diff --git a/entityreference.handler.inc b/entityreference.handler.inc
index e66b414..144b21c 100644
--- a/entityreference.handler.inc
+++ b/entityreference.handler.inc
@@ -12,9 +12,12 @@ interface EntityReferenceHandler {
    *
    * @param $field
    *   A field datastructure.
+   * @param $instance
+   *   A field instance datastructure.
+   *
    * @return EntityReferenceHandler
    */
-  public static function getInstance($field);
+  public static function getInstance($field, $instance);
 
   /**
    * Return a list of referencable entities.
@@ -22,12 +25,12 @@ interface EntityReferenceHandler {
   public function getReferencableEntities($match = NULL, $match_operator = 'CONTAINS', $limit = 0);
 
   /**
-   * Count entities that are referencable by a given field.
+   * Count entities that are referencable by a given field instance.
    */
   public function countReferencableEntities($match = NULL, $match_operator = 'CONTAINS');
 
   /**
-   * Validate that entities can be referenced by this field.
+   * Validate that entities can be referenced by this field instance.
    *
    * @return
    *   An array of entity ids that are valid.
@@ -47,22 +50,23 @@ interface EntityReferenceHandler {
   /**
    * Generate a settings form for this handler.
    */
-  public static function settingsForm($field);
+  public static function settingsForm($field, $instance);
 }
 
 /**
  * A null implementation of EntityReferenceHandler.
  */
 class EntityReferenceHandler_broken implements EntityReferenceHandler {
-  public static function getInstance($field) {
-    return new EntityReferenceHandler_broken($field);
+  public static function getInstance($field, $instance) {
+    return new EntityReferenceHandler_broken($field, $instance);
   }
 
-  protected function __construct($field) {
+  protected function __construct($field, $instance) {
     $this->field = $field;
+    $this->instance = $instance;
   }
 
-  public static function settingsForm($field) {
+  public static function settingsForm($field, $instance) {
     $form['handler'] = array(
       '#markup' => t('The selected handler is broken.'),
     );
diff --git a/entityreference.info b/entityreference.info
index b5e494a..1f27a57 100644
--- a/entityreference.info
+++ b/entityreference.info
@@ -1,6 +1,7 @@
 name = Entity Reference
 description = Provides a field that can reference other entities.
 core = 7.x
+dependencies[] = system (>7.8)
 dependencies[] = entity
 dependencies[] = ctools
 
diff --git a/entityreference.module b/entityreference.module
index 60230a7..891798a 100644
--- a/entityreference.module
+++ b/entityreference.module
@@ -25,6 +25,14 @@ function entityreference_field_info() {
     'label' => t('Entity Reference'),
     'description' => t('This field reference another entity.'),
     'settings' => array(
+      // Field settings have been moved to instance settings, but keep them
+      // in here too in order to prevent things from blowing up before running
+      // the update function.
+      'target_type' => '',
+      'handler' => '',
+      'handler_settings' => array(),
+    ),
+    'instance_settings' => array(
       // The target entity type, pick node if it exists, or the first entity type if node.
       'target_type' => ($entity_info = entity_get_info()) && isset($entity_info['node']) ? 'node' : key($entity_info),
       // The handler for this field.
@@ -32,7 +40,6 @@ function entityreference_field_info() {
       // The handler settings.
       'handler_settings' => array(),
     ),
-    'instance_settings' => array(),
     'default_widget' => 'entityreference_autocomplete',
     'default_formatter' => 'entityreference_label',
     'property_callbacks' => array('entityreference_field_property_callback'),
@@ -76,16 +83,16 @@ function entityreference_field_is_empty($item, $field) {
  *
  * The handler contains most of the business logic of the field.
  */
-function entityreference_get_handler($field) {
-  $handler = $field['settings']['handler'];
+function entityreference_get_handler($field, $instance) {
+  $handler = $instance['settings']['handler'];
   ctools_include('plugins');
   $class = ctools_plugin_load_class('entityreference', 'handler', $handler, 'handler');
 
   if (class_exists($class)) {
-    return call_user_func(array($class, 'getInstance'), $field);
+    return call_user_func(array($class, 'getInstance'), $field, $instance);
   }
   else {
-    return EntityReferenceHandler_broken::getInstance($field);
+    return EntityReferenceHandler_broken::getInstance($field, $instance);
   }
 }
 
