diff --git a/src/main/java/org/springframework/data/gemfire/client/ClientRegionFactoryBean.java b/src/main/java/org/springframework/data/gemfire/client/ClientRegionFactoryBean.java
index c1a0a2c9..362add1b 100644
--- a/src/main/java/org/springframework/data/gemfire/client/ClientRegionFactoryBean.java
+++ b/src/main/java/org/springframework/data/gemfire/client/ClientRegionFactoryBean.java
@@ -90,6 +90,8 @@ public class ClientRegionFactoryBean<K, V> extends RegionLookupFactoryBean<K, V>
 				}
 			}
 			s = ClientRegionShortcut.LOCAL;
+		} else {
+			s = shortcut;
 		}
 
 		ClientRegionFactory<K, V> factory = c.createClientRegionFactory(s);
diff --git a/src/test/java/org/springframework/data/gemfire/client/ClientRegionFactoryBeanTest.java b/src/test/java/org/springframework/data/gemfire/client/ClientRegionFactoryBeanTest.java
new file mode 100644
index 00000000..5c69a6b6
--- /dev/null
+++ b/src/test/java/org/springframework/data/gemfire/client/ClientRegionFactoryBeanTest.java
@@ -0,0 +1,40 @@
+package org.springframework.data.gemfire.client;
+
+import static org.junit.Assert.assertSame;
+
+import org.junit.Test;
+import org.mockito.Mockito;
+
+import com.gemstone.gemfire.cache.Region;
+import com.gemstone.gemfire.cache.client.ClientCache;
+import com.gemstone.gemfire.cache.client.ClientRegionFactory;
+import com.gemstone.gemfire.cache.client.ClientRegionShortcut;
+
+public class ClientRegionFactoryBeanTest {
+
+	@Test
+	public void testLookupFallbackFailingToUseProvidedShortcut()
+			throws Exception {
+		ClientRegionFactoryBean<Object, Object> fb = new ClientRegionFactoryBean<Object, Object>();
+		fb.setShortcut(ClientRegionShortcut.CACHING_PROXY);
+
+		String regionName = "regionName";
+		ClientCache cache = Mockito.mock(ClientCache.class);
+
+		@SuppressWarnings("unchecked")
+		ClientRegionFactory<Object, Object> factory = Mockito
+				.mock(ClientRegionFactory.class);
+		Mockito.when(
+				cache.createClientRegionFactory(ClientRegionShortcut.CACHING_PROXY))
+				.thenReturn(factory);
+
+		@SuppressWarnings("unchecked")
+		Region<Object, Object> region = Mockito.mock(Region.class);
+		Mockito.when(factory.create(regionName)).thenReturn(region);
+
+		Region<Object, Object> result = fb.lookupFallback(cache, regionName);
+
+		assertSame(region, result);
+	}
+
+}