diff --git a/spring-graphql/src/main/java/org/springframework/graphql/data/method/annotation/support/ProjectedPayloadMethodArgumentResolver.java b/spring-graphql/src/main/java/org/springframework/graphql/data/method/annotation/support/ProjectedPayloadMethodArgumentResolver.java
index 14b7d926..223347f4 100644
--- a/spring-graphql/src/main/java/org/springframework/graphql/data/method/annotation/support/ProjectedPayloadMethodArgumentResolver.java
+++ b/spring-graphql/src/main/java/org/springframework/graphql/data/method/annotation/support/ProjectedPayloadMethodArgumentResolver.java
@@ -16,6 +16,7 @@
 package org.springframework.graphql.data.method.annotation.support;
 
 
+import java.util.Map;
 import java.util.Optional;
 
 import graphql.schema.DataFetchingEnvironment;
@@ -25,6 +26,7 @@ import org.springframework.core.MethodParameter;
 import org.springframework.core.annotation.AnnotatedElementUtils;
 import org.springframework.data.projection.SpelAwareProxyProjectionFactory;
 import org.springframework.data.web.ProjectedPayload;
+import org.springframework.graphql.data.ArgumentValue;
 import org.springframework.graphql.data.method.HandlerMethodArgumentResolver;
 import org.springframework.graphql.data.method.annotation.Argument;
 import org.springframework.util.Assert;
@@ -90,20 +92,44 @@ public class ProjectedPayloadMethodArgumentResolver implements HandlerMethodArgu
 
 	@Override
 	public boolean supportsParameter(MethodParameter parameter) {
-		Class<?> type = parameter.nestedIfOptional().getNestedParameterType();
+		Class<?> type = getTargetType(parameter);
 		return (type.isInterface() && AnnotatedElementUtils.findMergedAnnotation(type, ProjectedPayload.class) != null);
 	}
 
+	private static Class<?> getTargetType(MethodParameter parameter) {
+		Class<?> type = parameter.getParameterType();
+		return (type.equals(Optional.class) || type.equals(ArgumentValue.class) ?
+				parameter.nested().getNestedParameterType() : parameter.getParameterType());
+	}
+
 	@Override
 	public Object resolveArgument(MethodParameter parameter, DataFetchingEnvironment environment) throws Exception {
 
 		String name = (parameter.hasParameterAnnotation(Argument.class) ?
 				ArgumentMethodArgumentResolver.getArgumentName(parameter) : null);
 
-		Class<?> targetType = parameter.nestedIfOptional().getNestedParameterType();
-		Object rawValue = (name != null ? environment.getArgument(name) : environment.getArguments());
-		Object value = (!parameter.isOptional() || rawValue != null ? createProjection(targetType, rawValue) : null);
-		return (parameter.isOptional() ? Optional.ofNullable(value) : value);
+		Class<?> targetType = parameter.getParameterType();
+		boolean isOptional = (targetType == Optional.class);
+		boolean isArgumentValue = (targetType == ArgumentValue.class);
+
+		if (isOptional || isArgumentValue) {
+			targetType = parameter.nested().getNestedParameterType();
+		}
+
+		Map<String, Object> arguments = environment.getArguments();
+		Object rawValue = (name != null ? arguments.get(name) : arguments);
+		Object value = (rawValue != null ? createProjection(targetType, rawValue) : null);
+
+		if (isOptional) {
+			return Optional.ofNullable(value);
+		}
+		else if (isArgumentValue) {
+			return (name != null && arguments.containsKey(name) ?
+					ArgumentValue.ofNullable(value) : ArgumentValue.omitted());
+		}
+		else {
+			return value;
+		}
 	}
 
