diff --git a/spring-cloud-stream-schema-server/src/main/java/org/springframework/cloud/stream/schema/server/config/SchemaServerConfiguration.java b/spring-cloud-stream-schema-server/src/main/java/org/springframework/cloud/stream/schema/server/config/SchemaServerConfiguration.java
index 78912590c..93c11ecf8 100644
--- a/spring-cloud-stream-schema-server/src/main/java/org/springframework/cloud/stream/schema/server/config/SchemaServerConfiguration.java
+++ b/spring-cloud-stream-schema-server/src/main/java/org/springframework/cloud/stream/schema/server/config/SchemaServerConfiguration.java
@@ -16,11 +16,18 @@
 
 package org.springframework.cloud.stream.schema.server.config;
 
+import java.util.Collections;
 import java.util.HashMap;
 import java.util.Map;
 
+import org.springframework.beans.BeansException;
+import org.springframework.beans.factory.config.BeanFactoryPostProcessor;
+import org.springframework.beans.factory.config.ConfigurableListableBeanFactory;
+import org.springframework.beans.factory.support.BeanDefinitionRegistry;
+import org.springframework.boot.autoconfigure.domain.EntityScanPackages;
 import org.springframework.boot.context.properties.EnableConfigurationProperties;
 import org.springframework.cloud.stream.schema.server.controllers.ServerController;
+import org.springframework.cloud.stream.schema.server.model.Schema;
 import org.springframework.cloud.stream.schema.server.repository.SchemaRepository;
 import org.springframework.cloud.stream.schema.server.support.AvroSchemaValidator;
 import org.springframework.cloud.stream.schema.server.support.SchemaValidator;
@@ -47,4 +54,19 @@ public class SchemaServerConfiguration {
 		validatorMap.put("avro", new AvroSchemaValidator());
 		return validatorMap;
 	}
+
+	@Bean
+	public static BeanFactoryPostProcessor entityScanPackagesPostProcessor() {
+		return new BeanFactoryPostProcessor() {
+
+			@Override
+			public void postProcessBeanFactory(ConfigurableListableBeanFactory beanFactory) throws
+					BeansException {
+				if (beanFactory instanceof BeanDefinitionRegistry) {
+					EntityScanPackages.register((BeanDefinitionRegistry) beanFactory, Collections.singletonList(Schema.class.getPackage().getName()));
+				}
+			}
+		};
+	}
+
 }
diff --git a/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/EntityScanningTests.java b/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/EntityScanningTests.java
new file mode 100644
index 000000000..dba2b38ac
--- /dev/null
+++ b/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/EntityScanningTests.java
@@ -0,0 +1,41 @@
+/*
+ * Copyright 2016 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.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.springframework.cloud.stream.schema.server.entityScanning;
+
+import org.junit.Test;
+
+import org.springframework.boot.SpringApplication;
+import org.springframework.boot.autoconfigure.EnableAutoConfiguration;
+import org.springframework.cloud.stream.schema.server.EnableSchemaRegistryServer;
+import org.springframework.context.ConfigurableApplicationContext;
+
+/**
+ * @author Marius Bogoevici
+ */
+public class EntityScanningTests {
+
+	@Test
+	public void testApplicationWithEmbeddedSchemaRegistryServerOutsideOfRootPackage() throws Exception {
+		final ConfigurableApplicationContext context = SpringApplication.run(CustomApplicationEmbeddingSchemaServer.class, "--server.port=0");
+		context.close();
+	}
+
+	@EnableAutoConfiguration
+	@EnableSchemaRegistryServer
+	public static class CustomApplicationEmbeddingSchemaServer {
+	}
+}
diff --git a/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/EntityScanningTestsWithEntityScan.java b/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/EntityScanningTestsWithEntityScan.java
new file mode 100644
index 000000000..69264024f
--- /dev/null
+++ b/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/EntityScanningTestsWithEntityScan.java
@@ -0,0 +1,43 @@
+/*
+ * Copyright 2016 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.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.springframework.cloud.stream.schema.server.entityScanning;
+
+import org.junit.Test;
+
+import org.springframework.boot.SpringApplication;
+import org.springframework.boot.autoconfigure.EnableAutoConfiguration;
+import org.springframework.boot.autoconfigure.domain.EntityScan;
+import org.springframework.cloud.stream.schema.server.EnableSchemaRegistryServer;
+import org.springframework.context.ConfigurableApplicationContext;
+
+/**
+ * @author Marius Bogoevici
+ */
+public class EntityScanningTestsWithEntityScan {
+
+	@Test
+	public void testApplicationWithEmbeddedSchemaRegistryServerOutsideOfRootPackage() throws Exception {
+		final ConfigurableApplicationContext context = SpringApplication.run(CustomApplicationEmbeddingSchemaServer.class, "--server.port=0");
+		context.close();
+	}
+
+	@EnableAutoConfiguration
+	@EnableSchemaRegistryServer
+	@EntityScan(basePackages = "org.springframework.cloud.stream.schema.server.entityScanning.domain")
+	public static class CustomApplicationEmbeddingSchemaServer {
+	}
+}
diff --git a/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/domain/TestEntity.java b/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/domain/TestEntity.java
new file mode 100644
index 000000000..bfdad1702
--- /dev/null
+++ b/spring-cloud-stream-schema-server/src/test/java/org/springframework/cloud/stream/schema/server/entityScanning/domain/TestEntity.java
@@ -0,0 +1,50 @@
+/*
+ * Copyright 2016 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.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.springframework.cloud.stream.schema.server.entityScanning.domain;
+
+import javax.persistence.Column;
+import javax.persistence.Entity;
+import javax.persistence.Id;
+
+/**
+ * @author Marius Bogoevici
+ */
+@Entity
+public class TestEntity {
+
+	@Id
+	private long id;
+
+	@Column(name = "name")
+	private String name;
+
+	public long getId() {
+		return id;
+	}
+
+	public void setId(long id) {
+		this.id = id;
+	}
+
+	public String getName() {
+		return name;
+	}
+
+	public void setName(String name) {
+		this.name = name;
+	}
+}