		File home = new ApplicationHome().getDir();
+		return new File(home, "transaction-logs");
+	}
+
 	@Bean
 	@DependsOn("narayanaConfiguration")
 	@ConditionalOnMissingBean
diff --git a/spring-boot/src/main/java/org/springframework/boot/jta/narayana/NarayanaConfigurationBean.java b/spring-boot/src/main/java/org/springframework/boot/jta/narayana/NarayanaConfigurationBean.java
index 08094c375c..05ff13c59e 100644
--- a/spring-boot/src/main/java/org/springframework/boot/jta/narayana/NarayanaConfigurationBean.java
+++ b/spring-boot/src/main/java/org/springframework/boot/jta/narayana/NarayanaConfigurationBean.java
@@ -71,11 +71,14 @@ public class NarayanaConfigurationBean implements InitializingBean {
 	}
 
 	private void setObjectStoreDir(String objectStoreDir) {
-		getPopulator(ObjectStoreEnvironmentBean.class).setObjectStoreDir(objectStoreDir);
-		getPopulator(ObjectStoreEnvironmentBean.class, "communicationStore")
-				.setObjectStoreDir(objectStoreDir);
-		getPopulator(ObjectStoreEnvironmentBean.class, "stateStore")
-				.setObjectStoreDir(objectStoreDir);
+		if (objectStoreDir != null) {
+			getPopulator(ObjectStoreEnvironmentBean.class)
+					.setObjectStoreDir(objectStoreDir);
+			getPopulator(ObjectStoreEnvironmentBean.class, "communicationStore")
+					.setObjectStoreDir(objectStoreDir);
+			getPopulator(ObjectStoreEnvironmentBean.class, "stateStore")
+					.setObjectStoreDir(objectStoreDir);
+		}
 	}
 
 	private void setCommitOnePhase(boolean isCommitOnePhase) {
diff --git a/spring-boot/src/main/java/org/springframework/boot/jta/narayana/NarayanaProperties.java b/spring-boot/src/main/java/org/springframework/boot/jta/narayana/NarayanaProperties.java
index 730d4736cb..f0d639ef79 100644
--- a/spring-boot/src/main/java/org/springframework/boot/jta/narayana/NarayanaProperties.java
+++ b/spring-boot/src/main/java/org/springframework/boot/jta/narayana/NarayanaProperties.java
@@ -37,9 +37,9 @@ public class NarayanaProperties {
 	public static final String PROPERTIES_PREFIX = "spring.jta.narayana";
 
 	/**
-	 * Transaction object store directory. Default: target/tx-object-store.
+	 * Transaction object store directory.
 	 */
-	private String logDir = "target/tx-object-store";
+	private String logDir;
 
 	/**
 	 * Unique transaction manager id. Default: 1.
diff --git a/spring-boot/src/test/java/org/springframework/boot/jta/narayana/NarayanaConfigurationBeanTests.java b/spring-boot/src/test/java/org/springframework/boot/jta/narayana/NarayanaConfigurationBeanTests.java
index a09221f8b5..d639c9faeb 100644
--- a/spring-boot/src/test/java/org/springframework/boot/jta/narayana/NarayanaConfigurationBeanTests.java
+++ b/spring-boot/src/test/java/org/springframework/boot/jta/narayana/NarayanaConfigurationBeanTests.java
@@ -18,6 +18,7 @@ package org.springframework.boot.jta.narayana;
 
 import java.util.Arrays;
 import java.util.List;
+import java.util.Map;
 
 import com.arjuna.ats.arjuna.common.CoordinatorEnvironmentBean;
 import com.arjuna.ats.arjuna.common.CoreEnvironmentBean;
@@ -25,8 +26,11 @@ import com.arjuna.ats.arjuna.common.ObjectStoreEnvironmentBean;
 import com.arjuna.ats.arjuna.common.RecoveryEnvironmentBean;
 import com.arjuna.ats.jta.common.JTAEnvironmentBean;
 import com.arjuna.common.internal.util.propertyservice.BeanPopulator;
+import org.junit.After;
 import org.junit.Test;
 
+import org.springframework.test.util.ReflectionTestUtils;
+
 import static org.assertj.core.api.Assertions.assertThat;
 
 /**
@@ -36,6 +40,13 @@ import static org.assertj.core.api.Assertions.assertThat;
  */
 public class NarayanaConfigurationBeanTests {
 
+	@After
+	@SuppressWarnings("unchecked")
+	public void cleanup() {
+		((Map<String, Object>) ReflectionTestUtils.getField(BeanPopulator.class,
+				"beanInstances")).clear();
+	}
+
 	@Test
 	public void shouldSetDefaultProperties() throws Exception {
 		NarayanaProperties narayanaProperties = new NarayanaProperties();
@@ -46,13 +57,13 @@ public class NarayanaConfigurationBeanTests {
 		assertThat(BeanPopulator.getDefaultInstance(CoreEnvironmentBean.class)
 				.getNodeIdentifier()).isEqualTo("1");
 		assertThat(BeanPopulator.getDefaultInstance(ObjectStoreEnvironmentBean.class)
-				.getObjectStoreDir()).isEqualTo("target/tx-object-store");
+				.getObjectStoreDir()).endsWith("ObjectStore");
 		assertThat(BeanPopulator
 				.getNamedInstance(ObjectStoreEnvironmentBean.class, "communicationStore")
-				.getObjectStoreDir()).isEqualTo("target/tx-object-store");
+				.getObjectStoreDir()).endsWith("ObjectStore");
 		assertThat(BeanPopulator
 				.getNamedInstance(ObjectStoreEnvironmentBean.class, "stateStore")
-				.getObjectStoreDir()).isEqualTo("target/tx-object-store");
+				.getObjectStoreDir()).endsWith("ObjectStore");
 		assertThat(BeanPopulator.getDefaultInstance(CoordinatorEnvironmentBean.class)
 				.isCommitOnePhase()).isTrue();
 		assertThat(BeanPopulator.getDefaultInstance(CoordinatorEnvironmentBean.class)