 	/**
diff --git a/spring-graphql/src/test/java/org/springframework/graphql/data/method/annotation/support/ProjectedPayloadMethodArgumentResolverTests.java b/spring-graphql/src/test/java/org/springframework/graphql/data/method/annotation/support/ProjectedPayloadMethodArgumentResolverTests.java
index 3f243309..1554509f 100644
--- a/spring-graphql/src/test/java/org/springframework/graphql/data/method/annotation/support/ProjectedPayloadMethodArgumentResolverTests.java
+++ b/spring-graphql/src/test/java/org/springframework/graphql/data/method/annotation/support/ProjectedPayloadMethodArgumentResolverTests.java
@@ -19,13 +19,13 @@ import java.util.List;
 import java.util.Optional;
 
 import org.junit.jupiter.api.BeforeEach;
-import org.junit.jupiter.api.Disabled;
 import org.junit.jupiter.api.Test;
 
 import org.springframework.context.support.StaticApplicationContext;
 import org.springframework.core.MethodParameter;
 import org.springframework.data.web.ProjectedPayload;
 import org.springframework.graphql.Book;
+import org.springframework.graphql.data.ArgumentValue;
 import org.springframework.graphql.data.method.annotation.Argument;
 import org.springframework.graphql.data.method.annotation.QueryMapping;
 import org.springframework.stereotype.Controller;
@@ -50,11 +50,15 @@ public class ProjectedPayloadMethodArgumentResolverTests extends ArgumentResolve
 
 	@Test
 	void supports() {
-		MethodParameter param = methodParam(BookController.class, "optionalProjection", Optional.class);
-		assertThat(this.resolver.supportsParameter(param)).isTrue();
+		testSupports("projection", BookProjection.class, true);
+		testSupports("optionalProjection", Optional.class, true);
+		testSupports("optionalString", Optional.class, false);
+		testSupports("argumentValueProjection", ArgumentValue.class, true);
+	}
 
-		param = methodParam(BookController.class, "optionalString", Optional.class);
-		assertThat(this.resolver.supportsParameter(param)).isFalse();
+	void testSupports(String methodName, Class<?> methodParamType, boolean supported) {
+		MethodParameter param = methodParam(BookController.class, methodName, methodParamType);
+		assertThat(this.resolver.supportsParameter(param)).isEqualTo(supported);
 	}
 
 	@Test
@@ -81,7 +85,44 @@ public class ProjectedPayloadMethodArgumentResolverTests extends ArgumentResolve
 	}
 
 	@Test
-	@Disabled // pending decision under gh-550
+	void argumentValuePresent() throws Exception {
+
+		Object result = this.resolver.resolveArgument(
+				methodParam(BookController.class, "argumentValueProjection", ArgumentValue.class),
+				environment("{ \"where\" : { \"author\" : \"Orwell\" }}"));
+
+		assertThat(result).isNotNull().isInstanceOf(ArgumentValue.class);
+		BookProjection book = ((ArgumentValue<BookProjection>) result).value();
+		assertThat(book.getAuthor()).isEqualTo("Orwell");
+	}
+
+	@Test
+	void argumentValueSetToNull() throws Exception {
+
+		Object result = this.resolver.resolveArgument(
+				methodParam(BookController.class, "argumentValueProjection", ArgumentValue.class),
+				environment("{ \"where\" : null}"));
+
+		assertThat(result).isNotNull().isInstanceOf(ArgumentValue.class);
+		ArgumentValue<BookProjection> value = ((ArgumentValue<BookProjection>) result);
+		assertThat(value.isPresent()).isFalse();
+		assertThat(value.isOmitted()).isFalse();
+	}
+
+	@Test
+	void argumentValueIsOmitted() throws Exception {
+
+		Object result = this.resolver.resolveArgument(
+				methodParam(BookController.class, "argumentValueProjection", ArgumentValue.class),
+				environment("{}"));
+
+		assertThat(result).isNotNull().isInstanceOf(ArgumentValue.class);
+		ArgumentValue<BookProjection> value = ((ArgumentValue<BookProjection>) result);
+		assertThat(value.isPresent()).isFalse();
+		assertThat(value.isOmitted()).isTrue();
+	}
+
+	@Test // gh-550
 	void nullValue() throws Exception {
 
 		Object result = this.resolver.resolveArgument(
@@ -110,6 +151,11 @@ public class ProjectedPayloadMethodArgumentResolverTests extends ArgumentResolve
 		public void optionalString(@Argument Optional<String> projection) {
 		}
 
+		@QueryMapping
+		public List<Book> argumentValueProjection(@Argument(name = "where") ArgumentValue<BookProjection> projection) {
+			return null;
+		}
+
 	}