@@ -100,14 +107,14 @@ function entityreference_field_validate($entity_type, $entity, $field, $instance
     }
   }
 
-  $valid_ids = entityreference_get_handler($field)->validateReferencableEntities(array_keys($ids));
+  $valid_ids = entityreference_get_handler($field, $instance)->validateReferencableEntities(array_keys($ids));
 
   $invalid_entities = array_diff_key($ids, array_flip($valid_ids));
   if ($invalid_entities) {
     foreach ($invalid_entities as $id => $delta) {
       $errors[$field['field_name']][$langcode][$delta][] = array(
         'error' => 'entityreference_invalid_entity',
-        'message' => t('The referenced entity (@type: @id) is invalid.', array('@type' => $field['settings']['target_type'], '@id' => $id)),
+        'message' => t('The referenced entity (@type: @id) is invalid.', array('@type' => $instance['settings']['target_type'], '@id' => $id)),
       );
     }
   }
@@ -120,15 +127,15 @@ function entityreference_field_validate($entity_type, $entity, $field, $instance
  */
 function entityreference_field_presave($entity_type, $entity, $field, $instance, $langcode, &$items) {
   foreach ($items as $delta => $item) {
-    $items[$delta]['target_type'] = $field['settings']['target_type'];
+    $items[$delta]['target_type'] = $instance['settings']['target_type'];
   }
 }
 
 /**
- * Implements hook_field_settings_form().
+ * Implements hook_field_instance_settings_form().
  */
-function entityreference_field_settings_form($field, $instance, $has_data) {
-  $settings = $field['settings'];
+function entityreference_field_instance_settings_form($field, $instance) {
+  $settings = $instance['settings'];
 
   // Select the target entity type.
   $entity_type_options = array();
@@ -140,10 +147,10 @@ function entityreference_field_settings_form($field, $instance, $has_data) {
     '#type' => 'select',
     '#title' => t('Target type'),
     '#options' => $entity_type_options,
-    '#default_value' => $field['settings']['target_type'],
+    '#default_value' => $instance['settings']['target_type'],
     '#required' => TRUE,
     '#description' => t('The entity type that can be referenced thru this field.'),
-    '#disabled' => $has_data,
+    '#disabled' => _entityreference_field_instance_has_data($field, $instance),
     '#size' => 1,
     '#ajax' => array(
       'callback' => 'entityreference_settings_ajax',
@@ -188,6 +195,7 @@ function entityreference_field_settings_form($field, $instance, $has_data) {
     '#process' => array('entityreference_render_settings'),
     '#tree' => TRUE,
     '#field' => $field,
+    '#instance' => $instance,
   );
 
   return $form;
@@ -212,11 +220,12 @@ function entityreference_render_settings($element, $form_state) {
 
   // Rebuild the field configuration based on the submitted structure.
   $field = $element['#field'];
-  if (isset($form_state['values']['field']['settings'])) {
-    $field['settings'] = $form_state['values']['field']['settings'] + $field['settings'];
+  $instance = $element['#instance'];
+  if (isset($form_state['values']['instance']['settings'])) {
+    $instance['settings'] = $form_state['values']['instance']['settings'] + $instance['settings'];
   }
 
-  $element += call_user_func(array($class, 'settingsForm'), $field);
+  $element += call_user_func(array($class, 'settingsForm'), $field, $instance);
   return $element;
 }
 
@@ -254,7 +263,7 @@ function entityreference_settings_ajax_submit($form, &$form_state) {
  */
 function entityreference_field_property_callback(&$info, $entity_type, $field, $instance, $field_type) {
   // Set the property type based on the targe type.
-  $field_type['property_type'] = $field['settings']['target_type'];
+  $field_type['property_type'] = $instance['settings']['target_type'];
 
   // Then apply the default.
   entity_metadata_field_default_property_callback($info, $entity_type, $field, $instance, $field_type);
@@ -341,22 +350,22 @@ function entityreference_field_widget_settings_form($field, $instance) {
 /**
  * Implements hook_options_list().
  */
-function entityreference_options_list($field) {
-  return entityreference_get_handler($field)->getReferencableEntities();
+function entityreference_options_list($field, $instance) {
+  return entityreference_get_handler($field, $instance)->getReferencableEntities();
 }
 
