diff --git a/spring-boot/src/main/java/org/springframework/boot/bind/PropertiesConfigurationFactory.java b/spring-boot/src/main/java/org/springframework/boot/bind/PropertiesConfigurationFactory.java
index cb41a2268b8..8a160634bec 100644
--- a/spring-boot/src/main/java/org/springframework/boot/bind/PropertiesConfigurationFactory.java
+++ b/spring-boot/src/main/java/org/springframework/boot/bind/PropertiesConfigurationFactory.java
@@ -86,6 +86,8 @@ public class PropertiesConfigurationFactory<T>
 
 	private ConversionService conversionService;
 
+	private boolean resolvePlaceholders = true;
+
 	/**
 	 * Create a new {@link PropertiesConfigurationFactory} instance.
 	 * @param target the target object to bind too
@@ -203,6 +205,16 @@ public class PropertiesConfigurationFactory<T>
 		this.exceptionIfInvalid = exceptionIfInvalid;
 	}
 
+	/**
+	 * Flag to indicate that placeholders should be replaced during binding. Default is
+	 * true.
+	 *
+	 * @param resolvePlaceholders flag value
+	 */
+	public void setResolvePlaceholders(boolean resolvePlaceholders) {
+		this.resolvePlaceholders = resolvePlaceholders;
+	}
+
 	@Override
 	public void afterPropertiesSet() throws Exception {
 		bindPropertiesToTarget();
@@ -322,7 +334,8 @@ public class PropertiesConfigurationFactory<T>
 			Iterable<String> relaxedTargetNames) {
 		PropertyNamePatternsMatcher includes = getPropertyNamePatternsMatcher(names,
 				relaxedTargetNames);
-		return new PropertySourcesPropertyValues(this.propertySources, names, includes);
+		return new PropertySourcesPropertyValues(this.propertySources, names, includes,
+				this.resolvePlaceholders);
 	}
 
 	private PropertyNamePatternsMatcher getPropertyNamePatternsMatcher(Set<String> names,
diff --git a/spring-boot/src/main/java/org/springframework/boot/bind/PropertySourcesPropertyValues.java b/spring-boot/src/main/java/org/springframework/boot/bind/PropertySourcesPropertyValues.java
index 132ba8bd2d2..b385233f023 100644
--- a/spring-boot/src/main/java/org/springframework/boot/bind/PropertySourcesPropertyValues.java
+++ b/spring-boot/src/main/java/org/springframework/boot/bind/PropertySourcesPropertyValues.java
@@ -56,12 +56,15 @@ public class PropertySourcesPropertyValues implements PropertyValues {
 
 	private final ConcurrentHashMap<String, PropertySource<?>> collectionOwners = new ConcurrentHashMap<String, PropertySource<?>>();
 
+	private boolean resolvePlaceholders = true;
+
 	/**
 	 * Create a new PropertyValues from the given PropertySources.
 	 * @param propertySources a PropertySources instance
 	 */
 	public PropertySourcesPropertyValues(PropertySources propertySources) {
-		this(propertySources, (Collection<String>) null, PropertyNamePatternsMatcher.ALL);
+		this(propertySources, (Collection<String>) null, PropertyNamePatternsMatcher.ALL,
+				true);
 	}
 
 	/**
@@ -76,7 +79,7 @@ public class PropertySourcesPropertyValues implements PropertyValues {
 			Collection<String> includePatterns,
 			Collection<String> nonEnumerableFallbackNames) {
 		this(propertySources, nonEnumerableFallbackNames,
-				new PatternPropertyNamePatternsMatcher(includePatterns));
+				new PatternPropertyNamePatternsMatcher(includePatterns), true);
 	}
 
