diff --git a/spring-cloud-context/src/main/java/org/springframework/cloud/bootstrap/encrypt/EnvironmentDecryptApplicationInitializer.java b/spring-cloud-context/src/main/java/org/springframework/cloud/bootstrap/encrypt/EnvironmentDecryptApplicationInitializer.java
index 179b3a8a..355c661b 100644
--- a/spring-cloud-context/src/main/java/org/springframework/cloud/bootstrap/encrypt/EnvironmentDecryptApplicationInitializer.java
+++ b/spring-cloud-context/src/main/java/org/springframework/cloud/bootstrap/encrypt/EnvironmentDecryptApplicationInitializer.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2013-2014 the original author or authors.
+ * Copyright 2013-2017 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -129,8 +129,8 @@ public class EnvironmentDecryptApplicationInitializer implements
 				ConfigurableEnvironment mutable = (ConfigurableEnvironment) parent
 						.getEnvironment();
 				insert(mutable.getPropertySources(), propertySource);
-				parent = parent.getParent();
 			}
+			parent = parent.getParent();
 		}
 	}
 
@@ -237,9 +237,4 @@ public class EnvironmentDecryptApplicationInitializer implements
 
 	}
 
-	class DecryptResult {
-		Map<String, Object> properties = new LinkedHashMap<>();
-		boolean hasEncryptedProperties = false;
-	}
-
 }
diff --git a/spring-cloud-context/src/test/java/org/springframework/cloud/bootstrap/encrypt/EnvironmentDecryptApplicationInitializerTests.java b/spring-cloud-context/src/test/java/org/springframework/cloud/bootstrap/encrypt/EnvironmentDecryptApplicationInitializerTests.java
index 81522c3c..57de4319 100644
--- a/spring-cloud-context/src/test/java/org/springframework/cloud/bootstrap/encrypt/EnvironmentDecryptApplicationInitializerTests.java
+++ b/spring-cloud-context/src/test/java/org/springframework/cloud/bootstrap/encrypt/EnvironmentDecryptApplicationInitializerTests.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2013-2014 the original author or authors.
+ * Copyright 2013-2017 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -15,26 +15,30 @@
  */
 package org.springframework.cloud.bootstrap.encrypt;
 
-import java.util.Collections;
-import java.util.Map;
-
 import org.junit.Test;
+import org.springframework.context.ApplicationContext;
 import org.springframework.context.ConfigurableApplicationContext;
 import org.springframework.context.annotation.AnnotationConfigApplicationContext;
+import org.springframework.core.env.Environment;
 import org.springframework.core.env.MapPropertySource;
 import org.springframework.core.env.MutablePropertySources;
 import org.springframework.core.env.PropertySource;
 import org.springframework.security.crypto.encrypt.Encryptors;
 
+import java.util.Collections;
+import java.util.Map;
+
 import static org.hamcrest.Matchers.is;
 import static org.junit.Assert.assertEquals;
 import static org.junit.Assert.assertThat;
+import static org.mockito.Mockito.mock;
+import static org.mockito.Mockito.when;
 import static org.springframework.boot.test.util.EnvironmentTestUtils.addEnvironment;
 import static org.springframework.cloud.bootstrap.encrypt.EnvironmentDecryptApplicationInitializer.DECRYPTED_PROPERTY_SOURCE_NAME;
 
 /**
  * @author Dave Syer
- *
+ * @author Biju Kunjummen
  */
 public class EnvironmentDecryptApplicationInitializerTests {
 
@@ -115,4 +119,23 @@ public class EnvironmentDecryptApplicationInitializerTests {
 		assertThat("decrypted property source had wrong size", decrypted.getSource().size(), is(4));
 	}
 
+	@Test
+	public void testDecryptNonStandardParent() {
+		ConfigurableApplicationContext ctx = new AnnotationConfigApplicationContext();
+		EnvironmentDecryptApplicationInitializer initializer =
+				new EnvironmentDecryptApplicationInitializer(Encryptors.noOpText());
+
+		addEnvironment(ctx, "key:{cipher}value");
+
+
+		ApplicationContext ctxParent = mock(ApplicationContext.class);
+		when(ctxParent.getEnvironment()).thenReturn(mock(Environment.class));
+
+		ctx.setParent(ctxParent);
+
+		initializer.initialize(ctx);
+
+		assertEquals("value", ctx.getEnvironment().getProperty("key"));
+	}
+
 }