diff --git a/org.springframework.integration-tests/src/test/java/org/springframework/transaction/annotation/EnableTransactionManagementIntegrationTests.java b/org.springframework.integration-tests/src/test/java/org/springframework/transaction/annotation/EnableTransactionManagementIntegrationTests.java
index e5e59cdee57..1cb515423f6 100644
--- a/org.springframework.integration-tests/src/test/java/org/springframework/transaction/annotation/EnableTransactionManagementIntegrationTests.java
+++ b/org.springframework.integration-tests/src/test/java/org/springframework/transaction/annotation/EnableTransactionManagementIntegrationTests.java
@@ -22,6 +22,7 @@ import static org.junit.Assert.assertThat;
 import static org.junit.Assert.assertTrue;
 import static org.junit.Assert.fail;
 
+import java.util.ArrayList;
 import java.util.Collections;
 import java.util.List;
 
@@ -32,9 +33,14 @@ import org.junit.Test;
 import org.springframework.aop.Advisor;
 import org.springframework.aop.framework.Advised;
 import org.springframework.aop.support.AopUtils;
+import org.springframework.cache.Cache;
+import org.springframework.cache.CacheManager;
+import org.springframework.cache.concurrent.ConcurrentMapCache;
+import org.springframework.cache.support.SimpleCacheManager;
 import org.springframework.context.annotation.AnnotationConfigApplicationContext;
 import org.springframework.context.annotation.Bean;
 import org.springframework.context.annotation.Configuration;
+import org.springframework.context.annotation.ImportResource;
 import org.springframework.context.config.AdviceMode;
 import org.springframework.jdbc.datasource.DataSourceTransactionManager;
 import org.springframework.jdbc.datasource.embedded.EmbeddedDatabaseBuilder;
@@ -152,6 +158,38 @@ public class EnableTransactionManagementIntegrationTests {
 		assertThat(txManager2.rollbacks, equalTo(0));
 	}
 
+	@Test
+	public void apcEscalation() {
+		AnnotationConfigApplicationContext ctx = new AnnotationConfigApplicationContext();
+		ctx.register(EnableTxAndCachingConfig.class);
+		ctx.refresh();
+	}
+
+
+	@Configuration
+	@EnableTransactionManagement
+	@ImportResource("org/springframework/transaction/annotation/enable-caching.xml")
+	static class EnableTxAndCachingConfig {
+		@Bean
+		public PlatformTransactionManager txManager() {
+			return new CallCountingTransactionManager();
+		}
+
+		@Bean
+		public FooRepository fooRepository() {
+			return new DummyFooRepository();
+		}
+	
+		@Bean
+		public CacheManager cacheManager() {
+			SimpleCacheManager mgr = new SimpleCacheManager();
+			ArrayList<Cache> caches = new ArrayList<Cache>();
+			caches.add(new ConcurrentMapCache());
+			mgr.setCaches(caches);
+			return mgr;
+		}
+	}
+
 
 	@Configuration
 	@EnableTransactionManagement
diff --git a/org.springframework.integration-tests/src/test/resources/org/springframework/transaction/annotation/enable-caching.xml b/org.springframework.integration-tests/src/test/resources/org/springframework/transaction/annotation/enable-caching.xml
new file mode 100644
index 00000000000..efc9ec29f30
--- /dev/null
+++ b/org.springframework.integration-tests/src/test/resources/org/springframework/transaction/annotation/enable-caching.xml
@@ -0,0 +1,10 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans xmlns="http://www.springframework.org/schema/beans"
+	xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xmlns:cache="http://www.springframework.org/schema/cache"
+	xsi:schemaLocation="http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans.xsd
+		http://www.springframework.org/schema/cache http://www.springframework.org/schema/cache/spring-cache.xsd">
+
+	<cache:annotation-driven/>
+
+</beans>
diff --git a/org.springframework.transaction/src/main/java/org/springframework/transaction/annotation/ProxyTransactionManagementConfiguration.java b/org.springframework.transaction/src/main/java/org/springframework/transaction/annotation/ProxyTransactionManagementConfiguration.java
index 2dca350475b..74d5f583526 100644
--- a/org.springframework.transaction/src/main/java/org/springframework/transaction/annotation/ProxyTransactionManagementConfiguration.java
+++ b/org.springframework.transaction/src/main/java/org/springframework/transaction/annotation/ProxyTransactionManagementConfiguration.java
@@ -16,9 +16,12 @@
 
 package org.springframework.transaction.annotation;
 
+import javax.annotation.PostConstruct;
+
 import org.springframework.aop.config.AopConfigUtils;
-import org.springframework.aop.framework.autoproxy.InfrastructureAdvisorAutoProxyCreator;
+import org.springframework.beans.factory.annotation.Autowired;
 import org.springframework.beans.factory.config.BeanDefinition;
+import org.springframework.beans.factory.support.DefaultListableBeanFactory;
 import org.springframework.context.annotation.Bean;
 import org.springframework.context.annotation.Configuration;
 import org.springframework.context.annotation.Role;
@@ -39,6 +42,17 @@ import org.springframework.transaction.interceptor.TransactionInterceptor;
 @Configuration
 public class ProxyTransactionManagementConfiguration extends AbstractTransactionManagementConfiguration {
 
+	@Autowired
+	private DefaultListableBeanFactory registry;
+
+	@PostConstruct
+	public void registerAutoProxyCreator() {
+		AopConfigUtils.registerAutoProxyCreatorIfNecessary(registry);
+		if ((Boolean)enableTx.get("proxyTargetClass")) {
+			AopConfigUtils.forceAutoProxyCreatorToUseClassProxying(registry);
+		}
+	}
+
 	@Bean(name=TransactionManagementConfigUtils.TRANSACTION_ADVISOR_BEAN_NAME)
 	@Role(BeanDefinition.ROLE_INFRASTRUCTURE)
 	public BeanFactoryTransactionAttributeSourceAdvisor transactionAdvisor() {
@@ -67,12 +81,4 @@ public class ProxyTransactionManagementConfiguration extends AbstractTransaction
 		return interceptor;
 	}
 
-	// TODO: deal with escalation of APCs
-	@Bean(name=AopConfigUtils.AUTO_PROXY_CREATOR_BEAN_NAME)
-	@Role(BeanDefinition.ROLE_INFRASTRUCTURE)
-	public InfrastructureAdvisorAutoProxyCreator apc() {
-		InfrastructureAdvisorAutoProxyCreator apc = new InfrastructureAdvisorAutoProxyCreator();
-		apc.setProxyTargetClass((Boolean) this.enableTx.get("proxyTargetClass"));
-		return apc;
-	}
 }