diff --git a/core/modules/entity_reference/entity_reference.module b/core/modules/entity_reference/entity_reference.module
index 97e9db0..484ca31 100644
--- a/core/modules/entity_reference/entity_reference.module
+++ b/core/modules/entity_reference/entity_reference.module
@@ -93,7 +93,7 @@ function entity_reference_get_selection_handler($field, $instance, EntityInterfa
  * Implements hook_field_is_empty().
  */
 function entity_reference_field_is_empty($item, $field) {
-  if (!empty($item['target_id']) && $item['target_id'] == 'auto_create') {
+  if (empty($item['target_id']) && !empty($item['entity']) && $item['entity']->isNew()) {
     // Allow auto-create entities.
     return FALSE;
   }
@@ -106,44 +106,21 @@ function entity_reference_field_is_empty($item, $field) {
  * Create an entity on the fly.
  */
 function entity_reference_field_presave(EntityInterface $entity, $field, $instance, $langcode, &$items) {
-  global $user;
-  $target_type = $field['settings']['target_type'];
-  $entity_info = entity_get_info($target_type);
-  $bundles = entity_get_bundles($target_type);
-
-  // Get the bundle.
-  if (!empty($instance['settings']['handler_settings']['target_bundles']) && count($instance['settings']['handler_settings']['target_bundles']) == 1) {
-    $bundle = reset($instance['settings']['handler_settings']['target_bundles']);
-  }
-  else {
-    $bundle = reset($bundles);
-  }
-
   foreach ($items as $delta => $item) {
-    if ($item['target_id'] == 'auto_create') {
-      $bundle_key = $entity_info['entity_keys']['bundle'];
-      $label_key = $entity_info['entity_keys']['label'];
-      $values = array(
-        $label_key => $item['label'],
-        $bundle_key => $bundle,
-        // @todo: Use wrapper to get the user if exists or needed.
-        'uid' => isset($entity->uid) ? $entity->uid : $user->uid,
-      );
-      $target_entity = entity_create($target_type, $values);
-      $target_entity->save();
-      $items[$delta]['target_id'] = $target_entity->id();
+    if (empty($item['target_id']) && !empty($item['entity']) &&$item['entity']->isNew()) {
+      $item['entity']->save();
+      $items[$delta]['target_id'] = $item['entity']->id();
     }
   }
 }
 
-
 /**
  * Implements hook_field_validate().
  */
 function entity_reference_field_validate(EntityInterface $entity = NULL, $field, $instance, $langcode, $items, &$errors) {
   $ids = array();
   foreach ($items as $delta => $item) {
-    if ($item['target_id'] !== 'auto_create' && !entity_reference_field_is_empty($item, $field)) {
+    if (!empty($item['target_id']) && !$item['entity'] && !$item['entity']->isNew()) {
       $ids[$item['target_id']] = $delta;
     }
   }
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceEntityFormatter.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceEntityFormatter.php
index 647de08..ae795d0 100644
--- a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceEntityFormatter.php
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceEntityFormatter.php
@@ -95,7 +95,7 @@ public function viewElements(EntityInterface $entity, $langcode, array $items) {
         throw new RecursiveRenderingException(format_string('Recursive rendering detected when rendering entity @entity_type(@entity_id). Aborting rendering.', array('@entity_type' => $entity_type, '@entity_id' => $item['target_id'])));
       }
 
-      if (!empty($item['entity'])) {
+      if (!empty($item['target_id'])) {
         $entity = clone $item['entity'];
         unset($entity->content);
         $elements[$delta] = entity_view($entity, $view_mode, $langcode);
@@ -107,7 +107,7 @@ public function viewElements(EntityInterface $entity, $langcode, array $items) {
       }
       else {
         // This is an "auto_create" item.
-        $elements[$delta] = array('#markup' => $item['label']);
+        $elements[$delta] = array('#markup' => $entity->label());
       }
       $depth = 0;
     }
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceFormatterBase.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceFormatterBase.php
index b360a79..a2efa20 100644
--- a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceFormatterBase.php
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceFormatterBase.php
@@ -64,7 +64,7 @@ public function prepareView(array $entities, $langcode, array &$items) {
       foreach ($items[$id] as $delta => $item) {
         // If we have a revision ID, the key uses it as well.
         $identifier = !empty($item['revision_id']) ? $item['target_id'] . ':' . $item['revision_id'] : $item['target_id'];
-        if ($item['target_id'] != 'auto_create') {
+        if ($item['target_id'] !== 0) {
           if (!isset($target_entities[$identifier])) {
             // The entity no longer exists, so remove the key.
             $rekey = TRUE;
@@ -80,11 +80,7 @@ public function prepareView(array $entities, $langcode, array &$items) {
           }
         }
         else {
-          // This is an "auto_create" item, so allow access to it, as the entity
-          // doesn't exists yet, and we are probably in a preview.
-          $items[$id][$delta]['entity'] = FALSE;
-          // Add the label as a special key, as we cannot use entity_label().
-          $items[$id][$delta]['label'] = $item['label'];
+          // This is an "auto_create" item, just leave the entity in place.
         }
 
