diff --git a/spring-cloud-config-server/src/main/java/org/springframework/cloud/config/server/environment/NativeEnvironmentRepository.java b/spring-cloud-config-server/src/main/java/org/springframework/cloud/config/server/environment/NativeEnvironmentRepository.java
index 50760546..ff595aec 100644
--- a/spring-cloud-config-server/src/main/java/org/springframework/cloud/config/server/environment/NativeEnvironmentRepository.java
+++ b/spring-cloud-config-server/src/main/java/org/springframework/cloud/config/server/environment/NativeEnvironmentRepository.java
@@ -225,7 +225,7 @@ public class NativeEnvironmentRepository implements EnvironmentRepository, Searc
 		Map<String, Object> map = new HashMap<>();
 		map.put("spring.profiles.active", profile);
 		String config = application;
-		if (!config.startsWith("application")) {
+		if (!config.equals("application")) {
 			config = "application," + config;
 		}
 		map.put("spring.config.name", config);
diff --git a/spring-cloud-config-server/src/test/java/org/springframework/cloud/config/server/environment/NativeEnvironmentRepositoryTests.java b/spring-cloud-config-server/src/test/java/org/springframework/cloud/config/server/environment/NativeEnvironmentRepositoryTests.java
index 1534347a..f70155ca 100644
--- a/spring-cloud-config-server/src/test/java/org/springframework/cloud/config/server/environment/NativeEnvironmentRepositoryTests.java
+++ b/spring-cloud-config-server/src/test/java/org/springframework/cloud/config/server/environment/NativeEnvironmentRepositoryTests.java
@@ -193,6 +193,15 @@ public class NativeEnvironmentRepositoryTests {
 		assertThat(environment.getPropertySources().get(0).getSource().get("foo")).isEqualTo("app");
 	}
 
+	@Test
+	public void placeholdersApplicationWithPrefixAndProfile() {
+		this.repository.setSearchLocations("classpath:/test/{profile}/{application}/");
+		// gh-2259 application name starts with "application"
+		Environment environment = this.repository.findOne("applicationxyz", "dev", "master");
+		assertThat(environment.getPropertySources().size()).isEqualTo(1);
+		assertThat(environment.getPropertySources().get(0).getSource().get("foo")).isEqualTo("default-app");
+	}
+
 	@Test
 	public void locationPlaceholdersApplication() {
 		this.repository.setSearchLocations("classpath:/test/{application}");
diff --git a/spring-cloud-config-server/src/test/resources/test/dev/applicationxyz/application.properties b/spring-cloud-config-server/src/test/resources/test/dev/applicationxyz/application.properties
new file mode 100644
index 00000000..558a6c48
--- /dev/null
+++ b/spring-cloud-config-server/src/test/resources/test/dev/applicationxyz/application.properties
@@ -0,0 +1 @@
+foo:default-app