 	/**
@@ -85,15 +88,17 @@ public class PropertySourcesPropertyValues implements PropertyValues {
 	 * @param nonEnumerableFallbackNames the property names to try in lieu of an
 	 * {@link EnumerablePropertySource}.
 	 * @param includes the property name patterns to include
+	 * @param resolvePlaceholders flag to indicate the placeholders should be resolved
 	 */
 	PropertySourcesPropertyValues(PropertySources propertySources,
 			Collection<String> nonEnumerableFallbackNames,
-			PropertyNamePatternsMatcher includes) {
+			PropertyNamePatternsMatcher includes, boolean resolvePlaceholders) {
 		Assert.notNull(propertySources, "PropertySources must not be null");
 		Assert.notNull(includes, "Includes must not be null");
 		this.propertySources = propertySources;
 		this.nonEnumerableFallbackNames = nonEnumerableFallbackNames;
 		this.includes = includes;
+		this.resolvePlaceholders = resolvePlaceholders;
 		PropertySourcesPropertyResolver resolver = new PropertySourcesPropertyResolver(
 				propertySources);
 		for (PropertySource<?> source : propertySources) {
@@ -101,6 +106,16 @@ public class PropertySourcesPropertyValues implements PropertyValues {
 		}
 	}
 
+	/**
+	 * Flag to indicate that placeholders should be replaced during binding. Default is
+	 * true.
+	 *
+	 * @param resolvePlaceholders flag value
+	 */
+	public void setResolvePlaceholders(boolean resolvePlaceholders) {
+		this.resolvePlaceholders = resolvePlaceholders;
+	}
+
 	private void processPropertySource(PropertySource<?> source,
 			PropertySourcesPropertyResolver resolver) {
 		if (source instanceof CompositePropertySource) {
@@ -138,12 +153,14 @@ public class PropertySourcesPropertyValues implements PropertyValues {
 	private Object getEnumerableProperty(EnumerablePropertySource<?> source,
 			PropertySourcesPropertyResolver resolver, String propertyName) {
 		try {
-			return resolver.getProperty(propertyName, Object.class);
+			if (this.resolvePlaceholders) {
+				return resolver.getProperty(propertyName, Object.class);
+			}
 		}
 		catch (RuntimeException ex) {
 			// Probably could not resolve placeholders, ignore it here
-			return source.getProperty(propertyName);
 		}
+		return source.getProperty(propertyName);
 	}
 
 	private void processNonEnumerablePropertySource(PropertySource<?> source,
diff --git a/spring-boot/src/test/java/org/springframework/boot/bind/PropertiesConfigurationFactoryTests.java b/spring-boot/src/test/java/org/springframework/boot/bind/PropertiesConfigurationFactoryTests.java
index ac999c4acae..9a669cec6a3 100644
--- a/spring-boot/src/test/java/org/springframework/boot/bind/PropertiesConfigurationFactoryTests.java
+++ b/spring-boot/src/test/java/org/springframework/boot/bind/PropertiesConfigurationFactoryTests.java
@@ -105,6 +105,35 @@ public class PropertiesConfigurationFactoryTests {
 		assertThat(foo.name).isEqualTo("bar");
 	}
 
+	@Test
+	public void systemEnvironmentBindingWithDefaults() throws Exception {
+		setupFactory();
+		MutablePropertySources propertySources = new MutablePropertySources();
+		MockPropertySource propertySource = new MockPropertySource(
+				StandardEnvironment.SYSTEM_ENVIRONMENT_PROPERTY_SOURCE_NAME);
+		propertySource.setProperty("name", "${foo.name:bar}");
+		propertySources.addFirst(propertySource);
+		this.factory.setPropertySources(propertySources);
+		this.factory.afterPropertiesSet();
+		Foo foo = this.factory.getObject();
+		assertThat(foo.name).isEqualTo("bar");
+	}
+
+	@Test
+	public void systemEnvironmentNoResolvePlaceholders() throws Exception {
+		setupFactory();
+		MutablePropertySources propertySources = new MutablePropertySources();
+		MockPropertySource propertySource = new MockPropertySource(
+				StandardEnvironment.SYSTEM_ENVIRONMENT_PROPERTY_SOURCE_NAME);
+		propertySource.setProperty("name", "${foo.name:bar}");
+		propertySources.addFirst(propertySource);
+		this.factory.setPropertySources(propertySources);
+		this.factory.setResolvePlaceholders(false);
+		this.factory.afterPropertiesSet();
+		Foo foo = this.factory.getObject();
+		assertThat(foo.name).isEqualTo("${foo.name:bar}");
+	}
+
 	@Test
 	public void systemPropertyBindingFailuresAreIgnored() throws Exception {
 		setupFactory();