 /**
  * Implements hook_query_TAG_alter().
  */
 function entityreference_query_entityreference_alter(QueryAlterableInterface $query) {
-  entityreference_get_handler($query->getMetadata('field'))->entityFieldQueryAlter($query);
+  entityreference_get_handler($query->getMetadata('field'), $query->getMetadata('instance'))->entityFieldQueryAlter($query);
 }
 
 /**
  * Implements hook_field_widget_form().
  */
 function entityreference_field_widget_form(&$form, &$form_state, $field, $instance, $langcode, $items, $delta, $element) {
-  $handler = entityreference_get_handler($field);
+  $handler = entityreference_get_handler($field, $instance);
 
   if ($instance['widget']['type'] == 'entityreference_autocomplete' || $instance['widget']['type'] == 'entityreference_autocomplete_tags') {
 
@@ -380,7 +389,7 @@ function entityreference_field_widget_form(&$form, &$form_state, $field, $instan
     }
 
     // Load those entities and loop through them to extract their labels.
-    $entities = entity_load($field['settings']['target_type'], $entity_ids);
+    $entities = entity_load($instance['settings']['target_type'], $entity_ids);
 
     foreach ($entities as $entity_id => $entity) {
       $label = $handler->getLabel($entity);
@@ -472,7 +481,7 @@ function entityreference_autocomplete_callback($type, $field_name, $entity_type,
     return MENU_ACCESS_DENIED;
   }
 
-  $handler = entityreference_get_handler($field);
+  $handler = entityreference_get_handler($field, $instance);
 
   if ($type == 'tags') {
     // The user enters a comma-separated list of tags. We only autocomplete the last tag.
@@ -581,7 +590,7 @@ function entityreference_field_formatter_settings_summary($field, $instance, $vi
   }
 
   if ($display['type'] == 'entityreference_entity_view') {
-    $entity_info = entity_get_info($field['settings']['target_type']);
+    $entity_info = entity_get_info($instance['settings']['target_type']);
     $summary[] = t('Rendered as @mode', array('@mode' => isset($entity_info['view modes'][$settings['view_mode']]['label']) ? $entity_info['view modes'][$settings['view_mode']]['label'] : $settings['view_mode']));
   }
 
@@ -602,12 +611,14 @@ function entityreference_field_formatter_prepare_view($entity_type, $entities, $
   }
 
   if ($target_ids) {
-    $target_entities = entity_load($field['settings']['target_type'], $target_ids);
-
     // Iterate through the fieldable entities again to attach the loaded data.
     foreach ($entities as $id => $entity) {
       $rekey = FALSE;
 
+      // We need to load the target entities for each entity because instances
+      // can have different target types.
+      $target_entities = entity_load($instances[$id]['settings']['target_type'], $target_ids);
+
       foreach ($items[$id] as $delta => $item) {
         // Check whether the referenced entity could be loaded.
         if (isset($target_entities[$item['target_id']])) {
@@ -637,13 +648,13 @@ function entityreference_field_formatter_view($entity_type, $entity, $field, $in
 
   switch ($display['type']) {
     case 'entityreference_label':
-      $handler = entityreference_get_handler($field);
+      $handler = entityreference_get_handler($field, $instance);
 
       foreach ($items as $delta => $item) {
         $label = $handler->getLabel($item['entity']);
         // If the link is to be displayed and the entity has a uri, display a link.
         // Note the assignment ($url = ) here is intended to be an assignment.
-        if ($display['settings']['link'] && ($uri = entity_uri($field['settings']['target_type'], $item['entity']))) {
+        if ($display['settings']['link'] && ($uri = entity_uri($instance['settings']['target_type'], $item['entity']))) {
           $result[$delta] = array('#markup' => l($label, $uri['path'], $uri['options']));
         }
         else {
@@ -663,7 +674,7 @@ function entityreference_field_formatter_view($entity_type, $entity, $field, $in
 
         $entity = clone $item['entity'];
         unset($entity->content);
-        $result[$delta] = entity_view($field['settings']['target_type'], array($item['target_id'] => $entity), $display['settings']['view_mode'], $langcode, FALSE);
+        $result[$delta] = entity_view($instance['settings']['target_type'], array($item['target_id'] => $entity), $display['settings']['view_mode'], $langcode, FALSE);
         $depth = 0;
       }
       break;
@@ -673,6 +684,30 @@ function entityreference_field_formatter_view($entity_type, $entity, $field, $in
 }
 
