diff --git a/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/MappingInfrastructureFactoryBean.java b/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/MappingInfrastructureFactoryBean.java
index 7d8f33b78..6cfb62ef2 100644
--- a/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/MappingInfrastructureFactoryBean.java
+++ b/spring-data-neo4j/src/main/java/org/springframework/data/neo4j/support/MappingInfrastructureFactoryBean.java
@@ -108,6 +108,9 @@ public class MappingInfrastructureFactoryBean implements FactoryBean<Infrastruct
         if (this.conversionService==null) {
             this.conversionService=new Neo4jConversionServiceFactoryBean().getObject();
         }
+        if (entityStateHandler == null) {
+            entityStateHandler = new EntityStateHandler(mappingContext,graphDatabase);
+        }
         if (nodeEntityInstantiator == null) {
             nodeEntityInstantiator = new NodeEntityInstantiator(entityStateHandler);
         }
diff --git a/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/template/Neo4jTemplateApiTest.java b/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/template/Neo4jTemplateApiTest.java
index e20775d57..953b4f628 100644
--- a/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/template/Neo4jTemplateApiTest.java
+++ b/spring-data-neo4j/src/test/java/org/springframework/data/neo4j/template/Neo4jTemplateApiTest.java
@@ -28,11 +28,13 @@ import org.neo4j.test.ImpermanentGraphDatabase;
 import org.springframework.dao.DataAccessException;
 import org.springframework.data.neo4j.conversion.ResultConverter;
 import org.springframework.data.neo4j.core.GraphDatabase;
+import org.springframework.data.neo4j.model.Person;
 import org.springframework.data.neo4j.support.DelegatingGraphDatabase;
 import org.springframework.data.neo4j.support.Neo4jTemplate;
 import org.springframework.data.neo4j.support.index.IndexType;
 import org.springframework.transaction.PlatformTransactionManager;
 import org.springframework.transaction.TransactionStatus;
+import org.springframework.transaction.annotation.Transactional;
 import org.springframework.transaction.jta.JtaTransactionManager;
 import org.springframework.transaction.support.TransactionCallbackWithoutResult;
 import org.springframework.transaction.support.TransactionTemplate;
@@ -89,6 +91,14 @@ public class Neo4jTemplateApiTest {
         assertNotNull(node.getProperty("name"));
     }
 
+    @Test
+    public void testInstantiateEntity() throws Exception {
+        Neo4jTemplate template = new Neo4jTemplate(graphDatabase,transactionManager);
+        Transaction tx = template.beginTx();
+        Person michael = template.save(new Person("Michael", 37));
+        assertNotNull(michael.getId());
+    }
+
     protected PlatformTransactionManager createTransactionManager() {
         return new JtaTransactionManager(new SpringTransactionManager(graphDatabaseService));
     }