         // Mark item as accessible.
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceIdFormatter.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceIdFormatter.php
index fc6dcfc..c2e5bc2 100644
--- a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceIdFormatter.php
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceIdFormatter.php
@@ -34,7 +34,7 @@ public function viewElements(EntityInterface $entity, $langcode, array $items) {
     $elements = array();
 
     foreach ($items as $delta => $item) {
-      if (!empty($item['entity'])) {
+      if (!empty($item['entity']) && !empty($item['target_id'])) {
         $elements[$delta] = array('#markup' => check_plain($item['target_id']));
       }
     }
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceLabelFormatter.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceLabelFormatter.php
index 499edc7..91e7f99 100644
--- a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceLabelFormatter.php
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/formatter/EntityReferenceLabelFormatter.php
@@ -78,10 +78,6 @@ public function viewElements(EntityInterface $entity, $langcode, array $items) {
           $elements[$delta] = array('#markup' => check_plain($label));
         }
       }
-      else {
-        // This is an "auto_create" item.
-        $elements[$delta] = array('#markup' => $item['label']);
-      }
     }
 
     return $elements;
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteTagsWidget.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteTagsWidget.php
index a88f2ea..ad1d0af 100644
--- a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteTagsWidget.php
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteTagsWidget.php
@@ -44,19 +44,18 @@ public function elementValidate($element, &$form_state, $form) {
     $auto_create = isset($this->instance['settings']['handler_settings']['auto_create']) ? $this->instance['settings']['handler_settings']['auto_create'] : FALSE;
 
     if (!empty($element['#value'])) {
-      $entities = drupal_explode_tags($element['#value']);
       $value = array();
-      foreach ($entities as $entity) {
+      foreach (drupal_explode_tags($element['#value']) as $input) {
         $match = FALSE;
 
         // Take "label (entity id)', match the id from parenthesis.
-        if (preg_match("/.+\((\d+)\)/", $entity, $matches)) {
+        if (preg_match("/.+\((\d+)\)/", $input, $matches)) {
           $match = $matches[1];
         }
         else {
           // Try to get a match from the input string when the user didn't use
           // the autocomplete but filled in a value manually.
-          $match = $handler->validateAutocompleteInput($entity, $element, $form_state, $form, !$auto_create);
+          $match = $handler->validateAutocompleteInput($input, $element, $form_state, $form, !$auto_create);
         }
 
         if ($match) {
@@ -64,10 +63,13 @@ public function elementValidate($element, &$form_state, $form) {
         }
         elseif ($auto_create && (count($this->instance['settings']['handler_settings']['target_bundles']) == 1 || count($bundles) == 1)) {
           // Auto-create item. see entity_reference_field_presave().
-          $value[] = array('target_id' => 'auto_create', 'label' => $entity);
+          $value[] = array(
+            'target_id' => 0,
+            'entity' => $this->createNewEntity($input, $element['#autocreate_uid']),
+          );
         }
       }
-    }
+    };
     // Change the element['#parents'], so in form_set_value() we
     // populate the correct key.
     array_pop($element['#parents']);
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteWidget.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteWidget.php
index 57c4b7b..7957968 100644
--- a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteWidget.php
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteWidget.php
@@ -76,8 +76,8 @@ public function elementValidate($element, &$form_state, $form) {
       if (!$value && $auto_create && (count($this->instance['settings']['handler_settings']['target_bundles']) == 1)) {
         // Auto-create item. see entity_reference_field_presave().
         $value = array(
-          'target_id' => 'auto_create',
-          'label' => $element['#value'],
+          'target_id' => 0,
+          'entity' => $this->createNewEntity($element['#value'], $element['#autocreate_uid']),
           // Keep the weight property.
           '_weight' => $element['#weight'],
         );
diff --git a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteWidgetBase.php b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteWidgetBase.php
index 6a8df6f..11ab442 100644
--- a/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteWidgetBase.php
+++ b/core/modules/entity_reference/lib/Drupal/entity_reference/Plugin/field/widget/AutocompleteWidgetBase.php
@@ -53,6 +53,8 @@ public function settingsForm(array $form, array &$form_state) {
    * Implements \Drupal\field\Plugin\Type\Widget\WidgetInterface::formElement().
    */
   public function formElement(array $items, $delta, array $element, $langcode, array &$form, array &$form_state) {
+    global $user;
+
     $instance = $this->instance;
     $field = $this->field;
     $entity = isset($element['#entity']) ? $element['#entity'] : NULL;
@@ -77,6 +79,8 @@ public function formElement(array $items, $delta, array $element, $langcode, arr
       '#size' => $this->getSetting('size'),
       '#placeholder' => $this->getSetting('placeholder'),
       '#element_validate' => array(array($this, 'elementValidate')),
+      // @todo: Use wrapper to get the user if exists or needed.
+      '#autocreate_uid' => isset($entity->uid) ? $entity->uid : $user->uid,
     );
 
     return array('target_id' => $element);
@@ -120,4 +124,39 @@ protected function getLabels(array $items) {
     }
     return $entity_labels;
   }
+
+  /**
+   * Creates a new entity from a label entered in the autocomplete input.
+   *
+   * @param string $label
+   *   The entity label.
+   * @param int $uid
+   *   The entity uid.
+   *
+   * @return \Drupal\Core\Entity\EntityInterface
+   */
+  protected function createNewEntity($label, $uid) {
+    $entity_manager = \Drupal::entityManager();
+    $target_type = $this->field['settings']['target_type'];
+
+    // Get the bundle.
+    if (!empty($this->instance['settings']['handler_settings']['target_bundles']) && count($this->instance['settings']['handler_settings']['target_bundles']) == 1) {
+      $bundle = reset($this->instance['settings']['handler_settings']['target_bundles']);
+    }
+    else {
+      $bundles = entity_get_bundles($target_type);
+      $bundle = reset($bundles);
+    }
+
+    $entity_info = $entity_manager->getDefinition($target_type);
+    $bundle_key = $entity_info['entity_keys']['bundle'];
+    $label_key = $entity_info['entity_keys']['label'];
+
+    return $entity_manager->getStorageController($target_type)->create(array(
+      $label_key => $label,
+      $bundle_key => $bundle,
+      'uid' => $uid,
+    ));
+  }
+
 }