 /**
+ * Determines whether a field instance has any data.
+ *
+ * @param $field
+ *   A field structure.
+ * @param $instance
+ *   An instance structure.
+ *
+ * @return
+ *   TRUE if the field has data for any entity; FALSE otherwise.
+ *
+ * @see field_has_data()
+ */
+function _entityreference_field_instance_has_data($field, $instance) {
+  $query = new EntityFieldQuery();
+  return (bool) $query
+    ->fieldCondition($field)
+    ->entityCondition('entity_type', $instance['entity_type'])
+    ->entityCondition('bundle', $instance['bundle'])
+    ->range(0, 1)
+    ->count()
+    ->execute();
+}
+
+/**
  * Exception thrown when the entity view renderer goes into a potentially infinite loop.
  */
 class EntityReferenceRecursiveRenderingException extends Exception {}
diff --git a/handler/base.inc b/handler/base.inc
index 1a122df..2e310ff 100644
--- a/handler/base.inc
+++ b/handler/base.inc
@@ -17,25 +17,26 @@ class EntityReferenceHandler_base implements EntityReferenceHandler {
   /**
    * Implements EntityReferenceHandler::getInstance().
    */
-  public static function getInstance($field) {
-    $entity_type = $field['settings']['target_type'];
+  public static function getInstance($field, $instance) {
+    $entity_type = $instance['settings']['target_type'];
     if (class_exists($class_name = 'EntityReferenceHandler_' . $entity_type)) {
-      return new $class_name($field);
+      return new $class_name($field, $instance);
     }
     else {
-      return new EntityReferenceHandler_base($field);
+      return new EntityReferenceHandler_base($field, $instance);
     }
   }
 
-  protected function __construct($field) {
+  protected function __construct($field, $instance) {
     $this->field = $field;
+    $this->instance = $instance;
   }
 
   /**
    * Implements EntityReferenceHandler::settingsForm().
    */
-  public static function settingsForm($field) {
-    $entity_info = entity_get_info($field['settings']['target_type']);
+  public static function settingsForm($field, $instance) {
+    $entity_info = entity_get_info($instance['settings']['target_type']);
     $bundles = array();
     foreach ($entity_info['bundles'] as $bundle_name => $bundle_info) {
       $bundles[$bundle_name] = $bundle_info['label'];
@@ -45,7 +46,7 @@ class EntityReferenceHandler_base implements EntityReferenceHandler {
       '#type' => 'select',
       '#title' => t('Target bundles'),
       '#options' => $bundles,
-      '#default_value' => isset($field['settings']['handler_settings']['target_bundles']) ? $field['settings']['handler_settings']['target_bundles'] : array(),
+      '#default_value' => isset($instance['settings']['handler_settings']['target_bundles']) ? $instance['settings']['handler_settings']['target_bundles'] : array(),
       '#size' => 6,
       '#multiple' => TRUE,
       '#description' => t('The bundles of the entity type that can be referenced. Optional, leave empty for all bundles.')
@@ -58,7 +59,7 @@ class EntityReferenceHandler_base implements EntityReferenceHandler {
    */
   public function getReferencableEntities($match = NULL, $match_operator = 'CONTAINS', $limit = 0) {
     $options = array();
-    $entity_type = $this->field['settings']['target_type'];
+    $entity_type = $this->instance['settings']['target_type'];
 
