diff --git a/spring-data-rest-webmvc/src/main/java/org/springframework/data/rest/webmvc/ResourceProcessorHandlerMethodReturnValueHandler.java b/spring-data-rest-webmvc/src/main/java/org/springframework/data/rest/webmvc/ResourceProcessorHandlerMethodReturnValueHandler.java
index 58f07640b..5aa9e8865 100644
--- a/spring-data-rest-webmvc/src/main/java/org/springframework/data/rest/webmvc/ResourceProcessorHandlerMethodReturnValueHandler.java
+++ b/spring-data-rest-webmvc/src/main/java/org/springframework/data/rest/webmvc/ResourceProcessorHandlerMethodReturnValueHandler.java
@@ -85,8 +85,7 @@ public class ResourceProcessorHandlerMethodReturnValueHandler implements Handler
 		for (ResourceProcessor<?> processor : processors) {
 
 			ResolvableType processorType = ResolvableType.forClass(ResourceProcessor.class, processor.getClass());
-			ResolvableType componentType = processorType.getGeneric(0);
-			Class<?> rawType = getRawType(componentType);
+			Class<?> rawType = processorType.getGeneric(0).resolve();
 
 			if (Resource.class.isAssignableFrom(rawType)) {
 				this.processors.add(new ResourceProcessorWrapper(processor));
diff --git a/spring-data-rest-webmvc/src/test/java/org/springframework/data/rest/webmvc/ResourceProcessorHandlerMethodReturnValueHandlerUnitTests.java b/spring-data-rest-webmvc/src/test/java/org/springframework/data/rest/webmvc/ResourceProcessorHandlerMethodReturnValueHandlerUnitTests.java
index 533a015dc..218d6486b 100644
--- a/spring-data-rest-webmvc/src/test/java/org/springframework/data/rest/webmvc/ResourceProcessorHandlerMethodReturnValueHandlerUnitTests.java
+++ b/spring-data-rest-webmvc/src/test/java/org/springframework/data/rest/webmvc/ResourceProcessorHandlerMethodReturnValueHandlerUnitTests.java
@@ -36,6 +36,7 @@ import org.junit.runner.RunWith;
 import org.mockito.Mock;
 import org.mockito.Mockito;
 import org.mockito.runners.MockitoJUnitRunner;
+import org.springframework.aop.framework.ProxyFactory;
 import org.springframework.core.MethodParameter;
 import org.springframework.core.ResolvableType;
 import org.springframework.data.projection.ProjectionFactory;
@@ -283,6 +284,20 @@ public class ResourceProcessorHandlerMethodReturnValueHandlerUnitTests {
 		assertThat(wrapper.supports(type, value), is(false));
 	}
 
+	/**
+	 * @see DATAREST-702
+	 */
+	@Test
+	public void registersProcessorForProxyType() {
+
+		ProjectionProcessor processor = new ProjectionProcessor();
+		ProxyFactory factory = new ProxyFactory(processor);
+
+		resourceProcessors.add((ResourceProcessor<?>) factory.getProxy());
+
+		new ResourceProcessorHandlerMethodReturnValueHandler(delegate, resourceProcessors);
+	}
+
 	// Helpers ---------------------------------------------------------//
 	private void invokeReturnValueHandler(String method, final Matcher<?> matcher, Object returnValue) throws Exception {
 		final MethodParameter methodParam = METHOD_PARAMS.get(method);