     $query = $this->buildEntityFieldQuery($match, $match_operator);
     if ($limit > 0) {
@@ -92,7 +93,7 @@ class EntityReferenceHandler_base implements EntityReferenceHandler {
    */
   public function validateReferencableEntities(array $ids) {
     if ($ids) {
-      $entity_type = $this->field['settings']['target_type'];
+      $entity_type = $this->instance['settings']['target_type'];
       $query = $this->buildEntityFieldQuery();
       $query->entityCondition('entity_id', $ids, 'IN');
       $result = $query->execute();
@@ -109,21 +110,22 @@ class EntityReferenceHandler_base implements EntityReferenceHandler {
    */
   protected function buildEntityFieldQuery($match = NULL, $match_operator = 'CONTAINS') {
     $query = new EntityFieldQuery();
-    $query->entityCondition('entity_type', $this->field['settings']['target_type']);
-    if ($this->field['settings']['handler_settings']['target_bundles']) {
-      $query->entityCondition('bundle', $this->field['settings']['handler_settings']['target_bundles'], 'IN');
+    $query->entityCondition('entity_type', $this->instance['settings']['target_type']);
+    if ($this->instance['settings']['handler_settings']['target_bundles']) {
+      $query->entityCondition('bundle', $this->instance['settings']['handler_settings']['target_bundles'], 'IN');
     }
     if (isset($match)) {
-      $entity_info = entity_get_info($this->field['settings']['target_type']);
+      $entity_info = entity_get_info($this->instance['settings']['target_type']);
       if (isset($entity_info['entity keys']['label'])) {
         $query->propertyCondition($entity_info['entity keys']['label'], $match, $match_operator);
       }
     }
 
     // Add a generic entity access tag to the query.
-    $query->addTag($this->field['settings']['target_type'] . '_access');
+    $query->addTag($this->instance['settings']['target_type'] . '_access');
     $query->addTag('entityreference');
     $query->addMetaData('field', $this->field);
+    $query->addMetaData('instance', $this->instance);
 
     return $query;
   }
@@ -160,7 +162,7 @@ class EntityReferenceHandler_base implements EntityReferenceHandler {
    * Implements EntityReferenceHandler::getLabel().
    */
   public function getLabel($entity) {
-    return entity_label($this->field['settings']['target_type'], $entity);
+    return entity_label($this->instance['settings']['target_type'], $entity);
   }
 }
 
diff --git a/views/entityreference.views.inc b/views/entityreference.views.inc
index 76cbc2b..83479aa 100644
--- a/views/entityreference.views.inc
+++ b/views/entityreference.views.inc
@@ -10,25 +10,38 @@
  */
 function entityreference_field_views_data($field) {
   $data = field_views_field_default_views_data($field);
-  $entity_info = entity_get_info($field['settings']['target_type']);
-  foreach ($data as $table_name => $table_data) {
-    if (isset($entity_info['base table'])) {
-      $entity = $entity_info['label'];
-      if ($entity == t('Node')) {
-        $entity = t('Content');
+
+  // Collect target type data for every field instance.
+  $entity_infos = array();
+  foreach ($field['bundles'] as $entity_type => $entity_bundles) {
+    foreach ($entity_bundles as $entity_bundle) {
+      $instance = field_info_instance($entity_type, $field['field_name'], $entity_bundle);
+      if (!isset($entity_infos[$entity_type])) {
+        $entity_infos[$entity_type] = entity_get_info($instance['settings']['target_type']);
       }
+    }
+  }
 
-      $field_name = $field['field_name'] . '_target_id';
-      $parameters = array('@entity' => $entity, '!field_name' => $field['field_name']);
-      $data[$table_name][$field_name]['relationship'] = array(
-        'handler' => 'views_handler_relationship',
-        'base' => $entity_info['base table'],
-        'base field' => $entity_info['entity keys']['id'],
-        'label' => t('@entity entity referenced from !field_name', $parameters),
-        'group' => t('Entity Reference'),
-        'title' => t('Referenced Entity'),
-        'help' => t('A bridge to the @entity entity that is referenced via !field_name', $parameters),
-      );
+  foreach ($entity_infos as $entity_info) {
+    foreach ($data as $table_name => $table_data) {
+      if (isset($entity_info['base table'])) {
+        $entity = $entity_info['label'];
+        if ($entity == t('Node')) {
+          $entity = t('Content');
+        }
+
+        $field_name = $field['field_name'] . '_target_id';
+        $parameters = array('@entity' => $entity, '!field_name' => $field['field_name']);
+        $data[$table_name][$field_name]['relationship'] = array(
+          'handler' => 'views_handler_relationship',
+          'base' => $entity_info['base table'],
+          'base field' => $entity_info['entity keys']['id'],
+          'label' => t('@entity entity referenced from !field_name', $parameters),
+          'group' => t('Entity Reference'),
+          'title' => t('Referenced Entity'),
+          'help' => t('A bridge to the @entity entity that is referenced via !field_name', $parameters),
+        );
+      }
     }
   }